UTU opposes Canadian National-Illinois Central merger

UTU opposes Canadian National-Illinois Central merger
STB brief says railroads haven’t taken care of major issues.

CLEVELAND (March 11) – The United Transportation Union (UTU) told the U.S. Surface Transportation Board (STB) that it continues to oppose the merger of the Illinois Central (IC) and Canadian National (CN) railroads.

"We have asked the STB to deny the takeover of the Illinois Central by the Canadian National Railroad for a number of serious reasons," said UTU International President Charles L. Little. "We intend to ask the Board when it’s our time to testify to stop this deal or make the Applicants do the right thing. We cannot afford another merger fiasco."

The STB is scheduled to convene hearings on March 18 about CN’s proposed buyout of IC. In a brief recently filed in advance of those hearings, the UTU said it had no reason to see the merger had any benefit to its members. The UTU, the largest rail and transportation union in North America, is the collective-bargaining representative for approximately 6,350 conductors, trainmen, and yardmasters on the two railroads.

"Nothing we have heard from the CN and IC," said Little, "gives the UTU any reason to believe that the contemplated transaction is intended for anything other than transferring wealth from the railroad workers to the stockholders and, in fact, to the officers of the two railroads."

Little said the UTU’s concerns regarding the merger include:

The substitution in toto of collective-bargaining agreements more favorable to management for those labor contracts considered more limited and costly and the rearrangement of seniority in a manner that is not a necessity to accomplish the merger.

The creation of jobs with longer hours of work and insufficient rest and railroad operations promoting fatigue and reducing safety. The UTU believes the actions of management so far belie any efforts to remove obstacles to safe operation. Therefore, UTU suggests that the STB should withhold any action herein until the FRA and the Board issue their rules in Regulations on Safety Integration Plans Governing Railroad Consolidations, Mergers, Acquisitions of Control, and Start Up Operations. UTU also submits the STB should not approve the transaction until these procedures have been followed and completed.

UTU is concerned that IC’s improper use of road switchers to replace yard workers will be adopted on GTW. This policy has resulted in fatigue and a poor quality of life for these adversely affected IC employees. UTU urges the Board to bar the use of road switchers on the merged carrier in light of the serious safety consequences this practice would have.

Little said the UTU requested that the STB require two conditions which should be included in any order of approval.

The first is that the CN and IC may not impose an entirely new, complete collective-bargaining agreement upon employees in the guise of being part of the implementing agreement. The only labor contract changes that may be made through the implementing agreement are those changes necessary to effectuate the merger and then only if necessary to obtain a non-labor related transportation benefit.

The second is that the Applicants must negotiate fairly and equitably with the representatives of the employees affected by the particular consolidation and coordination covered by the Section 4 New York Dock notice and the implementing agreement.

Little also said that safety is one of UTU’s major concerns in this merger, especially in light of the recent safety problems arising out of implementation of the Union Pacific ("UP")/Southern Pacific ("SP") merger transaction. He said that the UTU is worried about chronic fatigue and excessive hours on the IC and CN because of this proposed merger, and that the Applicant’s hiring chart causes some of UTU’s safety concerns, which must be remedied.

Little reiterated that the use of road switchers by IC is a great concern to UTU and has caused immeasurable fatigue problems on the IC.

"This plague should not be allowed to spread to the GTW," Little said, "and should be barred from the merged carrier to ensure safety of employees and the public in the implementation of this merger."

Little said that based on the STB’s actions in Canadian Pacific Limited, supra, STB Finance Docket No. No. 31700 (Sub-No. 13) supra, and Regulations on Safety Integration Plans, STB Ex Parte No. 574, supra, the proposed takeover of IC by CN must be rejected, particularly where applicants have acted since the filing of this case as if it had already been approved.

Little said that the UTU and its partner in affiliation, the Brotherhood of Locomotive Engineers (BLE), have both informed the STB that these preauthority actions in themselves are sufficient to dismiss the application.

As it did in the Conrail takeover by CSX and Norfolk Southern the UTU also seeks to ensure that the employees of Illinois Central and GTW will receive the full levels of protection constituting their "traditional rights" under New York Dock.

Little said the UTU is concerned that the applicants intend to transfer in toto and apply in a wholesale fashion the entirety of the Illinois Central collective-bargaining agreement to the GTW operations in the Chicago area.