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BLET President Dennis Pierce (center, in black) and SMART-TD President Jeremy Ferguson at right, in blue, speak with the hundreds of attendees at the Houston Solidarity Rally on Oct. 17.

SMART Transportation Division President Jeremy Ferguson and Brotherhood of Locomotive Engineers and Trainmen President Dennis Pierce stood shoulder-to-shoulder as they answered direct questions from a standing-room-only crowd Oct. 18 at the annual Solidarity Rally for Rail Labor in Houston, Texas.

SMART Transportation Division President Jeremy Ferguson speaks during the Houston Solidarity Rally Oct. 17.

Hundreds of members and officers from SMART-TD, BLET and the Brotherhood of Maintenance of Way Employes Division (BMWED) — the nation’s three largest freight rail labor unions — gathered to address hot-button issues in the industry, including the tentative National Rail Agreement (TA), to be voted upon soon by TD members.

“It was a great opportunity again to collaborate with BLET President Pierce, to get the facts out there at a face-to-face event about what’s going on in our industry,” President Ferguson said. “SMART-TD, BLET and other unions went through more than two and a half years of negotiations. There’s a lot to unpack about where the industry is right now, and it was good for us to have a factual presentation about the PEB and how the tentative agreement was constructed.

“This was a very lively event, and one where we were able to get right down to an honest discussion about our members’ upcoming ratification process and the decisions that lie ahead,” he said. “Years ago, I don’t know if the degree of solidarity among these different unions would have existed. It’s open dialogue like this that’s a healthy way to combat some of the untruths that’s been floating out there regarding the tentative agreement. Both President Pierce and I are absolutely committed to working together as we continue to move forward, in solidarity.”

Along with President Ferguson, SMART General President Joseph Sellers and other officers enjoyed the hospitality of the Houston rally’s organizers. Special recognition goes out to General Chairperson Roy Davis and GCA Secretary Buddy Piland (GO 577) for putting the event together. As always, Local 1892 out of Houston was heavily involved in the hometown event, including Vice Local Chairperson Keith Green (LCA-577), Local Secretary & Treasurer Robert Maldonado, Legislative Representative Butch Boggess and retiree Dan Holak. General Chairperson Chris Alston (GCA-803) out of Local 1686, GCA Secretary Buddy Piland (GCA-577) out of Local 1205 and Darvin Scott of Local 524 also put in hard work at getting things rolling at the headquarters of SPJST Lodge 88.

Representatives from the SMART-TD Auxiliary, AFL-CIO, UTUIA, Railroad Retirement Board and NARVRE as well as United Healthcare, Highmark Blue Cross Blue Shield and a number of SMART-TD Designated Legal Counsel attended as well.

Local 1892’s Maldonado estimated that there were anywhere from 250 to 300 people in attendance, giving it the air of a “mini-regional” meeting, even after a two-year hiatus because of the COVID pandemic.

“GC Davis was telling me that 30 to 40 general chairpersons from throughout the country were in attendance and are looking forward to this event next year already,” Maldonado said. “Quite a few BLET GCs from the Texas/Gulf Coast area were in attendance as well. This rally is a multi-craft and multi-railroad (UP/BNSF/KCS/PORT TERMINAL RR) and from what I’ve been told, the biggest and best one held throughout the country.”

Maldonado said nine SMART locals participated as well as four BLET lodges and BMWED Lodge 1058.

“A big thank-you goes to the Houston-area Designated Legal Counsel Marc Zito, Sara Youngdahl and Clint McGuire for their continued support and sponsorship of this huge event. I don’t want to forget to thank SMART-TD Auxiliary 281 for their help with the decorations and SMART-TD Texas State Legislative director Kamron Saunders for sponsorship and support as well,” he said.

“I was told that this year’s rally was the best one yet and that having Presidents Ferguson and Pierce attend was a home run,” Maldonado said. “So we will start prepping for the 2023 Solidarity Rally next year. Everything is BIGGER in TEXAS.”

Next on President Ferguson’s schedule is a discussion at the Tacoma Regional Training Seminar occurring this week.

The Federal Railroad Administration (FRA) announced Sept. 22 that the public comment period for the two-person crew size Notice of Proposed Rulemaking (NPRM) has been extended.

Stakeholders now have an additional 60 days to show their support for the minimum crew size of two in the cab of trains nationwide. The previous deadline was Sept. 26.

“This extension was requested by congressional Republicans on the Transportation and Infrastructure Committee and was granted by the FRA,” National Legislative Director Greg Hynes said.

He also pointed out that extensions are normal under rules of this magnitude: “It allows concerned members of the public and railroad workers alike to continue to support the truth — that safe train operations in this country are best maintained by following the Rule of Two.”

A public hearing on the matter also will be scheduled in the near future, FRA said in its Federal Register notice.

The deadline for the public to comment is now Dec. 2, according to the notice published.

As of midday Sept. 22, the NPRM had nearly 10,500 comments.

Railroad Retirement annuitants subject to earnings restrictions can earn more in 2023 without having their benefits reduced due to increased limits indexed to average national wage increases.

Like Social Security benefits, some Railroad Retirement benefit payments are subject to deductions if an annuitant’s earnings exceed certain exempt amounts. These earnings restrictions apply to those who have not attained full Social Security retirement age. For employee and spouse annuitants, full retirement age varies depending on an individual’s year of birth, and is age 67 for those born after 1959. For survivor annuitants, full retirement age also varies, and is age 67 for those born after 1961.

For those under full retirement age throughout 2023, the exempt earnings amount rises to $21,240 from $19,560 in 2022. For beneficiaries attaining full retirement age in 2023, the exempt earnings amount, for the months before the month full retirement age is attained, increases to $56,520 in 2023 from $51,960 in 2022.

For those under full retirement age, the earnings deduction is $1 in benefits for every $2 of earnings over the exempt amount. For those attaining full retirement age in 2023, the deduction is $1 for every $3 of earnings over the exempt amount in the months before the month full retirement age is attained.

When applicable, these earnings deductions are assessed on the Tier I portion of Railroad Retirement employee and spouse annuities, and the Tier I and Tier II portions of survivor benefits.

All earnings received for services rendered, plus any net earnings from self-employment, are considered when assessing deductions for earnings. Interest, dividends, certain rental income or income from stocks, bonds or other investments are not considered earnings for this purpose.

Retired employees and spouses, regardless of age, who work for their last pre-retirement non-railroad employer are also subject to an additional earnings deduction, in their Tier II and supplemental benefits, of $1 for every $2 in earnings up to a maximum reduction of 50%. This earnings restriction does not change from year to year and does not allow for an exempt amount.

A spouse benefit is subject to reduction not only for the spouse’s earnings, but also for the earnings of the employee, regardless of whether the earnings are from service for the last pre-retirement non-railroad employer or other post-retirement employment.

Special work restrictions continue to be applicable to disability annuitants in 2023. The monthly disability earnings limit increases to $1,150 in 2023 from $1,050 in 2022.

Regardless of age and/or earnings, no Railroad Retirement annuity is payable for any month in which an annuitant (retired employee, spouse or survivor) works for a railroad employer or railroad union.

The CEO of the National Association of Chemical Distributors seems to understand how to fix the railroads better than the carriers do.

Supply Chain Dive published an opinion article Oct. 17 by Eric R. Byer, who leads the National Association of Chemical Distributors (NACD), in which he laid out some basic blueprints to rebuilding the American railroad industry.

NACD’s Eric Byer

Written from the perspective of heavily rail-dependent customers, Byer does a great job of laying out an overhead shot of the current state of the rail industry, and then poses the question, “Why are we in this predicament?”

Refreshingly, his answer is, “Because the freight rail companies put us here.”

As his column puts it, the root of the labor dispute and poor service to the customers spawn from the same source. The advent and spread of Precision Scheduled Railroading (PSR) has enticed carriers to indulge in a buffet of greed and railroad labor, the nation’s supply chain and the railroads’ captive customers are paying the price for carriers’ short-sighted indiscretions.

The article points out another victim of the carrier’s overreach may well turn out to be the American economy. As Byer points out and as the Association of American Railroads put out to the media back in September, a rail labor stoppage will cost the country $2 billion daily. 

From the perspective of the rail customers, Byer points out the obvious. The fact is that manpower issues on the railroad are making it difficult for rail-dependent companies to function, meet supply deadlines and be profitable. This is not a new thought, but Byer’s angle on how to address the problem is very different from the traditional one taken by railroad executives. 

Byer thinks the solution is to add more horses to the plow team rather than giving the farmer more whips. That is to say, creating a satisfied, fully staffed and not habitually broken workforce is a better fix than squeezing every minute carriers can legally get out those who are still working for them. 

He also discusses that, in addition to PSR, quality-of-life concerns led to the manpower shortage. He references the fact that our members are highly skilled professionals with extensive training who are subject to working standards that don’t meet the criteria of unskilled full-time workers.

It is good to know that there’s at least one CEO out there in Byer who can connect the dots between what he calls a “woefully inadequate” sick leave policy for workers, and American products not reaching the market, the subject of Surface Transportation Board and U.S. House hearings earlier this year.

Read Byer’s open column on supplychaindive.com

In a rare acknowledgment of the value railroaders bring to the table, New Jersey Gov. Phil Murphy (D) has named October 15 as “Railroad Workers Day”.

Gov. Murphy went on the record saying, “Through extreme weather events and a global pandemic, our state’s railroad workers have demonstrated extraordinary bravery despite significant obstacles. Their courage, as well as their role as the backbone of our state’s expanding transportation network, must not be overlooked. On October 15th – and every day – we honor the contributions of our workers not just as employees, but as New Jerseyans committed to promoting safety, efficiency, and economic activity in our local communities.”

By signing Senate Joint Resolution 86 (SJR 86), Gov. Murphy is giving a spotlight to rail labor in a moment when that light is desperately needed. As SMART-TD and other rail labor organizations engage in national rail labor negotiations with carriers who are willfully blind to the sacrifice and professionalism that our members embody, it is refreshing to hear that our answer to the call of duty has not gone unheard or unnoticed.

“Railroads continue to serve a crucial, and often overlooked, role in our society. Whether in transporting consumer goods or helping commuters get to and from work, we rely on rail services and railroad workers to keep our economy afloat,” said Assemblyman Daniel Benson (D), chair of the Assembly Transportation and Independent Authorities Committee. “By designating October 15th as New Jersey Railroad Workers Day, we carve out time to recognize the invaluable service railroad workers provide for the people of New Jersey.” 

N.J. State Sen. Patrick J. Diegnan (D) was the primary sponsor of SJR 86 and cited rail labor’s persistence through COVID-19 as one of the reasons he felt it necessary to push this resolution through. In reference to our efforts, Diegnan said, “Without their contributions, the pandemic’s adverse impact on New Jersey and its residents would have been exacerbated. These workers put themselves and their families at risk for the benefit of the entire state. This recognition is a token of our appreciation for the dedication and sacrifices of all railroad workers. I am extremely proud to be a part of establishing the annual ‘New Jersey Railroad Workers Day.’”

For his part, SMART-TD New Jersey State Legislative Director (SLD) Ron Sabol said, “The men and women moving freight and passengers through the pandemic were not only essential workers, they should be viewed as heroic. Wherever there is a crisis going on, you have railroaders putting it on the line to fix it.   Where there are wars, railroad infrastructure is always on the list of targets. Much is asked of our men and women, whether it means getting supplies to store shelves and nurses to their shifts during COVID or getting people out of the Ukraine to avoid civilian casualties. Railroad workers are getting it done everywhere you look. This consistent selflessness in times of chaos is why I thought it was important to get this bill done. These men and women deserve recognition and respect.”

SMART-TD would like to thank SLD Sabol, state Sen. Diegnan, Assembly Transportation Chairman Benson, Gov. Murphy and the state of New Jersey for putting in the work to get this bill through the legislative process. We look forward to celebrating Railroad Workers Day with you in your state for years to come.

NJ_rail_worker_resolutionDownload

Most Railroad Retirement annuities, like Social Security benefits, will increase in January 2023 due to a rise in the Consumer Price Index (CPI) from the third quarter of 2021 to the corresponding period of the current year.

Cost-of-living increases are calculated in both the Tier I and Tier II portion of a Railroad Retirement annuity. Tier I benefits, like Social Security benefits, will increase by 8.7%, which is the percentage of the CPI rise. This is the largest increase since 1981, when it was 11.2%.  

Tier II benefits will go up by 2.8%, which is 32.5% of the CPI increase. Vested dual benefit payments and supplemental annuities also paid by the Railroad Retirement Board (RRB) are not adjusted for the CPI change.

In January 2023, the average regular Railroad Retirement employee annuity will increase $215 a month to $3,344 and the average of combined benefits for an employee and spouse will increase $304 a month to $4,838. For those aged widow(er)s eligible for an increase, the average annuity will increase $120 a month to $1,691.

Widow(er)s whose annuities are being paid under the Railroad Retirement and Survivors’ Improvement Act of 2001 will not receive annual cost-of-living adjustments until their annuity amount is exceeded by the amount that would have been paid under prior law, counting all interim cost-of-living increases otherwise payable. Some 49% of the widow(er)s on the RRB’s rolls are being paid under the 2001 law.

If a Railroad Retirement or survivor annuitant also receives a Social Security or other government benefit, such as a public service pension, any cost-of-living increase in that benefit will offset the increased Tier I benefit. However, Tier II cost-of-living increases are not reduced by increases in other government benefits. If a widow(er) whose annuity is being paid under the 2001 law is also entitled to an increased government benefit, her or his Railroad Retirement survivor annuity may decrease.

In late December the RRB will mail notices to all annuitants providing a breakdown of the annuity rates payable to them in January 2023.

October 12, 2022 — The membership of the SMART Railroad, Mechanical and Engineering Department (SMART MD) has voted to ratify a tentative agreement with the carriers, after almost three years of negotiations between the union and the National Carriers’ Conference Committee (NCCC). The vote was passed with a 54% margin in favor of the negotiated contract.

The ratified contract includes historic wage increases, five annual service recognition payments, an additional paid day off and enhanced healthcare benefits. Members will immediately receive a 13.5% wage increase, and members will also receive retroactive pay and $3,000 in service recognition payments within 60 days.

“It was up to our members to decide whether to accept this agreement, and the members have made the decision to ratify a contract with the highest wage increases we have ever seen in national freight rail bargaining,” said Joseph Sellers, Jr., general president of SMART. “However, we hear the concerns of our members who may be disappointed in the outcome of this vote, and I promise that we will never stop fighting to ensure that they receive the wages, benefits and working conditions that they deserve for keeping the American economy running.”

The Centers for Medicare & Medicaid Services (CMS) has released the Part B premium and deductible costs for 2023. Railroad Medicare processes claims for Part B services.

This year saw a modest decrease in both costs. The 2023 annual Part B deductible decreased from $233 to $226, a $7.00 difference. The 2023 standard Part B premium amount also decreased from $170.10 in 2022 to $164.90 in 2023, which is a difference of $5.20. Per CMS, most people pay $164.90, although those with higher or lower incomes have monthly adjusted amounts.

The following table shows the monthly premium payments based on your 2021 income:

If you filed an INDIVIDUAL Tax Return with income in 2021 of If you filed a JOINT Tax Return with income in 2021 ofIf you are married but filed a separate tax return with income in 2021 ofPart B premium you will pay each month in 2023
$97,000 or less$194,000 or less$97,000 or less$164.90
Above $97,000 up to $123,000Above $194,000 up to $246,000Not applicable$230.80
Above $123,000 up to $153,000Above $246,000 up to $306,000Not applicable$329.70
Above $153,000 up to $183,000Above $306,000 up to $366,000Not applicable$428.60
Above $183,000 and less than $500,000Above $366,000 and less than $750,000Above $97,000 and less than $403,000$527.50
$500,000 or above$750,000 or above$403,000 or above$560.50

If you have questions about your Part B Premium, you can call the Railroad Retirement Board toll free at 877-772-5772, or for the hearing impaired (TTY) call 312-751-4701. General information can also be found at the RRB’s website at www.RRB.gov.

If you have questions about your Railroad Medicare coverage, you can call Palmetto GBA’s Beneficiary Contact Center at 800-833-4455, or for the hearing impaired, call TTY/TDD at 877-566-3572. Customer Service Representatives are available Monday through Friday, from 8:30 a.m. until 7 p.m. ET.

You are encouraged sign up for Palmetto’s free internet portal, MyRRMed. MyRRMed provides you with access to your claims information, along with historical Medicare Summary Notices, and a listing of individuals you have authorized to have access to your protected health information (PHI). You can also submit requests to add or change your authorized representatives through the portal. To access MyRRMed, please visit www.PalmettoGBA.com/MyRRMed.

Palmetto GBA is the Railroad Specialty Medicare Administrative Contractor (RRB SMAC) and processes Part B claims for Railroad Retirement beneficiaries nationwide. Palmetto GBA is contracted by the independent federal agency Railroad Retirement Board.

The New York Post reported that Amtrak paid out over $2.3 million in annual bonuses to 10 executives in 2021, despite the carrier seeing its lowest revenues in a decade.

In the article published by the Post on Oct. 5, the bonuses were reported by Amtrak to be “earned incentives,” but it’s hard to understand the structure of an incentive program that paid an average 58.12% bonus to 10 executives in a year when the company was hemorrhaging money post-pandemic.

It’s also unclear what criteria these bonuses were based upon; The New York Post referenced a Freedom of Information Act request as the source of the salary data.

In regard to this report, SMART Transportation Division President Jeremy Ferguson commented: “Amtrak has received an influx of COVID-19-related government funds the past two years, and this is how they chose to use our tax dollars. Meanwhile, our members were the ones moving trains and the nation’s passengers daily in the face of a deadly pandemic. We will remember the value Amtrak puts on such ‘earned incentives’ when we negotiate the next contract for our Amtrak conductors and other members who worked on the front lines.”

According to the N.Y. Post report, Amtrak Deputy General Counsel William Herrmann’s base salary of $352,898 was compounded by an astonishing bonus of 85.29% for a total of $653,879. This bonus of over $300,000 was only enough to rank Mr. Herrmann fourth in overall compensation at Amtrak, but he did net the highest percentage of his salary in the bonuses, the Post reported.

In the same year these executives were apparently crushing their performance metrics to earn these bonuses, while in all probability working from isolation, the popular employment website Indeed.com put the average salary of an Amtrak conductor at $71,916 over the past 36 months.

Had the average conductor received the same 58.12% bonus these executives made on average, they would have received $41,797. At least one Amtrak general chairperson who was contacted and other Amtrak employees reported 0% in bonuses were received. In addition to not receiving bonuses, the Amtrak rank and file had a much different 2021 than their bosses. These men and women faced large-scale furloughs, and those who stayed working often were forced to chase work to terminals hours away from their homes. This led to distinct declines in their home time and their quality of life. Many of these conductors used Amtrak trains to deadhead themselves to work at their new terminals, which racked up an incalculable amount of uncompensated hours and indirectly allowed Amtrak to skirt federal Hours of Service regulations.

This blatant disregard for safety comes as no surprise when we look at the Section 6 notices that Amtrak has put forward in advance of the next contract negotiation. In these notices, the only item listed under the heading of “Safety” on the company’s vast wish list is that they expand random testing for drugs and alcohol. Apparently, that is the only safety concern facing Amtrak’s workforce in their view.

The executive bonuses might seem par for the course and typical for our day, but even by the standard we have come to expect in corporate bonuses, the Amtrak executives’ windfalls are exorbitant.

The New York Post pointed out in their article that in 2016, 2017 and 2018, Amtrak executives received much smaller bonuses and received no bonuses in 2015 and 2020. With the company ending the year in the red for the 51st consecutive time, it is difficult to imagine what spurred this windfall for the brass of this heavily taxpayer-subsidized company.

To put a bow on it, when asked about bonuses for conductors in 2021, one manager told his crews that, “Our bonus to you is that you kept your job.” It’s hard to encapsulate Amtrak’s view any better than that.

Read the New York Post article and an accompanying graphic breaking down the Amtrak executive pay and bonuses for the 10 executives.

SMART Transportation Division President Jeremy Ferguson, right, appears on Episode 5 of the Between the Rails podcast with host Jon Chaffin of Local 1313, left.

SMART Transportation Division President Jeremy Ferguson appeared in a joint video with Brotherhood of Locomotive Engineers and Trainmen President Dennis Pierce on Oct. 7 with both presenting facts regarding the Tentative Agreement (TA) being considered by rail labor.

President Ferguson also answered additional questions regarding the TA on a pair of episodes of the Between the Rails podcast over the weekend as well.

The joint video with the BLET can be seen here.

The first episode of Between the Rails that President Ferguson appeared on is available here.

The second episode of Between the Rails featuring President Ferguson is available here.

As of 11:59 p.m. Eastern on Friday, Oct. 7, the 15-day question-and-answer submission period concluded. The next steps in the process of considering the agreement will consist of meetings between legal representatives of both SMART-TD and the carriers that will address the questions posed by members and their General Chairpersons, and then coming to agreed-upon interpretations to answer these questions.

The completed Q&A document will be released in conjunction with the full text of the TA prior to the start of the 21-day TA balloting period toward the end of October.