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'Greedy Behavior' of Profit-Hungry Rail Industry Blamed for Looming Strike

By Jake Johnson - Common Dreams, November 23, 2022

"The same wealthy rail industry executives that say they can't afford to pay their workers fair wages all had banner years in net revenue and shareholder giveaways."

A new analysis shines fresh light on U.S. railroad giants' "greedy behavior"--from gorging on their own stock to ramping up fees to pad their bottom lines--as workers struggle for basic rights and benefits in ongoing contract negotiations that could result in the first national rail strike in decades.

Updated figures compiled by the watchdog group Accountable.US and released Tuesday show that BNSF, a subsidiary of billionaire Warren Buffett's Berkshire Hathaway that operates one of North America's largest railroad networks, saw its net income rise 4% to $4.4 billion during the first three quarters of 2022. Union Pacific, meanwhile, saw its profits jump 11% to $5.36 billion during that period.

In those nine months, Union Pacific spent nearly $8 billion on stock buybacks and dividend payouts to shareholders, Accountable.US notes.

The rail transportation giant CSX reported a 37% surge in Fiscal Year 2021 net income, the watchdog added, and the company repurchased $3.7 billion worth of its own shares during the first three quarters of this year.

Rail workers haven't fared nearly as well as industry giants and their wealthy executives and shareholders. For the past three years, many rail employees have worked under increasingly grueling conditions without a raise as management continues to resist demands for changes to draconian attendance policies, better pay, and foundational quality-of-life benefits such as paid sick leave.

"The same wealthy rail industry executives that say they can't afford to pay their workers fair wages all had banner years in net revenue and shareholder giveaways," said Liz Zelnick, a spokesperson for Accountable.US. "The big rail industry's own earnings reports show they didn't need to cut corners on safety and gouge businesses with excessive fees that get passed onto consumers. It only adds up to one thing: greed."

"For years the industry gutted investments in maintenance and equipment, and when those decisions inevitably led to supply chain bottlenecks, the industry now refuses to take any responsibility," Zelnick added. "Instead, Big Rail has opted to impose record fees and shortchange their workers while continuing to enrich a small group of investors. If Congress has to intervene, it would make no sense to reinforce greedy industry behavior that would lead to a supply chain crisis right before the holiday season."

The new analysis was published a day after the largest railroad workers union in the U.S. announced that its members voted to reject a tentative five-year contract deal negotiated with the help of the White House. While President Joe Biden hailed the proposed agreement as a victory for both the rail industry and workers, many union members reacted with outrage to the specifics of the deal, which does not include a single day of paid sick leave.

Major Strike Looms as Largest Rail Union in US Rejects White House-Brokered Contract

By Jake Johnson - Common Dreams, November 21, 2022

"It's about attendance policies, sick time, fatigue, and the lack of family time," said one union official. "A lot of these things that cannot be seen but are felt by our membership. It's destroying their livelihoods."

The largest railroad workers union in the United States announced Monday that its members voted to reject a contract negotiated with the help of the Biden White House, once again raising the prospect of a major strike or lockout as employees revolt over profitable rail giants' refusal to provide adequate paid sick leave.

The Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) said in a statement that just over 50% of its members voted to reject the proposed contract. Members of the Brotherhood of Locomotive Engineers and Trainmen (BLET)--the second-largest rail union in the U.S.--voted to ratify the contract, the union said Monday.

If any of the rail unions decide to strike, the others have vowed to honor their picket lines. SMART-TD said a strike or lockout could begin as soon as December 9.

"SMART-TD members with their votes have spoken, it's now back to the bargaining table for our operating craft members," said Jeremy Ferguson, the union's president. "This can all be settled through negotiations and without a strike. A settlement would be in the best interests of the workers, the railroads, shippers, and the American people."

"The ball is now in the railroads' court. Let's see what they do. They can settle this at the bargaining table," Ferguson added. "But, the railroad executives who constantly complain about government interference and regularly bad-mouth regulators and Congress now want Congress to do the bargaining for them."

Solidarity with Railroad Workers

Railway Workers Are Angry--and Rightfully So

By Michelle Chen - The Progressive, October 29, 2022

In mid-September, the nation's railway carriers were locked in tense negotiations with several rail labor unions, and a rail strike--a potential economic catastrophe for the country and global supply chains--loomed on the horizon.

In the final days before the strike deadline, the Department of Labor intervened through an arbitration process under an emergency panel commissioned by the White House. An eleventh-hour tentative agreement emerged days later, narrowly averting a work stoppage for SMART Transportation Division, the Brotherhood of Locomotive Engineers and Trainmen, and the Brotherhood of Railroad Signalmen, which represent about 60,000 workers together (several other rail unions had negotiated similar contract proposals earlier). But the rail workers still have a long way to go in their struggle for a fair contract; many workers are unsatisfied with the proposed agreement and say they will vote it down, and the Brotherhood of Railroad Signalmen voted October 26 to reject the proposed deal.

The main frustrations workers have commonly expressed center largely around a stressful on-call scheduling system; many say unpredictable schedules, combined with understaffing, undermine their family lives and make it difficult even to take sick leave without being penalized.

Railroad Workers United, a rank-and-file group representing workers from multiple unions and trades in the industry, has urged members to vote down the tentative agreement, stating that it "does nothing to address nor rectify the underlying causes of worker disillusionment and dissatisfaction with their working conditions. Short staffing, long hours, harsh attendance policies, poor scheduling practices, a lack of time off work, and a generally inferior quality of work life would continue under this contract if ratified."

Railroad Workers Threaten to Strike and Call for Public Takeover of the Rails

By Mike Ludwig - Truthout, October 22, 2022

A potential showdown between organized labor and Wall Street looms over the world of freight trains: An influential railroad workers group is urging fellow union members to reject a tentative labor agreement that has prevented an industry-wide strike, and to fight for public ownership of railroads. Negotiations are tense, and the unions are telling members that every vote counts.

Fearing further stress on supply chains and the economy ahead of the midterm elections, President Joe Biden convened an emergency board to negotiate a tentative agreement between rail carriers and unions threatening a nationwide strike. Railroad Workers United (RWU), an advocacy group of rank-and-file workers, recently called on fellow union members to reject the tentative agreement in a vote scheduled for early December, and to strike if necessary.

The tentative agreement announced in September by two major unions calls for an immediate 14 percent wage increase, but concerns over working conditions, health insurance and medical leave remain. SMART, a union representing sheet metal, air and rail workers, recently told its members that the tentative agreement is still being finalized, and it will be up to the rank and file to vote yes or no on the deal.

A nationwide rail strike would incapacitate shipping and force rail companies and the public to contend with the demands of railroad workers, who say their employers have maximized profits while safety and working conditions deteriorate. BNSF Railway, one of the top freight rail operators, made $23 billion in revenue in 2021 alone.

While RWU is urging the rank-and-file to fight for a better contract with their employers, the group says the ultimate solution to the problems raised at the negotiating table is a public takeover of the railroads for freight trains.

Will offshore wind bring ‘good-paying, union jobs’? Texas workers aren’t so sure

By Emily Pontecorvo - Grist, October 14, 2022

Fires fueled by climate crisis expose the intersecting injustices incarcerated people face and the comprehensive reforms needed for a Just Transition:

The Biden administration is gearing up to turn the Gulf of Mexico, long a hub for offshore oil and gas drilling, into a new city of skyscraping offshore wind turbines. Opening up the Gulf to wind development is part of President Joe Biden’s goal to employ “tens of thousands of workers” to establish 30 gigawatts of offshore wind by 2030. But in Texas, workers are worried that the new industry will continue the low-wage, unsafe, exploitative conditions that pervade the construction and offshore oil industries there.

For the past year, a coalition of Texas labor unions, along with their allies in Congress and in the environmental movement, have been lobbying the Bureau of Ocean Energy Management, or BOEM, to make sure that doesn’t happen.

“We saw the opportunity,” said Bo Delp, the executive director of the Texas Climate Jobs Project, a nonprofit that advocates for the unionization of clean energy jobs. “But we also saw the danger.”

There’s no doubt the offshore wind industry will bring a flood of jobs to communities along the Gulf. There will be jobs manufacturing wind turbines, shipping them out to sea, and installing them; building transmission lines and electrical substations; and operating and maintaining the equipment. But contrary to the White House’s promise of “good-paying, union jobs,” there’s no guarantee they will come with decent wages, benefits, or safety standards — especially in Texas.

Mark Burrows and the Ongoing Assault on Railroad Workers

'A Huge Deal': Major Rail Union Rejects White House-Brokered Contract Proposal

By Julia Conley - Common Dreams, October 10, 2022

Maintenance workers voted against the tentative agreement reached last month and said without a fair contract, a work stoppage could begin as early at November 19.

A union representing railroad maintenance and construction workers on Monday announced that its members have rejected the tentative agreement reached last month between unions and rail carriers, putting pressure on the carriers to offer a better deal to workers in order to avoid a nationwide strike in the coming weeks.

Reporting a turnout of 11,845 members, the Brotherhood of Maintenance of Way Employees Division (BMWED) said that 6,646 people had voted against ratifying the agreement and 5,100 had supported the deal, which was brokered last month with the help of the Biden administration's Presidential Emergency Board. Ninety-nine ballots were returned blank or were voided due to user errors.

The tentative agreement reached last month would include one additional paid day off and permit workers to take unpaid days to receive medical care without being penalized by carriers' strict attendance policies—two key concessions from the companies, as railroad workers' unions had expressed deep dissatisfaction with attendance rules and a lack of any paid sick time.

The deal also would include a 24% pay raise between 2020 and 2024 and would freeze workers' monthly contributions for their healthcare plans.

After the tentative agreement was reached on September 15, the railroad sector's unions agreed not to strike as workers across the industry voted on the deal.

Now, said the BMWED—the nation's third-largest rail workers' union and a division of the Teamsters—on Monday, a work stoppage could begin as early as November 19, depending on the upcoming votes by other unions.

RWU Urges Operating Crafts to "Vote No!" Defeat the Tentative Agreement

By Railroad Workers United - Railroad Workers United, October 5, 2022

Based upon feedback from working railroaders of the operating crafts, the Steering Committee of Railroad Workers United (RWU) voted Wednesday 10/5/22 to urge members of the operating crafts to vote down the Tentative Agreement (TA) when they receive their ballots in the coming weeks.

In the face of overwhelming opposition from union members to the Presidential Emergency Board #250 recommendations - of all crafts and all unions, of all age groups and seniority - in September, RWU had previously stated our Opposition to any Tentative Agreement based upon the PEB #250.

Because there is a consensus on the RWU Steering Committee that the proposed operating crafts' TA is in fact not dissimilar to the PEB, we believe that workers have very little to lose by voting NO. And if the rail carriers and the rail unions cannot do better at the bargaining table by December 7, then rail workers would and should be free to exercise their right to strike, fulfilling their desire to do so as expressed by the membership last summer.

Below, please read the Original 12 Points as to why any TA based on the PEB should be rejected. And then read the additional 10 Reasons to Reject the TA proposed for the operating crafts. If you agree with any or all of the points listed, then please Vote NO. Finally, make sure to read the flyer: So We Vote Down the TA ... Then What? As the great rail union organizer and working-class leader Eugene V. Debs famously stated more than 100 years ago, “I’s rather vote for something I want and not get it than vote for something I don’t want, and get it.”

Railroad workers still have reservations about the tentative agreement—strike still possible

By Alexandra Martinez - Prism, October 3, 2022

On Sept. 15, railroad union members reached a tentative agreement with railroad companies, narrowly avoiding a strike intended to protest poor working conditions and an inflexible, demanding attendance policy. After a full day of negotiations, in which President Joe Biden even called in to support the workers’ demands for better working conditions and sick time off without retaliation, the nation breathed a sigh of relief, knowing that they had dodged the strike and its inevitable economic consequences. However, now workers have had a chance to read through the tentative agreement, some say there were too many concessions made, and a strike could still be possible. In the interim, the unions are enforcing a strike injunction, dragging out the voting past the midterm elections.

When the agreement was first reached, rail workers like Michael Paul Lindsey, who had been opposed to the Presidential Emergency Board agreement, said they were all still in the dark—union leaders had reached a decision without workers actually knowing what was agreed upon. Once the agreement language was finally released at the beginning of the week of Sept. 19, workers were not happy.

“The TA additions are worse than the PEB,” tweeted Ross Grooters, a Brotherhood of Locomotive Engineers and Trainmen union member. “I don’t need questions answered. I need for all of us to VOTE NO!”

Many of the workers were concerned that the unpopular Automated Bid Scheduling was renegotiated back into the agreement in exchange for “voluntary off days.” The scheduling system threatens to reduce yard workers’ schedules to constantly on-call, just like engineers and conductors. 

Mark Burrows, a locomotive engineer in the industry from 1974 until he retired in 2016, said that railroad carriers and union representatives made concessions at the last minute. While the tentative agreement includes a provision that workers should not be penalized for going to the doctor, workers will only be allowed to go Tuesday through Thursday and must give 30 days advance notice. If they fulfill those conditions, points and merits will not be taken off.

“The idea that we should be celebrating that … I don’t know if that’s much to celebrate,” Burrows said. 

According to Burrows, the agreement also mentions that people who work on call will have extra days off, but that will be negotiated locally through different carriers and terminals. 

“As usual with a lot of these national agreements, they put things in that are kind of vague and gray and leave it open to be fine-tuned with respective carriers,” Burrows said. “In terms of their working conditions, their quality of life on and off the job, I’m going to say this is a token concession, and many see it in the same way. It’s going to be far from sufficient to satisfy most rail workers’ grievances.”

Burrows also said that part of the reason the agreement was successful was because it promised two days off. However, the fine print specified it as only 48 hours off, robbing workers of a conventional 60-hour weekend

Rail worker schedules are usually unpredictable, leading to canceled plans and sometimes waiting around the phone to get called for a job. The lack of predictability and consideration for their personal lives is at the forefront of the workers’ demands and is the primary reason why a growing number of railroad workers have left the industry. Over the last six years, 45,000 workers have left, accounting for nearly 29% of the industry.

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