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SMART Transportation Division President Jeremy Ferguson and Adam West, secretary and treasurer of SMART-TD Local 744 in Lafayette, Ind., served as speakers during a press conference Feb. 9 demanding that rail companies provide seven days of paid sick leave to workers organized by U.S. Sens. Bernie Sanders and Mike Braun.

Both senators were among a majority that supported a sick leave measure in December that was blocked by filibuster.

“We are here today to send a very strong message to the CEOs in the rail industry, and that is that the American people are sick and tired of the type of corporate greed we are seeing in that industry,” Sanders, a Vermont independent who spearheaded support for a bill guaranteeing paid sick time. “At a time of record-breaking profits, that industry can and must guarantee at least seven paid sick days to every rail worker in America. In the year 2023, that’s not a whole lot to ask.”

Indiana Republican Sen. Braun framed it as a moral, correct and common-sense choice for business owners to take care of employees, treat them like family and help in worker retention.

“When I heard you didn’t have a guaranteed sick day, I wondered how could you get by with that in this day and age? You don’t know when you’re going to get sick,” Braun said. “It’s going to be an issue on keeping employees long-term.”

“Most of this stuff should be natural, and if you do it, it’s in the best interest of your company, long term.”

Local 744’s Adam West speaks at the press conference on Capitol Hill on Feb. 9.

Adam West of Local 744, the S&T out of Lafayette, Ind., and a 18-year conductor/engineer, stated the situation for workers in the operating crafts very plainly.

“When they get sick, they have to make a decision,” between working sick or facing the attendance policy of their carrier,” West said. “You are not going to get the preventive health care you need to stay healthy.”

President Ferguson thanked both senators for their ongoing support during last year’s contract impasse.

“This is a fight that needs to continue, and it is a challenge for all of us union leaders with the railroads, both freight and passenger because historically nobody has had paid sick leave,” President Ferguson said.

SMART-TD President Jeremy Ferguson addresses the press conference about paid rail labor sick time on Feb. 9.

Six Class I railroads last year spent $20 billion (not including CSX) on buybacks and dividends — $5 billion more than pay and benefits for the entire rail workforce, Sanders said. Plus, rail CEOs made $175 million in three years in a period after cutting 30 percent of its workforce while they implemented Precision Scheduled Railroading.

“They are doing extremely well and what did they do with those record-breaking profits? Did they spend it on making the rail industry safer? No they did not do that.  Did they spend that money on improving the horrendous working conditions today in the rail industry? No they didn’t do that,” Sanders said.

Watch highlights from the press conference in episode six of SMART News.

Harsh attendance policies put in place to force workers to do more with less, a key component of Precision Scheduled Railroad remain intact and have not yet been dismantled.

“Everybody’s seen how difficult it was for our operating employees to have scheduled days off, period,” President Ferguson said. “That is what we’re up against, so to continue now that the national contract dispute behind us, to see thatenergy still coming from our senators, still behind rail labor, not forgetting how bad it was last year … we are very, very thankful for that.”  

“People around the countries are seeing what these workers have to go through. We surely will bring legislation to the floor.”

Sanders, chair of the Senate Health, Education, Labor and Pensions Committee, sent a letter Feb. 8 to the CEOs of six Class I rail CEOs urging them to follow the lead of CSX, which made inroads to providing paid sick time to a limited group of 5,000 workers. The White House and DOT are also involved in ongoing talks with rail executives.

2023.02.08_RailSickLeaveLetterDownload

“I have news for executives in the rail industry,” Sanders said. “If they think that those of us in Congress who voted for seven paid sick days for workers are going to forget this issue, they got it wrong.”

Also speaking was President Greg Regan of the Transportation Trades Department, AFL-CIO, BMWED President Tony Cardwell, BRS Vice President Doug VanderJagt, BLET Vice President Vince Verna, and National Association of Chemical Distributors President Eric Byer.

WASHINGTON, Feb. 7 – SMART Transportation Division leadership as well as officers from the Brotherhood of Locomotive Engineers and Trainmen, the Brotherhood of Railroad Signalmen, the Brotherhood of Maintenance of Way Employes and the AFL-CIO Transportation Trades Department will join U.S. Sen. Bernie Sanders (I-Vt.), chairman of the Senate’s Health, Education, Labor and Pensions Committee, and U.S. Sen. Mike Braun (R-Ind.) at 1:30 p.m. Thursday, Feb. 9, to demand companies provide rail workers with at least seven paid sick days.

U.S. Sen. Bernie Sanders addresses a Rail Solidarity rally organized by SMART-TD on Capitol Hill in December.

Sanders led the effort late last year to pass an amendment to guarantee paid sick days to rail workers. The amendment, which passed the House but failed in the Senate, received the votes of every Senate Democrat but one, as well as six Republicans. Braun voted for the amendment.

Sanders also appeared at a Washington, D.C. solidarity rally attended by members of the SMART-TD, other rail labor groups and supporters.

Following the vote, Sanders and more than 70 of his colleagues sent a letter to President Biden urging his administration to take action to guarantee paid sick days for rail workers.

The press conference comes as rail companies announce record earnings during quarterly earnings calls. Last year, the top railroads made over $26 billion in profits and paid their wealthy shareholders over $25 billion in stock buybacks and dividends. They spent 184 percent more on returns to their shareholders than what they spent on their workers’ wages and benefits. Guaranteeing seven paid sick days to rail workers would cost the industry just $321 million dollars – less than 1.2 percent of profits in a single year. Rail companies have eliminated 30 percent of their workforce over the last six years.

A representative from the the National Association of Chemical Distributors also is scheduled to appear.


What: Sanders and Braun Hold Press Conference with Rail Workers
When: Thursday, Feb. 9, 1:30 p.m. ET
Where: Health, Education, Labor and Pensions Committee, 430 Dirksen Senate Office Building
Note: The event will also be livestreamed at www.twitter.com/SenSanders and https://www.facebook.com/senatorsanders

Those wishing to contribute donations to the community of East Palestine, Ohio, due to the major Norfolk Southern derailment Friday are urged to pitch in to assist evacuees of the village near the Ohio-Pennsylvania border.

The NTSB will be the lead agency for providing updates on the incident. They’ve established a Family Assistance Center to address the needs of the community and support those directly impacted.

A charred rail car is seen at the site of the East Palestine, Ohio, in this photo taken Sunday by the SMART-TD Public Relations Department.
Smoke rises from tanker cars at the site of the Norfolk Southern derailment in East Palestine, Ohio, in this photo taken Sunday by the SMART-TD Public Relations Department.

“The community needs all the help they can get,” SMART Transportation Division Ohio State Legislative Director Clyde Whitaker said. “These are citizens of our state, our neighbors and they need some help. Let’s show everyone what we can do.”

Here are the various community outreach programs available:

Brightside Project, 483 E Pershing St. Salem OH Phone: 234-320-4005 is offering food and personal care products from 9 a.m. to 3 p.m. Feb 7-9.

First United Methodist Church, 244 S. Broadway, Salem, OH Phone: 330-337-9351 is distributing clothes 9 a.m.-noon.

The Way Station is offering food, personal care products, diapers and clothing. Collection times at 769 Springfield Rd, Columbiana OH are 10 a.m.- 4 p.m. Monday – Friday. And from 9 a.m. – 2 p.m. at 125 W. 5th St., East Liverpool.

Donations of non-perishable food items and personal care products can be dropped off at either location during the hours listed.

Angels for Animals is providing assistance with pet care — 330-502-5352

Norfolk Southern has opened a family assistance center that has set up at the Abundant Life Fellowship Church in New Waterford 46469 Route 46, New Waterford, OH.

Greg Hynes, SMART-TD national legislative director

It’s difficult to imagine trying to pass off reducing the braking power of a freight train as a safety precaution, but that is exactly what BNSF attempted to do recently in a request to the FRA for a variance to increase the allowable amount of flow from 90 CFM to 120 CFM.

In their request, BNSF states that in order to reduce the slip/trip/fall risk that goes along with conductors and carmen walking a consist looking for leaks in a brake line, that they think it’s safer to depart the train with up to 120 CFM of flow and assume it will be able to stop when it has to.

FRA put out a Notice of Proposed Rule Making (NPRM) requesting public comments on BNSF’s request, and SMART-TD’s National Legislative Department was happy to oblige them. Below you can read SMART-TD’s response to FRA from Brother Greg Hynes, SMART-TD’s national legislative director.

BNSF-NPRM-Air-Flow-increase-Comments-FINALDownload

Labor had a lone representative Feb. 1 at the House Transportation & Infrastructure Committee discussion of transportation infrastructure and supply chain challenges as it convened under new chairman U.S. Rep. Sam Graves of Missouri.

Greg Regan, president of the Transportation Trades Department, AFL-CIO, testifies Feb. 1 before the House Transportation and Infrastructure Committee.

Greg Regan, of the Transportation Trades Department (TTD), AFL-CIO, a coalition that represents 37 transportation labor unions in air, maritime, railroads and trucking sectors, including SMART-TD, spoke about the recent and positive investments made by the federal government in the form of the Bipartisan Infrastructure Law (formerly the Infrastructure Investment and Jobs Act) and the CHIPS and Science Act.

“If we are serious about strengthening our national supply chain, we must also address the fundamental and structural problems that caused the crisis that cannot be solved by investment alone,” Regan said.

Choices made that put profits over workers and consumers played a large role in fueling the supply-chain crisis, with the nation’s large freight railroads and Precision Scheduled Railroading job cuts being prime culprits in the post-pandemic meltdown the nation endured, Regan said.

“Their decisions in the years leading up to the pandemic were not driven by better service, but rather by shareholder concerns,” he said. “Even as the system came crashing down around them, freight companies continue to rake in record profits while your constituents paid the price.”

For more details, see TTD President Regan’s written testimony.

The video of the complete hearing is available here.

Other witnesses participating in this hearing were Chris Spear of the American Trucking Association, Ian Jeffries of the Association of American Railroads, Jeff Firth of the Associated General Contractors of America and Roger Guenther of the Port of Houston.

In a letter to members, Wyoming State Legislative Director April Ford asked members in her state to reach out to state legislators and urge them to support train-length legislation. The text of her message is below:

“Legislators in Wyoming will be hearing a bill in the House Corporations Committee on Friday, February 3, to help keep Wyoming citizens safer and freight rail operations running more efficiently. HB 204 requires a train length to not exceed 8,500 feet in the state for the public safety. 

“Railroads are running longer freight trains than ever before, which means we are seeing more issues and blocked crossings than ever before. These longer trains are preventing emergency vehicles from responding to emergencies in a timely manner.  Minutes waiting at a blocked crossing can be critical to people who need emergency services. These longer trains are also causing issues on the tracks, which impacts Wyoming revenue.

“It can’t be stressed enough that emails to elected officials work; the more they hear from members here in Wyoming (like you), the harder it is for them to say no. Don’t let inaction thwart this opportunity to make train length the law in Wyoming.”

The Legislative Action Center has been set up for Wyoming residents to make their voices heard on this important legislation.

In a letter dated Jan. 25, the general chairperson of SMART Transportation Division’s GO 577 informed Union Pacific’s senior vice president of operations that the union was withdrawing from any participation in the company’s safety program effective Feb. 1, 2023.

GC Roy Davis served UP’s brass notice, saying that he and the union would no longer be part of the hypocritical exercise of hiding behind the existence of the UP’s Safety Program. In his letter, GC Davis said the program is, “nothing but a ruse that enables the Carrier to avoid proper scrutiny by the Federal Railroad Administration by putting ‘lipstick on a pig.’ “

In the letter posted below, Davis states that carrier’s decision to run single-person remote crews on the Houston hub is what forced his hand.

2023.01.25_GCA.577_TSC_cancellationDownload

SMART-TD is unwavering in our commitment to protect the safety of the essential brothers and sisters who delivered the carrier a year of record revenue and profits in 2022, and we stand with GO 577 in its decision to protest this unilateral decision on the part of the Union Pacific Railroad.

Jose F. “Joey” Garcia, local chairperson of Local 168 (Chicago, Ill.), passed away suddenly in December at his home in Chicago.

Jose F. “Joey Garcia

Brother Garcia, 46, actively participated in our union since his railroad career began in 2005. An Amtrak conductor, Brother Garcia served as a legislative representative, trustee, vice local chairperson and finally as local chairperson.

“Joey was a funny and loyal friend,” General Chairperson Rick Pauli of GO 769 said. “He was a great advocate for the members of SMART-TD Local 168 and will be truly missed.”

Along with supporting and representing our fellow union members, he was a loving father of two beautiful children he adored.

Along with representing his fellow union members, he was a loving father of two beautiful children he adored. Brother Garcia is survived by his children, father, three siblings and several family and friends who will miss him dearly.

“On behalf of all the men and women of Local 168, I extend deepest condolences to the family and friends of Brother Garcia,” said Nate Hatton, local chairperson of LCA-769.

Please keep his family in your thoughts and prayers.

In a letter sent Jan. 5, 2023, to the CEOs of the seven Class I railroads operating in the United States as well as to Association of American Railroads (AAR) President/CEO Ian Jeffries, Federal Railroad Administrator Amit Bose warned them that “incremental” changes to carriers’ training, qualification and certification programs have in some cases not solved numerous deficiencies identified by FRA audits over the past 18 months.

“Please be advised that FRA is committed to pursuing enforcement action if a railroad’s resubmitted certification program continues to fail to address the deficiencies identified by FRA,” Bose wrote. “Accordingly, whenever FRA conducts its audit of your railroad, FRA will take into account those opportunities FRA has already provided your railroad to correct or address previously identified deficiencies.

“I want to remind industry that the quality and adequacy of these certification programs are fundamental to ensuring that your operating crews are properly trained to safely perform their assigned duties,” Bose wrote. “This starts with certification programs that clearly meet the minimum training and qualification standards.”

Read the full letter below.

2023.01.05_FRA_Bose_letter-certificationDownload

The amounts of compensation subject to Railroad Retirement Tier I and Tier II payroll taxes will go up in 2023, while the tax rates on employers and employees will stay the same. In addition, unemployment insurance contribution rates paid by railroad employers will include a surcharge of 1.5%, down from 3.5% in 2022, due to an improved employment outlook since the beginning of the pandemic.

Tier I and Medicare Tax — The Railroad Retirement Tier I payroll tax rate on covered rail employers and employees for 2023 remains at 7.65%. The Railroad Retirement Tier I tax rate is the same as the Social Security tax, and for withholding and reporting purposes is divided into 6.20% for retirement and 1.45% for Medicare hospital insurance. The maximum amount of an employee’s earnings subject to the 6.20% rate increases from $147,000 to $160,200 in 2023, with no maximum on earnings subject to the 1.45% Medicare rate.

An additional Medicare payroll tax of 0.9% applies to an individual’s income exceeding $200,000, or $250,000 for a married couple filing a joint tax return. While employers will begin withholding the additional Medicare tax as soon as an individual’s wages exceed the $200,000 threshold, the final amount owed or refunded will be calculated as part of the individual’s federal income tax return. 

Tier II Tax — The Railroad Retirement Tier II tax rates in 2023 will remain at 4.9% for employees and 13.1% for employers. The maximum amount of earnings subject to Railroad Retirement Tier II taxes in 2023 will increase from $109,200 to $118,800. Tier II tax rates are based on an average account benefits ratio reflecting Railroad Retirement fund levels. Depending on this ratio, the Tier II tax rate for employees can be between 0% and 4.9%, while the Tier II rate for employers can range between 8.2% and 22.1%.

Unemployment Insurance Contributions —  Employers, but not employees, pay railroad unemployment insurance contributions, which are experience-rated by employer. The Railroad Unemployment Insurance Act (RUIA) also provides for a surcharge in the event the Railroad Unemployment Insurance Account balance falls below an indexed threshold amount. The accrual balance of the Railroad Unemployment Insurance Account was $112.7 million on June 30, 2022. Since the balance was below the indexed $100 million threshold (currently $137.9 million), but above the $50 million indexed threshold (currently $67.0 million), this results in a 1.5% surcharge in 2023. There was a surcharge of 3.5% in 2022 and 2.5% in 2021.

As a result, the unemployment insurance contribution rates on railroad employers in 2023 will range from the minimum rate of 2.15% to the maximum of 12.0% on monthly compensation up to $1,895, an increase from $1,755 in 2022.

In 2023, the minimum rate of 2.15% will apply to 80% of covered employers, with 6% paying the maximum rate of 12.0%. New employers will pay an unemployment insurance contribution rate of 2.82%, which represents the average rate paid by all employers in the period 2019-2021.

Tax TypeRate – EmployeeRate – EmployerAnnual Taxable MaximumAnnual Tax Amount Employer
Tier 1 – Medicare*1.45%1.45%No MaximumNo Maximum
Tier 1 – Railroad Retirement6.20%6.20%$160,200.00$9,932.40
Tier 2 – Railroad Retirement4.90%13.10%$118,800.00$15,562.80
Total12.55%20.75%$25,495.20
*Additional Medicare Tax: Employees will pay an additional 0.9% Medicare Tax on earnings above $200,000 (for those who file an individual return) or $250,000 (for those who file a joint return). This additional Medicare tax rate is not reflected in the tax rates shown above.

Note: Tier 1 Medicare and Tier 1 Railroad Retirement tax rates are equivalent to Social Security tax rates set for 2023. Tier 2 Railroad Retirement tax rates do not apply to employees subject to Social Security.

Below are PDFs of various releases from the RRB on 2023 tax rates:

RRB Program Letter 2023-02 (PL 23-02)

RRB Reminders for 2023 (G-34)

Railroad Retirement and Unemployment Insurance Taxes in 2023 (NR 2207)