BILLINGS, Mont. — U.S. railroads forced to turn over details of their volatile crude oil shipments are asking states to sign agreements not to disclose the information. But some states are refusing, saying Thursday that the information shouldn’t be kept from the public.
Federal officials last month ordered railroads to make the disclosures after a string of fiery tank-car accidents in North Dakota, Alabama, Virginia and Quebec, where 47 people died when a runaway oil train exploded in the town of Lac-Megantic.
The disclosures due midnight Saturday include route details, volumes of oil carried and emergency-response information for trains hauling 1 million gallons or more of crude. That’s the equivalent of 35 tank cars.
State Legislative Director Ken Menges of the Missouri Legislative Board reports that the 2014 Missouri legislative session has come to an end. The session saw several bills that had the potential to affect both SMART Transportation Division and Sheet Metal Division members in the state, one of which was House of Representatives’ Bill 1770, that would have introduced right-to-work legislation to the state.
H.B. 1770 passed in the state’s House, but failed to get the required constitutional majority needed to be sent to the Senate for passage. Click here to see how members of the House of Representatives voted on H.B. 1770. Similarly, House Bill 1617 – a bill introducing pay check deception – also passed in the House but met its demise when State Sens. Gina Walsh (D-Dist. 13) and Scott Sifton (D-Dist. 1) led a filibuster against the bill.
In expectation of the Environmental Protection Agency’s new regulations on coal-fired power plants, the legislative board supported H.B. 1631, a bill introducing legislation to develop emission standards in the state through a unit-by-unit analysis of each existing affected source of carbon dioxide by the Air Conservation Commission. Dave Zimmerman – third vice president of SMART SMD and president of Local 26 – is a member of the Air Conservation Commission.
“During the session, we were approached by Rep. Todd Richardson and former Senate Pro Tem Mike Gibbons (one of our avid Amtrak supporters when he was in the Senate and now a lobbyist for Peabody Coal) to testify in support of H.B. 1631,” Menges said. “With the help of Alternate National Legislative Director John Risch, the Missouri State Legislative Board testified at both the House and Senate hearings for this bill. The bill passed in the Senate with a 23-7 vote and in the House with a 129-14 vote.
“This bill is not high on Gov. Jay Nixon’s list, but with the great bipartisan support we were able to receive, the governor has told us he will take a good look at the bill.”
The board also supported H.B. 1707, which specifies that crew members operating a train, including operations at railroad crossings, are not required to present or display a driver’s license to any law enforcement officer in connection with the operation of a train in the state. The bill was passed on the final day of the legislative session, Menges reports, and has been sent to Gov. Nixon’s desk for his signature.
In representation elections held May 15 on both bus and rail properties, the SMART Transportation Division came out on top, keeping the Organizing Department’s 2014 undefeated streak alive. Yet another division of First Student bus operators has joined the SMART fold as Kansas City, Mo., school bus drivers overwhelming selected SMART over both the International Brotherhood of Teamsters and the Service Employees International Union. Of eligible voters, 107 selected SMART Transportation Division, 63 selected the Teamsters, 16 selected SEIU and just seven chose to vote for no union. “This was a hard-fought campaign, but it was also a well-run campaign,” said Transportation Division Director of Organizing Rich Ross. “We won, and we won by a large majority because we spent a lot of time out there making our case. The operators wanted representation and chose the best bang for their buck.” “We were out near the property every day at 4:30 a.m. to get our message across. The Teamsters came out in force with their parade truck, trying to block us from view, but the First Student operators found us. Ross lauded the efforts of Alternate Vice President-Bus Calvin Studivant and Southeastern Pennsylvania Transportation Authority General Chairperson Waverly Harris (1594) and Vice Local Chairperson Brian Caldwell (1594). He also thanked CSX and Norfolk Southern new-hire class instructor Justin Humphries Local 1291 Chairperson Jacob Lane for their dedicated service throughout the campaign and Local 759 member Sheny M. Mendez for acting as an interpreter for the company’s Spanish-speaking employees. In Western Michigan, the train and engine service workers employed by Marquette Rail also said “SMART” when they opted for union representation. With the assistance of Vice President Jeremy Ferguson, Ross concluded another successful campaign in the Great Lakes State. The Genesee & Wyoming-owned short line operates over approximately 126 miles of Michigan track, primarily on rail route extensions from CSX and Norfolk Southern near Grand Rapids northward to Ludington and Manistee. Marquette transports chemicals, paperboard, grain, salt, petroleum products and other commodities. It also serves as a storage agent for fleet owners requiring accommodations for seasonally inactive or off-lease rolling stock. Capacity is in excess of 500 railcars.
Presidential Emergency Board 245 determined May 20 that “the Unions’ final offer is the most reasonable” in the four-year-old bargaining dispute between the International Association of Sheet, Metal, Air, Rail and Transportation Workers and its allied unions and the Long Island Rail Road. The PEB report sets in motion a final 60-day cooling off period. If no agreement is reached during that time, SMART and the other unions can strike on July 19 under provisions of the Railway Labor Act. Under the RLA’s special 9A provisions for disputes involving commuter railroads, if the parties do not reach agreement after a first PEB issues its recommendations, a second PEB is convened to decide which side’s final offer is the most reasonable. On Dec. 21, 2013, PEB 244 recommended a six-year contract with 17.9 percent in compounded wage increases. The board also recommended that employees begin paying health insurance premiums that reduced the net value of the proposed contract to 2.5 percent per year. The board rejected Long Island Rail Road’s proposal for sweeping pension, work rule, and other concessions. In its report, the board notes that “the lack of notice and bargaining on substantial issues in the Carrier’s final offer is of significant concern … The Unions’ final offer, on the other hand, represents a reasonable balance addressing the priorities of both parties … It is noteworthy that the Unions’ assertion that real wage increases for LIRR employees, absent inflation, have not increased at all since 1991, was not challenged by the Carrier.” “A strong union requires strong members,” said SMART General President Joseph Nigro. “The courage and fortitude these members exhibited shows that there is nothing stronger than the solidarity that comes when working families are united. They are proof of that. “SMART will provide all the resources needed to ensure an agreement worthy of ratification by these members is produced. They have fought for and deserve every advance they make and will make in the future.” “Our members on LIRR, led by General Chairperson Anthony Simon, are to be commended for their resolve in seeking the fair and equitable agreement to which they are entitled,” said SMART Transportation Division President John Previsich. “From the very beginning, SMART advised all concerned that management’s offer of a substandard contract was unacceptable and that we would not hold back in our efforts to obtain a just agreement. “Throughout negotiations and mediation, our position was firm and consistent and management refused to listen. Now that our position is validated by both Presidential Emergency Board 244 and again with PEB 245, it is time for this issue to be resolved. We will not rest until our members receive the agreement that they deserve.” SMART, along with its coalition partners Transportation Communications Union, International Association of Machinists and Aerospace Workers, and the National Conference of Firemen & Oilers-Service Employees International Union, submitted the recommendations of the first board to PEB 245 as its final offer. MTA, which conducted the bargaining for Long Island Rail Road, rejected PEB 244’s recommendations as a basis for settlement. Instead, MTA proposed as its final offer what it claimed was equivalent value to a deal it reached on April 17, 2014, four days before PEB 245 hearings began, with Transport Workers Union Local 100 representing 35,000 New York City Transit Authority workers. The offer was for 11 percent in wage increases over six years, with a 2 percent employee contribution to health insurance, major pension concessions, and a new, reduced-rate progression for new employees. PEB 245 decisively ruled for the unions. The three-member panel, comprised of renowned arbitrators Joshua Javits, David Vaughn and Elizabeth Wesman, wrote, “The Unions’ final offer … represents a reasonable balance addressing the priorities of both parties.” In rejecting MTA’s final offer, the board found that there were no consistencies with any comparisons made by the MTA, and the lack of detail to any comparables did not prove that their final offer was reasonable. As PEB 244 noted, state employee agreements have virtually never constituted valid comparators or patterns for commuter railroads. The labor markets, skills, history, and operations are completely different. SMART Transportation Division Alternate Vice President and General Chairperson Anthony Simon, spokesman for the SMART, TCU, IAM and NCFO-SEIU coalition, called upon MTA “to accept reality and sign the PEB-recommended contract immediately.” “Our members and all the hard working men and women on the Long Island Rail Road have waited long enough. We sincerely hope MTA will not stick to its twice-rejected position. We are fully prepared to strike on July 19 if MTA continues to stonewall the process,” Simon said. To read the complete report of PEB 245, click here.
WASHINGTON – Amtrak invites America to celebrate the many benefits trains bring to the nation at the seventh annual National Train Day on May 10, 2014. Trains are an integral part of daily American life and connect communities, provide jobs and economic development, support local businesses and attract funds for infrastructure improvement. From big cities to small towns, coast to coast and border to border, trains matter. In addition to events in Philadelphia, Washington, D.C., Chicago and Los Angeles, Amtrak is supporting events in many local markets across the country served by America’s Railroad. Event offerings will vary to include train equipment displays, family-friendly activities and local dignitaries. “Trains have long been important to the growth and prosperity of our nation and today Amtrak supports our national economy and connectivity by moving America where it wants to go,” said Amtrak President and CEO Joe Boardman. “Amtrak is America’s Railroad. Trains came first, long before the interstate and the airport,” said Mayor Todd Barton of Crawfordsville, Ind. “From a presidential candidate campaigning across the country to a young scholar leaving home for school, trains take us where we need to go. They are important and should be celebrated.” Boardman added that rail travel is a vital transportation alternative that is cost-efficient, environmentally friendly and in high public demand. In addition, intercity passenger trains matter because they connect rural communities with major metropolitan areas and afford passengers more than 500 destinations – an option that has become increasingly important as airline and bus companies reduce service to significant regions of America. Details on National Train Day events and information on how to host a National Train Day event are available at NationalTrainDay.com.
Long Island Rail Road unions left the meeting of Presidential Emergency Board 245 more united than ever in their quest for a fair contract. The unions submitted a proposed contract that followed the recommendations of the PEB 244, which called for modest net annual increases of 2.5 percent. The New York Metropolitan Transportation Authority submitted an offer they claim was patterned after the tentative deal reached last week with TWU Local 100, but in reality, it fell far short, the union coalition reports. The coalition is comprised of SMART Transportation Division General Committee of Adjustment GO 505, the National Conference of Firemen & Oilers SEIU 32BJ, the Transportation Communications Union and the International Association of Machinists & Aerospace Workers. “It is truly unfortunate that at this late stage, MTA would submit an offer that they know will guarantee a strike if it is selected,” said SMART General Chairperson Anthony Simon. “Their proposal would reduce real wages and effectively eliminate the pension plan for new hires. It is absolutely unacceptable.” “The MTA is not telling the truth when it characterizes the unions’ position. We have never said that if we don’t get everything we want, there will be a strike. What we are saying loud and clear is that the MTA’s lowball offer, far below the real value of Transport Workers Union Local 100’s deal, will definitely provoke a strike if it was submitted to our membership for ratification.” The MTA offer, though purportedly following the contours of Local 100’s agreement, actually omitted most of the value of that deal. “If the MTA offer to us was submitted to the Local 100 membership, it would go down in flames,” Simon said. The union coalition presented expert testimony showing that the agency could afford the unions’ proposal without raising fares. In fact, MTA Chairman Tom Prendergast testified that MTA was funding the Local 100 deal out of the same LIRR fund that the unions testified were available to the first board, but which MTA said they couldn’t use. It also tapped a fund for LIRR workers’ pensions. The MTA proposal to PEB 245 omitted almost all of the benefit gains achieved by Local 100. In their place, MTA offered less than 75 percent of their actual value, according to Local 100 officials. MTA offered no evidence to support its valuations of their proposal. On pensions, MTA proposed that LIRR workers pay more than 9 percent of their salary, where Local 100 members would pay on average 3.5 percent for a pension payment of substantially less value. New hire salaries would be slashed far beyond the modest changes in the tentative Local 100 deal. “We are shocked that MTA would come before the PEB with a proposal so far below the fair recommendations of the first Presidential Emergency Board, as well as what they agreed to with Local 100 and the MTA police. Their proposal fails the test of reasonableness, and cannot be the basis of a voluntary settlement,” Simon said.
Non-union employees at a commuter rail operation in the state of New Mexico expressed interest in union representation and now they have it. Engineers, conductors and ticket agents working for New Mexico Rail Runner Express voted April 28-29 for representation by the SMART Transportation Division, Director of Organizing Rich Ross reports. The Rail Runner Express operates over approximately 100 miles of right-of-way, serving the metropolitan areas of Albuquerque and Santa Fe. “I extend my sincere appreciation to SMART Transportation Division’s assistant state legislative director in New Mexico, Donald A. Gallegos, for his efforts. He went above and beyond the call of duty during this campaign,” Ross said. “I also thank the members of SMART Sheet Metal Division Local 49 and Business Manager Vince Alvarado for the use of their facility in Albuquerque as our base of operation.” “Hopefully, we can reach an agreement soon for our 38 new members.” The commuter rail service is administered by the New Mexico Department of Transportation over right-of-way purchased from BNSF Railway. Operation and maintenance of the line and equipment is currently under contract to Herzog Transit Services, Inc. According to NMDOT, Rail Runner Express carried 1,219,461 passengers in fiscal year 2011.
CLEVELAND – As part of an ongoing effort to secure a law mandating a minimum of two crew members in the cab of all locomotives, the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART–TD) have provided their state legislative boards with model legislation to secure minimum crew size laws on the state level. The state-lobbying campaign was developed jointly by the two unions. “Significant research and work has gone into developing language that both minimizes the potential for a federal pre-emption challenge and maximizes the likelihood that the legislation will survive any such challenge,” wrote BLET National President Dennis R. Pierce and SMART Transportation Division President John Previsich in a cover letter introducing the model legislation to BLET and SMART local officers. “Therefore, when proposing legislation on this subject, it is imperative that you do not deviate from the model.” Among other items, the legislation stipulates that any person who willfully violates the two-person crew law would be subject to financial penalties. Crew size has become a hot button issue following the 2013 oil train derailment and explosion in Lac-Megantic, Quebec. While an official cause has not been determined, the train in question was operated by a single employee. “We urge BLET and SMART Transportation Division officers to work with their counterparts in moving legislation forward on this issue of paramount importance to the members we represent,” President Pierce and President Previsich wrote. On the national level, the Safe Freight Act (H.R. 3040) is currently making its way through the U.S. House of Representatives. Representatives Michael Michaud (D-Maine) and Chellie Pingree (D-Maine) introduced the legislation on Aug. 2, 2013, in the aftermath of the Lac-Megantic tragedy, and the bill currently has 70 co-sponsors. H.R. 3040 would require that “no freight train or light engine used in connection with the movement of freight may be operated unless it has a crew consisting of at least 2 individuals, one of whom is certified under regulations promulgated by the Federal Railroad Administration as a locomotive engineer pursuant to section 20135, and the other of whom is certified under regulations promulgated by the Federal Railroad Administration as a conductor pursuant to section 20163.”
CSX reported to the public its first quarter 2014 earnings and dividend increase. The railroad announced net earnings of $398 million or $.040 per share. This is a decrease from last year’s first quarter reports of $462 million or $0.45 per share.
However, revenue for the quarter grew two percent to $3 billion on volume increases of three percent, with strength in merchandise markets and intermodal offsetting the declines in coal shipments.
Operating income for the railroad declined 16 percent to $739 million, while operating ratio increased 520 basis points to 75.5 percent, due to harsh weather. CSX estimates that weather interruptions in service increased expenses by around six cents per share. Optimistically, CSX expects modest full-year earnings growth in 2014.
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 more efficient the railroad.
“The company is indebted to the dedicated men and women of CSX who worked tirelessly through one of the worst winters on record to keep the network running as fluidly as possible,” Chairman, President and CEO Michael J. Ward. “Thanks to the hard work of our employees, service levels are gradually recovering, and we are capitalizing on an economy that continues to show positive momentum.”
In an announcement made April 16, Kansas City Southern reported record first quarter revenues and carloads. Revenues for the first quarter were $607 million, an increase of 10 percent more than last year’s first quarter. The railroad also saw a four percent increase in carloads for the quarter.
Operating income came in at $160 million, but excluding lease termination costs, adjusted operating income came in at $190 million, a 17 percent increase over last year’s first quarter. The railroad saw an operating ratio of 73.7 percent or an adjusted operating ratio of 68.7 percent. This is a 1.8-point improvement over last year.
Diluted earning per share came in at $0.85 or adjusted diluted earnings per share were at $1.05 for the first quarter of 2014. This is an 18 percent increase over the first quarter of 2013. Net income came in at $94 million.
“We are pleased with how our company performed during the first quarter,” President and CEO David L. Starling said. “All six commodity groups reported year-over-year revenue gains led by Agriculture and Minerals, which increased 40 percent over the prior year. Later in the first quarter, we also recorded higher than expected utility coal volumes and revenues as a result of higher natural gas prices, which made coal a more competitive option benefitting certain plants we serve.
“While it is still early in the second quarter, KCS business levels have improved in April. The indication that our core business appears to be gaining strength provides us with positive momentum towards achieving the 2014 goals we outlined to investors in January.”
Union Pacific reported a record first quarter in an earnings announcement made April 17. The railroad reports a net income of $1.1 billion or $2.38 per diluted share, up from the first quarter 2013 reports of $957 million or $2.03 per diluted share. Taht is a 17 percent increase over last year.
Operating revenues totaled $5.6 billion, up seven percent over last year’s first quarter operating revenue of $5.3 billion. Business volumes, which are measured by total revenue carloads, increased five percent. Agricultural products, industrial products, coal, intermodal and automotive all increased in volume for the quarter. Freight revenue increased a total of six percent for the quarter.
Operating ratio for the railroad was at 67.1 percent, a first quarter record and 2.0 points better than the first quarter of 2013. Operating income was up 14 percent to $1.85 billion.
“As we look forward, we’re watching the economy very closely, as well as the potential impacts of weather, particularly on our coal and grain business,” Jack Koraleski, CEO, said. “There’s still a lot of year ahead of us, but we are seeing signs of gradual economic improvement, and we’re encouraged by the opportunities it presents. With the power and potential of the Union Pacific franchise, we’ll leverage these opportunities to drive record financial performance and shareholder returns this year and in the years to come.
“We’re proud of the efforts of the men and women of Union Pacific, who worked tirelessly to serve our customers despite these weather challenges and helped us achieve such a solid start to the year.”
In an announcement made early April 22, Canadian Pacific said the first quarter of 2014 had the best first quarter financial results in the company’s history.
The company saw a 16 percent increase in year-over-year improvement in earnings per share with a reported C$254 million or C$1.44 per diluted share. The first quarter of 2013 only reported C$217 million or C$1.24 per share.
Total revenues for the railway came in at C$1,509 million, an increase of one percent over last year’s first quarter. Operating expenses saw a four percent decrease to C$1,086 million. While operating income saw a 17 percent increase to C$423 million. Operating ratio also saw an improvement to 72.0 percent, a 380 basis point improvement.
“CP delivered solid results in a period that was severely impacted by extraordinary cold and severe winter weather conditions,” CEO E. Hunter Harrison said. “In the face of such difficult operating conditions, I am particularly proud of the women and men of CP who remained on the job 24/7, to keep the railway operating.
“Despite a slow start to the year and the reduced capacity which limited our ability to meet strong customer demand, we still have the utmost confidence in our ability to achieve our financial targets for 2014.”
Canadian National railway reported increases in revenues in a teleconference held late April 22. The railway reports a net income for the first quarter 2014 of C$623 million or C$0.75 per diluted share. Net income for the same quarter of 2013 was only at C$555 million or C$0.65 per diluted share.
The company saw a five percent increase of operating income to C$820 million. Revenues saw a nine percent increase to C$2,693 million, while revenue ton-miles also saw a five percent increase and carloads saw a one percent increase.
Operating ratio for the railway deteriorated 1.2 points to 69.6 percent. The previous year’s quarter reported operating ratio at 68.4 percent. Free cash flow for the first quarter of this year came in at C$494 million, quite an increase over last year’s C$151 million.
“CN delivered solid first quarter results thanks to a dedicated team of railroaders who labored long and hard to keep us rolling through the harshest winter in decades,” CEO and President Claude Mongeau said. “The winter of a lifetime took its toll on network capacity and affected all of our customers, but I’m pleased that CN’s recovery is now well underway, with key safety, operating and service metrics returning to pre-winter levels.
“Witch continued focus on supply chain collaboration and solid execution, CN is reaffirming its 2014 financial outlook and increasing its capital envelope to C$2.25 billion in support of its commitment to growth, efficiency and safety.”
Norfolk Southern reported its first quarter financial results April 23. Net income for the railroad saw a decrease to $368 million or $1.17 per diluted share for the first quarter 2014. Net income for the same quarter of 2013 was at $450 million or $1.41 per diluted share. Although, $60 million or $0.19 per diluted share of the $450 million was due to a gain from a land sale.
Operating revenues for the railroad totaled $2.7 billion, a two percent decrease from first quarter 2013. Shipment volumes also decreased by one percent during the quarter. Income from railway operations came in at $667 million, three percent lower than last year.
Operating expenses for the first quarter came in at $2 billion, a one percent decrease from the same quarter of 2013. Operating ratio for the railroad was 75.2 percent versus 74.8 percent for the same period last year.
“Following the extreme winter weather across the U.S. rail network which impacted first-quarter results, we are seeing a rebound in shipments across all of our business,” said Wick Moorman, CEO. “Our people responded admirably to meet the challenges of the harsh conditions, and we remain focused on delivering superior service to our customers.”
Visibility was 10 miles and the morning sun had pushed the temperature close to 90 as Danny Joe Hall guided his mile-long Union Pacific freight train east through the grasslands of the Oklahoma Panhandle. Near the farming town of Goodwell, federal investigators said, the 56-year-old engineer sped through a series of yellow and red signals warning him to slow down and stop for a Los Angeles-bound train moving slowly onto a side track.
The 83-mph collision killed Hall and two crewmen. Dozens of freight cars derailed, and the resulting inferno sent towers of black smoke over the plains, prompting the evacuation of a nearby trailer park. As it turned out, Hall was colorblind. The National Transportation Safety Board’s subsequent probe of the June 2012 wreck faulted the engineer’s deteriorating eyesight and inadequate medical screening that failed to fully evaluate his vision problems.
But the Goodwell crash underscored a far larger concern: Railroads are the only mode of U.S. commercial transportation without national requirements for thorough, regular health screenings to identify worker ailments and medications that could compromise public safety.
BILLINGS, Mont. — U.S. railroads forced to turn over details of their volatile crude oil shipments are asking states to sign agreements not to disclose the information. But some states are refusing, saying Thursday that the information shouldn’t be kept from the public.
WASHINGTON – Amtrak invites America to celebrate the many benefits trains bring to the nation at the seventh annual National Train Day on May 10, 2014. Trains are an integral part of daily American life and connect communities, provide jobs and economic development, support local businesses and attract funds for infrastructure improvement. From big cities to small towns, coast to coast and border to border, trains matter.
CSX reported to the public its first quarter 2014 earnings and dividend increase. The railroad announced net earnings of $398 million or $.040 per share. This is a decrease from last year’s first quarter reports of $462 million or $0.45 per share.
In an announcement made April 16, Kansas City Southern reported record first quarter revenues and carloads. Revenues for the first quarter were $607 million, an increase of 10 percent more than last year’s first quarter. The railroad also saw a four percent increase in carloads for the quarter.
Union Pacific reported a record first quarter in an earnings announcement made April 17. The railroad reports a net income of $1.1 billion or $2.38 per diluted share, up from the first quarter 2013 reports of $957 million or $2.03 per diluted share. Taht is a 17 percent increase over last year.
In an announcement made early April 22, Canadian Pacific said the first quarter of 2014 had the best first quarter financial results in the company’s history.
Canadian National railway reported increases in revenues in a teleconference held late April 22. The railway reports a net income for the first quarter 2014 of C$623 million or C$0.75 per diluted share. Net income for the same quarter of 2013 was only at C$555 million or C$0.65 per diluted share.
Norfolk Southern reported its first quarter financial results April 23. Net income for the railroad saw a decrease to $368 million or $1.17 per diluted share for the first quarter 2014. Net income for the same quarter of 2013 was at $450 million or $1.41 per diluted share. Although, $60 million or $0.19 per diluted share of the $450 million was due to a gain from a land sale.