Tag: National Rail Negotiations

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Brothers and Sisters,

I would like to take a moment to address the tentative agreements on certain properties, including CSXT, NS, and BNSF, which are currently out for ratification or will be shortly, which for most will be in lieu of the traditional “national agreement.” Undoubtedly, this scenario is a bit unusual to those of us who have been around for a decade or more, and it is even more unconventional to us as international officers who are usually engaged in national negotiations every three to five years. We are definitely in some uncharted waters here, because we have never seen a tentative agreement come to fruition before our Section 6 notices were even served, or the existing agreement’s moratorium has opened to require negotiations under the Railway Labor Act (RLA).

In the last round of negotiations, we were met with some of the most-contentious circumstances imaginable, due to all the carriers being hell bent on achieving crew consist changes to remove conductors from our through freight trains. Throughout that round of bargaining, not a single rail labor union was able to gain any meaningful traction, as the carriers made it very clear they were not negotiating with anyone until SMART-TD conceded to eliminating a significant portion of the conductor craft. Of course, we never agreed and instead made our case to Presidential Emergency Board 250, which reaffirmed that all crew consist issues were to be handled at the “local level” (i.e., the General Committee of Adjustment level). PEB 250 also gave us the largest pay increase in modern history, along with some very complex work rule changes to include rest days, and the reinstatement of the 15 percent monthly health & welfare contribution requirement.

With the above in mind, and given some of the inquiries we have received at both the national and general committee levels, I am publishing this informational notice for members who may still be curious about certain aspects of these tentative agreements. We hope you will find the following questions and answers helpful and informative.

“Why didn’t we get more than 17.5% general wage increase? It’s not as much as 22%!”

First and foremost, the proposed general wage increases work out to be within $2.00 per day compared to what we received under PEB 250. You heard that correctly, less than $2.00 per day difference. Even though 17.5% is objectively less than 22%, we are compounding upon a higher dollar value today than we were under PEB 250. By July 1, 2029, the base foreman rate of pay will increase by $61.40 per day and the base conductor rate of pay will increase by $55.28 per day. Under the record 22% of PEB 250, our foremen experienced a $63.36 per day increase, and our conductors experienced a $56.53 per day increase. I would also like to add that this proposal is the largest general wage increase negotiated voluntarily without third party intervention, without healthcare cost increases, and without work rule changes!

What are we giving up?

NOTHING! There are no work rule changes or healthcare cost increases included in this proposal.

What about our crew consist agreement(s) that mandate conductors on all trains?

Since there are no work rule changes affecting crew consist, these agreements (if ratified) will secure another five-year period where no changes can even be proposed under Section 6 of the RLA. This is huge! Yes, we have obtained a two-person crew regulation from the Federal Railroad Administration, but we are still very concerned about the possibility of future anti-labor and anti-regulation focused administrations undermining our progress. We are equally concerned with what the Supreme Court has done with their recent Chevron decision, which could also compromise our regulation. Ratifying these agreements now will protect and guarantee the future of our conductors, while providing another 5 years for us to focus on passing a rail safety bill through Congress, which would make two-person crews the literal law of the land.

What else is in this for me?

If you have fewer than 25 years of service, you will be getting your next week(s) of vacation entitlement two years sooner. You will see much needed and commonly requested increases to your dental, orthodontic, and vision benefits, and voluntary male sterilization (vasectomies) will be covered by your medical insurance. Additionally, if you are single, you will have the option to choose a health & welfare plan with a lower monthly contribution requirement of 10%, compared to the 15% we are all currently paying. This voluntary option is worth approximately $100 per month for those who qualify and decide to opt in. For those who opt completely out of coverage, the payment made to you will double, from $100 to $200 per month.   

Why are General Chairmen signatory to this agreement and not the SMART-TD International officers?

Leading up to this tentative agreement, there were some informal discussions at the “national” level between some of the involved rail labor unions and the National Carriers Conference Committee (NCCC), which is the umbrella organization that represents approximately 40 railroads who are party to national bargaining.

Disappointingly, but not surprisingly, those discussions were not productive. However, one particular railroad CEO, Joe Hinrichs from CSX, took the bull by the horns and said he would make a deal for most of what had been discussed but rejected by the NCCC. As a result, these agreements now have to be done “on the property” at the individual General Committee level. Interestingly, NS and BNSF management also agreed to the same deals shortly after the CSX. Why? It’s a proposal that should bring labor peace instead of the high-profile confrontations all their shareholders witnessed just a few years ago. Simple as that. No hidden agendas, no waiting for 2+ years, no backpay hanging in the balance, and no nonsense.

Boeing looks like they are getting a 30% pay increase and we should too!

We can certainly all agree that we should always get the highest general wage increases possible, and that is absolutely what we fight for. Fortunately for us, our situation is not comparable to Boeing employees being represented by the IAM. Going back to at least 2014, those Boeing employees have received sub-standard wage increases that have consistently fallen short of our agreements. If they ratify their proposed wage increases, it will essentially bring them up to speed with where SMART-TD members are today. And that is before we factor in the 17.5% general wage increases that have been proposed to you right now. Further, the Boeing proposal does not include back pay, so those employees will never recoup what they have lost during negotiations, which weakens the dollar value of what they are getting compared to what we have enjoyed during that time. Another major nuance when comparing the two is that Boeing employees lost their pension if they had fewer than 20 years of service, which is valued at approximately $5 per hour. By comparison, our pension fund is secured and doing very well at the RRB.  Just like the John Deere, UPS, and UAW scenarios we have observed over the past few years, Boeing simply does not compare to us. We cannot fixate on the percentages of another union’s general wage increases without considering their agreements as a whole. Doing so would be a disservice to our members and a failure in our duties to obtain the best possible wages, rules, and healthcare improvements. Nonetheless, social media, anti-labor news outlets, and bad-faith actors who want us to fail continue to attempt to mislead our members with half-truths and misleading statistics.

These tentative agreements are simple and straightforward, and provide substantial wage increases without making concessions in other areas, and without making us fight for 2-3 years just to get what we deserve. Like every agreement in every unionized setting, this may not address or resolve every single issue that is important to every single member, but I am proud to say that this agreement provides significant improvements on many of the key issues that our members tell us about. Of course, we could have demanded everything and refused to meet on middle ground, which would have inevitably led to the same old drawn-out battle and years of delays, likely followed by a binding decision made by outsiders who do not completely understand our industry. We saw that play out in PEB 250, and our members have made it abundantly clear that they do not want a repeat of that situation.  We firmly believe that this is a straightforward, no B.S. agreement that delivers another round of damn good wage increases and healthcare improvements, without sacrificing other important areas such as our work rules, crew consist, and benefits.

If you still have questions, I highly encourage you to contact your General Chairperson or this office prior to casting your vote. We are more than willing and able to dispel any rumor or misinformation that is circulating on social media, in the crew room or on anti-union so-called “news” outlets. To find contact information for your General Committee office, the simplest way is to download the SMART Union app on your phone or tablet, or visit our website at www.smart-union.org to register and sign in to the Member Portal. From there, you can find a convenient directory with all the contact information for your elected representatives.

I hope this provides a better understanding of what is on the table — and perhaps most importantly what we don’t have on the table — for you to decide on. When all things are considered, we are confident that a “yes” vote is the right decision for our involved members, and we highly recommend that you do so.

In solidarity,

Jeremy R. Ferguson

ATTENTION: All SMART Transportation Division members employed by rail carriers negotiating under the umbrella of the National Carriers’ Conference Committee (NCCC).

As you are likely aware, on June 10, 2024, SMART Transportation Division began the process of formulating Section 6 notices to be served on rail carriers represented by the NCCC, which will include proposals to increase wages, benefits and improve working conditions. In our communications, all officers and members were invited to submit proposals for the Section 6 Notices to the SMART-TD headquarters.

To those members who have already submitted proposals, we thank you for providing your valuable input..

Members who have not yet responded are reminded that proposals are being cataloged through July 24, 2024. Soon thereafter, a committee of general chairpersons from the Association of General Chairpersons, District No. 1, will review the proposals and begin to fine-tune those suggestions into the notices to be served on the carriers.

In order for your proposal to be cataloged and considered by the Section 6 review committee, your proposal must be received in the Transportation Division office by the end of the day on July 24, 2024.

As a reminder, members may submit their proposals by email (preferred), fax or U.S. Mail:

Email – Section6@smart-union.org

Fax – (216) 228-5755,

or by writing to the attention of the SMART Transportation Division President at

6060 Rockside Woods Blvd. N., Ste. #325

Independence, OH 44131

Following this review process, the full Association of General Chairpersons, District No. 1, will be convened to review and finalize the union’s Section 6 notices. Those final notices will be reproduced and mailed to all participating general chairpersons for serving on the affected railroads no earlier than November 1, 2024, with changes to become effective no earlier than January 1, 2025.

In addition to membership submitted proposals, SMART-TD will be conducting a randomized membership survey to help define the issues for prioritization during negotiations. To ensure that you are eligible to participate in surveys, and to stay up to date on future developments, members are encouraged to register for the Member Portal and log in to the SMART-TD website at www.smart-union.org, and/or download the SMART Union app from the Google Play or Apple Store. 

The serving of notices under Section 6 of the Railway Labor Act is the first step in reaching a new national agreement with railroads represented by the NCCC. The carriers represented by the NCCC also have been working on their own Section 6 notices that they will serve at or about the same time the SMART-TD Section 6 notices are served.

All SMART-TD members are reminded that the current national agreement between the SMART-TD and NCCC will not expire on or after January 1, 2025. Under the status-quo provisions of the Railway Labor Act, the current national agreement will remain in effect.

SMART-TD President Jeremy Ferguson

SMART Transportation Division (SMART-TD) would like to take a few moments to update the thousands of essential rail workers whom we proudly represent, the rail shippers and customers, as well as the public at large on the real status of labor negotiations and about the serious factual misrepresentations that the Association of American Railroads (AAR) and railroad representatives are stating as “FACT” surrounding the “railroad labor negotiations and the need to avert a network shutdown.” Their claims are simply not true.

Let me be clear, rail labor is NOT looking to strike or shut down the nation’s economy at the expense of everyone. We want and deserve a fair agreement for our members. We strongly believe that a Presidential Emergency Board (PEB) will help us to garner that without the necessity of a strike. This does not mean that we will not do what’s necessary to get a fair agreement, but rather we expect the Railway Labor Act (RLA) to do its job as it has in the past so that it does not come to that. We are fully prepared to act if the provisions of the RLA get to the point of self-help or strike.

I was present and testified with a full team of experts in front of the Surface Transportation Board (STB) on April 26th and 27th in Washington D.C., concerning the massive network disruptions, the negative effects of Precision Scheduled Railroading (PSR), and the pending supply chain collapse due to railroad mismanagement of their networks. Shippers don’t know when they will be serviced, and the workforce doesn’t know when we will be going to work. I was proud to testify to make it known that we fully support our customers’ efforts to have the reliable and consistent service that they not only deserve, but also contracted with the railroad(s) for. I made it clear then, and now do so once again, that we stand ready to do everything within our power to keep freight moving and to support this country’s supply chain and economy.

Much like the testimony delivered by the railroads and AAR at the STB hearings, again there’s a steady stream of lip service, half-truths and misleading innuendo trying to skew the truth about the status of negotiations. I would also note that, to date, the AAR has not put forth any data supporting the “fair” percentage wage increases they are proposing and “provide well-deserved compensation increases to our essential employees and are consistent with labor market benchmarks.” What they are purporting as fair is only fair in their eyes and obviously not seen as “fair” by their essential employees who are quitting their jobs in record numbers. I have been at the negotiating table. I have yet to see any fair proposals put forth by the carriers in three years of negotiations. The benchmarks they are using at the negotiating table were established well before the pandemic and inflation occurred. I would also cite the fact that due to the PSR scheme worker productivity is running at such a high level that it is literally about to snap like an overstretched cable or chain.

Assuredly, a 16% wage increase over five years is not acceptable by today’s benchmarks. The railroads’ plans to increase the employees’ share of healthcare costs to such a point that the raises become net-zero is not reflective of rail carriers’ record profits or of their desire to keep their “valued freight rail customers,” isolated from further network disruptions caused by lack of manpower. The proposed five-year increases also come below all standard cost of living metrics. The railroads these days are having a very difficult time attracting potential new employees because of their refusal to bargain in conjunction with today’s benchmarks, much in the same way that they refuse to acknowledge shippers’ need to have sufficient and reliable service in accordance with their common carrier obligations.

On multiple occasions, SMART-TD has stood up for shippers, while carriers lacked any interest in fixing the current shipping problems that worsen by the day. PSR is the reason. Everyone knows it. Legislation may be needed for a permanent fix to the problem, and I think that day is coming soon. The quickest fix is to stop the railroads from running such ridiculously long trains, which the current infrastructure can’t handle, and get back to basics now! Instead, they cajole shippers to help them save a few dollars of their record profits, wanting to tip the scales against the very people who do the work and who are chiefly responsible for getting the railroads their profits. This is appalling. By hanging the fear of service disruptions in front of the shippers, it would almost be comical if the current state of the supply chain situation were not so dire.

Meanwhile, the tales told by the mouthpieces of the carriers keep getting bigger and bigger. One such fish tale dangled in front of people mentions that labor seeks a 47% wage increase. Even the head of the National Railway Labor Conference can’t provide the evidence to document this whopper. The truth is the three biggest railroads at the negotiating table don’t want to part with ANY of their record profits, nor do they wish to reward the workers who have busted their asses for the last three years without a raise, to get them those record profits. The shareholders were rewarded with record buybacks of $10 billion. Where is the reward for the employees who are actually doing the back-breaking work to make those buybacks possible? With a stale contract that has been in effect since prior to inflation taking hold, the workers have nothing to show for their blood, sweat and tears, as well as the sacrifices they and their families have made.

Pouring on the risk and absurdity, the big 3 claim they wish to get a deal done given those “fair” proposals they’ve allegedly made. What they’re not telling everyone is that instead of negotiating with labor at the national table to get this deal done, they are instead more concerned with keeping up their mediation meetings in an attempt to get a crew-consist agreement completed to further reduce the rail workforce, thanks to the allegedly “fair” arbitrator selection process out of the previous National Mediation Board (NMB). Carriers again are attempting to go to one person occupying the cab of a freight train. (Their ultimate stated goal is zero crewmembers on trains frequently carrying hazardous freight.) Such a measure would put the safety of our communities at serious risk and the supply chain in dire jeopardy, more so than it is right now. Were carriers so concerned about a fair national agreement to stop service disruptions, one would think they would concentrate on the goal of a national agreement. Instead, carrier execs and their cronies are off for two weeks at a time trying to find a way to get rid of more employees rather than trying to come up with a fair and equitable agreement to keep the ones they now have. UNBELIEVEABLE, but not surprising!

Class 1 railroads are not just servicing their own greed and that of Wall Street, they are working against serving their own customers, their own workforce, the families of their employees, the communities they serve and the American economy. This strategy will net them those short-term monetary gains they desire at the expense of the long-term viability of the American supply chain, our national security and the long-term health of the national economy.

Lastly, I find it very offensive that the railroads, via the AAR, would reach out to the shippers to assist their efforts in advocating for so-called “fair-minded” arbitrators with rail industry experience to the Presidential Emergency Board (PEB) to help facilitate what they perceive to be a reasonable agreement and avoid network disruptions. We all know that getting a good contract for the workforce will not only stop the bleeding, but it will also help employee morale and keep the supply chain moving. Absent an enticing contract, the current workforce will continue to shrink and worsen the situation more than any other factors possibly could. I can’t stop my members from leaving the industry, but the railroads can by offering a truly fair and equitable agreement with wage increases, no changes to healthcare costs and predictable scheduling, among other asks.

To the rail customers: I urge you to respond to the AAR’s request by telling them that you support SMART-TD and labor as we have supported you. We have faith that the Railway Labor Act process will work just fine, much like it always has since 1934, and you should too. Don’t let yourselves “get railroaded” by the AAR. America’s Class 1 railroads are attempting to “railroad” customers, railroad employees, their families, and the American public, as a whole, and “attention must be paid.” Don’t listen to their propaganda. Do your research and look at the facts for what they are. I can assure you, if the carriers get what they are proposing, things will only get worse and it will be their own fault.

Sincerely,

Jeremy R. Ferguson
President, Transportation Division