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SMART Transportation Division President Jeremy R. Ferguson issued the following statement on Aug. 18, 2022:

On Tuesday, August 16, 2022, Presidential Emergency Board 250 (PEB 250) provided the White House with its recommendations for settlement between the National Carriers’ Conference Committee (NCCC) and the United Rail Unions coalition. And while the recommendations of PEB 250 were a vast improvement over the carriers’ previous proposals, the recommendations do not go far enough to provide our members with the quality of life that they have earned, and that both they and their families deserve.

Last month, the leaders of the dozen-strong United Rail Unions delivered impassioned and technically sound presentations before the PEB expressing the need for improvements to quality-of-life issues, including addressing the draconian carrier attendance policies and the need for more paid and scheduled time off. However, it would seem as if these were not deemed as key issues. Obviously, our preference was for the PEB to make firm and bold changes to that status quo, but, unfortunately, they deferred and moved these important issues back to the domain of arbitration.

Additionally, the PEB recommended a 22 percent cumulative, 24 percent compounded, raise in compensation, which, if passed, would be the largest raise rail labor has seen in 47 years, but falls well short of our proposed benchmark to provide our members, most of whom have worked tirelessly throughout the pandemic and have brought about the richest era in railroading history, with a rate of pay of which they are deserving and that will attract new talent. Our organizations presented real-time statistics that exhibited how our remaining members are left to shoulder the additional workload after seeing valued co-workers laid off or resigning as a direct effect of Precision Scheduled Railroading. Furthermore, it is unknown if the recommended wage and benefit package will assist in retaining workers, let alone recruit new employees into the industry. Only in time, if accepted, will we be able to correctly answer that question, but based on our initial feedback, the outlook is not good.

SMART-TD leaders made our case clear before the PEB in July that our membership and the membership of the other unions deserve better, especially in recognition of what we accomplished before, during and after the pandemic. Our position has not changed, nor have we wavered from it. We are and will continue to fight for each and every one of our members, seeking the best possible outcome in all that we engage in.

Truthfully, your union negotiators feel a level of disappointment with the PEB’s recommendations falling short on many of our requests — especially as it split the difference between what Labor and the carriers were seeking from a wage perspective, rather than choosing one over the other. While it is a slight comfort knowing that these results are still better than those the carriers previously proposed and what likely would have been obtained under the previous administration, it does little to alleviate the division between the hedge fund managers, shareholders, and railroad officers — those who have obtained record profits, bonuses, stock buybacks and lower operating ratios all the while sitting in their climate-controlled, sanitized corporate offices — while the working people, their employees, our members, fellow brothers, and sisters are on call 24/7/365, working safely, loyally, moving America’s freight and citizens.

The decision on whether to accept a tentative agreement that could be based on these recommendations may ultimately lie in the hands of those same workers whose passion and determination carried the country through a pandemic and a supply-chain crisis.

Although we share your frustration, our effort towards attaining the best possible contract for our membership will not be deterred. This is but the first step in the process, so please be patient as this situation continues to evolve. We are currently gathering and evaluating information, which includes input from the membership, as we weigh the PEB’s recommendations and what our options may be. The remaining members of the coalition will be meeting with the NRLC in the very near future to determine if a possible tentative agreement can be reached as a result of these recommendations.

In the meantime, we will be presenting factual information strictly based on the PEB recommendations in an effort to educate all involved what this could look like from a financial standpoint when evaluating GWI’s, back pay, or the 15% cost sharing associated with your health and welfare plan. These presentations will be without the opinion of SMART-TD in an effort to strictly dispel any misconceptions or misunderstandings of how these critical components should be reviewed at this time.

In solidarity,

Jeremy R. Ferguson

President, SMART Transportation Division

Brothers and Sisters of our unions:

Presidential Emergency Board (“PEB” or “the Board”) 250 conducted hearings in Washington, D.C. this past week, concluding on July 28th. We both were honored to represent our unions and, by extension, the memberships of the dozen strong United Rail Unions as we presented and testified in support of our unified case to the PEB. We are sharing this joint message to ensure that our members are up to date on all of the bargaining round issues.

For the first time in history, the 12 United Rail Unions, representing 115,000 members in every craft in the industry, presented a unified case on wages, healthcare, sick leave and holidays to the Board. Also for the first time in history, SMART-TD and BLET presidents made joint presentations on our unions’ proposals to eliminate carrier-imposed attendance policies, provide for voluntary rest days for road crews, and to increase away-from-home terminal meal allowances. In addition, BLET Director of Benefits Dan Cook, who also serves as the Cooperating Railway Labor Organizations’ administrator, testified in support of the United Rail Unions’ unified Health and Welfare proposal and SMART-TD VP Brent Leonard testified in opposition to the crew consist issues that the carriers attempted to improperly raise in this proceeding.

At the conclusion of the first day of hearings on July 24, and in an effort to keep our memberships current on the status of the bargaining round, the United Rail Unions released summaries of our final proposals before the Board, as well as the carriers’ final proposals. Those proposals are still available on our union websites. We encourage all members to take the time to review them, and more importantly, realize just how far apart the two sides remain after more than two and a half years of negotiations.

As has been said since an update from the Coordinated Bargaining Coalition in January 2021 and in every update from rail labor since, it is also important to remember who is responsible for the absence of an acceptable National Rail Contract settlement. By reviewing the carriers’ final proposal presented before the PEB, it remains all too evident that they continue to refuse to make a realistic and worthy proposal that our voting members would ratify. That is why our contract dispute has reached a PEB, one of the final steps under the Railway Labor Act.

Regarding the unions’ final presentation before the PEB, it’s important to see how the union leadership arrived at their final proposal. Both parties served Section 6 notices in this round of bargaining at the start of negotiations in late 2019. Those notices are a mandatory starting point in the bargaining process, and generally include every item on which each individual union seeks to negotiate. As the parties negotiate, each side’s list of issues is prioritized to ensure that the most important ones are addressed in the ultimate contract settlement.

This bargaining round was no different. Based on membership feedback, several items were initially identified early on as key priorities including, increasing wages, rejecting concessions on healthcare, addressing unreasonable attendance policies and paid sick leave, and establishing predictable time away from work. The need for paid sick leave without penalty became even more evident with the pandemic and the manpower shortages caused by carriers’ continued mismanagement.

Leadership of the SMART-TD and BLET collaborated on presenting our craft-specific issues throughout negotiations and collaborated with our entire bargaining coalition on our shared issues. But, as is now obvious, the carriers refused to engage in meaningful bargaining on our most important issues. Multiple proposals were exchanged over these last two and a half years, including varying wage proposals, all in an effort to come to a voluntary agreement worthy of ratification by the membership.

Nowhere else was the distance between the sides more evident than in the discussion of wages. Contracts of both five- and six-year durations were proposed and discussed, driving differing values for the wage package. Our last unified wage proposal as we were released from mediation in June contained a six-year proposal with wage increases occurring July 1st of each year totaling 40%, with 36% of that payable in the first five years. In contrast, in January of 2022, the carriers’ proposed wage increase totaling 11% and their last proposal as we were released from mediation was a five-year proposal with wage increases occurring on July 1st of each year totaling 14%.

With a gap that wide, it was no surprise that voluntary efforts, as well as mandatory government-sponsored mediation, failed to reach an agreement. Once the parties were released from mediation, the United Rail Unions immediately began work preparing their final unified proposal to be presented to the PEB. That process included union leaders, the unions’ collective legal counsel, health care experts, and an expert economist. In the end, the unions agreed to present the summarized proposal shared with our memberships on July 24 at the close of the first day of hearings.

Before we get into the wage proposal numbers, it is important to understand the status of our negotiations as we went before the PEB. The PEB is not the start of negotiations. As explained above, the start of the negotiations happened when our lengthy Section 6 notices were served in 2019. Further, the PEB hearing is not a negotiation; it is an opportunity for both sides to present their final proposals, which must be supported with extensive economic data through live testimony. In this case, the hearing spanned five days, where both parties made presentations by expert witnesses to support their proposals. 

In crafting the unions’ final wage proposal, and knowing that those proposals had to be supported by our expert economist, an in-depth analysis was conducted — taking into account long-term wage growth, past and present, as well as increases in the cost of living for the years covered by the agreement. Consideration also had to be given to the financial value of the other non-wage proposals going before the PEB as part of crafting a final proposal that we believe the Board would recommend.

In the period between the close of NMB mediation in June and the PEB hearings in July, and after consultation with the unions’ economic expert, the unions determined that the wage proposal that could be best supported by our economic data was a final, unified proposal totaling a 28% gross wage increase (GWI), uncompounded, over five years. While some saw that move from our previous position of 36% over five years as too big, it is not certain that they understood the proposal’s other terms.

One other component of our final proposal was to move from the July 1 annual wage increase dates in our 36% proposal, to annual January 1 wage increases. The effect of this change is fairly simple math — paying each raise six months sooner doubles the value of each wage increase in the year it is applied.  In fact, on a base salary of $100,000, advancing the GWI schedule by six months each year generates additional compensation of over $15,000 during the term of the agreement as compared to July 1 annual increases. For someone with a base salary of $75,000, the advancement generates additional compensation of over $11,000 during the term of the Agreement — vastly reducing the financial gap between the 28% and prior 36% proposals. On the same base salaries, the unified proposal with the earlier effective dates would also generate in excess of $20,000 and $16,000, respectively, in back pay for the years 2020, 2021 and 2022. 

While we do not agree that it should impact the PEB decision, the history of wage increases in our National Agreements was part of the carriers’ presentation in opposition to not only our proposed wage increase values, but also against the earlier annual increase dates. That history is straightforward; no National Agreement in the past 45 years has included GWIs totaling over 18% for a five-year period. Regardless of that history, our economist clearly laid out the economic support for the 28% wage proposal presented to the PEB. 

Our health and welfare experts also made the case that no additional health and welfare costs should be pushed onto employees. We made the case for needed sick days and additional holidays for all involved Unions. We made a joint case for eliminating all non-negotiated attendance policies, allowing General Committees to serve notice to compel on-property bargaining for voluntary rest days, and improvements to our held away meal allowances.

All in all, the United Rail Unions made a sound, reasonable case before the PEB.  We must thank our team’s legal counsel, health care experts, expert economist and all of the witnesses who gave testimony on behalf of our United Rail Unions. In the coming weeks, we will receive the PEB’s recommendations for settlement of our dispute and then consider them.

While it was not possible, we also wish every member of every union could have attended the hearings before PEB 250 and to have had a chance to testify on their own behalf about the conditions, the struggles, and the situations that carriers have created for the people whose work brings them profit. Through their actions, and in the case of these drawn-out negotiations, their inaction, the carriers’ cavalier and pay-no-heed attitude toward our brothers and sisters who did the work through a pandemic, through job cuts and through an ongoing supply chain crisis could not be clearer. They do not care to either understand or respect their employees. Some of their assertions, such as how happy their employees are, were beyond belief — even to those of us that have heard their spin before. We refuted them all.

Following the recommendations of the PEB, the parties have another 30-day cooling off period to consider the recommendations and reach an agreement. If the carriers continue to refuse to make a ratifiable proposal, very critical decisions will have to be made during that period. As has been said time and again, do not listen to the carrier moles and trolls that attempt to blame this situation on the employees or their Unions. They are only attempting to divide us as we close in on the final months of this round of bargaining. Among our unions, our solidarity is our strength. Please do not allow those attempting to divide us to succeed.

In solidarity,

President Jeremy Ferguson

SMART Transportation Division

President Dennis Pierce,

Brotherhood of Locomotive Engineers and Trainmen

SMART Transportation Division President Jeremy Ferguson released the following statement on July 22, 2022, regarding the commencement of the Presidential Emergency Board:

Brothers and Sisters —

At 2:30 p.m. Sunday, July 24, 2022, Presidential Emergency Board 250 will convene in Washington, D.C. and proceed through Friday, July 29th, as the next step in the Railway Labor Act process.

We anticipate a fair and thorough series of hearings before the board, which consists of three qualified members. SMART-TD and the other rail labor organizations are prepared to present our best case to get a contract workers can be proud of after serving the nation through a pandemic and a supply-chain crisis. Carriers have enjoyed record and increasing profits through the hard work of unionized labor. This PEB gives us an opportunity to show the evidence that our toil should be rewarded.

Out of mutual respect for the process taking place, there will be no updates on the hearings, which will consist of daily sessions lasting anywhere from 10 to 12 hours, from either labor or the carriers once they begin. Until labor and the carriers have made their cases, SMART-TD will respect the authority of the PEB and comments will be reserved until after the PEB has released its recommendations.

That being said, the continued outreach and show of solidarity by not only SMART-TD members, but all of rail labor continues to fuel and motivate labor leaders through this arduous process. The silence need not extend to you. Any and all support is encouraged, seen and appreciated whether from rail workers, other branches of organized labor or from the public. Rail labor earlier this week received a letter of support from the International Longshore and Warehouse Union (ILWU) in which President Willie Adams and Vice President Bobby Olvera Jr. pledged solidarity to our organizations. We thank them for voicing their support and express our highest gratitude to our ILWU brothers and sisters.

Let’s continue the momentum as we move ahead!

In solidarity,

Jeremy R. Ferguson

President, SMART Transportation Division

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

Following the conclusion of our third week of compulsory mediation conducted by the National Mediation Board (NMB), the rail unions who are bargaining as part of the Coordinated Bargaining Coalition (CBC) and the Brotherhood of Maintenance of Way/SMART Mechanical Coalition pursuant to Section 5 First of the Railway Labor Act, received a proffer of arbitration from the NMB.

As previously stated, all of the carriers’ proposals to date serve as an insult to our collective membership. These essential employees carried the railroads to their record profits throughout the last several years. As much as the rail unions would have preferred to reach a voluntary settlement, this has become the only viable path to reaching a satisfactory conclusion. The chiefs of all 12 rail unions wish to thank the NMB members and the assigned mediators for their efforts in trying to bring us to a voluntary agreement, and for their recognition that such an agreement was not possible under the current circumstances.

With regard to the proffer of arbitration, the NMB urged the parties to enter into an agreement to resolve the dispute via binding arbitration in accordance with Section 8 of the Railway Labor Act. If either party rejects the NMB’s proffer, or fails to respond prior to the deadline of 5 p.m. (EDT) on June 16, 2022, the parties will enter a 30-day “cooling-off” period where the status quo is maintained. While each rail union has its own process for considering whether or not to accept the NMB’s proffer, it is anticipated that we will unanimously reject it in the coming days. 

At any point during the aforementioned 30-day cooling off period, President Biden may appoint a Presidential Emergency Board (PEB), which typically consists of three to five members. The PEB will conduct a hearing and issue a recommendation regarding settlement of the dispute. The issuance of the PEB recommendation starts another 30-day cooling-off period.

During this second cooling-off period, the parties may choose to accept or reject the PEB’s recommendation. If either party rejects the PEB’s recommendation, or if the cooling-off period expires and the dispute has not been resolved, either party may engage in self-help.

If this happens, it is expected that Congress will intervene and end self-help by passing legislation to resolve the dispute. To address this possibility, we have already mobilized our legislative departments to get the message to our elected representatives. In addition to these efforts, we are urging our members to begin reaching out to their U.S. senators and House representatives to voice their support for a labor-friendly PEB, and, if necessary, labor-friendly legislation to bring this round of bargaining to a successful conclusion. The time to make our collective voices heard is now!

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

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The unions comprising the Coordinated Bargaining Coalition are: the American Train Dispatchers Association (ATDA); the Brotherhood of Locomotive Engineers and Trainmen / Teamsters Rail Conference (BLET); the Brotherhood of Railroad Signalmen (BRS); the International Association of Machinists (IAM); the International Brotherhood of Boilermakers (IBB); the National Conference of Firemen & Oilers/SEIU (NCFO); the International Brotherhood of Electrical Workers (IBEW); the Transport Workers Union of America (TWU); the Transportation Communications Union / IAM (TCU), including TCU’s Brotherhood Railway Carmen Division (BRC); and the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART–TD).

The Brotherhood of Maintenance of Way Employees Division and SMART Mechanical Unions are also bargaining as a coalition.

Collectively, these Unions represent approximately 140,000 railroad workers covered by the various organizations’ national agreements, and comprise 100% of the workforce who will be impacted by this round of negotiations.

Read this release in PDF form.

The United Rail Unions issued the following statement June 9, 2022:

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

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

The rail unions remain united in their effort to negotiate a fair agreement and stand together in rejecting all proposals that the rail carriers have advanced in our mediation sessions. Our members are the backbone of the rail network and they have earned a contract that recognizes their contributions. None of the carrier proposals to date come close to that; instead the carriers continue to advance proposals that insult the very employees that made their record profits possible.

Enough is enough, the only pathway to resolving this dispute is for the NMB to put forth a proffer of arbitration to move the dispute to the final steps of the Railway Labor Act.

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

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The unions comprising the Coordinated Bargaining Coalition are: the American Train Dispatchers Association (ATDA); the Brotherhood of Locomotive Engineers and Trainmen / Teamsters Rail Conference (BLET); the Brotherhood of Railroad Signalmen (BRS); the International Association of Machinists (IAM); the International Brotherhood of Boilermakers (IBB); the National Conference of Firemen & Oilers/SEIU (NCFO); the International Brotherhood of Electrical Workers (IBEW); the Transport Workers Union of America (TWU); the Transportation Communications Union / IAM (TCU), including TCU’s Brotherhood Railway Carmen Division (BRC); and the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART–TD).

The Brotherhood of Maintenance of Way Employees Division and SMART Mechanical Unions are also bargaining as a coalition.

Collectively, these unions represent approximately 140,000 railroad workers covered by the various organizations’ national agreements, and comprise 100% of the workforce who will be impacted by this round of negotiations.

This release is available in PDF form.

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

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

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

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

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

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

View this release in PDF form.

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The unions comprising the Coordinated Bargaining Coalition are: the American Train Dispatchers Association (ATDA); the Brotherhood of Locomotive Engineers and Trainmen / Teamsters Rail Conference (BLET); the Brotherhood of Railroad Signalmen (BRS); the International Association of Machinists (IAM); the International Brotherhood of Boilermakers (IBB); the National Conference of Firemen & Oilers/SEIU (NCFO); the International Brotherhood of Electrical Workers (IBEW); the Transport Workers Union of America (TWU); the Transportation Communications Union / IAM (TCU), including TCU’s Brotherhood Railway Carmen Division (BRC); and the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART–TD).

The Brotherhood of Maintenance of Way Employes Division (BMWED) and SMART Mechanical Division (SMART-MD) are also bargaining as a coalition.

Collectively, these unions represent approximately 140,000 railroad workers covered by the various organizations’ national agreements, and comprise 100% of the workforce who will be impacted by this round of negotiations.