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USDOT favors extending UP’s federal oversight

KANSAS CITY, Mo. -- U.S. Transportation Secretary Rodney Slater said Monday he favors extending special emergency federal oversight of Union Pacific railroad.

"I think that a lot of good has come from the order as it has gone into effect. We do have some distance to go here," he told reporters in a news conference during a break in the National Agricultural Transportation Summit here. "Our opinion and our recommendation would be to extend the order."

Late last summer, grain movement slowed to a crawl as rail car shortages and overwhelming grain supplies crippled the nation's rail system. In an unprecedented move, the federal Surface Transportation Board issued an emergency order Oct. 31 that required Union Pacific to divide some of its Gulf Coast customers among its rivals and to provide the agency with frequent and detailed service and traffic reports.

That emergency order expires Aug. 2, but many are lobbying for an extension because they say the congestion and traffic problems that led to the order aren't resolved.

But Union Pacific's own filing with the STB last week conceded that service has fallen far short of rebounding to pre-crisis levels, with trains running more slowly than they were a year ago and efficiency still lagging.

Many critics blame the $5.4 million merger of Union Pacific and Southern Pacific in 1996 - creating the nation's largest railroad - for the debacle.

U.S. Agriculture Secretary Dan Glickman has long been a critic of railroad concentration, saying it reduces competition.

Glickman said although he believes the rail situation may be better this year than last, the "problems are still there" and "I would hate to see the Surface Transportation Board back away from what they did on the basis that the problem has been resolved."

SEPTA workers okay pact

PHILADELPHIA -- Two weeks after ending a 40-day transit strike, TWU Local 234 members overwhelmingly ratified a contract last Friday.

About 3,430 of the 5,500 eligible voters cast 75% of their votes in favor of the contract. The pact gives them a 9% pay hike over 3 years, higher pensions and a no-layoff clause. It also grants managers more power to fire drivers who fail drug and alcohol tests.

However, the contract still must be ratified by SEPTA’s board and disagreements over part-timers and workers’ compensation remain.

Carey banned from Teamster membership

WASHINGTON -- Ron Carey, who rose to the Teamsters presidency as a self-proclaimed reformer, is banned from union membership for life after a federally appointed board found him responsible for an illegal scheme that used union funds to boost his re-election.

The decision made Monday by the Independent Review Board effectively ended Carey's three decades as a union officer, during which he acquired a public reputation for integrity.

The three-member board split over whether Carey willingly participated in the scheme or merely was negligent in letting it occur around him.

Carey was accused of participating in a scheme that used $885,000 in union political donations to third-party groups to leverage contributions to a committee established by his campaign. His former campaign manager and two consultants pleaded guilty to federal charges stemming from the plot, and the union's former political director has been indicted.

Former U.S. District Judge Frederick Lacey offered a harsher view. ``Unlike my colleagues, I find that Carey did know that the contributions were to result in a benefit to his campaign fund raising,'' Lacey wrote in a concurring opinion.

William Hamilton, the union's former political director, also was barred for life from joining or working for the union. Federal prosecutors continue investigating the matter.

No Settlement, Talks Continue in GM Strikes

FLINT, Mich.- General Motors Corp. and the United Auto Workers "still have work to do," company and union representatives said late on Monday, signaling that an end to a pair of strikes is not close.

Monday, one day after talks shifted into high gear, top-level GM and UAW bargainers met among themselves and with each other at a hotel outside of Flint.

Negotiations were also ongoing at the Flint Metal Centre and Delphi East parts plants, which together have 9,200 UAW members on strike. The Flint Metal walkout, the longest of the two, stretched into its 54th day Tuesday.

The strikes have cost GM more than $2 billion, analysts estimate, and idled 25 of its 29 North American assembly operations. Before two assembly operations were restarted Monday, the strikes forced the layoffs of almost 193,000 nonstriking North American workers.

UAW Vice President Richard Shoemaker, who said early on Monday significant issues remain to be solved, declined to comment on the talks in one informal session with reporters. UAW President Stephen Yokich also refused to discuss the bargaining.

Progress had been reported over the weekend, prompting GM to bring disputed stamping machinery back into the Flint Metal Centre. It led to speculation that a settlement was around the corner.

Meantime Monday, GM restarted production at its Corvette plant in Bowling Green, Ky., and sport utility factory in Silao, Mexico, by using alternatively sourced parts.

Both sides are also waiting for a ruling from independent arbitrator Thomas Roberts on GM's allegations the Flint strikes are illegal.

Community college offers course on railroad operations

SACRAMENTO – Sacramento Community College will offer the only railroad operations conductor/engineer certificate of achievement program west of Kansas beginning next month.

The course costs $144.00. After completing the core classes, students will travel to Overland Park, Kan., to complete a six-week internship at Johnson Community College, which is an additional cost. After conclusion of the classes at Johnson, students will secure employment with a railroad to complete an 18-week on-the-job-training internship.

Teamsters, Overnite step up talks

NEW YORK -- With strike threats in the air and a public stock sale expected in the near future, Overnite Transportation Co. and the Teamsters union apparently have agreed to step up the intensity of contract negotiations before either a walkout or the share-offering occurs.

The union released a statement Friday saying talks would be accelerated with the intention of reaching an agreement. Incentives for the talks to pick up flow from two directions. The union is completing strike votes at the 22 terminals where it represents drivers, dock workers and other employees. Earlier this month, the union staged one-day walkouts at four terminals.

Meanwhile, Overnite, owned by Union Pacific Corp., is winding up a multi-city "road show" this week. Their presentations showcased the company's planned stock offering, which could come as early as Friday.

After 109 bargaining sessions between the parties during the past three years, the union and Overnite have not reached agreements at any of the 22 terminals where the Teamsters won representation elections.

IAM now sets target on Continental

WASHINGTON -- Right on the heels of their organizing victory at United Airlines, where nearly 19,000 passenger service and reservation agents said "Union Yes!", the Machinists are working with Continental Airline ramp workers who are seeking the respect and security of a union contract.

The IAM represents the airline’s flight attendants and the 8,000 "rampers" have long sought union representation.