Rail & Labor News from RWU
Weekly Digest Number 49 - December 7th, 2021
(Editor's Note: RWU's slogan is "Solidarity, Unity, Democracy." As such, we applaud this victory of our fellow workers in the UAW who have voted 2-to-1 to bring direct elections of top officers to the union. More than a decade ago, RWU was involved in the fight to win direct elections in the BLET, and to keep them when the union officialdom attempted to go back to the old way. With the recent rank & file vote in the Teamsters union last month which threw out the Old Guard, the winds of change and democracy are blowing strong. Will we see a contested election in the BLET this year? Will insurgents win leadership spots?)
Auto Workers Win Direct Democracy in Referendum
The members of the United Auto Workers have voted overwhelmingly to move to a direct voting system for choosing their union leadership - “one member, one vote.” With all votes counted as of December 2, direct elections had the support of 63.6 percent of voters.
It's a historic win for reformers in one of the nation’s most important unions, where members have pushed for this change for decades.
The referendum is the product of a consent decree between the UAW and the U.S. Department of Justice, after a years-long series of prosecutions of top union officials on corruption charges ranging from embezzling union funds for personal use to accepting bribes from an employer, FCA (formerly Chrysler, now Stellantis), in exchange for accepting contract terms more favorable for the company.
One million members were eligible to vote in the mail-ballot referendum, including 400,000 active members and 600,000 retirees. Of those, 143,000 returned ballots.
In all of the UAW’s biggest locals counted thus far, a majority have voted in favor of one member, one vote. That includes big auto locals as well as academic locals. As of noon today (Dec. 2), there were 45 locals where more than 500 voters had cast a ballot. A majority voted for direct elections in 42 of these 45 locals.
Overall, one member, one vote has so far received majority support in 178 locals, often overwhelmingly ...
Contract Metrolinx Worker Killed East of Toronto During GO Transit Construction
Police and the operator of a prominent regional commuter service say a worker was killed east of Toronto after being pinned under a rail car on Saturday evening.
Durham Regional Police say a 41-year-old man was pronounced dead at the scene in Pickering, Ont.
He was part of a team that was conducting construction and maintenance work on behalf of Go-Transit operator Metrolinx at the 117-year-old Rouge Hill bridge.
The Ontario Ministry of Labour is investigating the incident east of the Rouge Hill GO station.
"This is absolutely devastating news, our first priority is of course the safety of everyone that works on the railroad, and we are very thankful to all the first responders for their quick and diligent work at the scene," said Metrolinx spokesman Matt Llewellyn.
(Editor's Note: With short line and regional railroads now also experiencing staffing shortages, this would be a great time to organize these properties into the union. While working conditions can be superior to those on the Class Ones in many ways, wages and benefits generally lag far behind. Time to Organize!)
Train Crew Shortage Spreads to Short Lines
Train crew shortages that have affected service on Class I railroads this year also have cropped up on short lines, as rail workers seek greener pastures and new hires are hard to find.
Genesee & Wyoming, the largest shortline holding company, saw the number of employees leaving the railroad double in the third quarter, Michael Miller, president of G&W in North America, told the RailTrends 2021 conference last week.
“Trains don’t move without train and engine employees,” Miller says. “So we are fighting to keep every employee we’ve got, to retain every one of them, and be the employer of choice. That’s a big hurdle for us.”
None of G&W’s railroads furloughed employees at the onset of the pandemic because they wanted to be able to provide service when traffic eventually returned. Yet this year G&W saw a spike in the number of older employees who decided to retire, as well as younger workers leave the workforce as their priorities changed, Miller says.
G&W has been able to hire some veterans of the Class I railroads, Miller says, which streamlines the training process and allows the railroads to get crews and mechanical employees in service sooner. The Class I systems made significant job cuts last year as traffic declined sharply in the second quarter due to lockdowns and other economic effects of the pandemic.
Short lines traditionally have been able to recruit Class I employees. Although short lines pay lower wages than their Class I counterparts, short line workers are typically able to sleep in their own beds every night and have predictable schedules. It’s a tradeoff many railroaders are willing to make.
(Editor's Note: The most recent evidence that the new leadership at TSB is interested in curbing the abuses of the Class One Rail carriers. Check out which outfits replied favorably to the petition, and which did not...)
STB Eyes Private Railcar Rulemaking
The Surface Transportation Board will consider a proposal by private railcar owners to adopt regulations updating the demurrage and accessorial rules governing the railroads’ use and handling of their equipment.
The North America Freight Car Association (NAFCA), National Grain and Feed Association (NGFA), Chlorine Institute (CI), and National Oilseed Processors Association (NOPA) on July 26 filed a petition for rulemaking. They proposed the STB’s adoption of “regulations, pursuant to its car service authority under 49 U.S.C. § 11122(a)(2), that would allow private railcar providers [shippers, receivers or other parties that own or lease private railcars] to assess a ‘private railcar delay charge’ when a private freight car does not move for more than 72 consecutive hours at any point between the time it is ‘released for transportation’ and the time it is ‘either constructively placed or actually placed at the private railcar provider’s facility or designated location,’” the STB explained in its Nov. 22 decision (download below).
The associations noted in their July filing that the “overall goal of this proposal … is to maximize the Class I railroads’ efficient use of private railcars without unduly infringing upon the railroads’ freight operations over their respective systems, recognizing that some level of service variability is inherent in any railroad’s operations.”
“[A]n update to the rules governing the railroads’ use of private railcars is long overdue,” the associations wrote, “because the railroad industry has evolved to the point that approximately 73% of the railcars in service today nationwide—approximately 1.2 million railcars—are no longer owned by railroads, but are … purchased, or leased, and maintained, by non-railroad entities at little or no cost to the railroads that use them.”
...While many supported the petition (ISRI, Joint Shippers, NACD, NCTA, PRFBA, AFPM, FRCA and COPA), AAR, CSX and UP opposed it.

(Editor's Note: The big rail carriers are also stonewalling the other larger rail labor coalition, the "Coordinated Bargaining Coalition" (CBC). The Class One's are on a full court press against all of rail labor. Given the backdrop of a tight labor market, supply chains in crisis, and an insurgent national strike wave across industries, perhaps now is an opportune time for rail labor to unite and fight back for once?!)
National Bargaining Update: No Progress With Class 1 Railroads Due To Their Unreasonable Proposal
The BMWED/SMART-MD Coalition held another mediation session today with the National Carriers Conference Committee (NCCC), as facilitated by the assigned mediator of the National Mediation Board (NMB).
The Carriers provided a brief presentation, summarizing their bargaining position, which remains that railroad workers deserve: minimal wage increases that do not keep up with the rising cost of living; diminished health insurance benefits and increased out of pocket costs for those worsened benefits; unpredictable work schedules and rest days by giving the Carriers more flexibility for workweek assignments; and less opportunity to perform work that is within the scope of their respective Agreement so that contractors can do such work instead. 
These are untenable positions for the BMWED/SMART-MD and we remain opposed to this carrier offer.
Labor Economist Tom Roth provided a presentation regarding the Railroads’ economic performance through the third quarter of 2021, on behalf of the BMWED/SMART-MD Coalition. Roth’s presentation reaffirms the railroads’ unrealistic and unreasonable bargaining position, considering the carriers’ recovery from the Covid-19 pandemic and continued spree of record profitability and record low operating ratios. Roth also pointed out that the railroads have so much cash money on hand that the “Big 3” railroads (CSX, NS and Union Pacific) spent over $28 billion in stock buybacks in the last 33 months, while spending only $25.3 billion in wages and benefits for all their employees combined.  
BMWED/SMART-MD Coalition spokesman, Richard Edelman, followed Roth’s presentation with some comments, noting that railroad employment levels are down nearly 30% since the last round of National Negotiations, and that railroad workers are quitting more frequently than ever – often in mid-career which is unheard of in this industry - given the railroads’ continued campaign of demanding more and more work from less and less railroad workers. He also noted that the railroads would need to recognize that in order to reach an Agreement, the railroads would have to make real changes in their bargaining position.
“The railroads need to step into reality,” BMWED/SMART-MD leaders Fred Simpson and Joe Fraley said. “Railroaders have had enough and deserve better. The railroads are treating these hardworking men and women as less than deserving, and all that is doing is building more resentment between workers and the boss. Give us a comprehensive proposal, or let’s get on with it. Our folks have had enough and they’re ready to go.”    
U.S. Freight-Rail Traffic Fell 4.5% in November
U.S. railroads logged 1,945,826 carloads, containers and trailers in November, a 4.5% decrease compared with the same period in 2020, according to Association of American Railroads (AAR) data.
The decrease in total traffic last month was primarily due to lower intermodal volume. U.S. railroads moved 917,787 carloads, a 2% increase, and 1,028,039 containers and trailers, down 9.6%, in November.
Twelve of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with November 2020. They include coal, up 20,731 carloads or 8.6%; chemicals, up 5,563 carloads or 4.4%; and crushed stone, sand and gravel, up 5,067 carloads or 7.4%.
Commodities that registered declines last month included motor vehicles and parts, down 8,186 carloads or 14.1%; grain, down 7,901 carloads or 7.4%; and all other carloads, down 3,355 carloads or 14.6%.
STB Sets New Class Exemption for Emergency Temporary Trackage Rights

The Surface Transportation Board (STB) yesterday announced that it has adopted a final rule establishing a new class exemption for emergency temporary trackage rights.
The final rule eliminates the 30-day notice period in certain circumstances, speeding up the process for authorizing trackage rights in response to an unforeseen track outages, STB officials said in a press release.
In October, the Association of American Railroads (AAR) petitioned the board to establish a new class exemption for specific limited situations that would allow emergency temporary trackage rights to take effect within five days of filing without requiring a waiver of the 30-day notice requirement.
After considering the AAR's petition and the responsive comments, the STB on May 28 issued a notice of proposed rulemaking.
The board adopted the final rule, which can be read here, as proposed and without modification.

OSHA Extends Comment Period for COVID Vaccination Standard
The U.S. Occupational Safety and Health Administration (OSHA) has extended the comment period for the COVID-19 vaccination and testing emergency temporary standard (ETS) to Jan. 19, 2022.
OSHA extended the comment period by 45 days to allow stakeholders additional time to review the ETS and collect information and data necessary for comment, administration officials said in a press release.
On Nov. 5, OSHA issued an ETS to protect workers from the spread of coronavirus on the job. The ETS covers employers with 100 or more employees. Impacted employers must develop, implement and enforce a mandatory COVID-19 vaccination policy, unless they adopt a policy requiring employees to either get vaccinated or undergo regular COVID-19 testing and wear a face covering in the workplace.
The ETS and an executive order signed by President Biden in September have had an impact on the rail industry. Companies that are federal contractors — including BNSF Railway Co., Union Pacific Railroad and Norfolk Southern Railway — have already mandated COVID-19 vaccinations for their employees. Amtrak and Metra also have implemented vaccination policies.
Some rail unions are challenging those railroads' vaccination requirements in federal court.

U.S. Intermodal Volume Slide Continued in Week 46
U.S. railroads logged 508,309 carloads and intermodal units in the week ending Nov. 20, a 4.9% decrease compared with the same week last year, according to Association of American Railroads (AAR) data.
Carloads for the week totaled 237,244 units, up 1.6%, while intermodal volume totaled 271,065 containers and trailers, down 10%.
Six of the 10 carload commodity groups that the AAR tracks every week posted increases, including metallic ores and metals, up 1,838 carloads to 21,524; coal, up 1,780 carloads to 64,719; and chemicals, up 1,437 carloads to 34,174.
Commodity groups that posted decreases included motor vehicles and parts, which dropped by 887 carloads, and grain, which declined by 710 carloads.
Mexican Regulatory Agencies Green-light Proposed CP-KCS Merger
Canadian Pacific and Kansas City Southern last week announced their proposed merger has received required regulatory pre-transaction control approvals from the Mexican Federal Economic Competition Commission and the Mexican Federal Telecommunications Institute.
"This important milestone marks the next step on our path to creating the first single-line rail network linking the United States, Mexico and Canada," said CP President and CEO Keith Creel in a press release.
The Class Is' proposed combination remains subject to closing conditions, including approval from stockholders of both companies and Surface Transportation Board (STB) approval. CP's and KCS' stockholders are scheduled to vote on the proposed transaction Dec. 8 and 10, respectively. Provided the transaction is approved by CP and KCS stockholders, a voting trust is expected to close on Dec. 14.
First North American Hydrogen Locomotive Begins Testing
Testing of the first line-haul hydrogen-powered locomotive for North America reached a new milestone on November 30 when the prototype unit moved under its own power for the first time.
Class 1 Canadian Pacific is designing and building the locomotive using fuel cells and batteries to power the electric traction motors.
Speaking virtually at the Cutric Second Annual Smart Rail Technology Conference on November 30, CP chief engineer Mr Kyle Mulligan said: “We are going to deploy that prototype into one of our terminals in Calgary.” This will be followed by testing on the main line he said.
The diesel fuel tanks on the modified unit have been replaced by the extraction battery system and the cooling system and radiator fans have been replaced by the hydrogen storage. The fuel cells are located where the diesel engine and alternator were. “We are building this in a way that is modular so that we can retrofit existing platforms,” Mulligan said.
Work on the project began in late 2020. “We moved into regenerative braking development and testing at the same time, our locomotive fabrication and assembly,” Mulligan said. “Now we find ourselves here in Q4, where we’re doing our final integration control system and factory testing.”
Rail Before Road in New German Government Plans
With a coalition agreement for Germany, the ‘traffic light’ parties, referring to their colours red, yellow and green, lay out their plans for the country, in which rail plays no small role. “For the first time, a coalition is committed to the principle of transport investment: rail before road”, said Dirk Flege, Managing Director of the Pro-Rail Alliance, on Wednesday in Berlin. The non-profit Alliance welcomed the coalition agreement between the SPD, Greens and FDP as an “encouraging signal for a change in traffic”.
The existing German plans for railways, as laid out in the Rail Transport Master Plan from last year, will be further developed and ‘implemented more quickly’. Rail freight transport should be increased to 25 percent by 2030 and passenger transport performance doubled. The target timetable of a “Deutschlandtakt” remains a goal, along with the needed infrastructure capacity. The use of rail infrastructure will become cheaper in order to strengthen the competitiveness of the railways, which looks like a reduction of Track Access Charges. Also, more upper centres should be connected to long-distance train lines.
The plans also include the introduction of a CO2 differentiation of the truck toll in 2023, include commercial road haulage from 3.5 tonnes and introduce a CO2 surcharge. This under the condition that a double burden due to the CO2 price is excluded. The additional revenue will go to mobility, but is not further specified.