Month: April 2011

Home>News>2011>April

A tentative new five-year national rail agreement covering wages, benefits and working conditions has been reached between the UTU and the National Carriers’ Conference Committee (NCCC).

The tentative agreement is retroactive to Jan. 1, 2010, and extends through Dec. 31, 2014.

The tentative agreement, which amends the existing national agreement, must be ratified by each affected UTU craft under the craft-autonomy provisions of the UTU Constitution. The existing national agreement remains in force under provisions of the Railway Labor Act.

Details of the tentative agreement are being withheld pending their presentation at a June 2 meeting of the Association of General Chairpersons – District 1. General chairpersons will then have 15 days to submit written questions. The questions and answers will be provided to all members prior to the ratification vote.

Railroads represented by the NCCC include BNSF, CSX, Kansas City Southern, Norfolk Southern, Union Pacific and many smaller railroads. Some 38,000 UTU members are affected by the tentative new agreement.

This is the first agreement reached in this round of national bargaining with the NCCC. It was reached, voluntarily, without need for mediation. However, two members of the National Mediation Board — Elizabeth Dougherty and Linda Puchala — served as facilitators during the two most recent rounds of talks between the UTU and the NCCC, leading to this tentative agreement.

UTU International President Mike Futhey thanked his negotiating team for “their hard work and long hours. I am confident our general chairpersons will react positively when the details of this agreement are presented to them.”

In addition to UTU lead negotiator Futhey, the negotiating team includes Assistant President Arty Martin; National Legislative Director James Stem; UTU International Vice Presidents Robert Kerley and Delbert Strunk; and General Chairpersons John Lesniewski (CSX, GO 049), Pate King (NS, GO 680) and Doyle Turner (CSX, GO 347).

Futhey also praised retired UTU General Secretary & Treasurer Dan Johnson for his emphasizing, early in the process and through a series of opinion articles published on the UTU website, the value of interest-based bargaining whereby both sides strive to understand the needs of the other.

“Interest-based bargaining worked well for the UTU in reaching a ratified national agreement in 2008, and interest-based bargaining was instrumental again this round in guiding both sides to a voluntary tentative agreement,” Futhey said.

Other labor organizations — bargaining as part of two separate coalitions — remain in negotiations with the NMB, and mediation has been invoked in those separate talks.

One coalition includes the Transportation Communications Union, the American Train Dispatchers Association, the International Association of Machinists, the International Brotherhood of Electrical Workers, and the Transport Workers Union.

A second coalition still negotiating with the NCCC includes the Brotherhood of Locomotive Engineers and Trainmen, the Brotherhood of Maintenance of Way Employes, the Brotherhood of Railroad Signalmen, the Brotherhood of Boilermakers and Blacksmiths, the National Conference of Firemen and Oilers, and the Sheet Metal Workers International Association.

America is still mired in recession, but the railroad industry continues to show financial strength.

Most railroads over the past week reported strong improvements in profit and operating efficiency for the first quarter 2011. Stocks of Union Pacific and Kansas City Southern hit 52-week highs this week, while Norfolk Southern’s stock reached an all-time high.

For the first 16 weeks of 2011, U.S. rail carloadings are up 4 percent over the same period in 2010, while intermodal (trailers and containers atop flat cars) are up 8.9 percent.

In expectation of an improving economy, railroads have boosted orders for new freight cars, ordering as many during the first quarter 2011 as for the entire calendar-year 2010.

What’s driving the rails? Fuel efficiency has a lot to do with increased intermodal traffic. The Federal Railroad Administration says railroads are from 1.9 to 5.5 times more fuel efficient than trucks, and with diesel fuel prices spiking, there is a clear competitive advantage available to railroads so long as they can maintain reliable and consistent service quality.

 

Norfolk Southern reported a 26 percent increase in profit for first quarter 2011 versus first quarter 2010. This follows a 45 jump in NS profit for calendar-year 2010.

NS CEO Wick Moorman said the railroad intends to add some 1,100 new workers during 2011, returning employment to the same level as in 2008.

NS operating ratio for first quarter 2011 was 77.1 percent, higher than the 75.2 percent in the first quarter 2010, owing, in part, to severe winter weather. The fourth-quarter 2010 NS operating ratio was 71.9 percent.

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the higher is profit.

Moorman told Wall Street analysts, “We see continuing opportunities for growth in almost every segment of our business, and we’re optimistic about our prospects for the balance of 2011.”

NS operates some 20,000 route miles in 22 states and the District of Columbia.

 

California’s Amtrak-operated Pacific Surfliner and San Joaquin routes are due for an equipment upgrade following a Federal Railroad Administration $100 million direct grant to the California DOT (Caltrans).

Amtrak operates the routes under contract to Caltrans.

The money must be used for 27 domestically manufactured bilevel passenger cars and two domestically manufactured diesel-electric locomotives, under Buy America provisions of the grant.

The Pacific Surfliner route experienced a 65 percent increase in ridership over the past 10 years, while the San Joaquin route had a 45 percent increase in ridership over 10 years.

 

Notwithstanding severe winter weather that caused rival Canadian Pacific’s profit to plunge 67 percent, Canadian National reported a 31 percent increase in first quarter 2011 profit versus first quarter 2010. This comes following a 19 percent increase in CN profit for calendar year 2010.

CN’s operating ratio for the first quarter 2011 was 69 percent, slightly better than the 69.3 percent reported for first quarter 2010. The railroad’s fourth-quarter 2010 operating ratio was 63.6.

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the higher is profit.

CN CEO Claude Mongeau, president and chief executive officer credited “a well-executed winter operating plan” for the profit improvement.

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.

Due to changes in the financial services markets, the UTU is no longer able to offer a UTU-branded credit card.

Over the years, these UTU-branded cards generated much-needed funding for the union’s education and training fund.

Servicing of former UTU credit card accounts will now be handled by PNC. Previously, accounts were serviced by National City Bank.

PNC will shortly be replacing all UTU-branded credit cards with PNC credit cards. Terms and conditions on the PNC credit cards will be determined by PNC.

No UTU credit card accounts will be cancelled as a result of the change.

For more information call the telephone number on the back of the UTU credit card, or call PNC at (888) PNC-BANK.

China’s effort to lead the world in high-speed rail development appears to be moving forward at the expense of safety, reports The Washington Post.

The Chinese government, reports the newspaper, has ordered all high-speed trains to reduce their top speed from some 220 mph to 186 mph, calling safety concerns of those trains “severe.”

Reportedly, inferior materials have been used, creating safety concerns. Separately, the Congressional Budget Office said China has imposed lower crashworthiness standards for its passenger trains than are imposed in the United States.

Last year, it was reported by the Progressive Policy Institute that China had embarked on a goal of a north-south and east-west nationwide grid of 220-mph long distance trains — all to be in operation by 2020.

Says The Washington Post, “With the latest revelations, the shining new emblem of China’s modernization now looks more like an example of many of the interlinking problems plaguing the country: top-level corruption, concerns about construction quality and a lack of public input into the planning of large-scale projects.”

In the United States, the Obama administration envisions a high-speed rail passenger network over dedicated electrified lines with trains operating at speeds of 125-220-mph linking major population centers 200-600 miles apart.

But federal budget cutting has imperiled that plan.

Amtrak President Joseph Boardman has his own vision — a 30-year, $117 billion Northeast Corridor improvement project that would link Washington, D.C., Baltimore, Philadelphia, New York and Boston with 220-mph passenger trains cutting trip times to 84 minutes between New York and Boston and 96 minutes between New York and Washington.

Boardman told Railway Age magazine that Amtrak envisions operating other high-speed rail corridors as they move toward development.

In early April testimony before the House Rail Subcommittee, Amtrak’s vice president for government affairs, Joe McHugh, urged Congress to provide dedicate, multi-year funding for intercity and high-speed rail; establish a national investment strategy; create a clear and leading role for Amtrak; ensure coordinated corridor planning and project execution; and address liability and insurance issues.

We know all too well that alcohol consumption and drug use can imperil our jobs.

But how about off the job; and how about family members?

The U.S. Department of Health and Human Services reports more than 600,000 emergency room visits annually due to alcohol or drug problems; and that count represents but one-third of all misuse of alcohol or drugs.

In the long term, alcohol abuse can lead to:

  • Liver, heart and brain damage; and severe over indulgence of alcohol can induce dementia or other mental illness.
  • Bad judgment, poor coordination, blackouts, loss of memory, nausea, hangovers, headaches, coma and suicide.
  • Birth defects, including learning disabilities. That is why pregnant women are warned not to consume alcohol during pregnancies.

Be aware that 40 percent of alcoholism is related to genetics and is inherited.

Note the warning signs and symptoms of alcohol abuse:

  • Craving alcohol
  • Drinking alone
  • Inability to reduce or stop drinking
  • Hiding alcohol in secret places
  • Violent episodes or becoming angry when confronted about drinking habits
  • Sleeping for long periods of time
  • Feeling anxious in social situations and experiencing feelings of guilt
  • Poor eating habits

You and/or your family members can get help in treating alcohol and drug abuse.

United Behavioral Health offers 24-hour confidential telephone counseling at (866) 850-6212, and the website www.liveandworkwell.com can provide you with more information on alcohol and drug abuse.

And keep in mind that those in safety sensitive transportation jobs face a good likelihood of being randomly tested for alcohol and drug use:

The U.S. Department of Transportation set the following test rates for 2011:

  • For bus drivers, the random drug testing rate is 50 percent; and the random alcohol testing rate is 10 percent.
  • For airline workers, the random drug testing rate is 25 percent; and the random alcohol testing rate is 10 percent.
  • For rail workers, the random drug testing rate is 25 percent; and the random alcohol testing rate is 10 percent.
  • For transit workers, the random drug testing rate is 25 percent; and the random alcohol testing rate is 10 percent.

By UTU International President Mike Futhey

In a horrendous March accident in Kelso, Wash., a conductor trainee and a locomotive engineer were killed when the carrier-provided shuttle van in which they were riding was struck by a moving train at a private highway-rail grade crossing. A second conductor was critically injured and the van driver also was killed.

An investigation will determine the cause of this tragedy.

The UTU has long fought for better shuttle-van safety, and we have been successful in only a few states in gaining passage of legislation to improve shuttle-van safety.

As tragic as this accident was, it may be the spark to convince more state legislatures of the need to regulate shuttle-van service.

As our state legislative directors have documented time and again, shuttle-van drivers are almost always non-union and required to work long hours under horrendous working conditions. Understandably, driver turnover is substantial, which has frustrated previous efforts to organize these drivers.

We have documented far too many shocking incidents of shuttle vans with bald tires, van drivers so tired they fell asleep at the wheel or appeared to be under the influence of alcohol or other drugs.

In states where we have gained laws regulating shuttle vans, minimum driver-hiring qualifications and disqualification standards have been imposed, along with maximum hours-of-service limitations, driver drug-testing requirements, annual state DOT inspections of the vans, and state DOT certification of vehicle maintenance inspections and repair records.

We have also been successful in gaining requirements for fully functioning heat and air-conditioning, secure locations for baggage and fully operational seat belts.

Our national legislative office will continue lobbying for federal regulation of shuttle-vans, as vans carrying eight or fewer passengers are exempt from laws and regulations applying to larger passenger vehicles.

I am asking state legislative directors to advise local officers and general chairpersons whether their state has legislation regulating shuttle-van service, and to include details to assist our operating crews in making appropriate reports of safety violations that can be pursued with state authorities.

Even in states without shuttle-van safety regulations, reports of unsafe conditions and driver actions should be reported to state legislative directors to assist them in convincing lawmakers for the need to pass appropriate safety legislation.

If accidents or injuries do occur while a passenger in a carrier-supplied shuttle van, contact a UTU designated legal counsel for advice. The names and contact information for UTU designated legal counsel can be obtained at www.utu.org, or from local officers, general chairpersons, or state legislative directors.

Kansas City Southern’s first-quarter 2011 profit was almost double that of the first quarter 2010, the railroad reported April 22. This followed an 82 percent increase in profit for calendar-year 2010.

The employee headcount remains constant at 6,080. The railroad did not indicate whether it would be increasing its headcount in 2011.

The KCS first quarter operating ratio declined significantly, from 75.2 percent the first quarter 2010 to 73.8 for the first quarter 2011. The railroad’s fourth-quarter 2010 operating ratio was 73.2.

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the higher is profit.

“We are especially pleased with the expansive growth in our intermodal (trailers and containers atop flat cars) business,” said CEO David Starling, who reported that cross-border intermodal traffic had increased by 70 percent during the first quarter 2011 compared with first quarter 2010. He said almost half of KCS freight revenue comes from cross-border traffic.

KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.