The committee representing U.S. freight railroads in labor talks with their union workers on Wednesday said the settlement recommendations from President Joe Biden's emergency board represent "the most substantial wage increases in decades," but that they are ready to reach agreements based on the findings.

The National Carriers Conference Committee (NCCC), which represents railroads including Union Pacific, Berkshire Hathaway-owned BNSF and CSX, have been in contract talks with unions representing 115,000 workers for more than two years. Biden appointed a presidential emergency board (PEB) last month to break the impasse and the board released its findings to interested parties on Tuesday.

"The railroads are prepared to meet with the rail unions and reach agreements based on the PEB report without delay," the NCCC said.

Railroads are vital to the transport of necessities ranging from fuel oil and soybeans. A lockout or strike could snarl supply chains, stoke inflation and pressure the already fragile U.S. economy.

Susquehanna railroad analyst Bascome Majors in a note titled "State of the Unions - Neither Side Will Love the PEB Report" said the board split the difference between the unions' wage ask and the railroads' offer right down the middle.

While the board's recommended wage terms significantly exceed those proposed by the carriers, NCCC said it is in the best interests of customers, employees, and the public - "for the railroads and rail labor organizations to settle this dispute and prevent service disruptions."

The NCCC said PEB recommendations would increase wages by 24% during the five-year period through 2024, with a 14.1% wage increase effective immediately.

The recommendations also include five annual $1,000 lump-sum payments, adjustments to healthcare premiums, and limited changes to work rules. A portion of the wage increases and lump- sum payments would be retroactive, resulting in more than $11,000 on average in immediate payouts to employees.

Factoring in healthcare, retirement and other benefits, employees' total compensation would average more than $150,000 per year.

Union representatives did not immediately respond to requests for comment.

Shares in Union Pacific and CSX slipped 1.2% at midday.

The two sides are now in a final 30-day cooling-off period, where leaders will strive to negotiate a voluntary settlement based on the recommendations.

If they don't reach a deal by 12:01 a.m. EDT on Sept. 16, a strike or lockout becomes legally possible. Missing that deadline also opens the door for Congress to intervene.