|
On
Friday President Joe Biden signed legislation to block a rail
shutdown that could have devastated the American economy. But
the deal he approved did not include paid sick days for workers,
a key sticking point for unions in contract talks with five
major U.S. railroads.
Proposals seen by Reuters filed by activist investors ask
Norfolk Southern Corp and Union Pacific Corp to offer "a
reasonable amount" of paid sick time, determined by company
directors. If accepted each resolution would appear as a ballot
item at the railroads' springtime shareholder meetings.
Kate Monahan, a director at Trillium Asset Management, the
socially minded investor that filed the resolution at Union
Pacific, said more flexible sick time would have broader
benefits like reducing workforce turnover.
"There’s a clear business case that makes sense to us as
investors," she said.
A Union Pacific representative did not comment on the
resolution, but referred to a trade group statement that
industry employees already receive substantial time and leave
for longer-term illnesses.
A Norfolk Southern representative declined to comment.
Resolutions about worker welfare have drawn more support at
corporate annual meetings in recent years amid the COVID-19
pandemic. Voting on the resolutions would not be binding.
Railroads worry implementing paid sick leave would require more
employees at a time when many have cut their workforces
dramatically. Had sick time been included in recent federal
legislation it would cut U.S. rail earnings 1.5% to 2%,
Susquehanna analyst Bascome Majors wrote in a Nov. 30 investor
note.
(Reporting by Ross Kerber in Boston, Additional reporting by
Lisa Baertlein in Los Angeles; Editing by Cynthia Osterman)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
