Reagan Moves to Avert Chicago Rail Strike
President Reagan intervened Wednesday to head off a threatened strike against the Chicago & North Western Transportation Co. by naming an emergency board to investigate the railroad’s contract dispute with the United Transportation Union.
In addition to being a major freight hauler, the Chicago & North Western is the principal commuter rail service in the Chicago area.
Under the Railway Labor Act, the board will report to the President in 30 days with its recommendations for a settlement. The parties then must try to resolve their differences without a strike during the succeeding 30 days.
Company officials said they could save more than $50 million a year by cutting the two brakemen from current crews of four or five, which include engineers and conductors. The union has threatened to strike Friday over the issue.
The White House said the National Mediation Board found that a strike would threaten to deprive several Midwestern states of essential transportation services.
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