45 U.S.C. § 906 — Guarantee of trustee certificates

Page 227 TITLE 45—RAILROADS § 906 (e) Furnishing of reports and other information for preparation of plan (1) The trustee of the Milwaukee Railroad shall promptly provide to the person engaged in developing the employee or employee and ship- per ownership plan under this section— (A) its most recent reports on the physical condition of the railroad; and (B) traffic, revenue, marketing, and other data necessary to determine the amount of the acquisition cost of the railroad or portion of the railroad that would be required to con- tinue rail transportation over the railroad line. (2) Information provided pursuant to this sub- section shall be used only for purposes of pre- paring a plan and shall not be disclosed to any competitor or, unless necessary in connection with the preparation of the plan, to any cus- tomer of the Milwaukee Railroad. (Pub. L. 96–101, § 6, Nov. 4, 1979, 93 Stat. 738.) Statutory Notes and Related Subsidiaries ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF FUNCTIONS Interstate Commerce Commission abolished and func- tions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 1302 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appro- priate, see section 205 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. § 906. Guarantee of trustee certificates (a) to (c) Omitted (d) Authorization The Secretary of Transportation shall, under the authority of the Emergency Rail Services Act of 1970 [45 U.S.C. 661 et seq.], immediately guarantee trustee certificates of the Milwaukee Railroad, on the basis of an estimate of the amount required to be provided under sub- section (e) of this section, for purposes of allow- ing the Milwaukee Railroad, commencing No- vember 1, 1979, to maintain its entire railroad system in accordance with section 920 of this title, and as required to finance operations which the Milwaukee Railroad continues for the 60-day period beginning on the date of the occur- rence of an event described in section 920(b) of this title or on April 1, 1980, whichever first oc- curs. Such guarantee shall be made without re- gard to the findings set forth in section 3(a) of the Emergency Rail Services Act of 1970 [45 U.S.C. 662(a)], and the provisions of section 3(b)(3) [45 U.S.C. 662(b)(3)] and the last two sen- tences of section 3(d) of such Act [45 U.S.C. 662(d)] shall not apply to such guarantee. (e) Amount of guarantee The Secretary shall guarantee trustee certifi- cates of the Milwaukee Railroad pursuant to this section in an amount equal to the difference between (1) the total expenses incurred by such railroad attributable to the maintenance and the continuation of service in accordance with subsection (d) of this section, and (2) the reve- nues of such railroad. (f) Subordination of claims Notwithstanding the provisions of section 3(c) of the Emergency Rail Services Act of 1970 [45 U.S.C. 662(c)], certificates guaranteed under this chapter shall be subordinated to the claims of any creditors of the Milwaukee Railroad as of November 4, 1979. (g) Availability of funds The Commission shall immediately make available to the Secretary of Transportation the sum of $10,000,000, out of funds available for di- rected service under title 49. The Secretary of Transportation shall immediately make such funds available to the trustee of the Milwaukee Railroad for purposes of financing the oper- ations of the Milwaukee Railroad, beginning No- vember 1, 1979, in accordance with section 920 of this title. (h) Cancellation of United States obligations (1) All obligations to the United States or any agency or instrumentality of the United States incurred pursuant to this section by the Mil- waukee Railroad or the trustee of the property of the Milwaukee Railroad shall be waived and canceled when— (A) the Milwaukee Railroad is reorganized as an operating rail carrier; or (B) substantially all of the Milwaukee Rail- road is purchased. (2) For purposes of this subsection, substan- tially all of the Milwaukee Railroad shall be considered as having been purchased when (A) more than 50 percent of the rail system operated by the Milwaukee Railroad on October 14, 1980, has been purchased, and (B) more than 50 per- cent of the employees employed by the Mil- waukee Railroad on October 14, 1980, have ob- tained employment with other rail carriers. (Pub. L. 96–101, § 7(less (a)–(c)), Nov. 4, 1979, 93 Stat. 740; Pub. L. 96–448, title VII, § 701(c)(1), Oct. 14, 1980, 94 Stat. 1961.) Editorial Notes REFERENCES IN TEXT The Emergency Rail Services Act of 1970, referred to in subsec. (d), is Pub. L. 91–663, Jan. 8, 1971, 84 Stat. 1975, which is classified generally to chapter 15 (§ 661 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 661 of this title and Tables. Directed service under title 49, referred to in subsec. (g), probably refers to directed service under section 11125 of Title 49, Transportation, prior to the general amendment of subtitle IV of Title 49, by Pub. L. 104–88, § 102(a). CODIFICATION Subsecs. (a) to (c) of this section amended section 662 of this title. AMENDMENTS 1980—Subsec. (h). Pub. L. 96–448 added subsec. (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–448 effective Oct. 14, 1980, see section 710(d) of Pub. L. 96–448, set out as a note under section 1170 of Title 11, Bankruptcy. Page 228 TITLE 45—RAILROADS § 907 ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF FUNCTIONS Interstate Commerce Commission abolished and func- tions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 1302 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appro- priate, see section 205 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. § 907. Railroad hiring Each person who is an employee of the Mil- waukee Railroad on September 30, 1979, and who is separated or furloughed from his employment with such railroad (other than for cause) prior to April 1, 1984, as a result of a reduction of serv- ice by such railroad shall, unless found to be less qualified than other applicants, have the first right of hire by any other rail carrier that is subject to regulation by the Commission for any vacancy that is not covered by (1) an affirmative action plan, or a hiring plan designed to elimi- nate discrimination, that is required by Federal or State statute, regulation, or executive order, or by the order of a Federal court or agency, or (2) a permissible voluntary affirmative action plan. For purposes of this section, a rail carrier shall not be considered to be hiring new employ- ees when it recalls any of its own furloughed employees. (Pub. L. 96–101, § 8, Nov. 4, 1979, 93 Stat. 740; Pub. L. 97–468, title II, § 236(a), Jan. 14, 1983, 96 Stat. 2547.) Editorial Notes AMENDMENTS 1983—Pub. L. 97–468 substituted ‘‘April 1, 1984’’ for ‘‘April 1, 1981’’. Statutory Notes and Related Subsidiaries ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF FUNCTIONS Interstate Commerce Commission abolished and func- tions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 1302 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appro- priate, see section 205 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. EXEMPTION OF NATIONAL RAILROAD PASSENGER COR- PORATION IN HIRING QUALIFIED TRAIN AND ENGINE EMPLOYEES Section inapplicable to National Railroad Passenger Corporation in hiring of qualified train and engine em- ployees holding seniority rights to work in intercity rail passenger service in connection with the assump- tion by such Corporation of functions previously per- formed under contract by other carriers, see section 4011(c) of Pub. L. 99–272, set out as a note under section 797b of this title. § 908. Employee protection agreements (a) Agreement between Milwaukee Railroad and labor organizations The Milwaukee Railroad and labor organiza- tions representing the employees of such rail- road may, not later than 20 days after November 4, 1979, enter into an agreement providing pro- tection for employees of such railroad who are adversely affected as a result of a reduction in service by such railroad or a restructuring transaction carried out by such railroad. Such employee protection may include, but need not be limited to, interim employee assistance, moving expenses, employee relocation incentive compensation, and separation allowances. (b) Submission of matter to National Mediation Board If the Milwaukee Railroad and the labor orga- nizations representing the employees of such railroad are unable to enter into an employee protection agreement under subsection (a) of this section within 20 days after November 4, 1979, the parties shall immediately submit the matter to the National Mediation Board. The National Mediation Board shall attempt, by me- diation, to bring the parties to an agreement with respect to employee protection no later than 40 days after November 4, 1979. (c) Fair and equitable agreements (1) If the National Mediation Board is unable to bring the parties to an agreement under sub- section (b) of this section within 40 days after November 4, 1979, the Milwaukee Railroad and the labor organizations representing the em- ployees of such railroad shall immediately enter into an employee protection agreement that is fair and equitable. (2) If an employee protection agreement is en- tered into under this subsection, any claim of an employee for benefits and allowances under such agreement shall be filed with the Board in such time and manner as the Board by regulation shall prescribe. The Board shall determine the amount for which such employee is eligible under such agreement and shall certify such amount to the Milwaukee Railroad for payment. (d) Payment of benefits and allowances Benefits and allowances under an employee protection agreement entered into under this section shall be paid by the Milwaukee Railroad in accordance with section 914 of this title, and claims of employees for such benefits and allow- ances shall be treated as administrative ex- penses of the estate of the Milwaukee Railroad. (Pub. L. 96–101, § 9, Nov. 4, 1979, 93 Stat. 741.) § 909. Supplementary unemployment insurance (a) Eligible employees Any employee of the Milwaukee Railroad— (1) who (A) is employed by the restructured Milwaukee Railroad, and (B) is separated from that employment by reason of any reduction in service by such railroad prior to April 1, 1984; or (2) who (A) is separated from his employ- ment with the Milwaukee Railroad in connec- tion with a restructuring transaction carried