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B-277814 1 (1997-10-20)

handle is hein.gao/gaobablsb0001 and id is 1 raw text is: G AO United States General Accounting Office Washington, D.C. 20548 Office of the General Counsel B-277814 October 20, 1997 The Honorable John R. Kasich Chairman, Committee on the Budget House of Representatives Dear Mr. Chairman: This is in response to your letter of August 13, 1997, written jointly with Chairman Bud Shuster, requesting our opinion on several questions pertaining to the National Railroad Passenger Corporation (Amtrak). You asked whether any changes in law warranted altering our 1985 opinion (1) that the United States would not be liable for Amtrak's labor protection obligations in the event of a partial or complete discontinuance of passenger service, and (2) that Amtrak and its employees could not negotiate changes to existing labor protection arrangements without legislation. You also asked whether Amtrak and its employees could mutually agree to alter the current statutory restriction on Amtrak's contracting out of non-food service work. Finally, you asked whether Amtrak's pending non-labor protection liabilities would be attributable to the United States in the event of an Amtrak bankruptcy. We understand that your request was prompted, at least in part, by Amtrak's current precarious financial situation, exacerbated by the possibility of a strike this month by the Amtrak employees who maintain the tracks, bridges, buildings and other structures on Amtrak-owned rights-of-way. As we pointed out in our 1985 opinion, B-217662, Mar. 18, 1985, legitimate differences of opinion exist with respect to questions about the rights and obligations of the United States in the event of an Amtrak bankruptcy. For the reasons stated below, we continue to believe (1) that the United States would not be liable for the labor protection obligations arising from a partial or complete discontinuance of passenger service, and (2) that modifications to Amtrak's labor protection obligations would require legislation. We also conclude that Amtrak labor and management are not free to alter the current restriction on Amtrak's contracting out of non-food service work. Further, we do not believe that the 10281020

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