Tag: 2019 National Rail Contract negotiations

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FOR IMMEDIATE RELEASE 

September 15, 2022

CONTACT: Jamie Horwitz, 202-549-4921, jhdcpr@starpower.net

Statement by Jeremy Ferguson, President SMART Transportation Division and Dennis Pierce, President, Brotherhood of Locomotive Engineers and Trainmen

On Tentative Agreement Reached Early This Morning Between Unions Representing Conductors and Engineers and the Nation’s Class I Railroads

Early this morning following nearly three years of bargaining, the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET), a Division of the Rail Conference of the International Brotherhood of Teamsters, reached a tentative National Agreement with the nation’s largest freight rail carriers which includes wage increases, bonuses, and no increases to insurance copays and deductibles. For the first time our Unions were able to obtain negotiated contract language exempting time off for certain medical events from carrier attendance policies. Our Unions will now begin the process of submitting the tentative agreement to the rank and file for a ratification vote by the memberships of both unions. 

The tentative agreement calls for an immediate wage increase of 14% once compounded with an additional 4% on July 1, 2023, and 4.5% on July 1, 2024. In addition, wage increases of 3% effective July 1, 2020, 3.5% effective July 1, 2021, and 7% effective July 1, 2022, will be fully retroactive, for a compounded increase of 24% over the 5-year term of the agreement. The agreement also includes annual lump-sum bonus payments totaling $5,000.

The parties’ Health and Welfare Plan point-of-service costs will remain unchanged; there will be no increases to copays or deductibles and there are no disruptions to the existing health care networks. After over 20 hours of negotiations, we were able to reach an agreement that freezes our members’ monthly health care contributions at the end of the agreement. No additional increases will apply to our monthly contributions while the parties bargain over the next National Agreement. 

The solidarity shown by our members, essential workers to this economy who keep America’s freight trains moving, made the difference in our Unions obtaining agreement provisions that exceeded the recommendations of the Presidential Emergency Board. We listened when our members told us that a final agreement would require improvements to their quality of life as well as economic gains. As a result, this agreement includes agreement provisions that will create voluntary assigned days off for members working in thru freight service, and all members will receive one additional paid day off. Most importantly, for the first time ever, the agreement provides our members with the ability to take time away from work to attend to routine and preventive medical care, as well as exemptions from attendance policies for hospitalizations and surgical procedures.

This tentative agreement provides for the highest general wage increases over the life of the agreement in over 45 years.  SMART-TD was successful in blocking the carriers’ attempts to fast track arbitration on crew-consist agreements, protecting two-person crews for the indefinite future. The carriers’ demands for increases in point-of-service health care costs were blocked, along with their demands to charge married employees with children more for monthly health care contributions. Retroactive application of general wage increases and performance bonuses will provide our members with meaningful back pay checks in the coming weeks.

This agreement would not have been reached without the hard work of President Biden, Labor Secretary Walsh, Deputy Secretary Julie Su and others in the administration. Congressional leaders, including Senators Schumer, Durbin and Sanders, along with Speaker Pelosi listened to your requests and stayed out of our dispute, allowing for an agreement to be reached across the bargaining table, rather than through legislation.

This contract will not become final until our members have an opportunity to review its terms and approve it through a ratification vote.

The new leaders of the International Brotherhood of Teamsters, General President Sean M. O’Brien and General Secretary-Treasurer Fred Zuckerman, along with SMART Union General President Joseph Sellers, Jr., played a critical role in helping us get this tentative agreement across the finish line. 

Combined, the BLET and SMART-TD represent approximately 125,000 active and retired rail employees, approximately half of our membership is employed at Class I railroads that are party to this agreement. 

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The SMART Transportation Division is comprised of approximately 125,000 active and retired members of the former United Transportation Union, who work in a variety of crafts in the transportation industry.

The Brotherhood of Locomotive Engineers and Trainmen represents nearly 57,000 professional locomotive engineers and trainmen throughout the United States. The BLET is the founding member of the Rail Conference, International Brotherhood of Teamsters.

The United Rail Unions issued the following statement July 15, 2022:

The Rail Unions who are bargaining as part of the Coordinated Bargaining Coalition and the Brotherhood of Maintenance of Way/SMART Mechanical Coalition attended the Public Interest Hearings hosted by the members of the National Mediation Board on Tuesday, July 12, 2022, and we thank the National Mediation Board for their efforts to help the parties reach a voluntary agreement. Unfortunately, the nation’s rail carriers continue to refuse to negotiate an agreement that our members would accept.

As a result, and as was expected, President Biden announced today that he is appointing a Presidential Emergency Board before the expiration of the cooling-off period at 12:00 a.m. on Monday, July 18, 2022. The Presidential Emergency Board will have thirty days to convene, hear the positions of the Unions and rail carriers, and issue recommendations for settlement of the dispute. A second thirty-day cooling off period will begin when those recommendations are issued.

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.

Additional information will be provided as developments warrant. We appreciate your continuing support.

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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.

Read this release in PDF form.

The United Rail Unions issued the following statement June 2, 2022:

The rail unions who are bargaining as part of the Coordinated Bargaining Coalition (CBC) and the Brotherhood of Maintenance of Way/SMART Mechanical Coalition concluded their second week of compulsory joint National Mediation Board-mediated negotiations with the National Carriers’ Conference Committee (NCCC) yesterday.

These joint mediated negotiations, under the direction of the NMB board members themselves, resulted from the unions’ request to be released from mediation after more than two years of bargaining with the major U.S. Class I railroads.

In spite of the unions’ best efforts to negotiate a fair agreement, the NCCC and the rail carriers that it represents still refuse to make a comprehensive settlement proposal that our members would even remotely entertain. In fact, the carriers continue to advance proposals that insult the hard-working union members who have carried our nation through the pandemic.

Although all of the involved unions would prefer to reach a voluntary agreement, it has become quite clear at this point that the rail carriers will not bargain in good faith to that end. For that reason, all of the involved rail unions are again requesting that the NMB put forth a proffer of arbitration to move our contract dispute through the remaining steps of the Railway Labor Act.

Additional information will be provided as developments warrant. We appreciate your continuing support.

View this release in PDF form.

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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 (BMWED) and SMART Mechanical Division (SMART-MD) are also bargaining as a coalition.

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.

The Coordinated Bargaining Coalition (CBC) released the following statement on January 24, 2022:

After more than two years of bargaining with the major U.S. Class 1 railroads, discussions completely stalled last week. Accordingly, pursuant to the terms and conditions of the Railway Labor Act, top leaders of 10 rail unions applied to the National Mediation Board (NMB) for the assignment of a federal mediator to assist in our negotiations.

The Carriers represented by the National Carriers’ Conference Committee (NCCC) simply are not bargaining in good faith. This development is very frustrating, as the Unions in the Coordinated Bargaining Coalition have been at the negotiating table since November 2019. Throughout that time, despite our best efforts, the carriers have not made a comprehensive settlement proposal that we believe our members would even remotely entertain. In fact, the Carriers’ latest proposal is worse than bad faith; it is insulting.

After carrying our nation through the pandemic, and as the carriers have posted record-breaking profit margins due to their implementation of so-called “Precision Scheduled Railroading” practices, our members have earned, and rightfully expect, a substantial contract settlement that recognizes the sacrifices they and their families make each day. Instead, the Carriers continue to push proposals that fail to even catch up to the cost of living. From the beginning of this round of negotiations, the CBC has adamantly refused to accept any type of concessionary agreement. Instead, the railroads continue to demand extreme changes to our members’ current benefits and attempt to unilaterally impose work rule changes that would further erode our members’ already-taxed standard of living.

We anticipate that the involvement of the NMB will cause the industry to refocus on addressing the legitimate needs of the men and women whose labor generates their positive financial returns. In an effort to bring all affected members up to speed, the CBC’s latest proposal can be found at:

CBC bargaining proposal (SMART-TD)

Additional information will be provided as developments warrant. We appreciate your continuing support, and we look forward to working with the NMB to reach a settlement that we can be proud of.

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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).
Collectively, the CBC unions represent more than 105,000 railroad workers covered by the various organizations’ national agreements, and comprise over 80% of the workforce who will be impacted by this round of negotiations.

Read this release in PDF form.

September 22, 2021 — The Rail Unions comprising the Coordinated Bargaining Coalition (CBC), negotiating together in the current round of National Negotiations, have issued the following statement:
“As we advised in January of 2021, the CBC and the nation’s rail carriers have been at the bargaining table since the beginning of 2020. Since January, CBC has continued to meet with the Rail Carriers, returning to in-person meetings in August. At that meeting, CBC made it clear to the Rail Carriers that neither our Bargaining Coalition, nor our collective memberships, would accept a concessionary agreement on a voluntary basis. The Carriers were told that our members have been asked to work as essential workers throughout the Pandemic, while being treated more like expendable workers. Our members are infuriated that they have worked through these conditions without a wage increase in over two (2) years and it is unacceptable that the Nation’s Rail Carriers continue to stonewall CBC Unions in our effort to settle our contract negotiations on a voluntary basis.
“In January, we said that ‘the Rail Carriers have not made any proposals worthy of consideration by the membership of the CBC Unions.’ No Carrier proposals have been received since our January 2021 update that would change the veracity of that statement. We will continue to negotiate in good faith, fully recognizing that it is our members who must ratify any voluntary agreement.”

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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).
Collectively, the CBC unions represent more than 105,000 railroad workers covered by the various organizations’ national agreements, and comprise over 80% of the workforce who will be impacted by this round of negotiations.
Read this update in PDF form.

January 22, 2021 — The Rail Unions comprising the Coordinated Bargaining Coalition (CBC), negotiating together in the current round of National Negotiations, have issued the following statement:
The CBC and the nation’s Rail Carriers first met concerning the November 1, 2019, Section 6 Notices in January 2020.  Although the COVID-19 pandemic has made meetings for groups of this size challenging, the parties continued to meet virtually to make presentations concerning their proposals throughout 2020.  Additional meetings have now been scheduled for early 2021.
While CBC and the Rail Carriers continue to share and discuss all aspects of what would be necessary to reach a voluntary agreement, the Rail Carriers have not made any proposals worthy of consideration by the membership of the CBC Unions.  The parties will continue to meet in good faith as we move into 2021, fully cognizant that it is our members who must ratify any voluntary agreement.

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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).

Collectively, the CBC unions represent more than 105,000 railroad workers covered by the various organizations’ national agreements, and comprise over 80% of the workforce who will be impacted by this round of negotiations.

View this release in PDF form.

Bargaining teams from 10 unions that make up the Coordinated Bargaining Coalition (CBC) for this round of national freight rail negotiations participated in a Zoom conference with National Railway Labor Conference (NRLC) Chairman Brendan Branon and participating Carrier representatives on July 28th. This meeting was held for the sole purpose of reviewing PowerPoint presentations relative to each side’s respective positions on issues contained within their Section 6 Notices. While there were no negotiations during the Zoom conference, the meeting was beneficial to both sides in an effort to keep the process moving forward in a good-faith effort to achieve a voluntary agreement.
The first formal negotiating session took place, in person, earlier this year on February 26th and 27th and a second meeting had been scheduled for March 31st. This meeting was canceled because of the COVID-19 pandemic, and all subsequent scheduled meetings were also canceled. Tuesday’s conference was the first time the parties had convened in any manner since February.
Members of the unions participating in the CBC will be kept apprised of further developments on your contract negotiations as developments warrant.

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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).
Collectively, the CBC unions represent more than 105,000 railroad workers covered by the various organizations’ national agreements, and comprise over 80% of the workforce who will be impacted by this round of negotiations.
Read this update in PDF form.

NORTH OLMSTED, Ohio — The team negotiating the next National Rail Contract which will affect more than 40,000 SMART Transportation Division members has been finalized by the union’s leadership.
The team will be led by TD President Jeremy Ferguson with the assistance of Vice Presidents Brent Leonard; John J. Whitaker III; Chadrick Adams; Jamie C. Modesitt; Joe M. Lopez and David B. Wier Jr.
Also part of the team are five General Chairpersons, Mike LaPresta (BNSF); Gary Crest (Union Pacific); Roger Crawford (Illinois Central); Thomas Gholson (Norfolk Southern) and Christopher Bartz (yardmasters).
“We are prepared to do whatever it takes to get the most out of this round of national contract talks,” President Ferguson said. “It will be a challenging process and it could be quite contentious at times. However, we on the negotiating team are confident that as we work through the process we can achieve a positive result.”
The opening meeting of negotiations is scheduled for February 26 and 27 in Washington, D.C., with talks occurring in Cleveland, Omaha, Washington, D.C. and Chicago, as the year progresses.
SMART-TD is part of a Coordinated Bargaining Coalition that consists of it and nine other unions representing rail labor. Carriers BNSF, CSX, Kansas City Southern, Canadian National, Norfolk Southern, Soo Line, Union Pacific and numerous smaller railroads are represented by the National Carriers’ Conference Committee (NCCC) during negotiations.
In related news, CSXT will not be part of national bargaining, except for health and welfare issues. For the wages and rules portion, SMART-TD and CSX have agreed to begin bargaining locally on behalf of trainmen starting Jan. 21, 2020.
A joint meeting for the negotiating parties regarding facilitated bargaining is scheduled in Jacksonville, Fla., on January 22 and 23.
Additional meeting dates for these negotiations are currently under discussion, and a tentative schedule will be set in the near future. Neither the SMART-TD nor CSX have exchanged any proposals, and an agenda for the subjects to be discussed during these contract talks, which are separate from the National Rail Contract negotiations, has yet to be finalized.

On November 20, SMART Transportation Division (SMART-TD) General Chairpersons served on railroads represented by the National Carriers’ Conference Committee (NCCC) the SMART-TD’s intended amendments to agreements affecting rates of pay, rules and working conditions.

Such notices are required by Section 6 of the Railway Labor Act to reopen agreements. With this notice to the NCCC, and the NCCC’s earlier notice, the parties are set to begin the next round of bargaining.

While the national rail contract between the SMART-TD and railroads represented by the NCCC becomes amendable on January 1, 2020, the existing contract will remain in force until it is amended and ratified by SMART-TD members under the craft autonomy provisions of the SMART Constitution’s Article Twenty-One B (21B).

During this round of national contract negotiations with the SMART-TD, the NCCC will be the chief bargaining representative for matters pertaining to rates of pay, rules, and working conditions on behalf of BNSF, CSX, Kansas City Southern, Canadian National, Norfolk Southern, Soo Line, Union Pacific and numerous smaller railroads. Other railroads, including Amtrak, negotiate individually with the SMART-TD.
More than 40,000 SMART-TD members are affected by these national contract talks with the NCCC, and the resulting agreements frequently set patterns for other negotiated rail agreements.

SMART-TD President Jeremy R. Ferguson will lead the SMART-TD negotiating team. Members of the negotiating team will be selected early next month.

As noted in a press release on November 1, 2019, the SMART-TD will be joining with nine (9) other rail labor organizations who are participating in coordinated bargaining in this round of national negotiations.
Major elements of the SMART-TD’s Section 6 notices include:

  • Complete and permanent elimination of existing service scale (entry rates of pay);
  • A series of general wage increases, effective Jan. 1, 2020, and every six months thereafter;
  • Cost of living adjustments;
  • Shift- and weekend-differential pay;
  • Paid sick leave for all crafts, without censure or discipline;
  • Technology pay for daily required utilization of all in-cab and handheld reporting devices;
  • Additional rest opportunities and ability to miss work for family needs, quality of life, and doctor visits;
  • Additional training pay for all crafts, including compensation for qualification, re-qualification, and familiarization trips;
  • Carriers to give first-employment consideration to qualified conductors furloughed from other railroads;
  • Furloughed employees called back to work will be guaranteed a minimum of 60 days of work and pay;
  • Increased meal allowances;
  • Restrictions on transferring, consolidating, combining or centralizing yardmaster assignments;
  • Establishment of a formula for yardmaster extra boards; and
  • Enhanced benefits under the NRC/UTU Health and Welfare Plan and the Railroad Employees’ National Health and Welfare Plan (GA-23000).

SMART-TD Section 6 notices were developed beginning with recommendations offered by SMART-TD members. A committee of general chairpersons from the Association of General Chairpersons, District No. 1, reviewed and fine-tuned those suggestions, which were then approved by the entire Association of General Chairpersons, District 1.

To view the SMART-TD Section 6 notice, click here:
https://static.smart-union.org/worksite/PDFs/Agreements/2019+National+Rail+Contract/112019+–+Section+6+Notice.pdf

To view the carriers’ Section 6 notice, click here:
https://static.smart-union.org/worksite/PDFs/Agreements/2019+National+Rail+Contract/110119+–+NCCC+Section+6+Notice+-+SMART+TD.pdf

To SMART TD members whose carriers are in national handling:
Pursuant to the moratorium provision in the last national agreement, today was the first day the carriers were permitted to serve notice to open the next round of National Bargaining and negotiate a new agreement, and they have accordingly served us this morning.
As TD President, I wanted to let you know that we will be reviewing the carriers’ notice over the weekend. We will be responding to the carriers with our own Section 6 notice early next week. Our notice has been crafted and refined by our District 1 Rail General Chairpersons and the Section 6 committee awaiting the time to serve.
The carriers’ notice is linked for your review. The contents of their notice should not come as a surprise given the recent lawsuit filed regarding our crew-consist moratoriums. As usual, their notice contains unrealistic expectations of the outcome that they hope to achieve.
We will proudly be going into this national round of negotiations in solidarity not only with the BLET once again, but with an unprecedented group that includes the American Train Dispatchers Association, Brotherhood of Railroad Signalmen, International Association of Machinists, International Brotherhood of Boilermakers, National Conference of Firemen & Oilers/SEIU, International Brotherhood of Electrical Workers, Transport Workers Union of America, and the Transportation Communications Union. I look forward to standing shoulder to shoulder with BLET National President Dennis Pierce and the leadership of the other unions in our Coordinated Bargaining Coalition as we move ahead in this process.
 

In solidarity,


 
 
 

Jeremy R. Ferguson
President — Transportation Division