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AAR reports record freight traffic for first half of 1998

WASHINGTON, D.C. -- The Association of American Railroads (AAR) said freight traffic on U.S. railroads set a record during the first six months of the year.

Carload freight for the first 26 weeks of the year, as of July 4, totaled 9.059 million cars, a gain of 2.4% from the first six months of last year and the highest level on record.

Intermodal volume, reported separately from carload freight, was up 1.1% from last year, the AAR said.

Amtrak adding trains between Chicago and Indianapolis

CHICAGO -- Amtrak is adding more passenger trains between Chicago and Indianapolis, with the Hoosier State train to operate three days a week between the two cities.

The carrier said that on three other days of the week, passengers will be able to ride Amtrak’s Cardinal route, which links the two cities by way of Washington, D.C.

As a result, Amtrak will now be providing six-day-a-week service between the two cities.

UP sees no reason for competitors’ STB filing

OMAHA -- The Union Pacific Railroad (UP) said yesterday that its review of papers filed yesterday with the federal Surface Transportation Board (STB) by rival railroads and shipper groups indicates there’s no basis for the conditions they are seeking, and that competition is "healthier" as a result of its merger with the Southern Pacific Railroad.

Burlington Northern Santa Fe (BNSF), a coalition of rail customers, smaller railroads and the Texas Railroad Commission, and others filed papers with the STB aimed at taking over some of UP’s service in the Houston area, claiming they are simply trying to provide relief to the congested rail center.

UP Chairman and CEO Dick Davison called the filings "opportunistic grabs" for key portions of UP’s operations.

UP, which said it would respond to the filings in detail on September 18, indicated that BNSF’s trackage rights business has doubled during the past year, and the Tex Mex Railroad’s share of Mexican traffic has also increased.

In its filing, BNSF charged UP with favoring its own trains on its congested lines, and asked the federal government to intervene.

SEPTA, TWU negotiations gain momentum

PHILADELPHIA -- As the strike by Transportation Workers Union (TWU) Local 234 against the Southeastern Pennsylvania Transportation Authority (SEPTA) entered its 40th day, those close to negotiations say the two sides are coming closer to an agreement.

Negotiators had three face-to-face sessions yesterday, the last one finishing just before 11 p.m., and bargaining was expected to resume today.

TWU business agent Bruce Bodner said late yesterday that seven issues remain to be resolved, and Pennsylvania’s Gov. Ridge offered to mediate talks.

According to the Philadelphia News, sources close to the talks said SEPTA, in a surprise move, had agreed to submit to binding arbitration its demand to hire up to 100 part-time bus and van drivers, as long as all other issues were resolved. Neither SEPTA nor TWU would confirm such a compromise had been reached.

Meanwhile, State Sen. Vincent J. Fumo (D) yesterday filed a defamation suit against the union, TWU Local 234 leader Steve Brookens, and TWU executive vice president Sabin Rich for allegedly slandering him last Tuesday. The suit, which seeks a total of $150,000 in compensatory damages and $15 million in punitive damages from the three defendants, contends Fumo was falsely accused by the three of attempting to bribe Brookens into accepting a contract and getting workers back on the job.

Fumo said he did not make any bribes, but did offer to raise $60,000 to make up for lost membership dues if the union accepted a proposal to cut new employees’ wages.

Also yesterday, TWU Local 234 held a rally at Progress Plaza in North Philadelphia attended by several hundred union members, as well as a number of high-profile religious and political leaders.

GM, UAW strike talks continue

FLINT, Mich. -- Negotiators for General Motors (GM) and the United Auto Workers (UAW), set to meet again today, gave conflicting reports after recessing from talks last night of their chances of reaching agreement by this weekend.

According to reports, UAW Vice President Richard Shoemaker said he would be "absolutely amazed" if a settlement were reached in the next few days.

In response to learning of Shoemaker’s remark, GM’s vice president for personnel said, "Then I’m going to try to amaze him."

At separate news conferences, the two each said progress had been made, but many significant issues remain to be ironed out before the two strikes crippling GM can be ended.

The strikes, which directly involve about 9,200 workers and indirectly have idled about 161,000 GM workers at 26 factories and more than 100 parts plants, have become the costliest for the world’s No. 1 automaker since a 67-day walkout in 1970. GM’s strike-related losses since the first walkout began June 5 have been estimated to total $1.18 billion.

Philadelphia AFL-CIO leader seeks National Day of Solidarity

PHILADELPHIA -- A Philadelphia-based labor leader has called on AFL-CIO President John J. Sweeney to sanction a nationwide day of support for workers striking against General Motors (GM) and the Southeastern Pennsylvania Transportation Authority (SEPTA).

Philadelphia Council AFL-CIO President Joseph Rauscher, in a letter to Sweeney, pointed out that both actions deal with basic conditions under which organized labor operates, and that the declaration of a National Day of Solidarity would help alert the public to "the destruction of workers’ rights," while demonstrating to elected office holders the strength and cohesiveness of organized labor.

Rauscher’s letter said "that the goal for many managers...is to eliminate the jobs, benefits and working conditions which have allowed working men and women to provide financial security and stability for their families. This effort which divides America along economic class lines must be stopped now if our country is to remain true to our ideals."