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By Calvin Studivant,

Alternate vice president, Bus Department

December marked 55 years since Rosa Parks refused to give up her seat on a Montgomery, Ala., bus — “an act that challenged the moral conscience of an entire nation,” said President Obama in honoring her legacy.

Most historians date the beginning of the modern civil rights movement in the United States to Rosa Parks’ act of courage on Dec. 1, 1955.

The Montgomery bus boycott lasted 382 days and brought Parks to the attention of the world. The Supreme Court subsequently struck down the Montgomery ordinance under which Parks had been fined, and outlawed racial segregation on public transportation.

President Obama said the Montgomery bus boycott “marked a turning point in American history…and the eventual outlawing of racial segregation and discrimination.”

Continued President Obama, “Rosa Parks and the many other leaders and foot soldiers in that struggle for justice championed our founding principles of freedom and equality for all. As we commemorate the anniversary of the Montgomery bus boycott, I encourage all Americans to honor their legacy — the legacy of Americans who marched bravely, worked tirelessly, and devoted their lives to the never-ending task of making our country a more perfect union.”

In 1996, President Clinton presented Parks with the Presidential Medal of Freedom. She received a Congressional Gold Medal in 1999.

After her death in 2005, at age 92, Parks’ casket was placed in the rotunda of the United States Capitol for two days — making her the only woman and second African-American in American history to lie in state at the Capitol.

And congratulations to the brothers and sisters of Local 23 in Santa Cruz, Calif., who, under the leadership of Sister Sharon Hightower Toline, helped to organize a historical presentation of Rosa Parks and her legacy. On Dec. 1, the transit district reserved the front seat on buses as a dedication.

On another note, I am happy to report that Southeastern Pennsylvania Transportation Authority employee Rhonda Taylor (Local 1594, Upper Darby, Pa.) had her termination case overturned in arbitration. Sister Taylor, out of work since February 2010, was reinstated with full back pay, minus 30 days for suspension, and the discipline will be expunged from her record. General Chairperson Waverly Harris, Vice General Chairperson Brian Caldwell, and members Curtis Fulmore and David Stinsman presented the case. I was honored to have provided assistance.

Railroad Retirement, Social Security, Medicare and Railroad Unemployment Insurance payroll taxes have changed for 2011.

Following are the tax rates:

 Railroad Retirement Tier I:

  • Paid by employer: 6.20% on wages up to $106,800.
  • Paid by employee: 4.2% on wages up to $106,800.

Social Security (non-railroad employment):

  • Paid by employer: 6.2% on wages up to $106,800.
  • Paid by employee: 4.2% on wages up to $106,800. 

Medicare (railroad and non-railroad employment):

  • Paid by employer: 1.45% on all wages (no cap).
  • Paid by employee: 1.45% on all wages (no cap).

 Railroad Retirement Tier II

  • Paid by employer: 12.1% on wages up to a $79,200.
  • Paid by employee: 3.9% on wages up to $79,200.

 Railroad Unemployment Insurance:

  • Paid by employer: 3.15% on wages up to $15,960.
  • No tax on employee.

 

WASHINGTON — With 220,000 public and private highway-rail grade-crossings in the United States, train and engine workers are no strangers to dare-devil drivers attempting to beat the train.

Through the first nine months of 2010, there were more than 1,300 train-vehicle collisions at highway-rail grade-crossings, resulting in 196 fatalities.

Too often ignored is the emotional impact such accidents have on train and engine workers powerless to stop the train in time. Train and engine workers have a most unfortunate front-row seat to view the unavoidable accident.

Frequently, untrimmed vegetation at highway-rail grade-crossings — those without gates or barriers — restricts visibility.

The Rail Safety Improvement Act of 2008 (RISA) instructed the Federal Railroad Administration, in conjunction with the Federal Highway Administration (FHWA), to draft model legislation for state governments, which would require removing sight obstructions, including vegetation growth, structures and standing railroad equipment.

Congress, the FRA and the FHWA are urging the 29 states currently without laws or regulations applying to vegetation removal at highway-rail grade-crossings to adopt the model legislation — and states with existing laws and regulations to consider amendments along the lines of the model legislation.

This model legislation provides for:

  • Establishment of a statewide program for the periodic inspection and evaluation of sight distances at passive highway-rail grade-crossings.
  • Specific actions to eliminate sight distance obstructions within close proximity to passive highway-rail grade-crossings.
  • Imposition of civil penalties against railroads and other private property owners that fail to comply with an order to remove or otherwise mitigate the sight distance obstruction.

To view the model legislation, click on the following link:

www.fra.dot.gov/downloads/safety/ModelStateLawText.pdf

So how did the major railroads perform in 2010?

The short answer is that one wouldn’t know they were operating in the midst of a recession.

Although calendar year profits have not yet been reported, railroad profits were up 33 percent for the 12 months ending in the third quarter, according to the U.S. Surface Transportation Board.

And investors’ expectations — reflected in railroad stock prices — is that calendar year 2010 earnings will be equally impressive; and 2011 earnings prospects are equally bright.

Wall Street analyst Ed Wolfe of Wolfe Trahan reports the level of freight car and intermodal loadings for the year registered “the best” year-over-year growth in more than 50 years. Wolfe and other Wall Street analysts — William Greene at Morgan Stanley, Thomas Wadewitz at J.P. Morgan, and Gary Chase at Barclays — are bullish on the industry’s earnings moving forward.

Analysts also point to the railroads’ pricing strength — the ability to raise rates on shippers with limited effective alternatives to railroad transportation. Many long-term contracts for hauling coal are expiring, and substantial rate increases on that traffic already are reflected in new contracts.

Another key element of railroad financial health is operating ratio — a railroad’s operating expenses expressed as a percentage of operating revenue (considered by economists to be the basic measure of carrier profitability.

Each of the major railroads — Canadian National, Canadian Pacific, CSX, Kansas City Southern, Norfolk Southern and Union Pacific — reported substantial improvements in operating ratio during the third quarter. (As BNSF is now privately held, it no longer reports detailed financial data.)

Stock prices are an excellent indicator of financial health and forward-looking prospects:

 Canadian National:

  • Per-share price is up 38 percent over the 52-week low.
  • Analysts predict the per-share price to rise from the 2010 52-week high of $67.99 to $70.84 — a 4 percent increase.

 Canadian Pacific:

  • Per-share price is up 45 percent over the 52-week low.
  • Analysts predict the per-share price to rise from the 2010 52-week high of $67.03 to $72.33 — an 8 percent increase.

 CSX:

  • Per-share price is up 62 percent over the 52-week low.
  • Analysts predict the per-share price to rise from the 2010 52-week high of $68.03 to $71.92 — a 6 percent increase.

 Kansas City Southern:

  • Per-share price is up 74 percent over the 52-week low.
  • Analysts predict the per-share price to rise from the 2010 52-week high of $51.46 to $55.29 — a 7 percent increase.

 Norfolk Southern:

  • Per-share price is up 41 percent over the 52-week low.
  • Analysts predict the per-share price to rise from the 2010 52-week high of $65.32 to $70.71 — an 8 percent increase.

 Union Pacific:

  • Per-share price is up 60 percent over the 52-week low.
  • Analysts predict the per-share price to rise from the 2010 52-week high of $95.78 to $103.38 — an 8 percent increase.

 Major railroads — except for BNSF — will be reporting calendar year earnings over the next few weeks.

To see the tax rates for 2011, click here.

It was one a pretty good year in 2010 for freight railroads.

Although freight volume trailed pre-recession 2008 figures, the nation’s major railroads reported a healthy 7.3 percent jump in carload traffic and a 14.2 percent increase in intermodal (trailers and containers on flat cars).

AAR officials called the 52-week figures “a positive development.”

Carload traffic remains about 10 percent below pre-recession levels, but its rate of growth continues to increase.

WASHINGTON — President Obama has renominated two Republicans to key transportation posts after the Senate failed to take action on the nominations last year.

Nominated to the three-person National Mediation Board, for a term expiring July 1, 2013, is Republican Thomas M. Beck.

Nominated to the three-person Surface Transportation Board, for a term expiring Dec. 31, 2015, is Republican Ann D. Begeman.

Both must be confirmed by the Senate before taking office.

Both agencies have Democratic majorities and will continue under Democratic control so long as a Democrat is in the White House.

Beck was nominated to succeed Republican Elizabeth Dougherty on the NMB. Dougherty’s term expired July 1, but under NMB rules she may continue serving indefinitely until a successor is confirmed.

Since Oct. 2, Beck has been serving as a Senate-confirmed member of the Federal Labor Relations Authority (FLRA). The FLRA administers labor-management relations for non-Postal Service federal employees.

Previously, Beck was a partner in the law firm of Jones Day, practicing labor and employment law. He is a 1992 graduate of the University of Virginia Law School. Beck also is a part-time professor at George Mason University in Fairfax, Va., where he teaches courses on legislation and public policy.

The other two members of the NMB are Democrats — Chairman Harry Hoglander, who is serving his third term, and Linda Puchala, who was confirmed to her first term in May 2009.

Begeman was nominated to succeed Republican Chip Nottingham on the STB. Nottingham’s term expired Dec. 31, but under STB rules he may continue serving until a successor is confirmed, but no later than Dec. 31, 2011.

She currently is Republican staff director for the Senate Commerce Committee, but has been a long-time aide to Sen. John McCain (R-Ariz.), and served as a spokesperson for his unsuccessful run for president. Earlier, she was a legislative aide to Sen. Larry Pressler (R-S.D.).

Begeman earned a degree in business from the University of South Dakota.

The other two members of the STB are Democrats — Chairman Dan Elliott, who is serving his first term; and Frank Mulvey, who is serving his second term.

The STB has regulatory authority over railroad mergers and labor protection for rail employees adversely affected by mergers, line sales and leases, and line abandonments. The agency also regulates railroad freight rates.

By UTU International President Mike Futhey

We continue making progress in negotiations to amend the national rail agreement, affecting some 40,000 UTU members employed by BNSF, CSX, Kansas City Southern, Norfolk Southern, Union Pacific and many smaller railroads represented by the National Carriers’ Conference Committee (NCCC).

The national rail contract was opened for amendment in January 2010. The existing agreement remains in force until amendments are concluded under provisions of the Railway Labor Act.

We have held eight formal negotiating sessions with the NCCC. A ninth is scheduled this month. Our objective is to reach a voluntary tentative agreement that recognizes the many and significant contributions our members have made to soaring railroad profitability.

When I took office in January 2008, negotiations in the previous round had stretched aimlessly into their third year. Within 30 days, our new negotiating team reached an agreement with the NCCC that was overwhelmingly ratified by our membership.

Again, this round, our negotiating team is relying on rock-solid research to counter carrier arguments that the recession requires employee give-backs. We have developed financial and economic data on carrier profits and worker productivity to justify our contract demands.

We are utilizing a health care consulting firm to produce hard data on health care costs, and to assist both sides in exploring innovative solutions to slow the spiraling of health care costs.

It is not good enough to say we simply want something, because that list is endless. As our negotiating team did in January 2008, we are utilizing interest-based bargaining — joint problem solving whereby each side understands the needs of the other.

In a collaborative atmosphere, we are negotiating toward a win/win agreement, which requires that both sides attempt solutions not anticipated by either side individually, but achievable jointly through commonality of interests.  

There are other issues high on our 2011 agenda:

We are placing increased emphasis on improving workplace safety and security by expanding the role of the Rail Safety Task Force. This includes working jointly with the carriers to refine and improve provisions of the Rail Safety Improvement Act, as requested by UTU members who participated in the task force’s exhaustive safety survey on workplace concerns. Objectives include the matter of time-off – between yard assignments and at away-from-home terminals.

Of importance to our bus and transit members, we are working collectively with other labor organizations to improve – through regulation and legislation – workplace safety and quality of life.

For our highly trained and skilled airline members, we are working to solve some of unimaginable workplace conditions they endure. We represent pilots and flight attendants who can’t afford basic dental care and who qualify for food stamps.

Education of members is a high priority. We are beefing-up the educational offerings – air, bus and rail – at regional meetings, and building on initiatives of several of our progressive rail locals to provide educational seminars at away-from-home terminals.

Education includes communication, and within a few months we will launch a redesigned, expanded and easier to navigate webpage at www.utu.org.

Cost control at the UTU International — and within the UTUIA — is of great importance, and is being pursued through more efficient and responsive delivery of services to our members and policy holders.

I pledge that we will continue to represent our members with honesty, ferocity, courage, resiliency and adaptability.

The UTU will be recognized universally as representing hardworking men and women who deliver, with integrity and dedication, essential transportation services to the American economy, which remains the envy of the world.

UTU conductor double-amputee in NS mishap

Norfolk Southern conductor and UTU Local 768 member Larry McVay, age 43, lost an arm and a leg in a switching accident near Lafayette, Ind., the morning of Jan. 3, and is recovering in an Indianapolis hospital.

McVay

A UTU member since Dec. 1, 2007, McVay is a resident of Dalton City, Ill. He and his wife, Lisa, lost a daughter in an automobile accident in 2008.

A Larry McVay benefit fund has been established at Land of Lincoln Credit Union, 2890 N. Oakland Ave., Decatur, IL. 62526. More information may be obtained from the credit union by calling (217) 875-1300.

Members who have PayPal accounts may also make a contribution through the PayPal website by sending funds to the e-mail address benefitlarry@yahoo.com.

James Stem

By James Stem
UTU National Legislative Director

January brings a new session of Congress and the start of state legislative sessions across the country. Our UTU legislative team in Washington and our state legislative directors will be on guard protecting the interests of our members.

Two old UTU friends are in charge of key transportation committees in the House and Senate. Rep. John Mica (R-Fla.) now chairs the House Transportation & Infrastructure Committee; and Sen. Jay Rockefeller (D-W. Va.) continues as chairman of the Senate Commerce Committee.

Among UTU legislative priorities:

  • Growing passenger and freight rail transportation, including Amtrak, public transit and commuter airline service. America has become too dependent on foreign oil and expanded railroad and public transit service can help reduce that dependency and provide not just jobs, but excellent careers.
  • Growing funding for transit. While demand is growing, many transit systems have buses and commuter rail cars stored because of a shortage of operating funds. We will work to secure more flexible funding so service can be maintained and expanded.
  • Work to prevent the weakening or privatization of Social Security and Railroad Retirement.
  • Work with our aviation partners for reauthorization of the Federal Aviation Administration to include new safety provisions.
  • Work to pass improvements to the Railroad Safety Improvement Act of 2008. Our members know the solution to fatigue: “Just tell me when I must report for work and I will show up rested.”

Among improvements sought will be: A 10-hour call for all unassigned road service; a provision to allow regular yard jobs only eight hours off-duty between shifts; require yardmaster assignments to be covered by hours-of-service provisions; require advance notice of interim release periods; and, a limitation on limbo time to a maximum of two hours for each tour of duty.

While the UTU has many friends on both sides of the aisle, we expect very few major policy issues to pass Congress the next two years given the divided government (Republicans in charge of the House; Democrats controlling the Senate).

While that may be disappointing, we also expect there to be less opportunity for bad things to happen.

That said, we will keep pressing on and do our very best to protect the interest of our members.