UTU News Digest - Monday, December 13, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Monday, December 13, 1999

NEW YORK: Transit continues talks to avert strike

NEW YORK -- With both sides reporting progress, transit officials and the subway workers' union resumed talks Sunday on a new contract as the threat of a crippling strike loomed over the city, the Associated Press reported.

Mayor Rudolph Giuliani also prepared to implement contingency measures he said would have to be in place at least a day before this week's strike deadline, at "irreversible'' cost to the city.

City subways and buses carry 3.5 million riders every day.

The Transport Workers Union's 33,000 members are threatening to walk off the job at 12:01 a.m. Wednesday unless they reach a new contract with the Metropolitan Transportation Authority. Giuliani says a strike by public employees is illegal under state law.

Negotiations were moved late Sunday from MTA headquarters to a midtown hotel, where MTA officials held a brief news conference.

Gary Dellaverson, chief labor negotiator for the agency, said talks were focusing on non-economic issues Sunday and "we've actually made progress on a host of them.''

That followed a daylong both sides put new wage proposals on the table and moved closer together on that key issue.

Details were withheld, but Willie James, the president of Local 100, said he was "cautiously optimistic,'' and MTA executive director Marc V. Shaw said there was "moderate progress on all fronts, including wages.''

The MTA had offered a wage increase of 9.25 percent over four years plus reduced employee pension contributions. The union sought a pay increase of nine percent annually for three years and improved benefits.

With overtime and weekend work, the MTA says the average salary for bus operators is more than $56,000 annually. For train operators, including overtime and weekends, the average annual pay is more than $54,000.

Giuliani, who has no role in the negotiations, urged both sides to squelch talk of a walkout.

"If they are making progress, they should make a clear commitment by the end of the day that there will be no strike,'' he said.

While warning anew that any stoppage would be illegal and subject the union to massive financial penalties, officials prepared for the worst.

Plans include deploying some 2,400 police officers into the subway and elsewhere for security, revising work schedules for city agencies that would go on an emergency footing, and arranging for some 500 private commuter vans to become part of the emergency transportation system.

Private cars and trucks entering Manhattan during rush hours would have to carry at least three people, and several key north-south and cross-town arteries would be restricted to emergency vehicles only.

NEW YORK: TWU, MTA report progress in talks

NEW YORK -- Negotiators for the Metropolitan Transportation Authority and the union representing 33,000 New York City transit workers said Sunday that they had narrowed their differences over a proposed wage increase, the biggest issue dividing the two sides, the New York Times reported.

With a strike deadline set for 12:01 a.m. Wednesday, officials involved in the negotiations said that Willie James, president of Local 100 of the Transport Workers Union, had scaled back his demand for a 27 percent wage increase over three years.

These officials said negotiators for the M.T.A., which runs the city's subways and buses, have raised their wage offer to above the 12 percent over four years they offered last week. The M.T.A.'s previous proposal included a wage increase of about 9.5 percent over four years and increased pension contributions equal to 2.3 percent of each worker's salary. "Both sides have made a move on wages," said Marc Shaw, the M.T.A.'s executive director, who declined to spell out the latest proposals.

Shaw said the negotiations gained momentum on Friday night and Saturday morning, when the two sides altered their wage proposals.

While slow progress had been taking place in other areas, the deadlock over wages was hurting the tenor of the talks and their overall momentum, negotiators said.

Discussing both sides' new flexibility on wages, Shaw said, "It had the effect of allowing a lot of discussions to become much more fruitful.

The amount of movement on wages wasn't that significant, but the fact that there was movement was significant. So long as there is movement toward a center, we're comfortable."

The two sides resumed negotiations about noon Sunday at M.T.A. headquarters, a block from Grand Central Terminal. Later in the day, they moved the talks to the Grand Hyatt Hotel, where they plan to sequester themselves for continuous talks until the Wednesday deadline.

In an interview last night during a break in the negotiations, Shaw said he was more optimistic about reaching a settlement than he had been a few days ago.

"I'm moderately more optimistic, because movement is continuing," he said. "The progress that happened Sunday continued, and we'll be going over a list of what the outstanding issues are. Tonight, we'll start to move to close them."

But he voiced concern that some serious snags could still develop that would slow or halt momentum toward a settlement.

Danny Frank, a union spokesman, said, "Things are moving along." He would not be more specific.

Union officials said they expected the M.T.A. to raise its offer to match the 13 percent over four years that most unions at the Long Island Rail Road and Metro-North Railroad have accepted. A big question, many labor experts say, is whether the M.T.A. will raise its offer above that 13 percent, a move that might anger the railroad unions.

James insists that his members deserve more than the railway workers because his union made several significant concessions to the M.T.A. in its current contract, which expires on Wednesday.

NEW YORK: Union members not enthusiastic about strike

NEW YORK -- All afternoon Sunday, conductors and train operators filed in and out of the crew room overlooking the subway platform on Coney Island, the New York Times reported.

It was the usual routine. Some of the men squeezed in a quick game of pool before heading off to make their run on the D line. Several paused by the television to curse and cheer the Giants, or they warmed up leftovers in the microwave for a quick meal.

Days before the deadline for a transit strike, with City Hall making elaborate plans to avert a traffic disaster, there was little sense of urgency or crisis among these rank-and-file workers in Brooklyn.

Few voiced much enthusiasm for a strike, and several said that for all their grievances against the Metropolitan Transportation Authority, they were uncertain about the judgment of their union leaders.

"I want to do what's best for the union, but I also want to pay my bills," said Gilbert Bowen, a train operator, expressing ambivalence shared by many in this crew room.

"In my heart of hearts," said Ronald J. Randall, another train operator, "I think we'll lose more if we strike."

Among transit workers and riders alike Sunday, there was a deep suspicion that the charged talk of strike preparations was simply bargaining-table bluster, that both sides have too much to lose by failing to reach an agreement. Negotiations continued Sunday without any breakthroughs, though representatives of both sides reported that their differences over wages had narrowed.

Mayor Rudolph W. Giuliani has threatened to seek crippling fines against the union if it proceeds with what he has said would be an illegal strike. Yet the city can ill-afford a massive transit strike just weeks before Christmas and New Year's Eve. "I believe it's not going to happen," said Dinesh Patel, proprietor of a newsstand at the 34th Street station. "At the last minute they are going to negotiate."

Negotiations did resume Sunday.

Still, there was no shortage of concern Sunday among commuters.

Tim O'Hara, an investment banker in New York City, said he would leave town before 12:01 a.m. Wednesday, referring to the deadline set by Local 100 of the Transport Workers Union, which represents 33,000 bus and subway workers.

"You won't be able to get a cab, you won't be able to get a car," O'Hara said. "And the way the city works, it will probably become the basis for a taxi demonstration."

At the same time, some riders expressed sympathy for the union's demands. They know that there has been a substantial increase in ridership, and, they reason, transit workers certainly deserve to share in the fruits of success. Rachel Shtier, a writer from Brooklyn, said the union's wage demand, a pay raise of as much as 27 percent over three years, "seems like a lot."

She added, "But on the other hand, the M.T.A. is making so much money -- why not pay those guys?"

It this precise argument that was made over and over in the crew room at the Coney Island subway station Sunday.

"Now that things are going well, we just want to catch up with the rest of the world," said Eddie G. Campbell, a train operator. "We are a vital part of this city, so give us our due."

They talk of past contracts in which, they say, they were tricked or out-maneuvered by management. They recite the concessions they made during the lean years, years during which they sometimes went without raises.

The public, they say, has little appreciation of either the jobs they perform or the abuse they sometimes endure. Someone raises the subject of spitting. "I've gotten spit at twice," one conductor said. "I've been spit at," another man said. "Me, too," said a third, and then a fourth.

This, in turn, leads to a quick cataloging of all the things that have been thrown at them. Batteries. Soda cans. A jug of lemonade. Some people, it seems, get a little crazy when the subway train leaves without them. "This is what these kids do!" said Richard Bass, a conductor.

Their contempt for management is written plainly -- on their faces, and over the toilets in the crew room bathroom.

They complain of a"guilty-until-proven-innocent" disciplinary system in which employees are suspended without pay for "petty stuff." They tell stories of a train operator who got in trouble for wearing a baseball cap, and another who was disciplined for wearing a sweatshirt over his uniform on a cold day.

"They discipline us, they harass us and they forget that it's up to us to move the people of New York City," said Victor Huggins, a train operator.

It would seem an atmosphere ripe for labor unrest, except that many of the men and women interviewed Sunday seemed to possess a tenuous connection at best with their union leadership. They complained about a lack of communication from their union representatives, saying that most of what they know comes from the newspapers.

"We don't trust them, and we don't trust the M.T.A.," said Sal Pillitteri, a train operator.

Huggins said: "We hear more rumors than anything else. We never hear from the union. You don't see representatives in hear telling us what is going down."

As a result, many of the workers are reluctant to commit themselves one way or another on the subject of striking. They say they will wait for the general membership meeting scheduled for tomorrow before deciding whether to support calls for a strike.

Threats from Mayor Rudolph W. Giuliani are also weighing on the minds of some transit workers.

Several men said they were furious at Giuliani for implying that members of the union may have sabotaged the Eighth Avenue subway line by activating a switch that moves local trains to the express track. Giuliani said the union would be held accountable for any acts of vandalism.

"I think he's doing it on purpose just to get the riding public against us," Pillitteri said. "I mean, it could have been caused by anything: bad switches, bad signals, bad tracks. I don't think anyone from our side would ever do something like that."

VIRGINIA: Norfolk Southern reports on Conrail integration

NORFOLK -- In this week's report from Norfolk Southern Railroad to the Surface Transportation Board on the status of Conrail integration for the week ending Dec. 10, Jon Manetta, senior vice president Operations, wrote:

"This week's report shows additional improvement in NS operations as our efforts continued to produce a positive impact on performance. Average train speed increased notably. At the same time, overall average terminal dwell time dropped, with improvement shown at several key terminals. Also, cars on line dropped again as we continue to improve our fluidity. On the monitored corridors and Chicago gateway operations, 95 trains were held for terminal congestion, 46 trains were held for crews, and 24 trains were held for power.

With respect to our customer service hotline in Buffalo, N.Y., two new calls were received, both of which were resolved. Of the other two matters pending, one was resolved.

In the Shared Assets Areas (SAAs), lack of power resulted in seven trains being delayed for 172 hours, while 19 trains were held for 219 hours awaiting crews. Additionally, six originating trains were delayed for 66 hours due to late arrivals from CSXT and/or NS.

Together, these causes account for about 81 percent of the train delay hours in the SAAs.

Bison Yard in Buffalo, N.Y., began handling freight shipments on Dec. 1, and is now operational after we expedited construction to complete the project in less than 90 days. Although other infrastructure improvements will be needed to allow NS to serve western

New York most effectively, the yard is an important step toward that objective, allowing more efficient operation within the Buffalo terminal."

VIRGINIA: CSX completes Maersk/Sea-Land transaction

RICHMOND -- CSX Corporation (NYSE: CSX) announced in a press release the closing of the sale of its Sea-Land Service international liner business to Maersk Line, a leading Danish container-shipping company. Under the terms of the transaction, announced on July 22, 1999, the business was sold for approximately $800 million in cash, subject to adjustments.

John W. Snow, CSX chairman and chief executive officer, said, "This is an outstanding transaction for CSX and its shareholders. It allows us to focus our attention on our core rail business and provides an excellent new home for our global container-shipping company. Maersk is a leader in the industry, and combining Maersk with Sea-Land creates the clear industry standard.

"We are pleased to have played a significant role in creating this new entity, Maersk-SeaLand, which is an historic milestone for the container- shipping industry," Snow added. "We have been proud of our long association with Sea-Land, the company that launched the global container revolution, and are most gratified that the Sea-Land name will continue to be prominent in the industry through association with Maersk."

Going forward, CSX's railroad operations will account for more than 80% of total revenues and earnings. CSX retains two former Sea-Land Service businesses: CSX Lines, which provides container shipping to and from Alaska, Hawaii, Puerto Rico and Guam; and CSX World Terminals, which operates terminal businesses in Hong Kong, China, Australia, Europe and the Dominican Republic. Annual revenues for the two companies total approximately $1 billion.

"These are strong, well-managed companies with solid financial performance," said Snow. "We expect that, with their new status as independent companies, they will produce even better results and contribute significantly to CSX's future."

CSX Corporation, based in Richmond, Va., acquired Sea-Land in 1986. CSX operates the largest rail network in the eastern United States and also provided intermodal and contract logistics services. More information about the company is available at its Internet address: http://www.csx.com.