| UTU Daily News Digest |
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Information of interest to operating railroad and transportation employees |
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For |
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| Tuesday, September 1, 1998 | |
UTU-UNION PACIFIC HOTLINE: 1-800-964-9464 Clinton tells Slater to meet with Northwest, pilots union WASHINGTON, D.C. -- President Clinton on Monday directed Transportation Secretary Rodney Slater to meet with both sides in the Northwest Airlines strike in an attempt to jump-start stalled negotiations. However, Clinton showed no signs of reversing his decision not to use his presidential powers to intervene and order a halt to the strike. Slater scheduled a meeting in his office today with Northwest President John Dasburg; Randy Babbitt, the international president of the Air Line Pilots Association, and Steve Zoller, chairman of ALPA's Northwest chapter. Slater's "aim is to understand why the parties, which have said that they both wish to go back to the bargaining table, have not done so" since the pilots walked off their jobs at 11:01 p.m. Friday, said Bill Schulz, a spokesman for the secretary. Meanwhile, Minnesota Gov. Arne Carlson said he proposed to White House Chief of Staff Erskine Bowles that an independent analyst evaluate the financial effects of the union's contract demands on the airline. All sides appeared receptive to the idea, Carlson said. Pilot negotiators repeatedly have said that Northwest can afford the contract they have proposed, and the pilots' union has completed its own financial analysis of Northwest. Paul Omodt, a spokesman for the 6,200 striking pilots at Northwest, said today's meeting appears to be "a positive sign. . . . I think that using his good offices, and knowing our relationship with him, it could play a positive role." Northwest spokesman Jon Austin sounded a less-optimistic note. He said Northwest will "of course honor the secretary's request -- we'll meet with him any time he wishes." The economic effects of the Northwest strike were drawing close attention from top administration officials as they assessed whether the president should intervene, as he did 18 months ago to block an American Airlines strike. Clinton has authority to appoint a Presidential Emergency Board and order a 60-day cooling-off period if he finds that Northwest's shutdown is depriving some regions of essential air service. Slater briefed Gene Sperling, chairman of the National Economic Council, and other senior presidential aides on the effects on travelers on the first business day since Northwest's planes were grounded. In a command center at the Transportation Department, a crisis team scrambled to gather up-to-date information, surveying airlines and airports across the country. The department does not make public its analyses of the effects of airline and railroad strikes, partly because one or both sides in a contract dispute might use the information to tilt the negotiations. Meantime, both sides waged a publicity war. In other strike-related developments:
Union Pacific forms network design, integration unit OMAHA, Neb. -- Union Pacific Railroad unit formed a Network Design & Integration unit. In a press release Monday, the company said the unit will focus on establishing processes to ensure that the railroad's commitments match delivery capacity and its transportation network is being used efficiently. Brad King was named head of the Network Design & Integration unit, and Dennis Duffy was named head of the Operating Department. Both positions are effective Sept. 1. King, 50 years old, previously was responsible for the launch of Union Pacific's Harriman Dispatching Center and Risk Management organization. Duffy, 47 years old, previously was the head of Union Pacific's strategic initiative team. Union Pacific's Network Design & Integration unit will be formed largely from its existing Customer Service Planning & Delivery Department. Most current customer service functions will be phased into the new unit over the next few months, except its National Customer Service Center functions and its Crew Management operations. National Customer Service will report to Union Pacific's Vice President of Marketing. Crew Management will continue to report to the Operating department. The new unit will develop two-year business plans, which will be organized into three product groups: Manifest Products, Premium Products, and Bulk Products. Drew Collier was named vice president, Manifest Products. He previously was head of Agricultural Marketing. Paul Conley, who was a Trailer Train board member and part of the AVP Law Department, was named vice president, Premium Products. Joe O'Connor was named vice president, Bulk Products. O'Connor previously was corporate controller. Gulf shippers say theyre still suffering Union Pacific woes HOUSTON -- Shippers along the Texas Gulf Coast say they're still suffering at the hands of Union Pacific. The Omaha-based railroad says it's making some changes designed to speed up the recovery process. The company plans to restructure its management team and put more employees with authority in the field. The new group will handle manpower and asset allocations. It's all an effort to relieve a backlog of complaints related to shipping congestion. Amtrak, 9-state group releases report on Midwest network CHICAGO -- Amtrak and a consortium of nine state Departments of Transportation released a draft report outlining the benefits of a Midwest regional passenger rail network. In a press release Monday, Amtrak said it participated in the study with the Federal Railroad Administration and the states of Illinois, Iowa, Indiana, Michigan, Missouri, Nebraska, Ohio and Wisconsin. Amtrak said the study envisions an expanded passenger train network with a Chicago hub serving as a catalyst for economic development along the rail corridors and at rail passenger stations. The study also forecasts an increase in manufacturing jobs due to new train construction and rehabilitation of railroad tracks. With sufficient capital investment, the rail system could begin operations in 2003, with full implementation by 2006. The report projects nearly eight million passengers annually would use the system once fully operational. The report also expects the system to realize an operating surplus that could be used to partially offset the capital investment costs. Illinoisans could be speeding from Chicago to Saint Louis at 110-Miles-an-hour by the year 2003. State officials have received Amtrak's estimate of $3.5 billion dollars to build a high-speed rail system across the Midwest. The system would use Chicago as a hub to run trains to nine states including Michigan, Minnesota, Missouri... and even as far west as Nebraska. The bulk of the money would be spent to upgrade the existing rail system. A further study is needed to determine just how much of that money will come from the federal government, and how much from the states. The trains would also connect Cleveland, Cincinnati and Toledo with Chicago, Minneapolis, Detroit and other cities. The Iowa Department of Transportation says they're looking at the possibility of a route from Chicago to Omaha with stops in the Quad Cities, Iowa City and Des Moines. Amtrak already runs a route through southern Iowa. BNSF Main rail line reopens GLACIER NATIONAL PARK, Mont. -- The main rail line between Seattle and Chicago reopened Monday afternoon, two days after being blocked by a freight train derailment at the southern edge of Glacier National Park. Workers cleared the wreckage and repaired the tracks after 27 carloads of wheat and barley derailed Saturday evening, said a spokesman for Burlington Northern Santa Fe in Seattle. The cause was still under investigation. Nobody was injured. Burlington rerouted its freight trains, but Amtrak was forced to bus passengers between Shelby, which is east of the park, and Spokane, Wash., about 400 miles away. RailAmerica creates new unit BOCA RATON, Fla. - RailAmerica Inc. has created a new subsidiary, Ventura County Railroad Co. VCRR has signed a long-term lease and purchase agreement with Martin V. Smith & Associates to operate the Ventura County Railway, 13-mile short line serving the Port of Hueneme and the Oxnard Harbor District in Oxnard, Calif. Details of the agreement were not disclosed. Oxnard is about 50 miles north of Los Angeles. Originally established in 1906, Ventura County Railway currently moves approximately 4,000 carloads of ship-to-rail port traffic annually, including finished autos, chemicals, plastic and paper products. Traffic from the line interchanges with the Union Pacific Railroad at Oxnard. VCRR, which begins operations today, said day-to-day running of the new line will be managed by L. D. "Bim" Burt, a 31-year railroader formerly with the Burlington Northern Santa Fe Railroad. VCRR's general offices are based at the Port of Hueneme. The new company also purchased locomotives, vehicles and other equipment from Ventura County Railway. RailLink buys back shares EDMONTON -- RaiLink Ltd. said it has received approval from the Toronto Stock Exchange for a buyback of up to 405,130 common shares, or about 5% of the company's outstanding shares. In a press release, the company said the buyback will begin Wednesday and will end by Sept. 1, 1999. |
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