Rail workers of all unions urged to end RRB unemployment sequestration

Published: June 12, 2020

U.S. rail unions have united in an effort to overturn the sequestration of Railroad Unemployment Insurance Act (RUIA) benefits that was enacted by a GOP-held Congress during the Obama administration and continues to reduce the unemployment and sickness benefits of railroaders nearly a decade later.

A large bloc of the unions are represented by AFL-CIO’s Transportation Trades Department (TTD), of which the SMART Transportation Division is a member.

A letter to U.S. Sens. Rob Portman and Sherrod Brown of Ohio sent by the union coalition requested that they jointly co-sponsor language consistent with the HEROES Act (H.R. 6800) to eliminate RUIA benefits from sequestration by amending the Balanced Budget and Emergency Deficit Control Act of 1985 to include RUIA among the other various programs that are not subject to sequestration. Portman, a Republican out of Cincinnati, is chairman of the Senate subcommittee that will make a decision on sequestration.

“Unlike the average U.S. worker, railroad employees do not receive unemployment benefits through state-administered unemployment insurance programs. Instead, unemployed railroaders receive these benefits through the RUIA program, which is administered by the United States Railroad Retirement Board (RRB),” TTD President Larry Willis said. “As a result of the Budget Control Act of 2011, RUIA (benefits) are subject to sequestration. No state unemployment insurance benefits in the country are subject to this unfair treatment.”

RUIA unemployment and sickness benefits are sequestered at 5.9%, and have been subject to reduction for nine years. These rates are adjusted when the federal sequestration is recalculated yearly.

Railroaders are urged to call Portman at (202) 224-3353 to tell him to exclude RRB sickness and unemployment benefits from those reductions.

Read the unions’ joint letter to the senators.