BLE Misinforming Members?

UTU Members are eligible for
BLE 401K plan on former Conrail Properties

Contrary to erroneous information apparently coming from some Brotherhood of Locomotive Engineer officials, BLE membership is not required of employees in engine service who wish to participate in the BLE 401(k) Savings Plan on former Conrail properties.

However, the UTU International continues to receive reports from the field that some BLE officials on those properties are touting the "BLE Plan" as a savings vehicle for BLE members only.

UTU Local 982 Chairperson David Murphy reports that just recently, UTU members were being told, "You have to belong to the BLE to participate."

Murphy said that at big terminals, like in Selkirk, N.Y., the BLE is apparently using the savings plan as a recruitment tool to convince train service personnel being promoted to engine service to join the BLE. "They’re also telling this erroneous information to new transportation employees," he said.

The information is not true says UTU Designated Legal Counsel Gerald B. Chattman. "Members of the UTU working in engine service at former Conrail properties are eligible to participate in the BLE Plan, and if they are told anything to the contrary, they should call the UTU to investigate the matter," he said.

Chattman, who is a partner in the firm of Chattman, Gaines and Stern, filed suit against the BLE and Conrail last year in a U.S. District Court in Ohio on behalf of UTU members employed in engine service who were excluded from participating in the program.

"This was discrimination, and we said either put us in, or give us a new plan," Chattman said.

The case was settled prior to reaching the courtroom and the UTU was made a party to the settlement.

Paragraph three of the settlement reads: "The parties agree that all locomotive engineers employed by Consolidated Rail Corporation ("Conrail")…shall be eligible to participate in the BLE (401)k Savings Plan ("the BLE Plan"), beginning with plan year 1998, without regard to whether they are members of the BLE."

Unlike the Conrail 401(k) Plan, the BLE Plan called for Conrail to match pre-tax contributions to the savings plan, up to 2%, in the form of company stock, to the extent allowed by law.

Approximately 450 UTU members on Conrail who were employed in engine service prior to December 31, 1998, and had participated in the Conrail Plan were allowed to transfer funds being held in their account with the Conrail Plan to the BLE Plan, upon written request.

UTU members now working on CSX or Norfolk Southern who receive promotion to engine service are also eligible to participate in the BLE plan.

"We need to spread the word so that newly hired and promoted engine service members understand that we fought for and succeeded in the right to have them included in this program," said Murphy.

The BLE Plan is administered by Merrill Lynch.

UTU members employed in engine service on either CSX or NS who would like to participate in the BLE Plan should contact Merrill Lynch and request an enrollment kit for the BLE 401(k) Plan. The telephone number is 1-800-229-9040.

An automated voice system will then request a social security or account number, but if one is not entered, the caller will be connected with an operator who can assist him or her.

Members may also contact their local chairperson for more information.

"If any UTU member has questions about the plan," added Chattman, "they can call us, and we’ll straighten out any type of misconception."