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WATCH: SMART-TD Ohio State Legislative Director Clyde Whitaker testified about rail safety issues before a U.S. Senate committee in March 2023.

Last week’s much-anticipated hearing of the U.S. Senate’s Committee on Environment and Public Works featured a discussion of the Norfolk Southern derailment and the subsequent release of chemicals in East Palestine, Ohio. The spectacle of seeing NS CEO Alan Shaw fend off questions from the senators was clearly the main event of the day; however the undercard of the hearing was well worth the price of the ticket.  

The hearing’s opening panel featured a robust discussion of the new bipartisan legislation being considered in the Senate known as the Railway Safety Act of 2023. Three out of the four title sponsors of the bill were in the hearing and testified about the goals they seek to achieve through the Safety Act. 

Testimony started off with U.S. Sen. Bob Casey, a Pennsylvania Democrat. Last December, Casey not only voted for U.S. Sen. Bernie Sanders’ legislation to guarantee seven paid sick days for railroad employees, but he also spoke at the SMART Transportation Division-led rally Dec. 13 outside the U.S. Capitol in Washington D.C. in support of ending Precision Scheduled Railroading (PSR).  

With the Feb. 3 Norfolk Southern derailment and subsequent aftermath unfolding mere feet from Sen. Casey’s state, it makes sense that he would be among the group of legislators trying to rein in the effects PSR is having on our industry.  

In discussing the Railway Safety Act of 2023, Casey said, “The future has to be about passing the Railway Safety Act that Senator Brown, Senator Vance, Senator Fetterman and I and others are leading. It’s bipartisan. That never happens around here on big bills, or rarely, I should say. It would be a good start by Norfolk Southern to tell us here today in addition to what more they are going to do for the people of Ohio and Pennsylvania, to tell us today that they support the bill! That would help.” Casey continued, “That’s what the people of both states deserve.” 

Following Sen. Casey’s testimony, the spotlight went to the two Ohio senators. Sherrod Brown and JD Vance are on very different ends of the political spectrum, but they both did solid work discussing the strengths of and the need for the legislation.  

“Lobbyists for the railroad companies have spent years fighting every effort to strengthen rules to make our trains and our rail lines safer. Now Ohioans are paying the price.”

– Ohio Sen. Sherrod Brown

In discussing Norfolk Southern’s large derailment in Ohio on March 4th, Sen. Brown said, “Another NS train derailed in Springfield, Ohio. This time the cars that derailed weren’t carrying hazardous chemicals, but other cars on that 200-plus-car train were. The only thing that saved Ohioans from another disaster was luck. But we need more than that. That is why Senator Vance and I have come together to introduce our bipartisan Railway Safety Act.”  

He went on to say that “lobbyists for the railroad companies have spent years fighting every effort to strengthen rules to make our trains and our rail lines safer. Now Ohioans are paying the price.” 

Sen. Vance came out swinging pretty hard at the railroads, especially considering he is just months into his first term in Congress. For his part, Vance pointed out that, “This is an industry that enjoys special subsidies that almost no industry enjoys. This is an industry that enjoys special carveouts that almost no industry enjoys. This is an industry that just three months ago had the federal government come in and save them from a labor dispute. It was effectively a bailout. And now they’re claiming before the Senate and House that our reasonable legislation is somehow a violation of the free market? Well pot, meet the kettle, because that doesn’t make an ounce of sense. You cannot claim special government privileges, you cannot ask the government to bail you out and then resist basic public safety.”  

In reference to his colleagues in Congress, Vance offered this: “We have a choice. Are we for big business and big government, or are we for the people of East Palestine? It’s a time for choosing. Let’s make the right one.” 

It’s hard to put a finer point on it than that. SMART-TD is happy to have the combination of these three legislators along with Sens. John Fetterman (D-Pa.) and Marco Rubio (R-Fla.), pushing this bill in Washington. We applaud their interest in safeguarding the rail industry and look forward to helping them as we get the Railway Safety Act of 2023 over the finish line.

“From the Ballast” is an open column for SMART Transportation Division rail members to state their perspective on issues related to the railroad industry. Members of the union are encouraged to submit content by emailing to news_TD@smart-union.org. Columns are published at the union’s discretion and may be published in the SMART-TD newspaper.

Most of us with any amount of time on the railroad have the shared experience of feeling the hot seat that comes with a company discipline hearing. These kangaroo courts are not set up to be fair and impartial fact-finding missions.  As we all know, they are an exercise in intimidation meant to make us feel as uncomfortable as possible. If they can add the bonus of humiliation on top of the penalty they’re threatening to impose, it makes the experience so much better.  

The U.S. Senate’s Committee on Environment and Public Works’ hearing March 9 put Norfolk Southern CEO Alan Shaw in our shoes for once (and not that pair of work boots he acquired to look like a relatable guy when the cameras were filming him in East Palestine, Ohio). For once, the so-called “big boss” got to experience the discomfort and frustration of when people in authority demand an explanation and accountability. It was very reminiscent of how we feel in similar situations when we’re getting grilled by railroad managers like Shaw.  

It was hard to feel any sympathy. Yet while every senator seemed poised to force Shaw’s hand, each stopped just short of going in for the kill. Those who did ask hard questions were given lukewarm half-answers — snippets from the well-rehearsed lines that he has been using since the derailment happened. He appeared like he was simply spinning his greatest hits album of the soundbites that scored highest in a focus group. 

Based on the fact that the hearing went for over a third of the time a rail crew has off between shifts these days, most members likely didn’t have the opportunity to watch. In an effort to put a bow on it, the hearing broke down like this: 

CEO Shaw was asked about as many questions as you could fit into the 3-hour, 19-minute hearing but somehow managed to answer every one of them with one of the following responses on a loop.  

  • I have only been the CEO since May 2022. 
  • I am personally determined to make this right for the community of East Palestine. 
  • Norfolk Southern will be in East Palestine tomorrow, next month, next year, and ten years from now. 
  • We created a new website in response to the disaster. 

After seeing his performance, (and that was exactly what it was) I would offer Mr. Shaw some advice. First, he should hire a new acting coach to help him get through these situations. His entitled angry Wall Street CEO reality leaked through the repentant empathetic “Mother Teresa” persona that he was trying to adopt before the panel as penance for the misery that’s occurred in East Palestine.  

Second, I would advise him to learn the value of direct answers. He was asked yes/no questions time and time again and offered answers that went on for minutes at a time and somehow did not include either of those two words to definitively answer what was asked.  

Since the senators were allotted a limited amount of time for their questions, Shaw was successful in running out the clock by playing a version of corporate prevent defense. But where he succeeded in not being pinned down to anything that could be held up in court as a commitment, he failed to move the needle in the court of public opinion. His wishy-washy answers, devoid of authenticity, full of unwillingness to commit to substantive industry change away from Precision Scheduled Railroading, and the recurring theme of “we’ll consider throwing more money at the problem we created,” clearly angered the senators on the Committee of Environment and Public Works. We will see what effect they have on the all-important shareholders of Norfolk Southern. His appearance did nothing to inspire the confidence of SMART Transportation Division.  

Among some of the questions from the senators that Shaw artfully dodged were: 

  • What did NS learn from the 20th derailment that resulted in a chemical release since 2015 that it didn’t learn from the 5th, the 10th, or the 15th? — Sen. Debbie Stabenow (D-Michigan) 
  • Will you lead the rail industry in getting away from the business model known as Precision Scheduled Railroading? — Senator Bernie Sanders (I-Vermont) 
  • Was the owner of the rail car in question who is responsible for its maintenance and contents involved in the decision to vent it and burn off the contents of it? — Sen. Markwayne Mullin (R-Oklahoma) 

One last highlight came from Sen. Sheldon Whitehouse (D-Rhode Island). It wasn’t posed as a question, but in Whitehouse’s comments, he stated that, “Mr. Shaw, the news is reporting that there has just been a significant derailment in Alabama of one of your trains. I certainly hope that all of your team and anyone in the vicinity is safe and well. You may need to look into that.” 

Though the net result of the hearing was minimal, CEO Shaw came out of it looking highly frustrated, but less than trustworthy. He was clearly uncomfortable being held accountable for the unintended but inevitable consequences of his company’s embrace of PSR.  

What left me with an uncomfortable feeling was that Shaw continually framed all the promises made to East Palestine and surrounding communities as “personal commitments.” As anyone on the rail can tell you, nothing is true or real in this industry until it is. There is no such thing as a guarantee. With all of the commitments coming from Shaw personally, it raises the question of what happens if NS fires him?  

Likely, he’ll float away comfortably from East Palestine on his golden parachute, make a comfortable landing elsewhere — maybe as an industry lobbyist — and the Ohio village residents he testified to have such an affinity with would be left holding a bag full of empty promises, just like every one of us railroaders with wallets full of unfulfilled IOUs from Class I managers. 

Daniel Banks is a Class I certified conductor and government affairs representative for the SMART Transportation Division. 

For immediate release 
March 1, 2023 
Phone: (216) 228-9400  
Department email: news_td@smart-union.org   

“This legislation goes a long way toward protecting American families and communities while fortifying the rail industry to be sustainable and safe long into the future. The voices of SMART-TD’s brothers and sisters have been heard by these senators and are echoing through the halls of the United States Congress.” 

INDEPENDENCE, Ohio (March 1, 2023) — Jeremy Ferguson, president of the International Association of Sheet Metal, Air, Rail and Transportation Workers Transportation Division (SMART-TD), is calling for national support of The Railway Safety Act of 2023, a bipartisan bill that acknowledges the real-world conditions that shape the day-to-day safety concerns of the railroad workers who haul America’s freight.  

U.S. Sens. Sherrod Brown (D-Ohio), J.D. Vance (R-Ohio), Bob Casey (D-Pa.), John Fetterman (D-Pa.), Marco Rubio (R-Florida) and Josh Hawley (R-Mo.) have listened to the concerns of their constituents and put forward a comprehensive package in the Railway Safety Act that lives up to its billing — prioritizing the safety concerns expressed by the public and rail worker alike. In this bill, they give credence to the common-sense safety measures that our union and others in rail labor have advanced for years. 

“The provisions in this act add up to the end of the era of Precision Scheduled Railroading (PSR) and attempt to take back control of our nation’s supply chain from Wall Street’s ‘profit at any cost’ mentality. It offers a chance for the nation to make the giant rail corporations take rational measures to get the industry to do what it’s designed to do — move freight through our nation safely and efficiently and be an example for the rest of the world to model,” President Ferguson said. “SMART-TD is proud to support this bill and its efforts to bring about generational changes in this country and to take a major step to stop PSR. We will work tirelessly with this team of like-minded Senators to realize their vision for a safer and stronger rail industry.” 

The safeguards offered in the bill include, but are not limited to: 

  • A nationwide mandate for well-trained two-person crews on all freight trains; 
  • Restrictions on train length and weight; 
  • Regulations on the installation, frequency, upkeep, and response to wayside defect detectors; 
  • Speed restrictions; 
  • Drastically increased fines for rail companies and management employees who do not adhere to rail safety protocols; 
  • Universalized track maintenance standards; 
  • Universalized rail-car maintenance standards; 
  • Higher standards for tank cars carrying hazardous material; 
  • Emergency response plans for carriers and communities; 
  • Phasing out of rail cars that do not meet strengthened safety requirements; 
  • Annual government audits of rail carriers to validate compliance to new heightened safety standards. 

“Hedge fund management of rail companies and their PSR strategy have careened the United States rail industry into a dark and dangerous place in the last six years. This bill has the potential to put safe operations into its rightful place as the gold standard in railroading and not what the next quarterly report can bring. We owe it to the people of East Palestine, Ohio, and to all communities that have railroad tracks running through them to have members of Congress do the right thing — to support this bill and insist that it makes it to President Biden’s desk without being watered down by negotiations or the special interests that will seek to stop it and claim that it is too ‘burdensome’ for a highly profitable industry to implement,” Ferguson continued.  

A recently released Ipsos-USA Today poll shows that 53% of Americans believe that strengthened rail industry safety regulations could have prevented the disaster in East Palestine, Ohio. 

Read the text of the bill

Fact sheet about the bill

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SMART Transportation Division is comprised of approximately 125,000 active and retired members who work in a variety of different crafts in the transportation industry. These crafts include employees on every Class I railroad, Amtrak, many shortline railroads, bus and mass transit employees and airport personnel.

If you’re interested in speaking more about the Railway Safety Act of 2023, PSR, East Palestine, rail safety, and the next steps for the rail industry, we’d be happy to connect you with:  

SMART Transportation Division President Jeremy Ferguson 

President Jeremy Ferguson, a member of Local 313 in Grand Rapids, Mic., was elected president of SMART’s Transportation Division in 2019.President Ferguson, an Army veteran, started railroading in 1994 as a conductor on CSX at Grand Rapids, Mich., and was promoted to engineer in 1995. Ferguson headed the recent national rail negotiations for the union with the nation’s rail carriers. 

SMART Transportation Division National Legislative Director Gregory Hynes 

Greg Hynes is a fifth-generation railroader and was elected national legislative director in 2019. Hynes served on the SMART Transportation Division National Safety Team that assists the National Transportation Safety Board with accident investigations, from 2007-2014. In 2014, he was appointed to the Federal Railroad Administration’s Railroad Safety Advisory Committee (RSAC), which develops new railroad regulatory standards. 

SMART Transportation Division Alternate National Legislative Director Jared Cassity

Jared Cassity was elected by his peers in 2019 and currently serves as the Alternate National Legislative Director. In addition to his elected roles, Cassity has also been appointed as the union’s chief of safety, serves as the director for the SMART-TD National Safety Team (which assists the NTSB in major rail-related accident investigations), is SMART-TD’s voting member on the Federal Railroad Administration’s C3RS Steering Committee, and is the first and only labor member to ever be appointed to the Transportation Security Administration’s Surface Transportation Safety Advisory Committee. 

SMART Transportation Division President Jeremy Ferguson issued the following statement on Feb. 21:

“The greatest threat to the American railroad industry and the communities with which it intersects is Precision Scheduled Railroading (PSR). The changes PSR has brought since its inception in 2017 have only served to make executives and Wall Street shareholders richer, while the risk to employees and the public has become greater.

“The derailment that occurred in East Palestine was predictable and preventable. Unfortunately, financially driven equations, like the operating ratio, have caused rail carriers to abandon fundamentally sound practices for haphazard, inherently dangerous, impetuous movements of freight and locomotives across America’s rail system — all in the pursuit of increasing the bottom line. This is neither responsible nor sustainable, and we are now seeing the reality of this fact coming into fruition.

“Because of PSR, we find ourselves in an era of exponential increases to train length, less consideration to train make-up or construction, the desire to reduce crew size and introduce automation, the reduction in frequency and quality of inspections to equipment and infrastructure, and the permissibility of railroads to self-report and self-police — none of which are consistent with safety.

“Now is not the time to introduce more technology but rather to focus on the fundamental changes needed to reverse railroading’s dangerous trajectory. Now is the time to put an end to PSR.

“While our hearts break for the people of East Palestine, Ohio, we are thankful that our calls for meaningful oversight are finally being heard. We look forward to working with President Biden and the Department of Transportation to get this right. The catastrophe in Ohio and Pennsylvania demands that we get this right.

“We stand willing and ready to do just that.”

Secretary Buttigieg’s letter is available here.

The analysts and financial pundits seem to have already spoken, pronouncing that Class I Norfolk Southern (NS) and its shareholders are going to be just fine in the aftermath of the East Palestine, Ohio, derailment. The experts have let us all know that what could turn out to be the largest domestic environmental disaster of our young decade won’t actually be that big of a hit for the Class I carrier.

In an article published Feb. 14 by FreightWaves, the publication stated that it estimates NS will “only” end up spending $40 million to $50 million to cover its liabilities for the derailment. Though this number is substantial when viewed against the backdrop of East Palestine’s $46,436 median household income and $88,600 median property value, the estimated price tag only amounts to 1.7% of the railroad giant’s net profits in 2022.

Based on industry standards for such incidents (this isn’t the first time a railroad disaster has spoiled the environment of a town and surrounding areas), the article estimates that any financial setback to the company and investors as a result of the Feb. 3 disaster will be overcome by May.

“As a rail service is restored, rail shares have historically not seen a material impact from accidents on a three-month horizon.” Ken Hoexter of Bank of America was quoted in the article.

Incidents of the magnitude of what happened in Ohio have the ability to alter the lives of thousands of people who live in communities near rail tracks, yet here, again, we see that they do not serve as much more than a slight dip in the quarterly lap around the corporate speedway to more profits. This is a less than encouraging reality. It begs the question whether there’s any tangible motivator for Norfolk Southern or the other Class I freight railroads to do better than simply mouthing “safety is our top priority” when the financial hit is brushed away like a piece of lint. The residents of the affected area? Well, they have to cope with the stress of homes and property tainted by chemical fallout and the anxiety of not knowing whether there will be long-lasting ramifications to their general physical and mental health as a result of the disaster while the legal wrangling occurs.

As the article in FreightWaves points out, NS had a similar derailment in 2005 in Graniteville, S.C. There, the carrier was found to be liable for 550 people being admitted to hospitals with respiratory issues, and nine deaths due to the release of chlorine. NS paid out $39 million between expenses and penalties. This resulted in a mere 1.7 percent decrease in its operating ratio for a single quarter. The financials of the company, including its stock prices, had entirely recovered by the end of that year, the article said.

While the benefits reaped by carriers seeming “too big to fail” works out just fine for the shareholders, rail labor has to cope with job cuts and compensate at an operational level for the decisions of Class I management. It’s our members who know they are being pushed to operate questionable equipment subject to relaxed safety inspections. Our men and women have front-row seats to watch the hedge fund profit-first mentality that fuels Precision Scheduled Railroading as it rots out our industry. Many workers have had the thought or have said to a manager that cultural shifts away from proper inspections and maintenance were going to create disasters like we saw in East Palestine. It turns out that we were right, but so were they in thinking the PSR playbook is still profitable, even with the occasional disaster baked into the cake. Until these carriers are financially unable to recover so quickly from these catastrophes, they have no reason to increase staffing and get back to a safety-focused culture.

So if history holds, analysts suggest, the temporary price drop in NS stock should actually be viewed as a rebound opportunity. Savvy investors could buy into the company on the cheap now, then reap the rewards when it bounces back. It’s a dark and chilling commentary on an eventual return to business as usual within months of East Palestine’s nightmare. Yet the recovery for the village’s about 4,500 residents will take substantially longer.

Read the article from Freightwaves.com

Senator Bernie Sanders speaks during the Capitol Hill rail solidarity rally.

The SMART Transportation Division organized rallies in multiple locations Dec. 13 to bring attention to rail-related issues, including maintaining the current safe level of a minimum two-person crew in the cabs of locomotives, paid sick leave for workers and an end to the carriers’ Precision Scheduled Railroading (PSR) scheme.

A solidarity rally took place at Capitol Hill days after the Dec. 2 federal imposition of a national rail contract on SMART-TD and three other unions, drawing support from the AFL-CIO’s Transportation Trades Department, multiple unions from inside and apart from the rail industry, a bipartisan contingent of U.S. representatives and senators and others.

Watch coverage of the Capitol Hill rail solidarity rally in episode four of SMART News.

“Every single day in this nation, a life is saved because of the actions of a two-person crew. When a train whistle is blown and a kid gets out of the way — that is a life that is saved in a moment. But you never hear about it because the railroads are not required to report it,” SMART-TD Alternate National Legislative Director Jared Cassity told the crowd of supporters in Washington, DC. “PSR is a deadly animal to this entire nation. Public safety is under threat because of cuts for profit that the railroads are trying to make. They want to keep cutting. They want to keep taking crew members off trains — they’re going to do whatever they can do to keep making another dollar. We have got to put an end to it, but the only way we do that is that we all fight together and keep going.

“Keep talking to your brothers and sisters. Let them know that the fight continues — the only way that we win this battle is if everybody is out, everybody is fighting and everybody is loud and everybody is doing their part to make sure our job, our union, our solidarity is being fought for. You’ve got to be the leader at home. You’ve got to let your people know that the time is here, the time is now. We’re all in this fight together.”

The rally at the Capitol was one of a series that took place in multiple states, including Colorado, Illinois, Iowa, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, Ohio, Utah and Wyoming.

“These reforms aren’t going to happen on their own. We’re going to keep pushing to make them happen so we can deliver for railroad workers. At a minimum, every single railroad worker deserves paid sick leave and the guarantee of a two-person crew. These reforms will create a safer and better freight system for everyone,” said TTD President Greg Regan, who introduced a number of the speakers from Congress.

“When we leave here today, do not go home and think that you did your part. You have not done enough yet. We have not done enough yet. No one has done enough yet,” Cassity added. “We will get strong. We will get louder. We have got to continue.”

Rep. Ocasio-Cortez
This image has an empty alt attribute; its file name is RAIL_don_bacon2-copy-1024x683.jpg
Rep. Bacon
Rep. Bowman

While Congress stopped a nationwide rail strike by imposing a contract on workers in December, the devastating workplace conditions perpetuated by major rail corporations continue to prevail.

More than a dozen members of Congress addressed the rally, including: U.S. Reps. Donald Payne (D-N.J.), Andy Levin (D-Mich.), Brian Fitzpatrick (R-Pa.), Don Bacon (R-Neb.), Jamaal Bowman (D-N.Y.), Jesús “Chuy” Garcia (D-Ill.), Alexandria Ocasio-Cortez (D-N.Y.), John Garamendi (D-Calif.), Bonnie Watson Coleman (D-N.J.), Pramila Jayapal (D-Wash.), Cori Bush (D-Mo.), Jimmy Gomez (D-Calif.), Rashida Tlaib (D-Mich.) and Ilhan Omar (D-Minn.), as well as U.S. Sens. Bernie Sanders (I-Vermont), Elizabeth Warren (D-Mass.) and Bob Casey (D-Pa.).

 “What you have shown the country is how outrageous this level of corporate greed is and how we have it in the rail industry and in other industries across this country,” said Sanders. “Tell the people that own this country that we are going to put an end to their greed.”

Sanders railed at the carriers’ refusal to meet workers’ demands for paid sick leave in the industry during the contract negotiations that concluded with the federal government imposing a contract on a majority of rail workers.

“The truth of the matter is, that if we had any justice in this country, we wouldn’t have to make that demand because this country would do what virtually every other major country on Earth does and guarantee paid family and medical leave.”

He also told workers that PSR will be in Congress’s cross-hairs: “You guys now have to do more with less. That’s their ideology — how do we work people to the bone so we can make $20 million a year? And that is why we have to put an end to Precision Scheduled Railroading,” Sanders declared. “We’re going to bring not only the rail unions together, we’re going to bring the workers together to bring the justice that is long overdue.”

The rallies coincided with a hearing led by the Surface Transportation Board to examine Union Pacific’s service performance failures that have harmed the supply chain, and preceded the public hearing before the Federal Railroad Administration on the Notice of Proposed Rulemaking regarding two-person freight crews.

Denver
Nevada
New Mexico

WASHINGTON – SMART Transportation Division organized rallies in multiple locations Dec. 13 to bring attention to rail-related issues, including maintaining the current safe level of a minimum two-person crew in the cabs of locomotives, paid sick leave for workers and an end to the carriers’ Precision Scheduled Railroading (PSR) scheme.

A solidarity rally took place at Capitol Hill days after the Dec. 2 federal imposition of a national rail contract on the SMART-TD and three other unions, drawing support from the AFL-CIO’s Transportation Trades Department, multiple unions from inside and apart from the rail industry, a bipartisan contingent of U.S. representatives and senators and others.

“Every single day in this nation, a life is saved because of the actions of a two-person crew. When a train whistle is blown and a kid gets out of the way – that is a life that is saved in a moment. But you never hear about it because the railroads are not required to report it,” SMART-TD Alternate National Legislative Director Jared Cassity told the crowd of supporters at Capitol Hill. “PSR is a deadly animal to this entire nation. Public safety is under threat because of cuts for profit that the railroads are trying to make. They want to keep cutting. They want to keep taking crew members off trains — they’re going to do whatever they can do to keep making another dollar. We have got to put an end to it, but the only way we do that is that we all fight together and keep going.

“Keep talking to your brothers and sisters. Let them know that the fight continues — the only way that we win this battle is if everybody is out, everybody is fighting and everybody is loud and everybody is doing their part to make sure our job, our union, our solidarity is being fought for. You’ve got to be the leader at home. You’ve got to let your people know that the time is here, the time is now. We’re all in this fight together.

“When we leave here today, do not go home and think that you did your part. You have not done enough yet. We have not done enough yet. No one has done enough yet,” Cassity said. “We will get strong. We will get louder. We have got to continue.”

The rally at the Capitol was one of a series that took place in multiple states, including Colorado, Illinois, Iowa, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, Ohio, Utah and Wyoming.

“These reforms aren’t going to happen on their own. We’re going to keep pushing to make them happen so we can deliver for railroad workers. At a minimum, every single railroad worker deserves paid sick leave and the guarantee of a two-person crew. These reforms will create a safer and better freight system for everyone,” said TTD President Greg Regan, who introduced a number of the speakers from Congress.

While Congress stopped a nationwide rail strike by imposing a contract on workers earlier this month, the devastating workplace conditions perpetuated by major rail corporations continue to prevail.

More than a dozen members of Congress addressed the rally, including: U.S. Reps. Donald Payne (D-N.J., Dist.10), Andy Levin (D-Mich., Dist. 9), Brian Fitzpatrick (R-Pa., Dist. 1), Don Bacon (R-Neb., Dist. 2), Jamaal Bowman (D-N.Y., Dist. 16), Jesús “Chuy” Garcia (D-Ill., Dist. 4), Alexandria Ocasio-Cortez (D-N.Y., Dist. 14), John Garamendi (D-Calif., Dist. 3), Bonnie Watson Coleman (D-N.J., Dist. 12), Pramila Jayapal (D-Wash., Dist. 7), Cori Bush (D-Mo., Dist. 1), Jimmy Gomez (D-Calif., Dist. 34), Rashida Tlaib (D-Mich., Dist. 13) and Ilhan Omar (D-Minn., Dist. 5) and U.S. Sens. Bernie Sanders (I-Vermont), Elizabeth Warren (D-Mass.), and Bob Casey (D-Pa.).

U.S. Sen. Bernie Sanders addresses the crowd at the Capitol Hill labor solidarity rally on Dec. 13.

“What you have shown the country is how outrageous this level of corporate greed is and how we have it in the rail industry and in other industries across this country,” said Sanders. “Tell the people that own this country that we are going to put an end to their greed.”

Sanders railed at the carriers’ refusal to meet workers’ demands for paid sick leave in the industry during the contract negotiations that concluded with the federal government imposing a contract on a majority of rail workers.

“The truth of the matter is, that if we had any justice in this country, we wouldn’t have to make that demand because this country would do what virtually every other major country on Earth does and guarantee paid family and medical leave.”

He also told workers that PSR will be in Congress’s crosshairs:

“You guys now have to do more with less. That’s their ideology — how do we work people to the bone so we can make $20 million a year? And that is why we have to put an end to Precision Scheduled Railroading,” Sanders said. “We’re going to bring not only the rail unions together, we’re going to bring the workers together to bring the justice that is long overdue.”

The D.C. rally was streamed live by the Rails, Tails and Trails podcast.

The rallies coincided with a hearing led by the Surface Transportation Board to examine Union Pacific’s service performance failures that have harmed the supply chain and preceded the public hearing before the Federal Railroad Administration regarding the Notice of Proposed Rulemaking (NPRM) regarding two-person freight crews.

Colorado

Members of SMART-TD rally at the overpass above BNSF’s Denver roundhouse and yards Dec. 13. (Photo courtesy Colorado SLD Carl Smith.)
Union members mobilize before their rally.
Members hold a banner at their rally Dec. 13.

Illinois

Members rally in the rain in Galesburg, Ill.

TSPR coverage of the event
WQAD

Michigan

Workers and supporters at a rally in Royal Oak, Mich.

WXYZ coverage

Minnesota

Northern News Now

Duluth News Tribune

Nevada

Nevada Globe

This is Reno

2 News

New Mexico

Ohio

Labor supporters rallied outside the Ohio statehouse on Dec. 13.

Wyoming

People turning out in Cheyenne in 15-degree temperatures with 25+mph winds and a -22-degree wind chill. “Huge shout out to Tammy Johnson, Wyoming AFL-CIO Executive Secretary, who helped me and did so much of the organizing,” said Wyoming SLD April Ford.

K2 Radio

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

From left, Local Chairperson Chris Bond (Local 513, Gainesville Texas); Local Chairperson Steve Groat (Local 329, Boone, Iowa); General Chairperson Matt Burkart (GCA-341); SMART Transportation Division President Jeremy Ferguson and AFL-CIO Transportation Trades Department President Greg Regan wait to deliver their testimony before the Surface Transportation Board on April 26, 2022.

Video recap of the damning testimony on rail carrier policies.

On April 26, SMART Transportation Division President Jeremy Ferguson and three members of the union shed light April 26 on the devastating effects Precision Scheduled Railroading (PSR) has had on customers and labor alike before the Surface Transportation Board (STB).

Their testimony came on the first day of STB’s hearing on “Urgent Issues in Freight Rail Service” convened in Washington, D.C.

“As professionals, it’s painful to watch our shippers get bad service or no service at all, much higher rates, destroyed product and equipment, and in some cases having to resort to shipping by truck whenever possible,” President Ferguson said. “I want to make our voice heard that we stand with the shippers who want our professional service to keep the supply chain open and keep this country’s economy moving.”

President Ferguson’s testimony will begin immediately upon clicking the image.

President Ferguson referred back to the “safest and most productive era” of railroading years ago with more service flexibility, proper maintenance and full extra boards that has now been sacrificed for the higher stock prices sought by Wall Street investors through the implementation of PSR.

“Thousands of men and women have been laid off with reckless abandon while no consideration has been given to the service that has ultimately been forsaken,” he said. “All that is known to us and our members at this point is that the railroads are dead set on achieving the lowest operating ratio attainable at any cost.”

“Railroading, once revered as one of the most-coveted blue-collar jobs in the world, is now hemorrhaging employees at unprecedented rates because of the abusive work environments PSR has created. Truth is, employees are leaving the industry faster than the railroads can hire.”

He referenced the “Hi-Viz” attendance policy that BNSF implemented in February several times, stated that its implementation has led to the departure of 1,000 workers who were forced to choose between trying to attain enough sleep to safely work their next shift or try to spend limited time with family for a undervalued employee that often has only one day off a month.

“Now, because of PSR, two choices exist for rail labor: Work or be fired,” President Ferguson said.

Brother Burkart’s testimony will begin immediately upon clicking the image.

General Chairperson Matt Burkart (GCA-341), a fourth-generation railroad worker, yardmaster and member of Local 1975 (Kansas City, Mo.), testified that the relative simplicity of railroading over its nearly two centuries in the United States is being violated.

“It takes three things to railroad: Power, crew and rail. That’s it. Something to pull it, somebody to move it and something to run on,” said Burkart, a former member of management. “You give us those three things and we can run all day long. We’re not running all day long right now.”

Burkart mentioned the lengthy trains PSR has brought, many which exceed 10,000 feet when yards and sidings were made to accommodate World War II-era lengths of 3,000 feet. Not only does it take more moves to build or put a train away, it also takes more time, thus burning through the crew base.

Brother Burkart also brought to light our equipment, including the hand-held radios supplied to our members, were not made to accommodate these types of train lengths either, stating that, “the radios do not work with the longer trains, hampering the crew’s ability to communicate when inspecting larger trains” he said.

“It just doesn’t make sense, it’s perpetuating manpower issues, it’s dangerous, and it’s not servicing our customers. All of it’s bad,” Burkart said.

And, lastly, BNSF, contrary to belief, has implemented PSR and has imposed its own data-driven metrics based on reducing resources and headcount for years, Burkart said.

He offered a pair of simple solutions looking back a decade and a half:

“It takes planning. It takes common sense,” Burkart said. “Two things can be legislated today: a maximum of 8,000 foot on trains. We don’t need these three-mile-long monsters running around. We need to disincentivize any reason to ever store a locomotive. In Donley Creek we have five miles of engines stored. There’s no reason for a train to sit without power.”

Brother Groat’s testimony will appear immediately upon clicking the image.

Also testifying was Local Chairperson Steve Groat (Local 329 — Boone, Iowa), a Union Pacific engineer, who mentioned the slower velocity caused by inadequate track maintenance, derailments and mechanical failures caused, in part, by long trains.

“Since the increase in train lengths, I’ve noticed more hard wear,” he said — broken cars split in half, drawbars and knuckles being left on the ground. “These train lengths increase the in-train force that stresses the components that don’t normally fail.”

Travel times for trains also have increased and locomotive use hasn’t been efficient, Groat told the board.

“This is like hooking up a 28-foot camper to a Toyota Prius and trying to drive to Colorado,” he said. “At what time do you expect the engine to fail or a component of the locomotive to fail?”

Brother Bond’s testimony will appear immediately upon clicking the image.

Local Chairperson Chris Bond (Local 513 — Gainesville, Texas), an engineer, spoke about BNSF’s throttle and power limitations that had been rescinded April 15 after the STB hearing had been announced.

“The carrier has put profit over everything,” Bond said. “Over customer service, over employees, even over safety.”

Hi-Viz also has caused an employee exodus and a personnel shortage at the carrier when there wasn’t one before, Bond said.

“This new policy has employees resigning in record numbers. I have several employees who are facing discipline and possible dismissal right now,” he said, including a single mother who has staggered custody of her child, now facing potential termination as a result of Hi-Viz.

“With BNSF losing people because of resignations and terminations, they’ve attempted to recall furloughed employees that are hearing of the current work environment and choosing not to return,” Bond said. “The new conductor trainees who are hiring on are quitting almost right away.”

The testimony from SMART-TD was preceded by Transportation Trades Department, AFL-CIO President Greg Regan, who recently detailed PSR-related meltdowns that have adversely affected shippers.

“The workers represented by TTD-affiliated unions have been sounding the alarm on the state of the freight-rail industry for years,” he said. “It’s deeply unfortunate but completely predictable that we would find ourselves here today as both railroad employees and customers sit before you to express a shared simple fact — that today’s freight-rail network is not working for anyone other than railroad investors.”

Regan reminded STB members that Class I railroads shrank their workforce well before the pandemic by 29 percent over the last six years — about 45,000 jobs and were making the system less flexible by storing equipment.

“The elimination of jobs across all crafts of the freight rail network has undoubtedly contributed to operational breakdowns and service degradation, including the ability to operate, inspect, maintain and repair every component of a railroad.”

He mentioned service disruptions experienced by customers of BNSF, Union Pacific and Norfolk Southern in recent months.

“For as long as these railroads continue along their current path, these meltdowns and service degradations will continue,” Regan said.

Brotherhood of Locomotive Engineers and Trainmen Vice President Mark L. Wallace also testified on behalf of labor.

Members of the SMART Transportation Division and other unionized rail workers came together for a day of protest May 10 outside the North American Rail Shippers (NARS) annual meeting.

Early in the day, SMART TD Kansas State Legislative Director Ty Dragoo, New Mexico State Legislative Director Don Gallegos, TD Auxiliary President Kathryn Seegmiller and many other union members, spouses and supporters spent hours outside and around the Kansas City Marriott Downtown in Kansas City, Mo., to draw attention to Class I carriers’ Precision Scheduled Railroading scheme, BNSF’s “Hi-Viz” attendance policy and the fact that National Rail Contract negotiations are approaching a third year.

“We had people joining in just walking by, people honking showing support as they drove by,” Dragoo said. “We had people from many different Class 1 railroads there, not just BNSF.”

Some of the protesters outside the North American Rail Shipper conference hold signs May 10 in Kansas City. (Photo courtesy Kansas SLD Ty Dragoo)

Dragoo thanked many of the lead organizers of the event, including SMART-TD National Safety Team Alternate Director — East and Kansas State Legislative Secretary Dan Bonawitz (Local 1409, Kansas City, Kan.), Kansas State Alternate Legislative Secretary Mike Scheerer (Local 94, Kansas City, Kan.), Legislative Representative Tim Alexander (Local 1532, Kansas City, Kan.) and Local 1532 Trustee Matt Collins, as well as 1532 member Jason Bluett and member Rodney Sparks of Local 5 (Kansas City, Mo.).

“Dan Bonawitz and his team have done a tremendous job getting the word out. These events are crucial as we wage the war of public opinion in legislatures across the country and congress,” Dragoo said. “Citizens need to know that their communities are in danger not only by reducing crews from a public safety standpoint, but the economic impact that has on communities when good union jobs leave. We will keep the fight up and we won’t back down!”

The demonstration outside the NARS gathering, which was attended by C-suite-level executives from many of the Class I freight railroads, was not the only coordinated demonstration that has taken place.

More than 100 people took part in informational pickets in Guernsey and Gillette, Wyo., Local 465 Chairman Kevin Knutson told the Platte County Record Times.

“The goal of this informational picket was to raise awareness with the public of the BNSF Railway policies that are not only degrading our workforce and harming our families but directly impacting our communities and increasing the cost of goods for all Americans,” he told newspaper reporter Mark DeLap. “The informational picket was also an effort to spotlight how BNSF Railway is directly at fault for the regressive policies causing these hardships.

“We, as families, friends, employees and retirees, have never experienced such an antagonistic approach to a workforce and their employees before,” Knutson said.

SMART TD Local 445 was in attendance at the May 15 rally in Ft. Madison Iowa.

A protest coordinated by TD officers, the SMART TD Auxiliary and other rail labor groups also occurred April 30 at BNSF parent company Berkshire Hathaway’s shareholder meeting.

Another rally was hosted by the Lee County Labor Chapter on Sunday, May 15 in Ft. Madison, Iowa. Dozens showed up at the informational protest and a news crew from ABC-affiliate WQAD8 was on hand to interview the protestors about their dissatisfaction with the Class I carriers.

There are two more informational protests scheduled in the greater Chicago area on May 25 and 26.

The first protest will be at the CN Glass Palace on Wednesday, May 25 at 5:30 a.m. Those attending should meet up on the corner of Ashland Ave. and Maple Rd.; or 1657 Maple Rd., Homewood, IL 60430. For more information see the first picture at the end of this post.

The second protest will be Thursday, May 26 at 5:30 a.m. at the Union Pacific Proviso Yard at 5050 W. Lake St., Melrose Park, IL 60160. For more information, see the second picture below.

Additional events will continue to be organized at all levels in order to inform the public and other groups about the concerns of rail workers.