SMART Transportation Division leaders have multiple discussions scheduled today as they continue to evaluate the recommendations made by Presidential Emergency Board 250.
As the release of the PEB recommendations is the first step in the final stage of the Railway Labor Act process, SMART-TD will act judiciously as the PEB’s findings are examined.
While other sources may rush to respond, your union is committed to sharing factual information regarding the PEB while achieving the best outcome possible for rail labor. There will be additional updates from SMART Transportation Division President Jeremy Ferguson as the situation evolves.
Presidential Emergency Board 250 has released its recommendations regarding the dispute between the United Rail Unions and the National Carriers Conference Committee over National Railroad Contract negotiations.
Meetings are scheduled at 4 p.m. (Eastern) Aug. 16 among the United Rail Unions leadership and later with the SMART-TD negotiating team regarding the PEB’s findings and what the options and next steps forward may be.
SMART Transportation Division President Jeremy Ferguson plans to issue comments on the recommendations after discussions with the District I General Chairpersons are concluded.
From left, Local Chairperson Chris Bond (Local 513, Gainesville Texas); Local Chairperson Steve Groat (Local 329, Boone, Iowa); General Chairperson Matt Burkart (GCA-341); SMART Transportation Division President Jeremy Ferguson and AFL-CIO Transportation Trades Department President Greg Regan wait to deliver their testimony before the Surface Transportation Board on April 26, 2022.
Video recap of the damning testimony on rail carrier policies.
On April 26, SMART Transportation Division President Jeremy Ferguson and three members of the union shed light April 26 on the devastating effects Precision Scheduled Railroading (PSR) has had on customers and labor alike before the Surface Transportation Board (STB).
Their testimony came on the first day of STB’s hearing on “Urgent Issues in Freight Rail Service” convened in Washington, D.C.
“As professionals, it’s painful to watch our shippers get bad service or no service at all, much higher rates, destroyed product and equipment, and in some cases having to resort to shipping by truck whenever possible,” President Ferguson said. “I want to make our voice heard that we stand with the shippers who want our professional service to keep the supply chain open and keep this country’s economy moving.”
President Ferguson’s testimony will begin immediately upon clicking the image.
President Ferguson referred back to the “safest and most productive era” of railroading years ago with more service flexibility, proper maintenance and full extra boards that has now been sacrificed for the higher stock prices sought by Wall Street investors through the implementation of PSR.
“Thousands of men and women have been laid off with reckless abandon while no consideration has been given to the service that has ultimately been forsaken,” he said. “All that is known to us and our members at this point is that the railroads are dead set on achieving the lowest operating ratio attainable at any cost.”
“Railroading, once revered as one of the most-coveted blue-collar jobs in the world, is now hemorrhaging employees at unprecedented rates because of the abusive work environments PSR has created. Truth is, employees are leaving the industry faster than the railroads can hire.”
He referenced the “Hi-Viz” attendance policy that BNSF implemented in February several times, stated that its implementation has led to the departure of 1,000 workers who were forced to choose between trying to attain enough sleep to safely work their next shift or try to spend limited time with family for a undervalued employee that often has only one day off a month.
“Now, because of PSR, two choices exist for rail labor: Work or be fired,” President Ferguson said.
Brother Burkart’s testimony will begin immediately upon clicking the image.
General Chairperson Matt Burkart (GCA-341), a fourth-generation railroad worker, yardmaster and member of Local 1975 (Kansas City, Mo.), testified that the relative simplicity of railroading over its nearly two centuries in the United States is being violated.
“It takes three things to railroad: Power, crew and rail. That’s it. Something to pull it, somebody to move it and something to run on,” said Burkart, a former member of management. “You give us those three things and we can run all day long. We’re not running all day long right now.”
Burkart mentioned the lengthy trains PSR has brought, many which exceed 10,000 feet when yards and sidings were made to accommodate World War II-era lengths of 3,000 feet. Not only does it take more moves to build or put a train away, it also takes more time, thus burning through the crew base.
Brother Burkart also brought to light our equipment, including the hand-held radios supplied to our members, were not made to accommodate these types of train lengths either, stating that, “the radios do not work with the longer trains, hampering the crew’s ability to communicate when inspecting larger trains” he said.
“It just doesn’t make sense, it’s perpetuating manpower issues, it’s dangerous, and it’s not servicing our customers. All of it’s bad,” Burkart said.
And, lastly, BNSF, contrary to belief, has implemented PSR and has imposed its own data-driven metrics based on reducing resources and headcount for years, Burkart said.
He offered a pair of simple solutions looking back a decade and a half:
“It takes planning. It takes common sense,” Burkart said. “Two things can be legislated today: a maximum of 8,000 foot on trains. We don’t need these three-mile-long monsters running around. We need to disincentivize any reason to ever store a locomotive. In Donley Creek we have five miles of engines stored. There’s no reason for a train to sit without power.”
Brother Groat’s testimony will appear immediately upon clicking the image.
Also testifying was Local Chairperson Steve Groat (Local 329 — Boone, Iowa), a Union Pacific engineer, who mentioned the slower velocity caused by inadequate track maintenance, derailments and mechanical failures caused, in part, by long trains.
“Since the increase in train lengths, I’ve noticed more hard wear,” he said — broken cars split in half, drawbars and knuckles being left on the ground. “These train lengths increase the in-train force that stresses the components that don’t normally fail.”
Travel times for trains also have increased and locomotive use hasn’t been efficient, Groat told the board.
“This is like hooking up a 28-foot camper to a Toyota Prius and trying to drive to Colorado,” he said. “At what time do you expect the engine to fail or a component of the locomotive to fail?”
Brother Bond’s testimony will appear immediately upon clicking the image.
Local Chairperson Chris Bond (Local 513 — Gainesville, Texas), an engineer, spoke about BNSF’s throttle and power limitations that had been rescinded April 15 after the STB hearing had been announced.
“The carrier has put profit over everything,” Bond said. “Over customer service, over employees, even over safety.”
Hi-Viz also has caused an employee exodus and a personnel shortage at the carrier when there wasn’t one before, Bond said.
“This new policy has employees resigning in record numbers. I have several employees who are facing discipline and possible dismissal right now,” he said, including a single mother who has staggered custody of her child, now facing potential termination as a result of Hi-Viz.
“With BNSF losing people because of resignations and terminations, they’ve attempted to recall furloughed employees that are hearing of the current work environment and choosing not to return,” Bond said. “The new conductor trainees who are hiring on are quitting almost right away.”
The testimony from SMART-TD was preceded by Transportation Trades Department, AFL-CIO President Greg Regan, who recently detailed PSR-related meltdowns that have adversely affected shippers.
“The workers represented by TTD-affiliated unions have been sounding the alarm on the state of the freight-rail industry for years,” he said. “It’s deeply unfortunate but completely predictable that we would find ourselves here today as both railroad employees and customers sit before you to express a shared simple fact — that today’s freight-rail network is not working for anyone other than railroad investors.”
Regan reminded STB members that Class I railroads shrank their workforce well before the pandemic by 29 percent over the last six years — about 45,000 jobs and were making the system less flexible by storing equipment.
“The elimination of jobs across all crafts of the freight rail network has undoubtedly contributed to operational breakdowns and service degradation, including the ability to operate, inspect, maintain and repair every component of a railroad.”
He mentioned service disruptions experienced by customers of BNSF, Union Pacific and Norfolk Southern in recent months.
“For as long as these railroads continue along their current path, these meltdowns and service degradations will continue,” Regan said.
Brotherhood of Locomotive Engineers and Trainmen Vice President Mark L. Wallace also testified on behalf of labor.
LOS ANGELES, (August 4, 2022) — The efforts by the SMART-TD General Committee of Adjustment GO 875 negotiation team have resulted in a new agreement for the bus and rail operators of the Los Angeles County Metropolitan Transportation Authority (LACMTA), which serves more than 10 million people in the nation’s most-populous county within a 1,433-square-mile service area.
On Friday, July 29, 2022, the California Mediation and Conciliation Service tabulated votes and reported 68.5% of voters had approved the agreement.
Bottom left: Office Secretary Rosana Santana; Operations Manager Maria Magallon; and Administrative Assistant Iveth Lopez. Top, from left, negotiation consultant Victor Baffoni; Local 1607 Chairperson Julio Mejia; GCA Secretary and Local 1564 Chairperson Andy Carter; General Chairperson John M. Ellis; Local 1608 Chairperson Edgar Menendez; Vice General Chairperson/Local 1565 Chairperson Quintin Wormley; Local 1563 Chairperson Robert Gonzalez and Local 1565 Chairperson (Rail) Johnny Cabanas celebrate the announcement of the LACMTA contract ratification by members.
General Chairperson John M. Ellis, Retired SMART-TD Vice President and Negotiation Consultant Victor Baffoni and Vice General Chairperson/Local 1565 Chairperson Quintin Wormley; GCA Secretary/Local 1564 Chairperson Andy Carter and Local Chairpersons Robert Gonzalez (1563), LCA-875B Chairperson John Cabanas (Rail), Julio Mejia (1607), Edgar Menendez (1608) and Operations Manager/Consultant Assistant Maria D.L. Magallon are proud to announce the bus and rail operators of the Los Angeles County Metropolitan Transportation Authority voted overwhelmingly to accept the Authority’s proposed contract. The contract will be in effect for the next five years and contains a 26.6% wage increase through June 30, 2027, over the five-year period.
SMART obtained an appreciation pay for LACMTA members who worked through the COVID-19 pandemic. No changes were made to employee benefits, and the pool of full-time operators also has the opportunity to expand with the offering of full-time positions to any interested part-time operator, provided they apply by Aug. 15, 2022. The contract also modifies the carrier’s disciplinary procedures, allowing for a streamlined appeals and arbitration process. It also updates sick leave and modifications to work rules.
GC Ellis stated: “This is a historic, record-setting contract agreement. We believe that this new contract represents a significant improvement and protection in wages and benefits for our 4,600+ members and their families.” He noted that the overwhelmingly positive vote was a strong indicator that union members were pleased with the agreement and the new contract represents a monumental accomplishment.
“This agreement has rectified concerns from previous contracts and has paved the way to amend future matters that may arise,” Ellis said. “We are pleased to have been able to put together a contract that speaks volume, as powerful as this one in turbulent times such as these.”
SMART Transportation Division President Jeremy R. Ferguson said: “We’re very excited, extraordinarily proud and grateful for the efforts by SMART-TD GO 875 Committee’s dedication. In a recent visit to Los Angeles over the spring, it was a pleasure to encounter the spirit and solidarity of GO 875. I saw and heard firsthand about the great work that they do and had a chance to engage their membership as they voiced their concerns in a town hall meeting. This contract is a great step ahead and congratulations to all involved!”
GC Ellis also stated: “I appreciate the patience our membership showed during these past stressful years, and I thank every single one of our members for their support during this process.”
The contract will now be presented to the Los Angeles County Board of Supervisors for their consideration. The Board is expected to vote on the agreement in late August or in September.
A bill introduced by leaders in the U.S. House on Aug. 2 and endorsed by the SMART Transportation Division seeks to address complaints levied against the Class I rail carriers brought by customers and echoed by rail unions in hearings in the spring before the Surface Transportation Board (STB).
The Freight Rail Shipping Fair Market Act (H.R. 8649) reauthorizes the STB, the federal agency that oversees the economic regulation of freight rail in the country.
Among the bill’s purposes, according to a release from the U.S. House Transportation Committee:
Strengthening STB’s authority to address rail service emergencies;
Requiring rail contracts to include service delivery standards and remedies, while leaving details to be privately negotiated between parties;
Providing STB with clear direction to resolve common carrier obligation complaints;
Creating financial incentives for both railroads and their customers to efficiently move railcars;
Supporting freight railroad efforts to identify where freight is located on their systems while in transit; and
Adequately funding STB to allow for quicker dispute resolution when petitioned.
“I am proud to introduce the Freight Rail Shipping Fair Market Act with Chair DeFazio, Chair Scott, and Chair Costa to improve rail shipping nationwide,” Rail, Pipeline and Hazardous Materials Subcommittee Chair Donald M. Payne Jr. said. “The freight rail companies have focused on profits instead of performance and it has led to delays and problems in how we transport commodities to farms, factories, and stores across the country. My bill gives the Surface Transportation Board the power to prohibit rail rate increases during a rail emergency and resolve rail emergencies when they occur. This bill will improve the speed and reliability of rail service and guarantee that freight rail shipping continues to improve in the future without unnecessary regulations.”
“I am pleased to join Chair Payne on the Freight Rail Shipping Fair Market Act, which will hold the freight rail industry accountable for their appalling service to shippers and ultimately help American families burdened by the increased price of goods,” DeFazio said. “It is imperative that our rail network is reliable, and yet consolidation and Wall Street pressures on railroads to cut costs and increase profits have made that near impossible. This bill will level the playing field and provide railroad customers—many of which are transporting key food and energy products—the service they deserve. This bill will also provide the tools and guidance the Surface Transportation Board needs to fulfill its mandate and better regulate disputes among Class I railroads and their customers, weed out unfair practices, and incentivize efficient operations. I look forward to putting these policies into action, empowering the Board, and boosting competition in the freight rail industry.”
“Whether carrying inputs to our farmers or moving their products to market, rail is a vital tool in the American agriculture industry. This fact has become increasingly apparent as rail service issues have created challenges for our farmers, grain elevators, and ethanol producers and resulted in increased costs for producers and consumers alike,” Agriculture Chair David Scott said. “I want to thank Chair DeFazio and Chair Payne for their work on this legislation, particularly their work with the agriculture community to address their concerns. I am proud to join as an original cosponsor of the Freight Rail Shipping Fair Market Act.”
“The pandemic has wreaked havoc on every segment of our economy. It has disrupted our supply chain, both in terms of imports and exports and has put our agricultural community at great risk. The time is now to sit down with rail carriers to fix this broken supply chain system. I support this legislation to improve freight rail service, reduce inflation, and ensure our shippers and suppliers are confident in the ability of our nation’s rail system to efficiently move goods and services. This is the only way to give consumers confidence in fair pricing and consistent access to products in grocery stores and on shelves,” House Subcommittee on Livestock and Foreign Agriculture Chair Jim Costa said.
To better understand why rail service delivery problems persist, the Railroad Subcommittee held hearings in March and in May 2022, and the Surface Transportation Board held a hearing on urgent issues in freight rail service in late April 2022. All three hearings documented serious problems in the freight rail industry stemming from years of Wall Street focus on increasing railroad operating profits to allow for stock buybacks and dividends, rather than investing those profits in expanding critical freight rail service to more places and serving more industries. Despite these hearings and actions undertaken by the Surface Transportation Board, severe service issues continue to hamstring rail shipments across the country. This bill seeks to stem that tide.
Captured freight rail customers who stand to benefit from provisions in H.R. 8649 have signed on to support the Freight Rail Shipping Fair Market Act. They include:
Agribusiness Association of Iowa
Agribusiness Council of Indiana
Agricultural Council of Arkansas
Agricultural Retailers Association
AgTC — Agriculture Transportation Coalition
Amcot
American Agri-Women
American Bakers Association
American Chemistry Council (ACC):
American Cotton Producers
American Cotton Shippers Association
American Farm Bureau Federation
American Feed Industry Association
American Sheep Industry Association
American Soybean Association
American Sugar Cane League
Arkansas Rice Federation
Association of California Egg Farmers
California Association of Wheat Growers
California Cattlemen’s Association
California Grain and Feed Association
California Pork Producers Association
California Poultry Federation
Consumer Brands Association
Corn Refiners Association
Cottonseed and Feed Association
Freight Rail Customer Alliance
Georgia Agribusiness Council
Grain and Feed Association of Illinois
Growth Energy
International Dairy Foods Association
International Fresh Produce Association
Iowa Institute for Cooperatives
Kansas Association of Wheat Growers
Kansas Grain and Feed Association
Kansas Agribusiness Retailers Association
Laughlin Cartrell Inc.
Midsouth Grain Association
Minnesota Crop Production Retailers
Minnesota Grain and Feed Association
Minnesota Wheat Research & Promotion Council
Mississippi Feed and Grain Association
Montana Agricultural Business Association
Montana Grain Elevators Association
National Aquaculture Association
National Association of State Departments of Agriculture
Presidential Emergency Board (“PEB” or “the Board”) 250 conducted hearings in Washington, D.C. this past week, concluding on July 28th. We both were honored to represent our unions and, by extension, the memberships of the dozen strong United Rail Unions as we presented and testified in support of our unified case to the PEB. We are sharing this joint message to ensure that our members are up to date on all of the bargaining round issues.
For the first time in history, the 12 United Rail Unions, representing 115,000 members in every craft in the industry, presented a unified case on wages, healthcare, sick leave and holidays to the Board. Also for the first time in history, SMART-TD and BLET presidents made joint presentations on our unions’ proposals to eliminate carrier-imposed attendance policies, provide for voluntary rest days for road crews, and to increase away-from-home terminal meal allowances. In addition, BLET Director of Benefits Dan Cook, who also serves as the Cooperating Railway Labor Organizations’ administrator, testified in support of the United Rail Unions’ unified Health and Welfare proposal and SMART-TD VP Brent Leonard testified in opposition to the crew consist issues that the carriers attempted to improperly raise in this proceeding.
At the conclusion of the first day of hearings on July 24, and in an effort to keep our memberships current on the status of the bargaining round, the United Rail Unions released summaries of our final proposals before the Board, as well as the carriers’ final proposals. Those proposals are still available on our union websites. We encourage all members to take the time to review them, and more importantly, realize just how far apart the two sides remain after more than two and a half years of negotiations.
Regarding the unions’ final presentation before the PEB, it’s important to see how the union leadership arrived at their final proposal. Both parties served Section 6 notices in this round of bargaining at the start of negotiations in late 2019. Those notices are a mandatory starting point in the bargaining process, and generally include every item on which each individual union seeks to negotiate. As the parties negotiate, each side’s list of issues is prioritized to ensure that the most important ones are addressed in the ultimate contract settlement.
This bargaining round was no different. Based on membership feedback, several items were initially identified early on as key priorities including, increasing wages, rejecting concessions on healthcare, addressing unreasonable attendance policies and paid sick leave, and establishing predictable time away from work. The need for paid sick leave without penalty became even more evident with the pandemic and the manpower shortages caused by carriers’ continued mismanagement.
Leadership of the SMART-TD and BLET collaborated on presenting our craft-specific issues throughout negotiations and collaborated with our entire bargaining coalition on our shared issues. But, as is now obvious, the carriers refused to engage in meaningful bargaining on our most important issues. Multiple proposals were exchanged over these last two and a half years, including varying wage proposals, all in an effort to come to a voluntary agreement worthy of ratification by the membership.
Nowhere else was the distance between the sides more evident than in the discussion of wages. Contracts of both five- and six-year durations were proposed and discussed, driving differing values for the wage package. Our last unified wage proposal as we were released from mediation in June contained a six-year proposal with wage increases occurring July 1st of each year totaling 40%, with 36% of that payable in the first five years. In contrast, in January of 2022, the carriers’ proposed wage increase totaling 11% and their last proposal as we were released from mediation was a five-year proposal with wage increases occurring on July 1st of each year totaling 14%.
With a gap that wide, it was no surprise that voluntary efforts, as well as mandatory government-sponsored mediation, failed to reach an agreement. Once the parties were released from mediation, the United Rail Unions immediately began work preparing their final unified proposal to be presented to the PEB. That process included union leaders, the unions’ collective legal counsel, health care experts, and an expert economist. In the end, the unions agreed to present the summarized proposal shared with our memberships on July 24 at the close of the first day of hearings.
Before we get into the wage proposal numbers, it is important to understand the status of our negotiations as we went before the PEB. The PEB is not the start of negotiations. As explained above, the start of the negotiations happened when our lengthy Section 6 notices were served in 2019. Further, the PEB hearing is not a negotiation; it is an opportunity for both sides to present their final proposals, which must be supported with extensive economic data through live testimony. In this case, the hearing spanned five days, where both parties made presentations by expert witnesses to support their proposals.
In crafting the unions’ final wage proposal, and knowing that those proposals had to be supported by our expert economist, an in-depth analysis was conducted — taking into account long-term wage growth, past and present, as well as increases in the cost of living for the years covered by the agreement. Consideration also had to be given to the financial value of the other non-wage proposals going before the PEB as part of crafting a final proposal that we believe the Board would recommend.
In the period between the close of NMB mediation in June and the PEB hearings in July, and after consultation with the unions’ economic expert, the unions determined that the wage proposal that could be best supported by our economic data was a final, unified proposal totaling a 28% gross wage increase (GWI), uncompounded, over five years. While some saw that move from our previous position of 36% over five years as too big, it is not certain that they understood the proposal’s other terms.
One other component of our final proposal was to move from the July 1 annual wage increase dates in our 36% proposal, to annual January 1 wage increases. The effect of this change is fairly simple math — paying each raise six months sooner doubles the value of each wage increase in the year it is applied. In fact, on a base salary of $100,000, advancing the GWI schedule by six months each year generates additional compensation of over $15,000 during the term of the agreement as compared to July 1 annual increases. For someone with a base salary of $75,000, the advancement generates additional compensation of over $11,000 during the term of the Agreement — vastly reducing the financial gap between the 28% and prior 36% proposals. On the same base salaries, the unified proposal with the earlier effective dates would also generate in excess of $20,000 and $16,000, respectively, in back pay for the years 2020, 2021 and 2022.
While we do not agree that it should impact the PEB decision, the history of wage increases in our National Agreements was part of the carriers’ presentation in opposition to not only our proposed wage increase values, but also against the earlier annual increase dates. That history is straightforward; no National Agreement in the past 45 years has included GWIs totaling over 18% for a five-year period. Regardless of that history, our economist clearly laid out the economic support for the 28% wage proposal presented to the PEB.
Our health and welfare experts also made the case that no additional health and welfare costs should be pushed onto employees. We made the case for needed sick days and additional holidays for all involved Unions. We made a joint case for eliminating all non-negotiated attendance policies, allowing General Committees to serve notice to compel on-property bargaining for voluntary rest days, and improvements to our held away meal allowances.
All in all, the United Rail Unions made a sound, reasonable case before the PEB. We must thank our team’s legal counsel, health care experts, expert economist and all of the witnesses who gave testimony on behalf of our United Rail Unions. In the coming weeks, we will receive the PEB’s recommendations for settlement of our dispute and then consider them.
While it was not possible, we also wish every member of every union could have attended the hearings before PEB 250 and to have had a chance to testify on their own behalf about the conditions, the struggles, and the situations that carriers have created for the people whose work brings them profit. Through their actions, and in the case of these drawn-out negotiations, their inaction, the carriers’ cavalier and pay-no-heed attitude toward our brothers and sisters who did the work through a pandemic, through job cuts and through an ongoing supply chain crisis could not be clearer. They do not care to either understand or respect their employees. Some of their assertions, such as how happy their employees are, were beyond belief — even to those of us that have heard their spin before. We refuted them all.
Following the recommendations of the PEB, the parties have another 30-day cooling off period to consider the recommendations and reach an agreement. If the carriers continue to refuse to make a ratifiable proposal, very critical decisions will have to be made during that period. As has been said time and again, do not listen to the carrier moles and trolls that attempt to blame this situation on the employees or their Unions. They are only attempting to divide us as we close in on the final months of this round of bargaining. Among our unions, our solidarity is our strength. Please do not allow those attempting to divide us to succeed.
Today, July 24, 2022, the United Rail Unions, who are bargaining as part of the Coordinated Bargaining Coalition and the Brotherhood of Maintenance of Way/SMART Mechanical Coalition, and the Carriers represented by the National Carriers Conference Committee (NCCC), began their presentations before Presidential Emergency Board (PEB) No. 250, which was appointed by President Biden on July 18, 2022.
The hearings are scheduled to continue through Thursday, July 28, with Friday reserved for facilitation meetings with the parties and the PEB. Following the hearings, the PEB will issue recommendations for settlement of the national agreement dispute. A second thirty-day cooling-off period will begin when those recommendations are issued, which should occur on or before August 15.
The Unions’ proposals include a 5-year wage proposal seeking an increase of 31.2% when compounded, while the carriers are asking the PEB to recommend 17% compounded over 5 years.
On the issue of healthcare, the Unions are seeking status quo for employee cost sharing, and increases in autism and hearing benefits, which are long overdue. Despite our members being deemed “essential” and keeping the Nation’s rail system operating during the pandemic, the Carriers, just as they did during negotiations, have the audacity to ask the PEB to recommend massive healthcare concessions in both the form of drastic increases in employee costs and decreases in certain benefits, along with healthcare plan changes that only serve to further increase the record profits they are already reaping. In addition to wages and healthcare, the Unions are also seeking to create a national sick leave policy that would provide employees with 15 protected sick leave days and add three additional holidays, along with various craft-specific work rule proposals.
As we have previously communicated, the United Rail Unions remain unified in their efforts to secure the best contract possible for our members. We will show this week that the Unions’ proposals are supported by current economic data and are more than warranted when compared to our memberships’ contribution to the record profits of the rail carriers.
Additional information will be provided as developments warrant. We appreciate your continuing support.
The unions comprising the Coordinated Bargaining Coalition are: the American Train Dispatchers Association (ATDA); the Brotherhood of Locomotive Engineers and Trainmen / Teamsters Rail Conference (BLET); the Brotherhood of Railroad Signalmen (BRS); the International Association of Machinists (IAM); the International Brotherhood of Boilermakers (IBB); the National Conference of Firemen & Oilers/SEIU (NCFO); the International Brotherhood of Electrical Workers (IBEW); the Transport Workers Union of America (TWU); the Transportation Communications Union / IAM (TCU), including TCU’s Brotherhood Railway Carmen Division (BRC); and the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART–TD).
The Brotherhood of Maintenance of Way Employes Division and SMART Mechanical Unions are also bargaining as a coalition.
Collectively, these Unions represent approximately 115,000 railroad workers covered by the various organizations’ national agreements, and comprise 100% of the workforce who will be impacted by this round of negotiations.
SMART Transportation Division President Jeremy Ferguson released the following statement on July 22, 2022, regarding the commencement of the Presidential Emergency Board:
Brothers and Sisters —
At 2:30 p.m. Sunday, July 24, 2022, Presidential Emergency Board 250 will convene in Washington, D.C. and proceed through Friday, July 29th, as the next step in the Railway Labor Act process.
We anticipate a fair and thorough series of hearings before the board, which consists of three qualified members. SMART-TD and the other rail labor organizations are prepared to present our best case to get a contract workers can be proud of after serving the nation through a pandemic and a supply-chain crisis. Carriers have enjoyed record and increasing profits through the hard work of unionized labor. This PEB gives us an opportunity to show the evidence that our toil should be rewarded.
Out of mutual respect for the process taking place, there will be no updates on the hearings, which will consist of daily sessions lasting anywhere from 10 to 12 hours, from either labor or the carriers once they begin. Until labor and the carriers have made their cases, SMART-TD will respect the authority of the PEB and comments will be reserved until after the PEB has released its recommendations.
SMART Transportation Division and the Trustees of the Discipline Income Protection Program (DIPP) are pleased to announce a reduction in monthly assessments.
Effective Oct. 1, 2022, the monthly assessment for DIPP participants will be reduced from 81 cents to 75 cents per $1 of daily benefit. DIPP coverage ranges from $6 to $250 per day, ensuring that a participant covered by the DIPP program who is suspended, dismissed or removed from service by a carrier for alleged violation of rules or operating procedures will continue to receive income.
Participants in the DIPP also have the added flexibility of electing to increase their benefit level or to modify their coverage at any time by submitting the appropriate form to the Transportation Division office.
This announcement is informational, and no action is required on the part of plan participants at this time. The reduction in assessments will be communicated to Local Treasurers so that the necessary changes to current participants’ payroll deductions are made in a timely manner before Oct. 1.
DIPP trustees are SMART General President Joseph Sellers Jr., SMART General Secretary-Treasurer Joseph Powell and SMART-TD President Jeremy R. Ferguson.
WASHINGTON – Greg Regan, President of the Transportation Trades Department (TTD) of the AFL-CIO, of which the SMART Transportation Division (SMART-TD) and SMART Mechanical Divisions (SMART-MD) are members, released the following statement in response to President Joe Biden’s Executive Order establishing a Presidential Emergency Board (PEB), which will delay any freight rail work stoppage or strike for 60 days upon taking effect Monday, July 18th. TTD is the nation’s largest transportation labor federation and represents 37 labor unions, including the 13 rail worker unions involved in the ongoing national contract negotiations:
“We commend President Biden for announcing a board of neutral arbitrators to investigate and report its findings and recommendations to help both parties work toward a resolution.
“After nearly three years of bad faith negotiations by the railroads, it is sad but not surprising that we arrived at this point in the bargaining process governed by the Railway Labor Act.
“Our goal from the beginning of this process has been to deliver a contract that freight rail workers could ratify, particularly as the railroads are raking in their highest-ever profits as workloads and work hours have increased exponentially. Throughout this process, the railroads have never made a contract proposal that these workers could reasonably accept.
“Just as they have failed in their responsibility to provide reasonable freight service for their customers and the American people, the railroads have also failed in their responsibility to their workers in their greedy quest to become modern-day robber barons.
“The reality is that these frontline workers are pandemic heroes who move essential cargo and goods through the supply chain, yet they have not received a pay raise in three years and are risking their personal health and safety every day on the job.
“The time has come for the nation’s railroads to be held accountable for their actions, and reconcile the long-term effects of their greed. The seven Class I railroads have raked in $146 billion in profits since 2015 while cutting 45,000 jobs in the same period.
“Quite simply, the facts are on our side and we look forward to the forthcoming recommendations of the presidentially-appointed arbitrators.”
“In a joint statement in response to the Executive Order, the 13 rail unions stated: ‘The Rail Unions remain united in their efforts, and are now working together in preparation of a unified case representing the best interests of all rail employees before the Presidential Emergency Board. Our unified case will clearly show that the Unions’ proposals are supported by current economic data and are more than warranted when compared to our memberships’ contribution to the record profits of the rail carriers.‘ “
Background:
Upon the formation of the Presidential Emergency Board (PEB), the Railway Labor Act (RLA) imposes a 30-day status quo period during which the Board will receive written submissions and hold hearings, and the parties are not permitted to exercise self-help. The Board would be required to issue its report within 30 days of its appointment. Once the Board issues its report, the RLA mandates another 30-day cooling off period as the unions and the carriers attempt to negotiate an agreement based on the PEB’s recommendations. If no agreement is reached at the end of that last 30-day period, then all restrictions on self-help are removed. Therefore, under the RLA, if a PEB is created and no agreement is reached based on its recommendations, the parties could exercise self-help in mid-September. Congress could take action at this point and mandate the Board’s recommendations or extend the cooling-off period.
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The 13 unions involved in the national rail labor contract negotiations are: the American Train Dispatchers Association (ATDA); the Brotherhood of Locomotive Engineers and Trainmen / Teamsters Rail Conference (BLET); the Brotherhood of Maintenance of Way Employees Division (BMWED); the Brotherhood of Railroad Signalmen (BRS); the International Association of Machinists (IAM); the International Brotherhood of Boilermakers (IBB); the National Conference of Firemen & Oilers/SEIU (NCFO); the International Brotherhood of Electrical Workers (IBEW); the Transport Workers Union of America (TWU); the Transportation Communications Union / IAM (TCU), including TCU’s Brotherhood Railway Carmen Division (BRC); and the Transportation Division and Mechanical Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART–TD and SMART-MD, respectively).
Collectively, these Unions represent approximately 140,000 railroad workers covered by the various organizations’ national agreements, and comprise 100% of the workforce who will be impacted by this round of negotiations.
