(a) Any transportation company or transportation organization financed in whole or in part directly or indirectly by the Regional Rail Reorganization Act of 1973¹ and the Railroad Revitalization and Regulatory Reform Act of 1976,² any of which are hereinafter referred to in this section as the operator, effective as of the date of a conveyance or lease to it, of any project or part thereof, shall offer employment to the employees of the former operator as of the effective date of the conveyance or lease; or, in the case of a partial conveyance or lease, to such number of the employees of the former operator as may be agreed upon as the result of negotiations with the representatives of the various classes or crafts involved, which agreement shall specify the manner in which such employees will be identified and assigned to positions on the project or portion of the project involved. If no agreement with respect to the matters referred to in this subsection is reached by the end of 15 days after the commencement of negotiations, the parties shall within an additional seven days select a neutral referee and, in the event they are unable to agree upon the selection of such referee, then the Secretary of Labor and Industry of Pennsylvania shall immediately appoint a referee. After a referee has been designated, a hearing on the dispute shall commence as soon as practicable. Not less than seven days prior to the effective date of any conveyance or lease pursuant to the provisions of this act, the referee shall resolve and decide all matters in dispute with respect to the negotiation of said implementing agreement or agreements and shall render a decision which shall be final and binding and shall constitute the implementing agreement or agreements between the parties with respect to the transaction involved. Such agreement shall be made or decision rendered prior to the effective date of the conveyance or lease.

(b) The employees so employed shall be given seniority credit and sick leave, vacation, insurance and pension credits in accordance with the records and labor agreements from the acquired transportation system. Members and beneficiaries of any pension or retirement system or other benefits established by the grantor or lessor shall continue to have rights, privileges, benefits, obligations and status with respect to such established system. The operator shall assume the obligations of any transportation system acquired by it with regard to wages, salaries, hours, working conditions, sick leave, health and welfare and pension or retirement provisions for employees. The operator shall assume the provisions of all the collective bargaining agreements under which the newly acquired employees formerly worked, as modified by the implementing agreement, as though an original party thereto. Such employees shall be entitled to maintain the collective bargaining units existing at the time of the conveyance or lease. The operator and the employees through their representatives for collective bargaining purposes shall take whatever action may be necessary to have pension trust funds under the joint control of the acquired transportation system and the participating employees through their representatives transferred to the trust fund to be established, maintained and administered jointly by them.

(c) In the event that an employee who has been tendered and who has accepted employment with the operator is entitled to protection under the terms of the Regional Rail Reorganization Act of 1973 or the Railroad Revitalization and Regulatory Reform Act of 1976, he shall be afforded such protection by the operator, which will for this purpose be an “acquiring railroad” as set forth in such act.