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Philadelphia transit strike on in full force; non-union trains possible

PHILADELPHIA – The Transportation Workers Union went on strike at noon yesterday as promised because they have failed to reach a new contract with SEPTA.

The 5,300 workers of TWU Local 234 walked out at noon yesterday because of the impasse in negotiations and because they have been working without a contract since March 15. This is SEPTA’s second strike in three years and fifth since a record 44-day in 1977.

About 280 SEPTA drivers and trolley operators represented by the United Transportation Union Local 1594 in Upper Darby, Pa., had approved a three-year contract with SEPTA in early April.

For the first time ever, SEPTA is gearing up to provide citywide transit service in the midst of a labor strike using nonunion workers. Under a plan devised months ago, SEPTA’s management employees would operate the system’s three biggest components: the Broad Street subway, the Market/Frankford El and the subway surface trolleys.

Cleveland, Norfolk Southern reach deal on Conrail carve up

CLEVELAND – The City of Cleveland and the Norfolk Southern Corp. reached a deal Monday that would reduce some train operations and provide for environmental-mitigation measures for the city.

NS will provide Cleveland with $10 million -- $2 million a year for 5 years – for a community fund to reduce noise, improve safety and help abate the environmental impact.

In addition, NS will spend $27 million to build rail connections that will divert about 8 trains a day from residential neighborhoods.

CSX and the City of Cleveland have not yet reached an agreement on the eve of hearings about the Conrail carve up.

If train traffic increases above 26 service daily, NS will have to pay another $2.6 million for additional protection.

Conrail breakup hearings set to begin Wednesday

WASHINGTON – More than 100 supporters and opponents of the $10 billion Conrail buyout by Norfolk Southern and CSX will be here Wednesday for the first of two days of hearings at the Surface Transportation Board (STB) into the deal.

Approval of the Conrail deal is expected, but industry insiders say the STB will be under pressure to impose sufficient conditions to protect rail transport east of the Mississippi River.

The bungled Union Pacific-Southern Pacific merger is casting a pall on the Conrail deal because of the severe problems in has caused west of the Mississippi River.

Union Pacific’s top financial officer quits

DALLAS – Union Pacific Corp.’s chief financial officer resigned from the carrier "to pursue other interests," the company said.

L. White Matthews III resigned yesterday after a 21 year career with the UP, including 10 as CFO.

Gary M. Stuart, who is currently UP’s treasurer and vice president, will replace him.

The troubled carrier last week warned investors that it expects its third straight losing quarter as a result of one of the worst rail freight traffic jams in U.S. history.

UP said Matthew’s resignation was unrelated to the company’s current financial problems.

Russian miners begin getting paid

MOSCOW – The government paid three months back wages to miners in the Kuzbass region, who stopped worked and blocked rail lines because they haven’t been paid in years.

Last week’s collapse of Russian financial markets has been blamed in part on the repercussions of a 10-day strike by coal miners who paralyzed much of Russia’s vast rail system because in some cases they haven’t been paid in six months to a couple of years.

The miners still have not been paid all they are owed.