Obama emergency board intercedes after talks stall
BY A VOTE of more than two to one, Boilermaker freight rail workers ratified a new National Railroad Agreement Jan. 4. The agreement provides 20.1 percent (compounded) wage increases over six years, applied retroactively beginning July 1, 2010, and a one percent signing bonus. In addition, changes requiring employees to contribute more to the health insurance plan will be implemented incrementally.
Boilermaker rail members and 10 other freight rail unions bargain collectively with the National Carriers’ Conference Committee (NCCC), which includes CSX, Norfolk Southern, BNSF, Kansas City Southern, Soo Line, Union Pacific and other railroads.
Negotiations between the parties had dragged on for nearly two years until a deadlock was reached late last fall, triggering the possibility of a strike or lockout. To prevent economic disruption in the event of a nationwide rail work stoppage, President Obama issued an executive order on Oct. 6, 2011, establishing Presidential Emergency Board 243. He named five arbitrators/mediators to serve on the board. PEBs are authorized under Section 10 of the Railway Labor Act and provide a 30-day window during which no work stoppages are allowed. The board conducted hearings with the parties and issued a report with non-binding recommendations on Nov. 5, 2011.
Director of Railroad Services Danny Hamilton said the PEB played a vital role in bringing the two sides into agreement.
“Overall, it’s a good contract,” he said, “and the wage increases are beyond what we anticipated. The outcome of this contract settlement demonstrates that the Railway Labor Act works the way it’s supposed to.”
Wage increases for the first five years of the agreement will be implemented each July 1, beginning retroactively in 2010, as follows: 2 percent, 2.5 percent, 4.3 percent, 3.0 percent, and 3.8 percent. In the sixth year of the agreement, a 3.0 percent increase will become effective Jan. 1, 2015.
“I’m a little disappointed in the PEB’s health care plan recommendations,” Hamilton continued, “although it’s still a very good plan.” He noted that the PEB agreed with the rail carriers’ proposal to raise employee participation in insurance costs; however, the board did allow the changes to be spread over a number of years.
