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ILWU Northern California District Council (NCDC) Resolution in Support of Public Ownership of the Railroads

Adopted by Unanimous Vote: February 16, 2023

Whereas, rail infrastructure the world over is held publicly, as are the roads, bridges, canals, harbors, airports, and other transportation infrastructure; and

Whereas, numerous examples of rail infrastructure held publicly have operated successfully across North America for decades, usually in the form of local/ regional commuter operations and state-owned freight trackage; and

Whereas, due to their inability to effectively move the nation’s freight and passengers during WWI, the U.S. government effectively nationalized the private rail infrastructure in the U.S. for 26 months; and

Whereas, at that time it was agreed by shippers, passengers, and rail workers that the railroads were operated far more effectively and efficiently during that time span; and

Whereas, every rail union at that time supported continued public ownership (the “Plumb Plan”) once the war had ended; and

Whereas, specifically, when the rank & file rail workers were polled by their unions in Decem­ber 1918, the combined totals were 306,720 in favor of continued nationalization with just 1,466 in favor of a return to private ownership; and

Whereas, the entire labor movement at that time was in favor of basic industry being removed from private hands, with the delegates to the 1920 AFL Convention voting 29,159 to 8,349 in fa­vor, overruling the officialdom of the AFL and its conservative position; and

Whereas, in the face of today’s crumbling infrastructure, crowded and clogged highways and city streets, poor air quality, lack of transportation alternatives and deepening climate crisis, ex­panded rail transportation – for both freight and passenger - presents a solution to these social ills and problems; and

Whereas, the rail industry today however is contracting – rather than expanding – at a time when we need more trains, trackage, rail workers, and carloads, not fewer; and

Whereas, the private rail industry is moving 5 to 10% less freight than it did 16 years ago, and in recent years has shuttered diesel shops and classification yards, and has drastically reduced the number of employees; and

Whereas, the private rail freight industry is generally hostile to proposals to run any additional passenger trains on their tracks – despite having legal common carrier obligations to do so - making it difficult if not impossible to expand the nations’ passenger rail network; and

Whereas, the rail industry has come to focus solely on the “Operating Ratio” as a measure of their success, and in doing so have engaged in massive stock buybacks and other measures that deliver short-term gains for stockholders but at the expense of the long-term health and vitality of the industry; and

Whereas, the Class One carriers’ failures to move freight effectively have contributed greatly to the ongoing supply chain crisis, resulting in some of the highest inflation rates in many years; and

Whereas, these “Fortune 500” corporations have raked in record profits, in both “good” years and “bad”, right through the “Great Recession,” the pandemic, and otherwise, right up to the most recent Quarterly financial announcements; and

Whereas, during these years of record profits, these same Class One carries have:

  • Failed to solicit nor accept new but “less profitable” freight traffic.
  • Forwarded less freight than 16 years ago.
  • Stonewalled practically every attempt by Amtrak and other agencies to add passenger ser­vice.
  • Failed to run Amtrak passenger trains on time, despite regulation and law to do so.
  • Downsized the infrastructure, physical plant, and capacity.
  • Eliminated nearly a third of the workforce.
  • Outraged shippers and their associations by jacking up prices, providing poor service, and
  • assessing new demurrage charges.
  • Thumbed their nose at state and federal governments.
  • Blocked road crossing and increased derailments by the implementation of extremely long trains.
  • Threatened and attempted at every turn to run trains with a single crew member.
  • Opposed proposed safety measures, from Positive Train Control (PTC) to switch point indi­cators;
  • the End-of-Train Device (EOT) to Electronically Controlled Pneumatic Brakes (ECP).
  • Taken a hostile stance towards the myriad unions, refused the bargain in good faith, consist­ently demanding concessions, all the while expecting these “essential workers” to labor through the pandemic without a wage increase.

Therefore, be it Resolved that the ILWU NCDC supports the public ownership of the rail infrastructure of the U.S., Canada, and Mexico, to be operated henceforth in the public interest, placed at the service of the people of all three nations; and

Be it Further resolved that the ILWU NCDC urge all of its members to voice their support for this proposal; and

Be it Further Resolved that the ILWU NCDC urges all ILWU locals and IBU regions to take a similar stand; and

Be it finally Resolved that the ILWU NCDC urges all labor unions, environmental and com­munity groups, social justice organizations, rail advocacy groups and others to push for a mod­ern publicly owned rail system, one that serves the nation’s passengers, shippers, communities, and citizens.

How America’s Supply Chains Got Railroaded

By Jeremy Brecher - The American Prospect, February 4, 2022

When the Union Pacific Railroad closed its Global 3 Intermodal Ramp outside of Chicago in 2019, Union Pacific marketing executive Kenny Rocker promised that closing the facility would bring “more consistent, reliable and predictable service” to shippers who depend on rail. Union Pacific was cutting costs by consolidating its unloading facilities in Chicago, a national center of transshipment for goods that come by rail from ports.

Two years later, as the supply chain crisis gripped the country, the railroad had to abruptly reopen Global 3. In the meantime, Union Pacific stopped service between the all-important shipping hubs of Los Angeles and Chicago for one week last July while the company reconfigured its operations. Union Pacific’s remaining facilities in Chicago couldn’t keep up with the volume, nor could Union Pacific find enough workers or equipment to handle the goods. Industry analyst Larry Gross told Trains.com that Union Pacific “sacrificed surge capacity” when it closed Global 3. “If you don’t have any additional capacity in your hip pocket, even moderate disruptions put you in a world of hurt.” Gross estimated that Union Pacific’s weeklong suspension of service would keep roughly 40,000 containers stranded on the West Coast.

Every other major railroad suffered from supply chain snags in 2021. Another overwhelmed rail company, BNSF, ordered a slowdown of shipments into its Chicago facility. Two other remaining large rail companies, Norfolk Southern and CSX, received sharply worded letters from the head of their primary regulator, Surface Transportation Board Chairman Martin Oberman. In his letters, Chairman Oberman asked each railroad to respond to complaints from shippers—across different types of goods—of worsened service delays and higher costs.

But the freight railroads’ poor operational performance has not impaired their spectacular financial performance. If anything, the bottlenecks create more pricing power. Less than a week after his company reversed its 2019 decision and reopened Global 3, Union Pacific executive Rocker optimistically predicted on an earnings call that Union Pacific would be able to “take some pretty robust pricing on the market”—in other words, keep its prices high. The stock market shared Rocker’s optimism for all Class I railroads, whose stock prices rose in 2021, many by 20 percent or more. The last year was one more of a decade of financial prosperity for the industry as the stock price and total return of every publicly traded Class I railroad from the end of 2011 to the end of 2021, except for Canadian National, grew faster than the S&P 500. Union Pacific earned the second-highest total return in that period, getting investors an almost sixfold return on their money and beating the S&P 500 by over 100 points.

Why Railroad Workers May Go On Strike

Rail Unions Are Bargaining Over a Good Job Made Miserable

By Joe DeManuelle-Hall - Labor Notes, February 2, 2022

Contract negotiations covering 115,000 rail workers in the U.S. are expected to heat up in 2022.

Workers are seething over the impact of extreme cost-cutting measures. Rail unions are escalating through the slow steps of negotiations under the Railway Labor Act—toward a resolution, a strike, or a lockout.

Rail remains one of the most heavily unionized industries in the country, and rail workers maintain the arteries of the economic system.

In 2018, U.S. railroads moved 1.73 trillion ton-miles of freight, while trucks moved 2.03 trillion. (One ton-mile is one ton of freight moved one mile.) A slim majority of rail freight consists of bulk commodities, ranging from grain to mined ores to automobiles; slightly less is made up of consumer goods.

COST-CUTTING FRENZY

In the flurry of reporting on what’s slowing down the supply chain, little has been said about one contributing factor—the years-long squeeze that major railroads have put on their operations and workforces.

Precision Scheduled Railroading is a nebulous term that has come to cover many measures aimed at cutting costs and increasing profits. (Although the name refers to trains operating on a set schedule, that’s just one piece.) All the railroads engage in elements of it.

PSR is basically the railroad version of lean production—the methodology of systematic speedup and job-cutting that caught on in manufacturing in the ’80s and spread to many industries.

The railroads have done it by cutting less-profitable routes; closing and consolidating railyards, repair barns, and other facilities; running fewer, longer trains; and laying off tens of thousands of workers while demanding the remaining workers do more.

Class I railroads—the companies with annual revenues over $900 million—employed fewer workers this January than any month since 2012, falling below even the early-pandemic slump.

Railroads have cut as many as 35 percent of workers in some titles over the past several years. Overall there were 160,795 Class I rail workers in December 2015, and only 114,499 by December 2021.

At the same time, individual freight trains were hauling, on average, 30 percent more tonnage in 2020 than in 2000.

But all these practices add up to a system that doesn’t function well under pressure—the pressure of a global pandemic, or even just the pressure of normal operations. In stretched-out, just-in-time supply chains with no room for error, delays cascade into more delays.

New report shows massive increase in green jobs from climate-friendly travel

By Staff - Stay Grounded, February 2022

In their new report titled, “The right track for Green Jobs” Possible, Autonomy UK and Safe Landing present scenarios for showing that cuts to aviation can more than compensate for job losses to the aviation sector. No more excuses, green jobs are possible especially when people are willing to fly less.

A just transition requires green jobs and good access to domestic travel options

While we at Stay Grounded and those in our network have proposed numerous strategies for reducing climate impacts from aviation, we also realize the need to emphasize a just transition towards a grounded future that helps counter some of the negative impacts of reduced flying. The Covid-19 pandemic has given many of us a taste of what a reduced ability to travel, and especially to fly, for leisure and to visit loved ones feels like. In the aviation sector, technological changes in the industry paired with the pandemic means workers have also been hard hit with both high numbers of job losses as well as worsened working conditions.

Speaking particularly to the impact on jobs from less flying, We Are Possible, Autonomy UK and Safe Landing just released a new report in which they model different scenarios for reducing demands for flying while maintaining the ability to travel domestically via trains or low-emissions ferries and the impacts these shifts would have on the UK’s job market. Amongst their findings, Authors found that:

In the scenario which reduced aviation by a half, around 140,000 jobs were lost and 420,000 jobs were created, generating a net increase in employment of around 280,000. In the scenario which reduced aviation by two thirds, around 185,000 jobs were lost and 525,000 created, providing a net increase in jobs of around 340,000.”

Possible’s analysis shows that contrary to the oft-touted rhetoric from aviation enthusiasts that many would be out of work if flights were reduced, there are ways to ensure green jobs are created without relying on “a business-as-usual pathway for aviation”.

Download a copy of this publication here (PDF).

Railroad worker strike blocked by US court

Your Two-Day Shipping Needs to Change

Building a Just Transition for a Resilient Future: A Climate Jobs Program for Rhode Island

By Lara Skinner, J. Mijin Cha, Avalon Hoek Spaans, Hunter Moskowitz, and Anita Raman - The Worker Institute and The ILR School, January 2022

A new report released today by climate and labor experts at Cornell University in collaboration with the Climate Jobs Rhode Island Coalition outlines a comprehensive climate jobs action plan to put Rhode Island on the path to building an equitable and resilient clean-energy economy.

The report lays out a series of wide-ranging policy recommendations to transition the Ocean State’s building, school, energy, transportation, and adaptation sectors to renewable energy with the strongest labor and equity standards. Core provisions of the plan include decarbonizing the state’s K-12 public school buildings, installing 900 MW of solar energy statewide, 1,300 MW of offshore wind energy, and modernizing the state’s electrical grid by 2030. 

“Rhode Island is in a unique position as a state, in 2019 it had the lowest energy consumption per capita across all the United States. Rhode Island can use climate change as an opportunity to eliminate carbon emissions, increase equity, and create high-quality jobs that support working families and frontline communities,” says Avalon Hoek Spaans, Research and Policy Development Extension Associate for the Labor Leading on Climate Initiative at the Worker Institute, Cornell ILR School and one of the authors of the report.

The Worker Institute’s Labor Leading on Climate Initiative in partnership with the Climate Jobs National Resource Center, and Climate Jobs Rhode Island, began a comprehensive research, educational, and policy process in early 2021 to develop an implementation framework to drastically reduce emissions in the state while creating high-quality union family sustaining jobs.

Over the past year, the Labor Leading on Climate team has conducted outreach to numerous leaders of the labor and environmental movements as well as policymakers and experts in the climate, energy, and labor fields to better understand the challenges and opportunities that climate change and climate mitigation and adaptation presents to Rhode Island workers and unions.

“With Rhode Island on the frontlines of the climate crisis, it will take bold, ambitious action to combat climate change and reduce greenhouse gas emissions and pollution to the levels that science demands. Fortunately, tackling climate change is also an opportunity to address the other crises Rhode Island is facing: inequality and pandemic recovery,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

“As a small state with one of the lowest emissions in the country, Rhode Island can be innovative and efficient, employing cutting-edge approaches to reverse climate change and inequality. Rhode Island has the potential to be the first state in the country to fully decarbonize and build out a net zero economy with high-quality union jobs. This would make Rhode Island's economy stronger, fairer, and more inclusive,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

Read the text (PDF).

Scotland's Rail Unions at COP 26

Rail Unions call for action on climate change

By staff - Transport Salaried Staffs' Association, November 10, 2021

TSSA, ASLEF, RMT, and Unite unions today united with Jeremy Corbyn and the STUC at COP26 to call on the Scottish Government to invest in Scotland’s Railways in order to fight climate change.

The unions held an event in Websters Theatre to promote their report “A Vision for Scotland’s Railways” which calls for better investment in railway infrastructure and staffing in order to encourage passengers back onto the railway. The report argues that staffed stations are safer at night and more accessible for passengers with disabilities.

Jeremy Corbyn said, “The land taken up by railways compared to roads is utterly minimal… For environmental considerations railways are the right way forward and this document indicates all of that.”

TSSA Organiser Gary Kelly said, “It’s not just the climate which is code red, it’s the railway itself. We're in the middle of a climate catastrophe when rainfall puts the railway at risk and the government's answer is to cut Network Rail staff. We're facing a real Code Red here. The question is what are we going to do about it?

ASLEF Organiser Kevin Lindsey said, “We want to see our vision become the template…. It’s crucial that passengers have an input, whether that’s people representing women, people representing young people or people representing disabled passengers, or just general passengers we want all voices to be heard. It’s so crucial to have a railway for all of Scotland.”

RMT Organiser Mick Hadley said “If we are serious about addressing the concerns about Scotland by giving the most vulnerable people access to trains, we need to give them access to staff - we need station staff to ensure it's safe to use Scotland's trains”

The unions criticised privatisation for failing both ScotRail and the people of Scotland.

Unite the Union Organiser Pat McIlvogue said, “All Abellio are concerned about is the profit, not concerned about the service, not concerned about the people, not concerned about the country. We've got a chance for a change now.”

Chairing the event, STUC General Secretary Roz Foyer said, “The current rail model fails services users and employees. We have a real opportunity when Scottish Government takes over ScotRail in April… There's an absolute need for us to mobilise people to demand that it stays a public service”

The tragic events at Stonehaven show climate change is real - it's here we're living with the effects. We need change. The rail unions are committed to working together to make that change happen.

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