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STB sets schedule for reviewing CN takeover of IC

WASHINGTON -- The Surface Transportation Board (STB) has set the final schedule for reviewing the proposed merger of Canadian National Railway with Illinois Central Corp. The STB adopted its proposed 300-day schedule for considering the transaction, creating a calendar that would produce a final written decision by May 11, 1999.

CN and IC, which submitted their plan for completing the $2.4 billion deal on July 15, had requested a 180-day review period for the deal that represents the first major international rail merger case. If approved, the merger would create a carrier with $3.7 billion in revenue and more than 26,000 employees.

The schedule requires that parties interested in participating in the merger case must notify the STB by Aug. 31, 1998.

Comments on the merger plan are due at the agency by Oct. 13, 1998 with responses from the applicants on Nov. 27, 1998.

Briefs from all parties must be received by Feb. 5, 1999. Oral argument of the case has been slated for March 5, with a voting conference tentatively scheduled for March 15, 1999.

The two companies' plan would link a transcontinental rail operation in Canada whose U.S. rail operations reach the upper Midwest with a North-South oriented route network operated by IC between the Gulf of Mexico and Chicago. Chicago is the only commonly served point for the two carriers.

Their plans also include a marketing alliance with Kansas City Southern Railway Co. that extends the system's potential reach into Texas and Mexico. CN and IC also have a long-term agreement with Wisconsin Central, a regional railroad, to handle freight between Chicago and Duluth, Minn., for service between western Canada and the Midwest.

Union Pacific grain service improves, but coal shipments stagnant

WASHINGTON -- Union Pacific Railroad delivered more grain more quickly last week than in previous weeks and its overall system data improved, but it made no progress improving its coal deliveries to electric utilities, the carrier told federal authorities Monday.

Union Pacific loaded 9,947 grain cars last week, compared with 8,939 cars two weeks ago, and the number of days it took to get that grain from Kansas to Gulf of Mexico export terminals fell to 11.8 days from 14.1 days.

The railroad's trains moved at an average speed of 14.1 mph the week ended Aug. 14, compared with 13.8 mph the week ended Aug. 7. The number of blocked terminals and delayed trains also declined.

But the average number of days that Union Pacific's coal trains took to make a round trip between coal mines and electric utilities rose last week to 7.1 days, compared with 7.0 days two weeks ago. The statistic, "coal cycle days," has a target range of 5.5-6.0 days, and it peaked this year at 5.6 days in the last two weeks of January.

North Dakota wheat piling to be heavy

FARGO, N.D. -- Farmers in North Dakota are expecting another delay this year in getting their grain shipped. North Dakota State University Extension Spokesman George Flaskerud says a new report indicates rail backups are occurring in south central and southwestern rail terminals.

The backups are causing delays of up to 30 days and are slowing the movement of grain from country locations to terminals and beyond.

Grain association reaches agreement with railroads

WASHINGTON -- The National Grain and Feed Association on Sept. 1 will unveil the terms of an agreement with U.S. railroads that provides for mandatory, binding arbitration of some carrier-shipper disputes.

An agreement between the NGFA, which represents the nation's grain processors and traders, and the Association of American Railroads is the first deal struck between the rail industry and their shippers after months of rate and service complaints by shippers in almost every industry.

The final terms of the NGFA-Association of American Railroads deal are being worked out, but will be ready for the Sept. 1 meeting.

Plans call for the pact to become effective Oct. 1 and continue for two years. Mandatory arbitration would be available for disputes that involve distribution of railcars under both standard tariff rates and advance bidding programs.

Pressure has been mounting on the carriers to reach such agreements after a range of recent problems that included widespread delays and equipment shortages for grain shippers last fall.

The STB earlier this year ordered a series of meetings between carriers and shippers and held hearings on rate and service issues at the direction of key senators. Some legislation that would boost shippers' choice of carriers and restrict some rail rate flexibility has been introduced in Congress.

NGFA members will have 30 days after the Chicago conference to decide whether to participate in the agreement. Shipments of grains, oilseeds, feed and feed ingredients are covered by the pact that the NGFA said would follow procedures similar to the organization's own dispute resolution mechanisms.

Cause sought in Texas train derailment

TEXAS PANHANDLE -- Repair crews hope to re-open a stretch of railroad track near Amarillo today after a derailment and chemical spill.

Four tanker cars of a Burlington Northern- Santa Fe train derailed near Panhandle late Sunday night. One leaked toxic chemicals.

Five workers were injured... one critically. Authorities say Kent Montgomery of Amarillo has chemical burns over 30-percent of his body. Investigators are still trying to determine what caused the accident.

TWA Pilots wary of company pay offer

ST. LOUIS – TWA union pilot leaders expressed concern to their membership that a company announcement about a pay raise made before the pilots' balloting process was completed may be intended to sway the pilots' vote on their new tentative collective bargaining agreement.

The 4.8 percent raise effective Sept. 1, which stemmed from a long- standing grievance, would be paid to pilots only if their collective bargaining agreement is rejected.

"I see this announcement as a possible attempt by the company to sway our pilots to reject the tentative agreement in an effort to boost profits for 1998," Capt. Joe Chronic, chairman of the TWA branch of the Air Line Pilots Association, Intl. (ALPA), said. "I am concerned that this news announcement intentionally lowers the pilots' perceived value of our agreement during the ratification process."

"I am not surprised that the company would be interested in the rejection of our contract," Chronic added. "TWA would realize significant savings if the pilots' contract is delayed even a few months -- savings that could be vital to the company during their historically low yield winter months."

An analysis by the union estimates that TWA will save at least $3 million per month if the new tentative agreement is rejected.

The ballots for the TWA pilots' tentative agreement were mailed to the membership on Aug. 6 and must be returned by Aug. 21. The TWA branch of ALPA expects to announce results of the ratification vote at the end of the month.

ALPA represents 50,000 airline pilots at 49 carriers in the U.S. and Canada.

Wyoming workers fear new rail line

SHERIDAN, Wyoming-- Union members here say that the construction of a new rail line from Decker to Miles City would force them to leave their homes and pay additional taxes.

The Tongue River Railroad wants to haul coal on the new line... and cut 320 miles off the trip. United Transportation Workers officials say their members would have to move from Sheridan to Decker, and pay Montana taxes. There is no sales tax in Wyoming.

Marriott shifts into neutral in Milwaukee

MILWAUKEE -- Thanks to the efforts of labor-backed members on Milwaukee's city council, Marriott International has pledged to remain neutral during a planned organizing drive and honor a card-check vote in exchange for a $2 million city loan to help build a 169-room hotel.

HERE Local 122, meanwhile, promised not to picket the company during organizing efforts. The deal could set a precedent for future hotel projects that get financial help from the city, said Alderman Paul Henningsen, a key supporter of the provision.

USWA to spend more on organizing

LAS VEGAS -- The Steelworkers pledged to increase membership by dedicating up to 30 percent of its budget to organizing. "We need to grow the union or we are going to die," USWA President George Becker told delegates at the union's Las Vegas convention.

The convention also approved a resolution supporting the planned merger of the USWA, IAM and UAW. The 3,000 delegates joined 43 locked-out workers from CFI/Oregon Steel in a massive rally outside Wells Fargo Bank to protest the bank's continued financial backing of Oregon Steel. Some 1,000 union workers were locked out 10 months ago.

Bell Atlantic workers reach agreement

WASHINGTON -- In a big win for workers, the Communications Workers and IBEW reached tentative agreements with Bell Atlantic covering 86,000 employees. The deals ended a two-day strike last week.

The two pacts are almost identical and provide job security, pay raises of 7.8 percent over two years, reduce contracting out and provide for card-check recognition at nonunion operations. CWA also reached agreement with Southern New England Telephone.

The new contract covering 6,300 workers provides substantial gains in wages, pensions and health benefits. Meanwhile, some 35,000 CWA members struck US West Sunday after contract talks collapsed over forced overtime, changes in health care benefits and wages. No talks are scheduled, but the union says it is ready to negotiate at any time.