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The following update on Amtrak negotiations is from UTU General Chairperson Roger Lenfest (GO 769), who is the UTU lead negotiator. The UTU International is not participating in the talks. Under the UTU’s guarantee of craft autonomy, the International participates in on-property negotiations only when requested to do so by general chairpersons.

The existing UTU agreement with Amtrak remains in force until amendments are concluded under provisions of the Railway Labor Act.  

According to Lenfest:

“Here are some of the reasons why we have not yet reached a settlement.

“So far, none of the crafts who have settled have come close to a net 3 percent increase in pay for their members any year for the next five years. In fact, in the last three years of those agreements, the single-employee contribution to health and welfare could be $230 per month.

“On the other hand, there are several important issues specific to our craft that we are serious about resolving. Certification and the attendant pay for certification is important, as is the issue of the treatment of single-day vacations.

“Furthermore, the meal allowance for conductors who are required by Amtrak to be away from home must be addressed.

“Another important issue to our members is to achieve an adequate amount of time-off for those members who work for long hours.

“In the meantime, there are several economic reports coming in that inflation and increased costs for fuel and groceries are right around the corner.

“It is our goal to reach a reasonable and honorable settlement with Amtrak in the near term; however, we must be vigilant that any settlement is equitable and that we meet our responsibility to place our members in a better economic situation.

“Presently, we are not the only major craft negotiating with Amtrak. The Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employes have yet to reach a settlement with Amtrak.

“In fact, the BMWE recently polled its Amtrak-employed members concerning the acceptance of a contract with Amtrak under similar terms and conditions as those accepted by the crafts who have already signed. We understand that more than 2,000 ballots were sent out to BMWE members; and 85.5 percent of the responses voted to continue to bargain for a better settlement.

“I shall provide further updates as negotiations continue.”

(Editors’ note: In May 2010, Amtrak clerks and carmen represented by the Transportation Communications Union ratified new five-year agreements with Amtrak that, according to the TCU, provided for a 15 percent general wage increase over five years.)

LONGVIEW, Wash. — UTU-represented train and engine employees of Columbia & Cowlitz Railroad here have a new employer in Patriot Rail Corp. after Patriot completed purchase of the shortline from paper manufacturer and forest products supplier Weyerhaeuser.

Also included in the sale is Weyerhaeuser Woods Railroad (a non-UTU property) that connects with Columbia & Cowlitz. The two are slated to be consolidated into one shortline by Patriot, a shortline holding company whose properties include UTU-represented Louisiana & North West Railroad.

UTU Assistant President Arty Martin has met four times in recent months with the UTU train and engine employees on Columbia & Cowlitz, and has assigned International Vice President Paul Tibbit to work in conjunction with General Chairperson Sean Kibbee to monitor the transfer of ownership, which includes protection of seniority and work assignments.

“As the nation’s largest rail union, the UTU has a long history of successful experience in processing grievances governed by the Railway Labor Act, and the UTU will work diligently on behalf of our Columbia & Cowlitz members to ensure a smooth and properly protected transition,” Martin said.

The National Railway Labor Conference (NRLC), in an April 1 letter to the Sheet Metal Workers International Association and its General President Mike Sullivan, has recognized the requirements of status quo under the Railway Labor Act and said all carriers will continue remitting UTU member dues to the UTU.

“The deduction and remittance of dues are governed by the requirements of Section 2, Eleventh of the Railway Labor Act [which] requires railroads to deduct and remit dues in accordance with union security provisions contained in collective bargaining agreements and written authorizations from individual employees authorizing the deduction of dues from their pay,” said the NRLC.

In addition, said the NRLC, the carriers recognize that there is additional merger-related litigation pending in the U.S. District Court for the District of Columbia.

By Retired UTU GS&T Dan Johnson

In the February issue of UTU News, it was explained that the Railway Labor Act (RLA) is purposely designed to encourage both sides to reach a mutually acceptable solution that keeps the trains running.

Railroad contracts have no expiration date, but do contain a moratorium prohibiting either side from seeking amendments until an agreed upon date when the contract may be reopened for amendment.

The current national rail contract between the UTU and most of the nation’s major railroads was reopened for amendment on Jan. 1. There is no time limit during which the negotiating process must be completed. While some contract amendments have been negotiated within a few months, some negotiations have stretched on for years.

The RLA defines numerous steps rail labor and management must take in negotiating amendments to contracts covering wages, rules and working conditions. These steps include intervention by the National Mediation Board (NMB), whose experts seek to guide the parties toward a productive outcome.

While the NMB cannot force an agreement on either party, it has the authority to keep the negotiators at the bargaining table, indefinitely, plus other numerous tools to help cool tempers during stressful periods.

In January 2008, within 30 days of taking office, President Futhey and his negotiating team reached a tentative agreement with the carriers that was overwhelmingly ratified by the membership. This tentative agreement concluded several years of hostile bargaining between the previous administration and the railroads.

The moratorium on that agreement expired Dec. 31, 2009; prior to this date, the UTU and carriers exchanged desired amendments. A list of those desired amendments — as well as updates on contract negotiations — may be viewed on the UTU Web site by clicking on the “National Railroad Contract” link in the lower right-hand corner of the home page.

The current UTU negotiating team, led by President Futhey, has had initial meetings with the carriers, and those meetings will continue periodically to explain each side’s desired amendments, exchange data supporting each side’s position, and move both sides closer to a tentative agreement.

President Futhey subscribes to a progressive negotiating process known as “interest-based bargaining,” by which each side explains to the other why they are seeking each contract amendment — in fact, joint problem solving.

By the sides’ exploring each other’s problems, and mutually suggesting a range of trade-offs, negotiations typically jell into mutually acceptable solutions. This is in contrast to each side simply announcing demands and contentiously seeking surrender of the other side — a process that, more often than not, results in Congress forcing both sides to a settlement neither fully desires.

If the parties, notwithstanding the efforts of the NMB, cannot reach a voluntary settlement, the RLA provides for binding arbitration (which must be accepted by both parties) or investigation by a White House appointed presidential emergency board (PEB).

If the recommendations of the PEB do not lead to a settlement, the RLA has run its course and the carriers may unilaterally impose their desired contractual changes and/or labor can strike. Because of economic and national security concerns, Congress has rarely allowed a railroad work stoppage to continue more than a few days. Typically, this translates into Congress imposing, through a back-to-work order that serves as an amended contract, the recommendations of the PEB.

First and foremost, the RLA is a law designed to avoid railroad strikes and lockouts and the resultant interruption of interstate commerce.

With that said, and with the parties at the negotiating table since early January, what is next? That will be the subject of next month’s column.

 

(Dan Johnson was UTU International GS&T from 2001 until his retirement in 2007. He hired on as a Southern Pacific trainman, Tucson Division, in 1966.

 

He was elected vice local chairperson, local chairperson and legislative representative for Local 807, and was Arizona State Legislative Board chairperson from 1975-1983. He was vice general chairperson and general chairperson for Southern Pacific/Union Pacific Western Lines from 1981-1997; and a UTU International vice president from 1997 until his election as GS&T in 2001.

Brother Johnson earned an undergraduate degree in government and history from the University of Arizona, where he also did graduate studies.)

By UTU International President Mike Futhey

The National Mediation Board, which administers the Railway Labor Act, proposes changing the rules by which rail and airline employees choose labor union representation. The UTU supports the change.

The NMB rules for representation elections now require a majority of employees eligible to vote actually cast a ballot favoring a union before that union is certified as the bargaining agent. Those not voting are assumed to have cast a “no” ballot.

By contrast, the National Labor Relations Board, which administers labor law affecting the bus industry, certifies representation elections based on results of those actually voting — the universal standard in democratic elections.

The UTU submitted comments supporting the change. A final ruling by the NMB may be issued this month.

You might wonder why the NMB has been out of sync with universal democratic voting procedures. The answer is circumstances were markedly different when the rule was first imposed during the 1930s.

Back then, the NMB was concerned with company unions, racial discrimination, conflict among competing unions, lower reading comprehension among union members, primitive means of communication, and even communist agitators.

Two-thirds of the NMB workload in the 1930s involved purging outlawed company unions, which were controlled and financed by management. Requiring a majority of those eligible to vote (as opposed to a majority of those voting) more conclusively communicated to management an employee desire for an independent labor union.

African-American employees often were denied representation in company unions, and were discriminated against in hiring, assignments and discipline. Many railroads back then tried to deny ballots to African-American employees. By certifying representation elections based on the majority of those eligible to vote, the NMB advanced racial democracy.

In that earlier era, dozens of labor unions were in competition for representation, as it was not until 1954 that the AFL-CIO constitution prohibited “raiding” by its member unions. Thus, the NMB sought to “get it right” in determining which union the majority of employees favored.

During the 1930s, only 30 percent of workers held high school diplomas (versus more than 70 percent today), and voting was by mail ballot with detailed written instructions.

Communication also was primitive. This was no small concern, as under the Railway Labor Act, representation is system-wide. It may be hard to believe in this era of cell phones, but during the 1930s, it took up to five AT&T operators to complete long-distance calls, which cost up to $33 in current dollars. By requiring a majority of eligible employees vote in favor of representation, the procedure promoted a more informed vote as union supporters had incentive to educate members on each individual property and encourage them to vote.

Finally, during the 1930s, communist agitators advocated worker militancy. The NMB election procedures of that era sought to prevent a handful of agitators from rigging elections.

Circumstances have, indeed, changed. And that is why the NMB now proposes to bring its 75-year-old representation election voting procedures in sync with the universal rule of democratic elections.

Meanwhile, Congress currently has before it the Employee Free Choice Act, which affects our bus members covered under the National Labor Relations Act. Employers and their friends in Congress have so far blocked passage of that law.

The Employee Free Choice Act would do three things to level the playing field for employees and employers.

It would strengthen penalties against companies that illegally coerce employees from expressing support for union representation; it would require a neutral third party impose a contract when a company refuses to negotiate in good faith; and it would require an employer to recognize a union immediately if a majority of employees sign union-authorization cards.

The UTU supports passage of the Employee Free Choice Act.

UTU general chairpersons on Nov. 2 served on railroads represented by the National Carriers’ Conference Committee (NCCC) the UTU’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 and are served on each other by parties to existing agreements.

The national rail contract between the UTU and railroads represented by the NCCC became amendable on Jan. 1, 2010.

The existing contract will remain in force until tentantively negotiated amendments are presented to UTU members and ratified under the craft autonomy provisions of the UTU Constitution.

During this round of national contract negotiations with the UTU, the NCCC will be the chief bargaining representative for BNSF, CSX, Kansas City Southern, Norfolk Southern, Soo Line, Union Pacific and numerous smaller railroads.

Other railroads, including Amtrak and U.S. operations of Canadian National, negotiate individually with the UTU.

Some 40,000 UTU members are affected by these national contract talks with the NCCC, and the resulting agreements frequently set patterns for other negotiated rail agreements.

UTU International President Mike Futhey, who headed the UTU team that negotiated the most recent member-ratified amendments to the existing agreement, will lead the UTU negotiating team in this round of collective bargaining. Members of the negotiating team will be selected later in November.

Other rail labor unions will negotiate their own agreements with the NCCC.

Major elements of the UTU’s Section 6 notices include:

  • Complete and permanent elimination of existing service scale (entry rates of pay).
  • Complete and permanent elimination of the two-tier pay system.
  • A series of general wage increases, effective Jan. 1, 2010, and every six months thereafter.
  • Cost of living adjustments.
  • A crew calling window structure or no less than a 10-hour call.
  • A process to resolve fatigue issues relative to cross-craft utilization, inaccurate line-ups and manipulation of pool crew boards caused by paper deadheading and dropping of turns.
  • Compensation for certifying as a conductor (certification to be established by the FRA as directed by the Rail Safety Improvement Act of 2008).
  • Peer related craft pay for training periods.
  • 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.
  • Enhanced benefits under the NRC/UTU Health and Welfare Plan and the Railroad Employees’ National Health and Welfare Plan (GA-23000).

UTU Section 6 notices were developed beginning with recommendations offered by UTU members.

A committee of general chairpersons from the Association of General Chairpersons, District 1, reviewed and fine-tuned those suggestions, which were then approved by the entire Association of General Chairpersons, District 1.

To view the UTU Section 6 notice, click here.

To view the carriers’ Section 6 notice, click here.

By Assistant President Arty Martin and
GS&T Kim Thompson

Among the most difficult challenges facing us in 2009 arrives in November, when we exchange Railway Labor Act Section 6 notices with the carriers — the list of each side’s demands for the next collective bargaining round.

Our national rail contract is open for renewal on Jan. 1, 2010, and this upcoming bargaining round will be among our toughest ever given the deteriorating state of the national economy, the advance of technology and Wall Street pressure on railroads to deliver increased profits.

While the national rail contract affects members on only BNSF, CSX, Kansas City Southern, Norfolk Southern and Union Pacific, these national contracts tend to be a trend setter for bargaining on other freight railroads and Amtrak, and are frequently referred to by commuter railroads.

A reasonable individual might have good reason to assume the upcoming bargaining round will be favorable to employees. After all, railroads are among today’s few solidly profitable industries in America, and Wall Street confirms they have unprecedented pricing power. Moreover, the carriers continue to improve productivity, and it is the workers — especially operating craft employees — who are most responsible.

Indeed, the railroads’ own figures, as published by the Association of American Railroads, show that revenue ton-miles per employee — the best benchmark for measuring productivity — has soared five-fold since 1980, from 2.1 million revenue ton-miles per employee to almost 11 million revenue ton-miles per employee today.

Accordingly, the railroads’ labor costs have declined by 43 percent — from 46.5 cents of every revenue dollar in 1980, to 26.4 cents of every revenue dollar today.

This is because the employee headcount has dropped from 532,000 in 1980 to 236,000 today — a 56 percent decline in workers, while productivity has soared. Among train and engine service employees, the head count fell from almost 136,000 in 1980 to fewer than 70,000 train and engine service employees today.

Unfortunately, none of this matters to the carriers at the bargaining table, because it is hot Wall Street dollars that set the tone of carrier Section 6 notices.

Perhaps you have noticed Wall Street investment funds have been buying up shares of the major railroads.

BNSF, for example, is 46 percent owned by Wall Street investment funds. At CSX, the figure is 35 percent; at Union Pacific, 34 percent; at Kansas City Southern, 33 percent; and at Norfolk Southern, 32 percent, according to Bloomberg News.

These investment funds, some of them based in foreign countries, have a narrow focus of increasing stock price and increasing dividend payouts — often without concern to an appropriate level of railroad maintenance, and certainly without concern for employees and their families.

For sure, investment funds are behind the anti-labor policies at Wal-Mart and policies that export good American jobs overseas.

What a labor union does is to fight back — and the UTU will be spending the months leading up to the exchange of Section 6 notices by building our case on behalf of our members.

Who Owns the Railroads

BNSF 
Berkshire Hathaway21.8%

Capital Research Global

5.6%

Barclays Global

3.3%

UBS Global

3.0%

Vanguard Group

2.8%

State Street Corp.

2.7%

Fidelity Mgt.

2.4%

Capital World Invest.

1.7%

JP Morgan Chase

1.2%

Barrow, Hanley

1.2%

Total

45.7%

  

 CSX

 

Citigroup

5.4%

Barclays Global

4.7%

Children’s Invest. Fund

4.5%

3G Capital

4.4%

Deutsche Bank

4.2%

State Street Corp.

3.6%

Vanguard Group

3.2%

Tiger Global

1.9%

Bank of N.Y.

1.6%

JP Morgan Chase1.3%

Total

34.8%

  

 KCS

 

Neuberger Berman

6.2%

Wellington Mgt.

5.7%

Marathon Asset Mgt.

4.1%

Barclays Global

3.6%

Vanguard Group

3.0%

Keeley Asset Mgt.

2.8%

Bank of America

2.4%

Prudential

1.9%

Munder Capital Mgt.

1.9%

AXA

1.8%

Total33.4%
  
Norfolk Southern 

Capital Research Global

5.0%

Marsico Capital Mgt.

4.8%

JP Morgan Chase

4.7%

Barclays Global

4.5%

State Street Corp.

3.2%

Vanguard Group

3.1%

 Fidelity Mgt.

 2.7%

Pioneer Investment

1.3%

Dimensional Fund

1.3%

Capital World Invest.

1.1%

Total

31.7%

  

Union Pacific

 

Marsico Capital Mgt.

6.6%

Children’s Invest. Fund

4.7%

Barclays Global

4.4%

Capital World Invest.

3.4%

State Street Corp.

3.2%

Vanguard Group

3.0%

AXA

2.9%

Fidelity Mgt.

2.5%

Bank of America

1.9%

Berkshire Hathaway

1.8%

Total

34.4%

Source: Bloomberg News