UTU News Digest - Thursday, October 14, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Thursday, October 14, 1999

CALIFORNIA: Gore gains AFL-CIO's nod; UTU only rail union to stand with federation on endorsement for President

LOS ANGELES — The 13.1 million-member AFL-CIO endorsed Vice President Gore's bid for the presidency today, giving his campaign a huge infusion of manpower, organization and money -- and, most important, direct access to union households making up a quarter of the Democratic primary electorate in key battleground states, the Washington Post reported.

(United Transportation Union (UTU) was the only rail-transportation union to speak at the convention in favor of Gore’s endorsement.

Representing the UTU at the federation convention are: NLD James Brunkenhoefer, Alternate NLD James A. Stem, Canadian Legislative Director Tim S. Secord, Vice President Anthony Iannone, Vice President Patrick Drennan, Alternate Bus Vice President Percy Palmer, Alternate Vice President Artie Martin, and California Assistant State Legislative Director Mike Anderson.

Palmer spoke in favor of Gore for the UTU. "I told the federation that Al Gore is a friend of labor," Palmer said. "I said he was a friend of the UTU, and that on behalf of the UTU we are proud to support Al Gore for President."

The UTU was one of the first major unions to endorse Gore this summer.

The Brotherhood of Locomotive Engineers (BLE) did not speak publicly along with other major unions concerning the presidential endorsement.

"I guess that after one major union thanked Vice President Gore publicly for not crossing their picket line when its members were on strike against ABC," said Artie Martin, "the BLE couldn’t support a candidate who refuses to cross to picket lines like it has directed its members to do on the Soo Line.")

Two major unions -- the Teamsters and the United Auto Workers – abstained. Officials expect both unions to eventually endorse Gore.

Securing the AFL-CIO's backing was considered the "first primary" by both Gore and his main rival, former senator Bill Bradley of New Jersey. Not only is the endorsement a political boost for Gore, but it means he will almost instantly obtain an array of phone banks, precinct workers, communications networks and local advocates in key primary states.

In Iowa, which holds the first caucuses in the nation 15 weeks from now, for instance, labor will put 40 campaign workers in each congressional district. Statewide, there are 160,000 union members.

Polling now suggests that Gore is the favorite in Iowa and Bradley in New Hampshire, where labor is weaker. If Gore and Bradley split those states in early February, then it will put labor to the test in New York and California, where the nation's largest blocs of union workers are located in the New York City and Los Angeles areas. New York and California will hold their primaries shortly after New Hampshire, on March 7, along with at least nine other states.

The only other time labor has endorsed this early in the process was 1983, when the beneficiary was former vice president Walter F. Mondale. In that contest, labor played a crucial role in keeping the Mondale campaign afloat during a brutal challenge by Gary Hart, who unexpectedly beat Mondale in the New Hampshire primary. Mondale went on to win the Democratic nomination.

Under the leadership of John Sweeney, the AFL-CIO has reemerged as a major political force. Since the Democrats lost control of Congress in 1994, organized labor has played a key role reviving party fortunes, providing the margin of victory in a host of statewide and congressional races in the elections of 1996 and 1998. Sweeney and other union leaders are determined to prevent a Republican lock on Congress and the White House after the 2000 elections, preparing to spend $40 million on union mobilization in key centers of labor strength.

Gore and his campaign aides were ecstatic over the labor federation's decision.

"I stand with you, I will fight for you," Gore told the cheering convention delegates. The vice president moved immediately to assuage conflicts with industrial unionists over trade, reiterating administration policy that future trade agreements will have key labor and environmental provisions in the documents, not "side" agreements as in the case of the North American Free Trade Agreement. "I will insist on workers' rights, human rights and environmental standards as part of the agreements," Gore promised the convention.

"This was a fundamental test of strength at a critical point in the nomination process," said Gore strategist Tad Devine. "We have a contest centered on fighting for working families; to have the support of the organizations that represent those families is one of the most critical endorsements to have," he said. "The party that wins households [with incomes] between $30,000 and $50,000 will be the party that wins the election for president."

Bradley, who had fought to delay the endorsement, issued a conciliatory statement, saying he respected the federation's decision and that his "commitment to working men and women and the role that labor can play in their lives is unwavering." The AFL-CIO, in announcing the endorsement, was careful to tip its hat to Bradley and his "good record" on labor issues.

WASHINGTON: Rail impact reviewed by STB

WASHINGTON -- The Surface Transportation Board (STB) published rules to evaluate how the proposed Tongue River Railroad Co. would affect archaeological and historical resources in eastern Montana, its proposed service area, the Journal of Commerce reported.

The decision marks the latest regulatory review of a project that was conceived two decades ago to shorten the route for moving Montana and Wyoming coal to Midwest utilities. That traffic currently moves over Burlington Northern & Santa Fe Railroad, which would continue to originate and deliver the coal traffic if Tongue River is built.

The former Interstate Commerce Commission made the first ruling on the project in 1986 when it approved construction of 96 route miles on the northern end of the proposed route. More than a decade later, the rest of the route was approved with provisions for mitigation of environmental impact that was identified in still another decision.

STB said the latest rules were published because the proposed 131-mile route between Miles City and Decker, Mont., would cross land owned or managed by eight state and federal agencies, which have an interest in the project. The route also may include sites with spiritual or traditional value to American Indians, according to the agency.

If the railroad is built, it would reduce the rail mileage between the Powder River Basin and the upper Midwest by approximately 15%. The line also could carry additional coal if proposed mines along the route are developed and obtain necessary mining permits.

Construction of the railroad has been approved, but has not been started because its backers are seeking STB approval to reduce operating costs by re-aligning a portion of the route. The Tongue River project faces continuing opposition from rail employees, local ranchers and environmental groups.

STB said its decision was issued after a review of the route showed that there could be an impact on historical and archaeological resources.

The new STB rules are intended to develop a treatment plan to mitigate any damage to those resources, in consultation with agencies such as the Bureau of Land Management, the Montana State Historical Preservation Office and the United States Department of Agriculture.

Comments are due at the STB by Nov. 30.

WASHINGTON: Supreme Court to decide passenger luggage case

WASHINGTON -- The U.S. Supreme Court said Tuesday it will decide whether a search occurs when a police officer feels and squeezes a bus passenger's carry-on luggage to determine if the bag contains drugs, Reuters reported.

The high court will determine whether constitutional protections against unreasonable searches and seizures of evidence apply to the officer's handling of the luggage in an overhead baggage area.

The U.S. Justice Department described the officer's touching of the luggage's exterior as "minimally intrusive," comparing it to the use of dogs who sniff luggage for drugs.

The case involved Steven Dewayne Bond, a passenger on a Greyhound bus stopped at an immigration checkpoint in Sierra Blanca, Texas. The bus had traveled from California and was en route to Arkansas.

U.S. Border Patrol Agent Cesar Cantu boarded the bus to make sure everyone was in the United States lawfully. After completing his immigration checks, he began working his way forward, stopping to feel and squeeze passengers' luggage to inspect for illegal drugs.

When Cantu got to Bond, he reached into the overhead bin, squeezed a green canvas bag, and felt a "brick-like" object. Cantu asked if he could open the bag, and Bond replied, "Go ahead."

The agent found, wrapped inside a pair of pants, a brick-like object covered in tape. Tests revealed it contained methamphetamine.

After being advised of his rights to remain silent or have an attorney present, Bond admitted he possessed the methamphetamine and gave Cantu details how he got it.

Bond, who was convicted of drug offenses, challenged the search on the grounds it had violated his constitutional privacy rights.

He said Cantu's touching of his luggage constituted a search, conducted without "probable cause" that he had committed a crime and without his consent.

A federal judge and then a U.S. appeals court ruled against Bond.

His lawyer, Carolyn Fuentes, said Cantu's manipulation of Bond's baggage amounted to a search "because it invaded a legitimate expectation of privacy.... No traveler expects that others will squeeze or feel his carry-on luggage in a manner that is intended to reveal the contents."

In the Supreme Court appeal, Fuentes said the squeezing of carry-on bags of bus passengers represented a "relatively new tactic in the war on drugs."

The Supreme Court agreed to decide the case after conflicting appeals court rulings on the issue.

WASHINGTON: Short line must pay for bridge

WASHINGTON -- The U.S. Supreme Court declined to review a lower court ruling that the Wheeling and Lake Erie Railway Co. of Brewster, Ohio, must pay a Pennsylvania state agency's assessment against the railroad for rebuilding of a highway bridge, Journal of Commerce reported.

The railroad sought the Supreme Court's review after the 3rd U.S. Circuit Court of Appeals ruled in a 1998 decision that the Pennsylvania Public Utilities Commission had the power to make the railroad pay a portion of construction and maintenance costs for the bridge in Scott Township, Pa., near Pittsburgh.

William Callison, general counsel for W&LE, said the railroad sought a federal court review of the state's original ruling on grounds that the state action was a tax that could not be levied against railroads under the terms of a 1976 law known as the 4R Act.

The state believes that railroads benefit from having separate bridges to carry highway and rail traffic because that eliminates the need for a rail/highway crossing the carrier must build and maintain, Callison said.

The railroad won the case before a U.S. district court in 1996, but the state appealed and prevailed in the 3rd Circuit in a 2-1 decision that was handed down in March 1998.

Callison said the railroad pursued the case because of concern about the cost it could incur if it was assessed for bridge replacement and maintenance costs elsewhere in the state. He cited one recent case in which the state levied a $500,000 assessment against the railroad for another new bridge.

The assessment against the railroad for the Scott Township Bridge was $75,000, or 5% of the replacement cost for a new bridge. The state also directed the railroad to pay 15% of maintenance costs for the new structure.

MICHIGAN: UAW agrees to let automakers spin-off parts plants

DETROIT -- As workers at General Motors Corp. ratified a new four-year agreement Wednesday, union leaders at Ford Motor Co. approved a new contract that guarantees jobs for about 23,500 workers at Ford parts plants even if Ford turns its parts division into a separate company, Associated Press reported.

"They can spin off the plants, but they can't spin off the people," UAW President Stephen P. Yokich said in a summary of the tentative four-year deal between the UAW and Ford.

The UAW's Ford executive council unanimously recommended the deal; voting by about 100,000 workers is scheduled to end Oct. 24. Most of the terms mirror those agreed to by GM and DaimlerChrysler AG -- 3 percent raises each year, a $1,350 signing bonus and improvements in pensions.

The UAW's biggest problem in this year's negotiations was Ford's plans to sell or spin off its Visteon Automotive Systems, just as GM did with its Delphi Automotive Systems last year. The theory is that the parts divisions need more business than GM or Ford alone can provide, but other companies would not work with them unless they were independent.

The union said under the deal, workers at Visteon will remain Ford employees for life -- with Ford paychecks and pensions -- if Visteon becomes independent. Those workers would also be free to transfer back and forth between Ford and Visteon.

New workers at Visteon will be covered by an agreement that mirrors the one the UAW has with Ford; that arrangement will continue for two contracts after the new deal between the union and Ford expires. Similar terms were negotiated in the contracts between GM, Delphi and the UAW.

Yokich said the Visteon arrangement was "a very emotional issue" for the union. Before the contract, the UAW had opposed the move, fearing it would lead to lower pay and fewer jobs.

"With Visteon, a lot of people had a lot of things to say about what was going to happen," Yokich said. "I think thanks to our team ... we made a hell of an agreement for Ford and Chrysler and GM. We're very happy with it and I think the membership is very happy with it."

Yokich said 77 percent of the GM and Delphi workers who voted approved the deal. The contracts cover 185,000 hourly and salaried workers at GM and Delphi; vote totals were not immediately available.

DaimlerChrysler workers ratified their contract in September.

The deals with the automakers include several terms aimed at strengthening the union. All the companies pledged to take a neutral stance toward union organizing drives, and to not take work away from a supplier whose factories organize unions.

DaimlerChrysler, GM and Delphi agreed not to spin off any division into a separate business or close or sell any factories. The UAW said Ford had suggested three plants in Ohio could close, but promised instead to send new work there.

The contracts also include agreements on staffing. For example, if employment drops below 80 percent of a set level in a bargaining unit, the automakers must replace each job lost.

The Delphi contract allows workers to transfer back to GM when openings occur, and gives them until Jan. 1 to retire with GM pensions. If Delphi goes out of business during the contract, the workers' layoff benefits would come from GM.

The contracts also improve pensions -- an important goal for the UAW's autoworker membership, about half of whom are eligible to retire in five years -- increased the lump sum payment retirees would get based on inflation.

Canada: Rail freight down 9% in week to Sept,.21

OTTAWA -- Canadian rail freight volume, excluding intermodal traffic, totaled 4.7 million metric tons in the week ended Sept. 21, down 9% from a year earlier, Statistics Canada said, Dow Jones reported.

The number of rail cars loaded during the week declined 14.4% from a year earlier.

Intermodal (piggyback) volume totaled 394,000 tons in the week, up 10.3% from a year earlier.

Total traffic in the week, including carloadings of freight and intermodal traffic, declined 7.7% from a year earlier. For the year to date, traffic totaled 182.6 million tons, down 1.5% from a year earlier.

NORTH DAKOTA: Red River Valley & Western Railroad names Drush President

WAHPETON -- The Red River Valley & Western Railroad Co. announced today that William F. Drusch is appointed president of the 740-mile regional railroad, effective January 1, 2000, when Dennis W. McLeod will retire as president, the company said in a press release.

Mr. Drusch will continue to serve as president of the TC&W. Mr. McLeod will be retained as an executive consultant through the year 2000, assisting both Red River Valley & Western and Twin Cities & Western railroads.

Mr. McLeod helped the newly formed RRVW initiate operations as vice president marketing in 1987 and he was elected president in 1991. Previously, Mr. McLeod served the former Burlington Northern in a number of planning and marketing positions. RRVW-TCW Chairman Kent Shoemaker said, "All of us on the RRVW are very appreciative of Denny's efforts as the railroad has become a service sensitive, strong regional carrier."

Mr. Drusch was appointed president of the 129-mile Twin Cities & Western Railroad in 1993. He has 30 years of railroad experience and is president of the Minnesota Regional Railroads Association. He previously had been vice president-operations for the Escanaba & Lake Superior Railroad at Wells, Mich. since 1980. Mr. Drusch began his railroad career with the Northern Pacific Railway and the Burlington Northern at St. Paul, Minn. in 1969. From 1976 to 1980, he was manager, revenue accounting for the former Minneapolis, Northfield and Southern Railway (now part of the Canadian Pacific Railway).

In other changes effective January 1, David E. Thompson will be promoted to senior vice president marketing for both railroads. He has been vice president marketing and sales for the TCW since November 1998. Sharon Trudell, manager marketing and customer service for the RRVW, will be promoted to the newly created post of vice president marketing at the railroad's headquarters in Wahpeton, N.D. Lloyd T. Host, marketing representative for the TCW, advances to become vice president marketing-TCW.

The Red River Valley & Western began operations July 19, 1987 over track in central and southeastern North Dakota acquired from the Burlington Northern, now Burlington Northern and Santa Fe Railway Company.

The Twin Cities & Western began operations in July 1991 between St. Paul - Minneapolis, Minn. and Milbank, S.D. after purchase of the former Milwaukee Road main line from the Canadian Pacific Railway.

NORTH CAROLINA: Transportation Improvement Program (TIP) meetings underway

RALEIGH -- The N.C. Board of Transportation is holding a series of 14 meetings in October and November to receive public input on projects for inclusion in the department's seven-year Transportation Improvement Program (TIP), the board said in a press release.

The TIP is the department's blueprint for statewide transportation projects -- including bicycles, public transportation, ferry, rail, aviation and highways.

The public meetings are scheduled throughout the state in each of the 14 highway divisions. (Schedule is below). The board will hear public comments about project priorities and candidate projects before they issue the draft 2002-2008 TIP in June 2000.

These public meetings are a first step in the process of developing a long-range transportation program that meets the needs of all North Carolinians," said state Transportation Secretary David McCoy. "We need to hear from citizens to help make the TIP an accurate and reliable plan."

For more information, citizens can call the department's Customer Service Office toll free at 1-877-DOT-4YOU or visit the website at www.dot.state.nc.us