ABSTRACT
Conrail is a private corporation that was created out of the Penn Central and six other bankrupt railroads in an attempt to preserve freight and commuter passenger service in the Northeast and Midwest. Since 1976, the federal government has been supporting Conrail's freight and commuter services and currently owns an estimated $2.3 billion in Conrail stock. The reconciliation act specified a number of changes that were aimed at improving Conrail's profitability and hence its salability as an entity by the 1984 deadline. The reconciliation act also made significant changes in Conrail's labor protection plan in order to increase Conrail's profitability. Conrail's labor protection plan had provided furloughed employees with large income allowances and all employees with generous health and welfare benefits and compensation for moving and retraining costs. Appropriations actions lowered the amount available to Conrail in fiscal year 1982 from the reconciliation authorization limit.
