David Ossian Cameron
Assistant to the Director
Rail Conference
International Brotherhood of Teamsters
202-437-3177 cell
dcameron@teamster.org

BLET, UTU File Joint Petition To Prohibit One-Person Crews

http://www.ble.org/pr/news/newsflash.asp?id=4827

CLEVELAND, June 12

- The Brotherhood of Locomotive Engineers and Trainmen and the UTU have filed a petition for an emergency order with the Federal Railroad Administration (FRA) seeking to prohibit the use of one-person train crews - including conventional and remote control yard switching operations.

BLET National President Ed Rodzwicz and UTU International President Mike Futhey signed the petition for the emergency order, which was filed today.

One-person crew operations "have been nothing more than the industry's attempt to reduce operating costs to increase profits, at the expense of worker safety," says the BLET and UTU petition seeking the FRA emergency order.

"Remote control operations are a very serious hazard for a number of reasons," the petition says. "Any person having safety concerns in mind should recognize that a single-person remote control assignment should never be allowed. It puts rail workers at great risk of injury or death."

The FRA is told in the petition, "The evidence shows that no conditions exist where a lone engineer or remote control operations are safe."

The need for such an emergency order, says the BLET and the UTU, is demonstrated by a May 10 accident on CSX in Selkirk, N.Y., which killed UTU-represented conductor Jerod Boehlke, who was working alone and using a remote control device.

"The workload associated with [remote control operations], while performing other safety critical tasks, demands too much of a single individual, including loss of situational awareness," says the petition. "How many more incidents like the one at Selkirk need to occur before such
operations are prohibited?"

There are numerous incidents of accidents, injuries and fatalities where railroads utilized one-person crews, and the injuries and deaths caused by remote and single-crew operations "have continued unabated since its inception in the early 1990s," says the petition. "This has been caused in part by the inaction of the FRA to a number of petitions filed both by the BLET and the UTU for emergency orders to prevent such operations.

The petition says that while the FRA has reviewed the safety aspects of one-person crews, it "has really done nothing affirmatively to assure the safety of the employees in such operations."

The BLET and the UTU also sharply criticized FRA conclusions that the safety records of remote control and conventional operations are "basically the same."

The BLET and UTU petition says a 2006 FRA report titled "Safety of Remote Control Operations" contains major flaws. Most of FRA's erroneous figures resulted from the formulas used for calculating the statistics. For example, the accident rates calculated for each railroad failed to normalize the data to account for different crew sizes in RCL and conventional operations, even though FRA had previously stated that normalization was required in order to make an apples-to-apples comparison.

After correcting for these errors, the data actually showed that the mean RCL accident rate was nearly 3.5 times the conventional switching rate.

Similarly, correcting mean injury rates reversed the findings of the 2006 report as to which operation was safer. The data actually show a RCL injury rate almost 80 percent higher than the conventional switching injury rate, and the normalized RCL fatality rate was over 3.5 times the normalized conventional switching fatality rate.

An emergency order prohibiting the use of one-person operating crews, including remote control operations, would take effect immediately upon issuance by the FRA.

"It is time for the FRA to take a proactive safety stance, and not merely
a band-aid reactive approach to this issue," the petition concludes.


CQ TODAY ONLINE NEWS


June 1, 2009 – Updated 1:23 p.m.

By Leah Nylen, CQ Staff
Two key Senate chairmen have struck a deal to include repeal of the antitrust exemption for freight railroads in a broader bill, asking Majority Leader Harry Reid, D-Nev., to scrap efforts to call up a stand-alone repeal on Tuesday.

In a letter sent to all Senate offices Monday, Herb Kohl, D-Wis., chairman of the Judiciary Antitrust Subcommittee, and John D. Rockefeller IV, D-W.Va., chairman of the Commerce, Science and Transportation Committee, said they had asked Reid to drop a motion to limit debate on proceeding to the antitrust repeal (S 146) and instead would join forces to draft a more comprehensive rail policy overhaul.

The Senate had been scheduled to hold a cloture vote Tuesday morning on the motion to proceed to the antitrust repeal, which Kohl sponsored. It would require railroads to win Justice Department approval for mergers, acquisitions and collective ratemaking agreements. Under current law, freight rail is exempt from Justice Department oversight and instead must gain approval from the Surface Transportation Board (STB).
According to Senate aides, Kohl did not have the 60 votes necessary to proceed — especially after Rockefeller and Frank R. Lautenberg, D-N.J., chairman of the Commerce Surface Transportation Subcommittee, objected to moving the antitrust bill separately.
Kohl and other supporters argued that freight railroads have exploited their antitrust exemption to unfairly increase rates for areas that are served by a single railroad. Industries in these areas, known as captive shippers, say they have no choice but to pay whatever the railroad charges.

Because the legislation would amend a 1914 antitrust law, the Senate Judiciary Committee had sole jurisdiction over it. The committee approved the measure by 14-0 on March 5.

But the lack of input from the Senate Commerce Committee, which oversees railroads and rail policy, irked its senior Democrats. Lautenberg and Rockefeller have been working on a separate STB reauthorization that would seek to address the concerns.

In a “Dear Colleague” letter last week, Lautenberg and Rockefeller urged members to vote against the motion to proceed on S 146, arguing that the railroad antitrust measure could interfere with the Commerce committee’s work. Ranking Commerce Republican Kay Bailey Hutchison of Texas and John Thune of South Dakota, the Surface Transportation panel’s ranking Republican, also signed the letter.

In response, Kohl’s office issued a letter maintaining that the STB reauthorization and the railroad antitrust bill were not incompatible.

“S 146 does not conflict in any way with STB rail regulation. The bill makes no changes with respect to the STB’s regulatory authority,” the rebuttal letter states. “Railroads will continue to be regulated by the STB. S 146 simply makes antitrust law fully applicable to railroads, while leaving the STB regulatory authority completely intact.”

The American Association of Railroads and other industry groups oppose the repeal measure, contending that it would hamper economic growth and create the potential for conflicts as railroads try to satisfy both the STB and the Justice Department.

In Monday’s letter announcing the withdrawal, Kohl and Rockefeller said they would press for legislation this year that would include the Commerce Committee’s provisions to overhaul the STB and repeal the antitrust exemption.


May 29, 2009

Dear Sirs and Brothers:
Today, the Union is sending the attached letter under my signature to members of the Senate requesting that they vote against invoking cloture on debate regarding the "Railroad Antitrust Enforcement Act of 2009" (S. 146) sponsored by Senator Kohl of Wisconsin. The bill would strip the antitrust exemptions applicable to rail carriers under the Interstate Commerce Commission Termination Act and would permit legal challenges in federal court for shippers who allege they are overcharged because they are captive to one railroad or shippers who argue that "paper barriers" involved in a line sale illegally raise the cost of their shipments. This Bill is part of the "re-regulation" the railroads have been complaining about and have been asking for our support in helping their opposition. The purpose of this letter is to explain to you why the BMWED now publicly opposes S. 146.

Those of us who have been in the industry for 30 years or more remember railroading before the passage of the Staggers Act in 1980. During that regulated period, wages were good and the number of railroad workers employed in the industry was about three times what it is today. Those were the days of "regulation," when rail rates were set by the Interstate Commerce Commission and what few "short lines" that existed were small railroads that had been in business for years. However, the last years before Staggers also saw the bankruptcies of the Milwaukee Road, the bankruptcy and dissolution of the Rock Island and the Penn Central bankruptcy (the largest in U.S. history at the time) and the economic collapse of railroading in the Northeast United States.

The passage of the Staggers Act, which deregulated freight rates and the election of Ronald Reagan created a massive change in the industry. Rates were now set in the open market, permitting railroads to set rates with minimal government oversight. Presidential appointees to the ICC, utilizing provisions that existed in the law before the passage of Staggers, permitted the major freight roads to sell and lease thousands of branch and secondary lines to "non-carriers" without any protections to employees. The freight railroads made substantial force reductions in all crafts as lines were shed and competitive pricing forced railroads to engage in serious cost-cutting measures. Certainly, the first 10 to 15 years after Staggers were tough times for rail employees, and no one who went through that period would ever want to repeat it.
However, employment on the railroad eventually stabilized and one cannot dispute the major freight railroads are in much better economic shape than they were before Staggers. Now, the shippers are complaining about rail rates and service and propose new regulations to deal with their issues. Mind you, the "regulation" the shippers seek does not offer a return to the 1970's for rail labor, instead much of this regulation is designed to lower rail shipping rates and thereby lower rail income — the income which provides the basis for wage increases and employment in the rail industry.

In late 2008, the railroads came to rail labor and requested our help in opposing what the railroads called "re-regulation." I personally pushed within rail labor for the group to stand together and tell the railroads that we would consider supporting their issues in return for them addressing some of rail labor's issues. In early February 2009, the railroads declined the unified rail labor offer. At that time, the various rail unions decided that each union would follow its own counsel. I made it clear at the time, that the BMWED would not offer support to the railroads' legislative goals unless, and until, a majority of rail labor had reached that point. Well, during this past week, a substantial majority of rail labor now supports the railroads' opposition to S. 146. As I am a man of my word, I have communicated to the other rail labor leaders that the BMWED will now stand with the other rail labor unions and oppose this Bill.

BMWED's new position does not mean that we are taking instructions from the railroads on this issue. Instead, we have spoken up in support of two senators and friends of rail labor, Senator Jay Rockefeller and Senator Frank Lautenberg. While S. 146 takes a piecemeal approach to "solving" the shippers' problems, Senators Rockefeller and Lautenberg are working on a comprehensive bill to address shipper concerns yet preserve the interests of the other stakeholders in this dispute: the railroads and the railroad employees. I believe this approach provides the best vehicle to protect the livelihoods of the BMWED members who work for the nation's freight railroads. In contrast, S. 146 favors only the shippers at the expense of the railroad employees.
I know that it is hard to reconcile BMWED taking a legislative position in support of the railroads' interests when we have so many unresolved bargaining issues with them. However, opposition to S. 146, which may help the railroads, does not mean BMWED will abandon its efforts to resolve bargaining disputes with the railroads. Doing both is in the best interests of the members of this union and I intend to take those steps that are necessary to protect and improve the status of the membership.

May 29, 2009

Dear Senator,
This letter pertains to S. 146, the Railroad Antitrust Enforcement Act of 2009, which may be subject to debate on the floor of the Senate as early as next week. The purpose of this letter is to express the opposition of the Brotherhood of Maintenance of Way Employes Division/Teamsters ("BMWED") to S. 146 and to urge you to vote against cloture on debate when and if such a motion is made on the Bill. This proposed legislation represents a well-intentioned, but flawed, attempt to resolve disputes that have been in the making for over 20 years. The problem with the Bill is that it completely reverses current national rail transportation policy and its proposed solution to these disputes will create more uncertainty and harm than the purported evils that it intends to fix.
Over the past 20 years, the nation's freight railroad system has been consolidated into the ownership of four large carriers: the Union Pacific, CSX, Norfolk Southern and Burlington Northern Santa Fe. Those four carriers, along with Canadian National, Canadian Pacific and Kansas City Southern, carry the bulk of rail freight traffic in this country. Also during that same period, these same railroads sold and leased branch and secondary lines which often have but one interchange point with the former owning railroad. In some of those transactions, conditions were included that caused a substantial escalation of lease payments or sale prices if the new short line operator attempted to interchange freight traffic with a rail carrier other than the selling or leasing carrier.
These developments discomfited many interests. Employees on lines that were sold or leased were forced to move to keep jobs with the selling railroads or accept employment with new operators for wage rates substantially below those previously received. As railroads merged, positions were abolished, jobs attrited and employment in the railroad industry dropped. Employees, obviously, were not happy with many of the changes effected in the industry.

Shippers in some cases believed the new merged railroads charged excessive rates for service. Others complained of degraded service and the lack of effective railroad competition. The complaints against "paper barriers" preventing interchanges was addressed through the "Railroad Industry Agreement" negotiated in 1998 between the large freight railroads and the American Short Line and Regional Railroad Association; however, critics of that settlement claim it is incomplete. Throughout all of these developments, one agency, the Surface Transportation Board ("STB") or its predecessor, the Interstate Commerce Commission ("ICC") had exclusive jurisdiction over the mergers, line sales and leases, and rate and service complaints, including consideration of antitrust issues raised by mergers and other railroad activities. The point of this brief discussion is to stress that some parties felt and may still feel aggrieved by the status quo of rail oversight by the STB. However, S. 146 is not the vehicle to resolve those grievances. Unfortunately, S. 146 is a "solution" that, however well intended, could cause more problems in the railroad industry than it purports to resolve.
The antitrust exemptions S. 146 removes from the Interstate Commerce Commission Termination Act of 1995 ("ICCTA") were created by Congress in the Transportation Act of 1920 to foster a national rail transportation policy administered by a single agency, the ICC. The 1920 Act was a reaction to the nation's prior experience with application of federal antitrust and state economic regulation of the railroads. That regime led to such degradation in rail service that the Federal Government essentially "nationalized" the railroads during World War Ito ensure adequate rail service to the country. The 1920 Act set the consolidation of railroads into larger systems as a key element of national transportation policy. While the present consolidation of the rail freight industry may well warrant a vigorous debate over the continued value of that policy, S. 146 makes a 180 degree change to that 89 year old policy choice without any debate or discussion of the ramifications of the change on the rest of the national rail policy.

A very good example of this unintended consequence can be gleaned from the Committee on the Judiciary's own description of the one of the purposes of the legislation.In addition, government enforcement agencies, including the United States Department of Justice and the Federal Trade Commission, as well as state attorneys general acting on behalf of their citizens, will be able to fully enforce the antitrust laws to prevent anti?competitive mergers and anti-competitive business practices. In other words, two additional federal agencies as well as numerous state attorneys general potentially could mount legal challenges to rail consolidations and other rail practices. Apparently, under this change, the STB and both Justice and the FTC could "sign off" on a railroad transaction and one state, acting through its attorney general, could bring action to block that transaction. Simply put, instead of federal law and policy governing rail operations in the United States, railroad operations would be effectively be subject to oversight by 50 sovereign state governments and the federal government. While some might argue that is good policy, our point is that that policy debate has not yet occurred and will be foreclosed by passage of S. 146 because passage of that legislation will decide that policy question definitively.

The BMWED does not defend the actions of the STB or the current national rail transportation policy unconditionally. Throughout the past 20 years we have felt many times that the STB paid little heed to the interests of employees adversely affected by mergers and line sales. We also have had our own issues with the antitrust exemption and the resulting "cramdown" of wholesale changes to collective bargaining agreements in mergers and line sales. However, we were able to solve the "cramdown" issue through voluntary negotiations and agreement with the major freight railroads in 2001. The point is that as in the "cramdown" issue and Rail Industry Agreement, reasoned discussions between stakeholders can create lasting solutions that are in the public interest.
That is why the BMWED supports the actions of Senator Rockefeller and Senator Lautenberg who are working on a comprehensive review of rail regulatory legislation. Their process will include all stakeholders in that arena: the railroads, railroad employees, shippers and the general public and attempt tofashion legislation that is acceptable to all groups and is in the public interest. Passage of S. 146 would end that collaborative process and potentially create unintended consequences for the railroads, their employees and even the shippers who purportedly are those who are protected by the Bill. The BMWED respectfully requests that you vote against cloture on debate regarding S. 146 and if a vote on the merits does occur, that you vote "no" on S. 146. The solution to any problems in the rail industry requires reasoned debate and discussion among all interested stakeholders, not an abrupt reversal of 89 years of federal rail policy.



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By Angela Greiling Keane
April 23

(Bloomberg)

-- Union Pacific Corp., the second- biggest U.S. railroad, reported a less-severe drop in profit than analysts expected on savings from lower fuel costs and job cuts, and said it will pare as many as 4,000 more positions.

First-quarter net income fell 18 percent to $362 million, or 72 cents a share, the company said in a statement today. Analysts expected 68 cents a share, the average of five estimates compiled by Bloomberg. The carrier rose as much as 5 percent in New York trading.
Union Pacific trimmed its workforce 8 percent from a year earlier and said in January it would run 25 percent fewer trains as the recession slowed shipments of coal, automobiles and consumer goods. The company will eliminate 3,000 to 4,000 more jobs by the end of 2009 through attrition, Chief Executive Officer James Young said.

“We’ve taken action in trying to right-size our business for demand,” Young said in an interview.

Sales for the quarter fell 20 percent to $3.4 billion. The company’s net income in the year-ago quarter was $443 million, or 85 cents a share.

Union Pacific rose $1.83, or 3.8 percent, to $49.55 at 4 p.m. in New York Stock Exchange composite trading. The shares have risen 3.7 percent this year.

Operators on Furlough

“We experienced one of the most challenging business environments we have ever seen,” Young said on a conference call with analysts. “Our efforts in the quarter focused on reducing costs.”

The carrier said it had 44,997 employees on average in the quarter, down from 49,073 in the year-earlier period. About 4,500 locomotive operators are on furlough, said Tom Lange, a company spokesman.

“The key question in our mind is how aggressive UP will be on cost-cutting” after trimming too much in 2002 and 2003, Rick Paterson, an analyst at UBS Securities LLC in New York, said in a report today. He rates Union Pacific shares a buy.

The railroad will be ready when the economy turns around, which it doesn’t expect until next year, Young said in the interview.

“I’ve got $5 billion worth of assets sitting idle -- 2,000 locomotives, 60,000 freight cars,” Young said. “I’ve got almost 5,000 employees furloughed, sitting by, ready to go.”

David Ossian Cameron
Assistant to the Director
Rail Conference
International Brotherhood of Teamsters
202-437-3177 cell
dcameron@teamster.org

Wall Street Journal

March 19, 2009

U.S. Says Union Pacific Trains Move Drugs Across Border

By JOEL MILLMAN

MEXICO CITY -- U.S. rail giant Union Pacific has been accused of transporting illegal drugs, virtually all marijuana, aboard trains it leased coming in from Mexico on 58 occasions since late 2001, according to court papers and evidence filed in a dispute between the company and U.S. Customs and Border Protection.

On Wednesday, the U.S. responded by suing Union Pacific in San Diego and Houston, saying the rail company had failed to prevent the smuggling of illegal drugs by rail into the U.S., including one case involving cocaine. Two recent drug seizures occurred this month in Calexico, the border crossing east of San Diego. Another took place in late February in El Paso, Texas.

Union Pacific

Marijuana was hidden in this rail car, which crossed into the U.S.

Since 2001 Union Pacific has been slapped by the U.S. government with fines totaling just under $38 million overall, court filings indicate. The Omaha, Neb., company is contesting the fines in U.S. district court there. U.S. authorities had until midnight Friday to respond to the railroad's petition for relief.

Union Pacific responded in a statement saying: "As Union Pacific explained in its Nebraska lawsuit, it is the government, not Union Pacific that takes initial control over rail cars entering the U.S. from Mexico. Union Pacific believes that it has exceeded its legal obligations and will defend these duplicative lawsuits."

The legal battle opens a seldom-seen window onto how some U.S. multinationals are affected by Mexico's ongoing battle with drug lords.

Union Pacific said it doesn't control the train cars until after they cross the border and are inspected by U.S. customs agents, so the company shouldn't be held liable for what happens in Mexico. The company says in some cases it has alerted U.S. drug agents to suspect shipments, and assisted in their capture.

Most of the Mexican trains Union Pacific handles are controlled in Mexico by its partner Ferrocarril Mexicano, or Ferromex. Union Pacific owns a 26% stake in Ferromex, and the rest is owned by Mexican mining firm Grupo Mexico SAB. Ferromex has sustained a slew of drug seizures in Mexico over the years.

Customs and Border Patrol spokeswoman Jenny Burke said the agency wouldn't comment on pending litigation. U.S. officials say privately that Union Pacific should ensure that its partner can make certain the freight aboard the trains is legitimate when entering the U.S. Two rival U.S. lines, Kansas City Southern and Burlington Northern/Santa Fe, say they haven't had any drug seizures since they began operating in Mexico in the late 1990s.

Under the U.S. criminal code, commercial entities caught aiding in the "importation or transportation" of a controlled substance can be fined $500 per ounce of marijuana, and $1,000 per ounce of cocaine. In Union Pacific's case, it has drawn fines of more than $1 million 10 times, with the biggest penalty, $8.2 million, for around half a ton of marijuana seized in Calexico in 2004. The smallest fine came that same year: For nearly two pounds of marijuana discovered on one of its trains, the railroad was fined $16,579. In the cocaine case it was fined $4.1 million.

A study by a independent researchers hired last year by the United Steelworkers, of the AFL-CIO, suggested that Ferromex is being penetrated by traffickers. The union paid for the report as part of a campaign to assist Mexican unions in a dispute with Grupo Mexico. The document, reviewed by The Wall Street Journal, is based on news reports, interviews with convicted traffickers in Mexican prisons, and railroad workers who said they witnessed drug smuggling on Ferromex lines.

Interview subjects say members of train crews communicate with drug cartels about the best place to stop trains to load illicit cargo, and they describe a common method of disabling trains to load them with contraband: closing a steam valve that compresses the wheels, stopping the train. Typically, small crews staffing trains of up to 300 cars just wait 10 to 20 minutes for air to return to the valve, the report says.

Juan Rebolledo, chief spokesman for Grupo Mexico, said in an email that the drug cargo "is a very significant problem for the company Ferromex and for Grupo Mexico in which resources have been invested and decisive measures have been taken to combat (it)."

Ferromex notes that drugs have been detected in 20 railway cars of about half a million going to or from the U.S. border yearly. It says a new security plan put in place last year included camera equipment and dogs that sniff for drugs. It also started criminal charges against security employees it believes were paid by cartels.

Write to Joel Millman at joel.millman@wsj.com


Members who have been layed off have two benefit forms available on line.

The first, the "
Application" and the second "Continuing Monthly" benefits.

Just Click on either one to open a PDF.

January 2, 2009

The BMWED Journal is available On Line. To see this issue, just
Click Here.