UTU reaches historic agreement with carriers for legislation to end "cramdown" in railroad mergers

UTU reaches historic agreement with carriers for legislation to end "cramdown" in railroad mergers

Union picks which contract will apply

CLEVELAND (February 14) – The United Transportation Union (UTU), North America’s largest rail-transportation union, has reached an historic agreement with the nation’s major railroads for legislation that will provide better protection for workers affected by merging railroads.

The UTU and the Class I railroads represented by the National Carriers Conference Committee (NCCC) have agreed to end "cramdown" during railroad mergers. "Cramdown" is the practice of railroads overriding or modifying collective bargaining agreements in the implementation of consolidations, mergers, and acquisitions of control under Section 11323 of the Interstate Commerce Act.

The agreement and statute will give the union the right to pick which contract applies.

"This is the real thing and we believe it will act as the template for other unions interested in ending cramdown," said Charles L. Little, UTU International President. "Now unions cannot be beaten out of favorable collective bargaining agreements by the railroads using the exemption provision in the Interstate Commerce Act."

The agreement, which other rail unions are studying, will be presented to Congress in the form of a statute for approval. Until it becomes law, however, the Class I carriers belonging to the NCCC have agreed to be bound by its terms. Those railroads include: Union Pacific, Norfolk Southern, CSX Transportation, Burlington Northern Santa Fe, and Kansas City Southern.

"We believe that other forward-thinking rail unions will sign on," said Little. "This goes way beyond a moratorium on cramdown and takes us to the finish line in one bold stroke.

"Where there is more than one collective bargaining agreement, the union – not the carrier – will pick which contract applies," said Little. "If the union fails to select an agreement within the time frame for negotiations contained in the New York Dock conditions, an arbitrator will pick the agreement most beneficial to employees with regard to rates of pay, rules, working conditions, and crew consist agreements."

In regard to seniority, while seniority districts/territory boundaries will be subject to modification, that modification "shall not, however, cause employees who were in service on the effective date of the Consolidation or Coordination to lose their seniority date on any territory where they previously held seniority and they shall be permitted to exercise such seniority. However, employees cannot be forced to a new location until they exhaust all seniority at their home location."

For the operating crafts, the agreement also says: "Provisions relating to seniority of all employees involved in the Consolidation or Coordination shall be integrated by agreement between the involved Carrier(s) and Organization(s) with disputes resolved by an Arbitrator. Train Service Rosters and Engine Service Rosters shall not be consolidated with each other."

The UTU represents 125,000 railroad and transportation employees, including locomotive engineers, conductors, trainmen, switchmen, yardmasters, bus operators, airline pilots, and other transportation workers. Its International headquarters are in Cleveland, Ohio.