Brotherhood Railway Carmen & TCU Current News

For Release January 13, 2012

Rockville, Maryland - The TCU Carmen National Agreement became effective January 4, 2012. The complete agreement is available in the Members' Online Library.

For Release December 22, 2011
TCU Carmen and Clerks Overwhelmingly Ratify National Contract

Rockville, Maryland - TCU Carmen and Clerical members have ratified contracts with the national freight carriers by resounding margins.

86% of Carmen voted in favor of the contract.
93% of Clerical members voted in favor of the contract.

“I am gratified by these record votes,” said TCU President Robert Scardelletti. “It was a hard fight to achieve a contract with wages and benefits worthy of our members’ ratification. And we did fight, all the way to a Presidential Emergency Board. The results speak for themselves.”

The carriers have been notified of the results, and they have sixty days to issue retroactive checks, and ninety days to pay the bonus. TCU will work with the carriers to expedite the implementation of the wage increases, and the handling of the retroactive and bonus checks.

For Release December 2, 2011
No Rail Strike December 6

The Brotherhood of Locomotive Engineers and the American Train Dispatchers Association reached tentative agreements with the National Carriers Conference Committee on December 1, 2011, to settle their national contracts.

On the same date, the Brotherhood of Maintenance of Way Employes agreed with the carriers to extend the cooling off period from December 6, 2011 to February 8, 2012, to allow further discussion of the union’s request to increase reimbursements for away-from-home expenses.

With these developments, there is now no possibility of a strike on December 6.

For Release November 28, 2011
Ratification Packets Mailed to All Members

Ratification packets have been printed and mailed to every member covered under the Tentative Agreement with the National Freight Railroads.

Both Clerks and Carmen will receive a packet in the mail including:

Message from National President Bob Scardelletti
Summary Highlights of the Tentative Agreement
Complete Text of the 2011 Agreement
Postcard Ratification Ballot

Carmen members will additionally have a letter from Carmen Division President Richard Johnson.

Please remember that the signed ballot must be returned to TCU no later than December 22, 2011 in order to be counted.

"This agreement delivers excellent increases in compensation while holding the line on employee health care costs, I strongly urge every member to vote yes,” said TCU President Bob Scardelletti.

Click here to view the Carmen Ratification Packet.

Click here to view the Clerical Ratification Packet.

Click here to view the detailed summary of the changes to the health and welfare of the agreements.

Click here to read the PEB report.

Questions concerning the proposed agreement, ratification or balloting procedures, should be directed to tcuvote@tcunion.org .

For Release November 18, 2011
National Agreement Ratification Process

Three of the coalition partners with TCU in national negotiations have made agreements mirroring the Presidential Emergency Board’s (PEB) recommendations. The International Association of Machinists (IAM), International Brotherhood of Electrical Workers (IBEW) and the Transport Workers Union (TWU) each reached tentative agreements with the railroads involved in National bargaining.

Four unions from the Rail Labor Bargaining Coalition (RLBC) also made agreements based on the PEB recommendations. The four organizations are the Brotherhood of Railroad Signalmen, the International Brotherhood of Boilermakers, the National Conference of Firemen and Oilers and the Sheet Metal Workers International Association.

Two other RLBC-represented organizations, the Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employes are without an agreement and remain in negotiations with the National Rail Carriers.

The PEB report was released on November 5.

TCU has prepared ratification packets for every member covered under the Tentative Agreement with the National Freight Railroads. Both Clerks and Carmen will receive a packet in the mail including:

Message from National President Bob Scardelletti
Summary Highlights of the Tentative Agreement
Complete Text of the 2011 Agreement
Postcard Ratification Ballot

Carmen members will additionally have a letter from Carmen Division President Richard Johnson.

The packets have been sent to the printer and have a target mailing date of November 28, 2011. The ballot portion must be returned to TCU no later than December 22, 2011.

For questions or concerns about the ratification or balloting procedures, please direct your emails to tcuvote@tcunion.org.

For Release November 14, 2011
TCU CARMEN AND CLERKS REACH TENTATIVE NATIONAL AGREEMENTS SUBJECT TO RATIFICATION OF THE MEMBERSHIP

The Agreements mirror exactly the recommendations of Presidential Emergency Board 243.  

TCU is in the process of preparing ratification packages that will be sent to each Carmen and Clerical member working on a railroad covered by national bargaining.

Additional information will be provided just as soon as it becomes available. In the meantime, every member should take the time to read the extremely comprehensive report issued by Presidential Emergency Board 243, which is posted in the online library.

Carmen Division General President Richard Johnson and National President Robert A. Scardelletti strongly urge ratification. They point to the outstanding wage increases of 20.1% over 6 years, plus a 1% bonus, at a time when most contracts in the United States are coming in at far less.

"It's been a very difficult two years of bargaining, but in the end we have prevailed,” said National President Scardelletti. “By standing tough and going to a PEB, we achieved more than we ever could have at the bargaining table. We also achieved more than what the carriers claimed was the pattern settlement. By any measure, this agreement delivers excellent increases in compensation while holding the line on employee health care costs.”

For Release November 6, 2011
PEB 243 Issues Recommendations

On Saturday, November 5, 2011, Presidential Emergency Board 243 issued its recommendations for resolution of the contract dispute between TCU Clerks and Carmen, as well as ten other rail labor unions, with the national freight carriers, including Burlington Northern Santa Fe, CSX, Kansas City Southern, Norfolk Southern, Soo Line, Union Pacific and 23 other railroads.

The Report’s key recommendations are for 20.1% in compounded wage increases over a 6 year period, plus a 1% lump sum bonus. It also recommends maintaining the current health insurance employee contribution at $200 until July, 2016. That recommendation was explicitly tied to adoption of the UTU health and welfare plan design changes, but on a delayed implementation schedule.

Negotiations between TCU, its coalition partners (ATDA, IAM, IBEW and TWU), and the national freight railroads have been scheduled for November 10-11 and 14-15.

The wage increase recommendations of the Board are as follows:

July 1, 2010: 2.0%
July 1, 2011: 2.5%
July 1, 2012: 4.3%
July 1, 2013: 3.0%
July 1, 2014: 3.8%
January 1, 2015: 3.0%

Upon signing, the PEB recommended that employees receive a lump sum payment upon ratification equal to 1% of straight-time earnings paid to each employee for the 12 month period November 1, 2010 through October 31, 2011. This payment will be calculated after applying the July 1, 2010 and July 1, 2011 wage increases. The 1% bonus will also be in addition to the retroactive payment of 2% on all earnings (including overtime) for the period July 1, 2010 through June 30, 2011, and the retroactive payment of 4.5% on all earnings (including overtime) for the period July 1, 2011 through date of signing.

“We intend to negotiate seriously over this recommendation,” says TCU President Bob Scardelletti. “It contains wage increases well beyond what was available to us in the carrier’s last offer based on the UTU deal. Over the six years, the contract produces more than $30,000 for the average TCU member.”

“We are disappointed in the Board’s recommendation of the UTU health insurance plan design changes” adds Scardelletti. “We put on a vigorous case that our Health Plan should be left alone. The PEB rejected our argument. But they did recommend keeping the employee contribution at $200 through at least July, 2016, which is a tremendous benefit.”

“And the delayed and partial implementation of the UTU plan design changes will result in more money in our members’ pockets than was offered us in the UTU deal,” Scardelletti says.

Under the Board’s recommendations, the plan design changes will be delayed until July 1, 2012. At that time, managed care deductibles and out-of-pocket maximums will be introduced on a 50% basis, with the managed care deductible at $100 single/$200 family, and the out-of-pocket maximums set at $500 single/$1,000 family for the rest of that year. On January 1, 2013, managed care deductibles and out-of-pocket maximums will be set for the next year at 75% of the full amount – deductibles at $150 single/$300 family, and out-of-pocket maximums at $750 single/$1500 maximum. Managed care deductibles and out-of-pocket maximums will increase to their maximum amounts on January 1, 2014: deductibles at $200 single/$400 family and out-of-pocket maximums at $1,000 single/$2,000 family.

The PEB emphasized that many of the recommended changes, such as lowering the cost of generic drugs and urgent care visits, will save employees money. In their view, on balance the health care changes are significantly less costly for employees than to continue with the current plan with the 15% employee contribution.

The PEB recommendations were received Saturday evening, November 5, in a comprehensive, 92 page Report. The Report detailed both sides’ arguments for their respective positions, and explained how the Board arrived at its ultimate recommendations. The bottom line was a wage recommendation that exceeded both the carrier offer at the bargaining table and to the Board.

The PEB hearings were held for six days in Washington, D.C. on October 13, 14, 17, 18, 19 and 20. Each side presented two full days of testimony, with the final two day reserved for rebuttal and meetings with the Board.

TCU President Scardelletti was the lead witness and spokesman for all eleven rail unions at the PEB. He argued forcefully for the unions’ wage proposals and its demand to maintain the status quo on health insurance, with no plan design changes. He emphasized the carriers’ record economic health.

TCU Vice President and Special Assistant to the President Joel Parker later testified on behalf of all the eleven unions on the health insurance issues, arguing that the $200 monthly contribution must not be raised, and again that the UTU plan design changes should be rejected.

Other witnesses included BRS President Dan Pickett, IAM District 19 President Joe Duncan on behalf of the shop craft unions’ craft specific proposals, and various spokesmen from the individual unions for their unique craft demands.

The foundation of the unions’ case was expert testimony by Labor Economist Tom Roth. On health care, actuarial consultant Cheiron, Inc. testified on behalf of the unions’ position.

The carriers’ witnesses argued that the UTU settlement was the pattern, and represented a very generous agreement in light of other current union settlements at a time of low inflation. The carriers focused on the relative richness of the national health plan in terms of benefits and employee share of costs compared to the vast majority of other plans, including collectively bargained ones.

The PEB was appointed by President Obama and was comprised of renowned labor arbitrators: Chairman Ira Jaffe, Members Roberta Golick, Josh Javits, Gilbert Vernon and Arnold Zack.

Under the Railway Labor Act, the parties have thirty days from the issuance of the Report to reach agreement. Failing that, a union or unions could strike, and/or the carriers can impose their proposals.

“We intend to bargain to an agreement, based on the Board’s recommendations,” says TCU President Scardelletti. “The PEB recommendations deliver tangible, real wage gains far beyond what is occurring anywhere else in the country. We cannot risk letting the anti-labor diehards in the Republican Congress get a chance to overturn these findings if we fail to reach an agreement. We will negotiate hard in the next two weeks for the best possible implementation of the Report. Our goal is to reach an agreement to submit to ratification by our membership.”

Click here to read the full report from Presidential Emergency Board 243.

For Release October 28, 2011
PEB 243 Hearings

Presidential Emergency Board 243 that was established on October 6, 2011, held six days of hearings beginning on October 14. At those hearings the Carriers and TCU (jointly with 10 other Rail Unions) made comprehensive presentations to the PEB covering wages, rules and health and welfare. We held firm to our position that the UTU agreement does not set the pattern for the 11 unions that were not a party to that agreement and that our members deserve enhancements in wages and health and welfare benefits rather than givebacks.

Under the Railway Labor Act the PEB must render its recommendations within 30 days of the date it was established which means a decision is due no later than November 6, 2011, after which another 30 day cooling off period will begin to give the parties a chance to reach an agreement considering the recommendations of the PEB. The members of the PEB may, however, request an extension of time to render their recommendations. We will advise of the Board's recommendations as soon as they are received.

For Release October 6, 2011
Presidential Emergency Board Established

This is to advise that President Obama has appointed a 5 member panel to a Presidential Emergency Board. Accordingly, there will be NO rail strike by ANY union. More details will be available shortly. Please advise your committeemen and members by the fastest communication possible.

Fraternally,

Steve Wilhelm

For Release September 6, 2011
NMB Releases TCU from Mediation

September 6, 2011 -- The National Mediation Board (NMB) today terminated its mediation services in national negotiations involving TCU and the nation’s freight carriers.

The NMB’s release of the parties was required by the Railway Labor Act once TCU rejected the Board’s proffer of arbitration on September 2. The National Carriers Conference Committee (NCCC), the bargaining arm of the freight railroads, accepted the arbitration proffer. Both parties would have had to accept for binding arbitration to occur.

The Board simultaneously released the other ten rail unions still bargaining for a national contract.

The Board’s release begins a thirty day cooling off period which will last until 12:01 a.m. October 7, 2011. At the end of that time, either party could resort to self-help.

However, it is widely expected that sometime before the end of the cooling off period, the NMB will recommend to President Obama that he appoint a Presidential Emergency Board, and that he will do so. It is expected that one PEB will be created to hear the dispute of all eleven unions, including TCU Clerks and Carmen, with the NCCC.

For Release August 19, 2011
TCU Lodge 6047
in Knoxville, Tennessee
to Host Major Training Event

TCU Lodge 6047 will host a Local Chairmen Educational Seminar September 13 and 14, in Chattanooga, Tennessee. The seminar is geared to update local chairmen and other lodge officers of TCU Unit 200, about topics such as representing members in formal investigations, protecting your members under the Federal Employers’ Liability Act, writing grievance claims, fair representation, Resolution 51, the 2012 IAM Grand Lodge Convention, Resolution 32, protecting your members under the Federal Railroad Safety Act, researching awards online, filling out railroad company reports, and the importance of receiving hazmat training.

The seminar will be sponsored by the C. Marshall Friedman Law Firm, www.marshallfriedman.com. For additional details contact Carl Lakin at carllakin@hotmail.com.

For Release June 15, 2011
Statement by TCU President Bob Scardelletti
Rejecting the UTU Agreement
as a Basis for a National Settlement

June 15, 2011 -- Rockville, Maryland, TCU and its coalition partners reject the terms of the tentative UTU agreement with the national freight carriers as a basis for voluntarily settling the national contract.

The other coalition involved in national negotiations has also rejected the UTU agreement as a pattern for settlement.

That means that every union in national bargaining has now rejected the UTU tentative agreement as a basis for settlement.

We believe that 17% in wage increases over six years is not a fair settlement in light of the carriers’ record profitability, nor do we accept the need for the radical restructuring of our health plan.

The agreement does contain significant additional economic gains for UTU members -- certification pay, bonuses and enhancements for rate progression employees -- which apparently were used to entice the UTU to agree to almost the exact same plan design concessions that our coalition rejected back in April. Even if the carriers offered the full value of cert pay and the rate progression bonuses and shortening, it would still not be enough to make this an acceptable agreement.

For 18 months our coalition’s position has never wavered, and it will not now. The carriers are racking up record profits, at a pace double than what they did during our last bargaining round. There is no reason for a single concession in this environment, let alone major cost shifting to employees in health care. Nor can we or will we accept a wage settlement inferior to what we achieved last round.

The health care changes in the UTU agreement are unacceptable on two counts. First, the magnitude of the savings to the Plan is tremendous, over $4,600 per employee over five years. Of that, over $3,700 is in the form of direct cost shifting to the employee. The rest comes from changes, in many cases onerous, to the way employees will get treatments and drugs. It is outrageous that Medco will now have veto power over major drugs that doctors prescribe.

Secondly, I disagree with the whole idea of pushing insurance costs onto those who most need it by upping user costs. That’s what insurance is for – to protect you when you’re sick and most need it. Under the UTU agreement’s unprecedented introduction of deductibles and coinsurance to managed care, the sickest employees will be hit with huge bills. That’s not my idea of a fair insurance plan.

We don’t see the need for any negative changes to our health care plan given the carriers’ unprecedented prosperity. Every quarter they report new records in profits and earnings. All of that has been achieved under our current plan. Why would we agree to give them more than a half billion in concessionary savings in that environment? How much is enough?

I have long done everything in my power to enhance the carriers’ economic returns provided it did not come at the expense of employees. I have stood with them against reregulation, environmentalists’ assaults on coal, and any number of efforts that would adversely impact their economic health.
And I will continue to do so. I continue to believe that it is in our best interest to have the healthiest, most profitable employers in the country. And we do. Now it’s time for them to share their prosperity with the employees who contribute so much. It is not a time to give back anything.

I am proud to be bargaining in a coalition with the American Train Dispatchers Association (ATDA), the International Association of Machinists (IAM), the International Brotherhood of Electrical Workers (IBEW) and the Transport Workers Union (TWU). Each of these strong unions has unequivocally rejected the UTU agreement as a pattern for our settlements.

Our coalition demanded to be released from mediation last December and again in February. The NMB rejected our request the first time, and has not responded to our February request.

Now, in the face of the UTU agreement, the other coalition of unions has also requested the NMB to release them from mediation. That coalition is comprised of the Brotherhood of Locomotive Engineers and Trainmen/IBT, the Brotherhood of Maintenance of Way Employes/IBT, the Brotherhood of Railroad Signalmen, the International Brotherhood of Boilermakers, the National Conference of Firemen & Oilers/SEIU, and the Sheet Metal Workers International Association.

Our coalition met with the other coalition last week. We agreed that we could work together before a single Presidential Emergency Board. Not a single union in national bargaining outside the UTU believes that the health care changes in the UTU agreement are in any way acceptable, or that the wage increases are sufficient.

We plan to renew our demand for release at NMB-called negotiations scheduled for June 28 and 29. The NMB insists that we meet again with the carriers even though we have continuously stated that we will not make a single concession in our health care plan. The NMB should release us as soon as possible. We are fully prepared to make a strong case to a Presidential Emergency Board.

We are clearly at impasse. The NMB must not delay releasing us because of the UTU’s lengthy ratification process. We will be at impasse whether the UTU agreement ratifies or not. We will never voluntarily agree to these terms.

The carriers have already stated that the UTU agreement, less the additional compensation to UTU employees, is a pattern for all other Unions to accept. That will not fly. That package is DOA.

We cannot and will not be held hostage to an agreement we had no say over. An agreement that falls far short of a fair and just settlement. An agreement that we believe was achieved through cynical and devious horse trading where one union was offered gains in return for agreeing to changes in health insurance that the carriers assume will be shoved down the throat of every other union, even though they knew that all the other unions opposed these changes. An agreement that would drastically diminish the health benefits of over 400,000 rail workers and their dependents, and subject an additional 31,000 retirees and dependents to restrictive drug constraints.

Brothers and Sisters, we did not come this far to simply roll over because someone made an agreement. We will fight with every ounce of power our Union has. We will fight for as long as it takes and we will do whatever it takes. Brothers and Sisters, we will prevail.