A jury found Norfolk Southern liable last month for a 2010 breach in contract with Drummond Coal Co., meaning that the carrier could end up paying back the Alabama-based coal company millions in penalties.
The contract between the coal supplier and NS required that Drummond’s operations use the carrier to move a minimum amount of coal from a terminal in Charleston, S.C., to a number of power plants in the southeastern United States. When those levels were not met due in part to the closure of 13 plants because of federal Environmental Protection Agency regulations, NS collected penalties from Drummond to the tune of $35 million with another $40 million yet to be paid, Al.com reported.
After Drummond filed a suit against NS in 2016, the jury found in favor of Drummond, which has requested a refund of the $35 million in penalties levied against it, plus interest.
NS has asked for a new trial in the case.
Read a full article about the decision from Al.com.
Author: bnagy
A letter co-signed by SMART Transportation Division President Jeremy R. Ferguson and AFL-CIO Transportation Trades Department (TTD) President Larry Willis asked the United States’ chief trade representative to re-examine policies that leave American rail workers at a disadvantage.
The United States–Mexico–Canada Agreement (USMCA), planned to be a trade pact to replace the North American Free Trade Agreement (NAFTA), does not address certain issues covering cross-border traffic between Mexico and the U.S., the union leaders wrote.
Since 1931, Mexican railway companies have had a policy that they only employ Mexican rail workers. This policy has endured through the decades and was “enshrined” through NAFTA in the mid 1990s.
In the summer of 2018, Kansas City Southern began to allow Mexican crews to cross the U.S. border and operate within the country’s borders, drawing strong objections from both SMART TD and the TTD.
“Allowing workers from Mexico to operate in the United States while U.S. workers are prohibited from operating in Mexico is a direct and existential threat to the jobs of thousands of conductors and locomotive engineers represented by SMART TD,” the letter stated.
A reciprocal measure requiring U.S. crews to operate the trains was not included in the USMCA amid objections from the Mexican government, Ferguson and Willis stated.
“Without its inclusion, the agreement fails domestic rail workers and their sector, and further fails to uphold principles of parity between the U.S. and Mexico on the issue of rail service,” they wrote, calling upon Trade Representative Robert Lighthizer to fix the disparity.
“SMART TD and TTD strongly agree with the Administration that NAFTA has failed working people and that the impacts of a trade agreement that was not written for their benefit are still being felt,” they stated. “We call on you to not abandon freight rail workers.”
Read the letter in its entirety (PDF).
For months now, your union has been collecting hundreds of reports from members of our and other rail unions that document instances when railroad technology doesn’t work as intended.
While carriers might see technology as a stepping-stone to more money and the eventual replacement of employees with full automation, we want to collect real-world data showing that sometimes these “improved” technologies are more of a stumbling block when not working as intended.
Data is being collected via a form on the SMART TD website directly linked at (smart-union.org/railroad-technology-event-report) or look for the red flashing button on right of the main page, then follow that link to report incidences involving Positive Train Control, Trip Optimizer/LEADER, DPU (distributed power), EOT/HTD’s or radio transmission failures among crew members when dealing with long trains.
The real-world data that members contribute helps our organization to formulate a plan to protect members and the general public and to ensure the safety of the nation’s infrastructure, and this information is being sought on a voluntary basis, said Alternate National Legislative Director Jared Cassity, who helped to create the report form.
“The railroads like to tout there is no data to support that two-person crews are safer than a one-person crew. The irony, however, is that the counter-point to their argument is also true — there is no data to support that one-person crews are any safer than two-person crews either,” he said. “Over the years [they] have purposefully chosen to not collect the data, despite having the ability to do so, because they know the truth will hurt their position.”
The way to combat this is by gathering reports from the people who are dealing directly with the situations created when the technology does not function as intended, Cassity said.
“By members submitting this very important information we are able to provide the one thing the railroads cannot or will not — data,” Cassity said. “And that data proves these technological safety overlay systems are not capable of replacing the human element, specifically two-person crews.”
Reports submitted through this form go to union safety leadership for collection. The reports are not a substitute for filling out a report to a carrier or to the Federal Railroad Administration (FRA).
“The railroads have fired the first shot in this round of the crew-consist war, and we need all hands on deck, everyone doing their part to complete these reports,” Cassity said. “This data may very well just be what makes the difference.”
The AFL-CIO Transportation Trades Department (TTD), in conjunction with SMART Transportation Division and 13 other unions associated with the railroad and aviation industries, filed suit in federal court in the District of Columbia against the National Mediation Board (NMB) regarding their recent rule that changes the decertification process.
SMART TD, TTD, and the other plaintiffs assert that the final rule, which was approved by the NMB over the summer in a 2-1 vote, violates the Railway Labor Act by adopting a new decertification procedure, including an “unjustified” two-year moratorium on employees seeking union representation after a decertification vote. The change is “an arbitrary and capricious departure from long-standing Board practice,” the complaint states.
The complaint also says that the NMB overstepped limitations set by Congress that have for eight decades governed the board’s jurisdiction to resolve representation disputes in the aviation and rail industries.
“This action is in excess of the Board’s limited jurisdiction and is a ‘gross violation’ of the Railway Labor Act and should be enjoined,” the complaint states.
“The NMB’s rule is an attempt by government officials to hand even more power to corporations at the expense of working people,” TTD President Larry Willis said after the NMB vote July 26. “Not only is this rule unnecessary, but it is ill-timed and tone deaf to the needs of aviation and rail workers, who face unprecedented pressure from industry giants.
“A union contract is the most effective tool workers have to make life better for themselves and their families. Yet, the two Republican board members supporting this decision just made it easier to decertify unions in the rail and aviation sectors and bar employees from being able to vote for union representation for two years after decertification.”
The NMB is comprised of Chair Linda A. Puchala, who was appointed by President Barack Obama in 2009, and members Gerald W. Fauth III and Kyle Fortson, who were both appointees of President Donald Trump and confirmed by the Republican-controlled U.S. Senate in November 2017. Puchala was the dissenting vote.
State Legislative Director Stu Gardner said that a hearing for opponents of H.B. 186 to appear before the Ohio House Transportation and Public Safety Committee has been scheduled.
Opponents are scheduled to give testimony at 11 a.m. Tuesday, Oct. 22 in Ohio Statehouse Room 114 in Columbus.
The opponent hearing before the committee was delayed at carriers’ request so that the carriers could bring in representatives from Washington, D.C., to testify and try to stop the bill’s passage, Gardner reports.
“We need a group of our supporters to attend this hearing in order to show the committee members we believe in all phases of HB 186,” Gardner said. “Let’s fill that hearing room with our activism and presence.”
H.B. 186 covers the following safety issues:
- Two-person freight train crews
- Proper walkways in railroad yard safety legislation
- Railroad yard lighting safety legislation
- Blocked crossings
Members representing SMART Transportation Division as well as representatives from the BLET provided more than two hours of proponent testimony last month to show state House Transportation and Public Safety committee members why the railroad safety legislation is deserving of their support.
Gardner suggests that Ohio members either call the offices or set up in-person meetings with members of the committee who are listed below.
Chairman:
Doug Green HD 66 (Mount Orab)
Phone: (614) 644-6034
Home Address: 708 S. High St., Mt. Orab, OH 45154
Vice Chairman:
Riordan T. McClain HD 87 (Upper Sandusky)
Phone: (614) 644-6265
Home Address: 469 N. 5th St., Upper Sandusky, OH 43351
Ranking Member:
Michael Sheehy HD 46 (Oregon)
Phone: (614) 466-1418
Home Address: 1129 Schmidlin Rd., Oregon, OH 43616
Juanita Brent HD 12 (Cleveland)
Phone: (614) 466-1408
Home Address: 16804 Glendale Ave., Cleveland, OH 44128
James M. Hoops HD 81 (Napoleon)
Phone: (614) 466-3760
Home Address: 195 Old Creek Dr., Napoleon, OH 43545
Stephanie Howse HD 11 (Cleveland)
Phone: (614) 466-1414
Home Address: 1220 Spring Rd., Cleveland, OH 44109
Don Jones HD 95 (Freeport)
Phone: (614) 644-8728
Home Address: 34755 Jones Rd., Freeport, OH 43973
Jeff LaRe HD 77 (Violet Twp.)
Phone: (614) 466-8100
Michele Lepore-Hagan HD 58 (Youngstown)
Phone: (614) 466-9435
Home Address: 562 Madera Ave., Youngstown, OH 44504
Susan Manchester HD 84 (Lakeview)
Phone: (614) 466-6344
(419) 303-2670
Home Address: 29249 St. Rt. 385, Lakeview, OH 43331
Gayle Manning HD 55 (North Ridgeville)
Phone: (614) 644-5076
Home Address: 9436 Foxboro Dr., North Ridgeville, OH 44039
Jessica Miranda, HD 28 (Forest Park)
Phone: (614) 466-8120
(513) 266-3937
Home Address: 11511 Oxfordshire Ln., Cincinnati, OH 45240
Michael J. O’Brien HD 64 (Warren)
Phone: (614) 466-5358
(330) 727-1097
Home Address: 1849 Edgewood St. NE, Warren, OH 44483
Thomas Patton HD 7 (Strongsville)
Phone: (614) 466-4895
Home Address: 17157 Rabbit Run Dr., Strongsville, OH 44136
Reggie Stoltzfus HD 50 (Minerva)
Phone: (614) 466-9078
(330) 936-6001
Home Address: 13789 Telpahak St SE, Minerva, OH 44657
The bill is sponsored by Ohio Reps. Mike Sheehy, a retired rail worker and member of the SMART TD Alumni Association, and Brent Hillyer.
See these related stories from SMART TD:
- Ohio SLD, members testify before statehouse for rail safety legislation (pub. 09/12/19)
- Ohio rail safety bill scheduled for hearing; testimony needed (pub. 09/04/19)
- Ohio SLB gives update on rail safety (pub. 07/08/19)
- Call to action: Ohio House committee to hold first hearing on rail safety bill (pub. 06/17/19)
- Two-person crew legislation referred to Ohio House committee (pub. 04/08/19, updated 04/11/19)
SMART Transportation Division Virginia State Legislative Director Ronnie Hobbs issued a reminder Oct. 16 that absentee voting in-person or by mail has begun for the state’s Nov. 5 general elections.
Voters can cast absentee ballots in person at their local voting registration office.
Virginia members can visit this link for their absentee in-person location or Virginia members can visit this link to apply online for an absentee ballot.
By voting absentee, Virginia residents can make sure their work schedule or a family emergency does not impact their right to vote. To vote absentee in Virginia, voters must have a reason (code 1D or 1E should work for rail workers and retirees).
“No matter whom you choose, choose to vote early!” Hobbs said.
Union Pacific’s version of Precision Scheduled Railroading (PSR) claimed more victims recently.
UP announced last week that it was doing away with its Neff Yard in Kansas City, Mo., and with it 200 well-paying rail jobs evaporate.
The short-term benefits of these and other workforce reductions by carriers in the name of PSR result in a few more bucks for Wall Street shareholders — the end result of PSR for all to see.
Ignored is the long-term damage done to customer service as the carrier tries to adapt to the change it has made to operations, to equipment because of deferred maintenance, to the lives of employees – both those who are left jobless and those who have to work even harder to pick up the slack — and to the economies of communities in which those good-paying rail jobs have vanished.
UP’s not alone. Right around Labor Day at two locations in Pennsylvania and one in Virginia, Norfolk Southern cut nearly 300 jobs. What do the two carriers have in common? They’re both knee-deep in PSR.
SMART TD leadership backs Kansas State Legislative Director Ty Dragoo, who wrote a letter to explain to members of the general public about what the carriers are really doing.
We support the Kansas State Legislative Board’s efforts to preserve jobs in the face of carrier cuts and hope that other members of rail labor follow his lead. SLD Dragoo’s letter is reproduced below. He is not being silent, and we will not be silent.
Dear Editor,
America’s railroads are going through a round of job cuts. But at what cost? We, the public, are paying for significant Wall Street gains while selling out our communities.
Union Pacific has announced the closure of Neff Yard in Kansas City. Now you get to hold the bag as UP takes the money to the bank.
Union Pacific Railroad’s decision this week to abolish 200 positions at Neff Yard follows similar force reductions by the other major freight rail systems across the country.
The cuts aren’t coming because the company is losing money: Union Pacific in July 2019 reported 2019 second-quarter net income of $1.6 billion, or $2.22 per diluted share. This compares to $1.5 billion, or $1.98 per diluted share, in the second quarter of 2018.
“We delivered record second-quarter financial results driven by exceptional operating performance, including an all-time best quarterly operating ratio of 59.6 percent,” said Lance Fritz, Union Pacific chairman.
The cuts aren’t due to burdensome corporate taxes. Union Pacific disclosed in 2017 the estimated impact from the Tax Cuts and Jobs Act in a filing with the Securities and Exchange Commission. That disclosure saw some shocking amounts of money to the tune of $6 billion.
The $5.8 billion benefit comes primarily from the revaluation of UP’s deferred tax liabilities to reflect the new federal corporate tax rate of 21 percent.
Also, UP stated the tax break law would result in a $200 million non-cash reduction to its operating expenses. It is also of note that many states and local communities have subsidized Union Pacific with tax money.
The most-significant financial boost was Union Pacific’s much-lower tax bill for the reporting quarters. Operating income may have increased, which is impressive knowing that workers are responsible for that, but the company’s tax bill since passage has been substantially lower, which has led to a massive increase in net income for the quarters.
Despite taxpayer dollars and tax cuts helping Union Pacific gain more per-share for Wall Street, their way to say “thanks” seems to be, pack up and go. This is leaving behind an economic catastrophe for impacted communities to clean up for themselves. To add insult to injury, the company didn’t even have the decency to warn employees until a few days out.
The cuts are due to insatiable corporate greed. Union Pacific is one of the largest U.S. freight rail operators with annual revenues of more than $20 billion.
While communities struggle with basic needs, education, public utilities, streets, emergency services, food tax rates, sales tax, etc. all at the table for increase when UP wants its cut. You have been paying more while they cut and run. This is a double slap to the face; one we must be vocal about.
These job losses will ripple through the heart of the local economy. Without income and security, workers and families won’t be able to spend on clothes, restaurants, recreation, and much more. Union Pacific isn’t only undermining workers and families, but entire regional economies.
As we stand in solidarity with the Union Pacific workers who are about to lose their livelihoods, we can’t forget that corporate decisions in faraway places leave deep scars in unsuspecting communities. Not only do workers in these communities deserve gratitude, but we must also hold companies who take them for granted accountable. When communities invest in companies, we are investing in jobs.
We kept our promise. Will Union Pacific and other railroads continue to break theirs?
Sincerely,
Ty Dragoo
Kansas State Legislative Director — SMART TD
Members in Kansas and Missouri — please take a few moments of your time to tell the elected officials listed below about what you think about the carrier cash grab that is PSR.
CONGRESSMAN EMANUEL CLEAVER
D.C. OFFICE
2335 Rayburn HOB
Washington, D.C. 20515
Phone: (202) 225-4535
Fax: (202) 225-4403
Email him at https://cleaver.house.gov/contact/email-me
CLEAVER’S KANSAS CITY DISTRICT OFFICE
101 W. 31st St.
Kansas City, MO 64108
Phone: (816) 842-4545
Fax: (816) 471-5215
CONGRESSWOMAN SHARICE DAVIDS
D.C. OFFICE
1541 Longworth HOB
Washington, D.C. 20515
Phone: (202) 225-2865
Email her at https://davids.house.gov/contact/email-me
DAVIDS’ KANSAS CITY DISTRICT OFFICE
753 State Ave., Suite 460
Kansas City, KS 66101
Phone: 913-766-3993
KANSAS CITY COUNCILWOMAN KATHERYN SHIELDS
City Hall
414 E. 12th St.
Kansas City, MO 64106
Phone: 816-513-6515
Email: katheryn.shields@kcmo.org
KANSAS CITY COUNCILMAN ERIC BUNCH
Legislative aide Crissy Dastrup 816-513-6517
Email: Eric.Bunch@kcmo.org
KANSAS CITY MAYOR QUINTON LUCAS
City Hall
29th Floor
414 E. 12th St.
Kansas City, MO 64106
Phone: 816-513-3500
Email: MayorQ@kcmo.org
Brothers and sisters of the SMART Transportation Division,
I wanted to take this opportunity to explain what the crew consist lawsuit that has been filed in federal court in Texas is about. From the questions we have received, it appears that there is some confusion.
The lawsuit, filed on October 3, 2019, by BNSF, CSX, Kansas City Southern, Grand Trunk Western, Norfolk Southern, Illinois Central, Union Pacific, and the Belt Railway Company of Chicago, attempts to challenge the crew consist moratoriums of various local agreements and force the Organization to bargain over crew consist on a national level in this upcoming round of national negotiations. As a bit of background, when the crew consist agreements were negotiated, the carriers agreed to a “moratorium” on negotiating over this topic. Under the Railway Labor Act, a moratorium serves to bar negotiations over topics for a defined period of time. The carrier is now insisting that we arbitrate the meaning of the moratorium provisions.
This is not the first time that the carriers have attempted to challenge the crew consist agreements they have entered into over the years. It seems that in each round of bargaining they raise this issue anew. And in each round, they have lost the argument. Although we have not yet been served with the lawsuit, we are ready to defend our agreements.
Interestingly, the lawsuit was filed on the same day we were holding the Association of General Chairpersons District 1 meeting. When notified of the suit, all 56 General Chairpersons, without exception, pledged to act in solidarity as we embark on the upcoming round of National Railroad contract talks. The signing of the resolution is but one example of the inseparability that we will exhibit going forward as we negotiate.
I have attached the lawsuit for your review, and I will keep you apprised as matters develop. With all the various media avenues that can be full of misinformation, I feel that it is extremely important that our members be aware of the facts of the situation.
In solidarity,
Jeremy Ferguson
President — Transportation Division
The Federal Motor Carrier Safety Administration (FMCSA) announced in a notice published in the Federal Register on Oct. 2 that it was renewing the charter of its Motor Carrier Safety Advisory Committee (MCSAC) for two years, effective Sept. 27.
The MCSAC was established to provide FMCSA with advice and recommendations on motor carrier safety programs and motor carrier safety regulations. Membership is composed of up to 25 experts from the motor carrier safety advocacy, safety enforcement, industry and labor sectors. They are appointed by the FMCSA administrator for two-year terms.
Current labor representatives on the committee are LaMont Byrd, a vice chairman for the International Brotherhood of Teamsters; Bruce Hamilton, a vice president for the Amalgamated Transit Union; and Christopher Treml, director of construction training for the International Union of Operating Engineers.
For more information about MCSAC, visit the committee’s website.
INDEPENDENCE, Ohio — Hours after a lawsuit by rail carriers targeting our union over crew consist was announced Oct. 3, the Association of General Chairpersons — District 1 unanimously resolved to act in solidarity.
The resolution states:
“In response to the Carriers’ attempts to undermine bargaining and divide us, we, the members of District 1, resolve to act in solidarity in every effort to protect our members and our rights under the Railway Labor Act.”
Every general chairperson in attendance signed the resolution as the meeting concluded.
Transportation Division President Jeremy Ferguson praised the leadership of the General Committees for a quick and unified response at the conclusion of the District 1 conference in the Cleveland area that also finalized the Section 6 notices that will trigger the beginning of the next round of National Rail Contract negotiations.
“As we progress forward into this negotiating period and beyond, solidarity among our membership at all levels everywhere will drive us as we overcome the challenges ahead,” Ferguson said. “This unanimous resolution shows at the outset that we stand together and will speak with one loud, clear voice.”
On Oct. 3, the National Railway Labor Conference (NRLC) filed a lawsuit in federal district court in the Northern District of Texas.
President Ferguson stated that this attempt to undermine our collective bargaining agreements was not unexpected.
“It is not the first time that carriers have attempted this tactic,” he said. “We are well prepared to respond.”