Information of interest to operating railroad and transportation employees

For

STB concludes hearings on Conrail takeover

WASHINGTON – As expected, the Surface Transportation Board (STB) approved Monday the $10.2 billion acquisition of Conrail by Norfolk Southern Corp. and CSXT.

But there are some strings attached.

In approving the largest rail merger in U.S. history by a 2-0 vote, the STB mandated some conditions to the transaction in order to try not to repeat the debacle of the Union Pacific takeover of the Southern Pacific and to help some cities that will be impacted by the Conrail carve-up.

The three-hour voting conference disappointed some opponents of the deal, including Buffalo, New York City and Indianapolis, which gained some concessions but did not get all of the conditions they wanted.

The board gave labor some of what it wanted, including a statement that approval of the transaction does not give the buyers the automatic right to override labor agreements. Instead the STB urged negotiation and arbitration to resolved any disputes.

Labor also won a commitment that workers who were dismissed did not have to be forced to return to work in a different location because the company tried to transfer their seniority lists from one city to another.

Small railroads appeared to gain wider operating and pricing freedom and an "early warning system" was created to give the board information about the progress of integrating Conrail into CSX and NS. This system was a direct result of the problems on the UP. The reports from this system will not be available to the public and they will have to be supplied either weekly or monthly.

The STB increased its oversight of the deal from three to five years.

Small railroads will gain wider reciprocal switching and an opportunity to overcome restrictions on access that were built into contracts signed when the carriers were created.

The STB told CSX and NS that they will be closely watched in the future. The board accepted the carriers’ argument that they will create new competition, and will produce more than $1 billion annually in new benefits.

Other conditions include:

CSX will be required to negotiate with CP Rail System to give that carrier access to rail lines east of the Hudson River.

New England Central won new trackage rights in Massachusetts.

Ohio’s Wheeling and Lake Erie Railway gained some new service rights.

Indianapolis Power & Light gained a second railroad.

The board has until July 23 to file its written decision and definitive rulings.

SEPTA strike disrupts train service; stalemate continues

PHILADELPHIA – While trains are running normally today, yesterday striking transit workers picketed two key railyards Monday morning halting four regional trains when other union members refused to cross picket line.

However, until law, a judge ordered the non-striking workers back to work in time for the evening rush hour. Regional rail workers refused to cross picket lines "individually" because many said they feared for their safety.

Unions are not allowed to call actions under their contracts, but individual union members do not have to cross a picket line if they individually fear they might get hurt. The contracts for these unions prohibit walkouts, work stoppages or any other show of solidarity for strikes by fellow unions.

Nevertheless, because union workers did not cross TWU picket lines, 87 train runs as well as some lines were shut down Monday. As the strike continues in s second week, the Philadelphia area is without city trains, buses and trolleys because an impasse continues between Transportation Workers Union Local 234 and SEPTA.

Last week SEPTA refused to accept binding arbitration to help settle the strike, which prompted the Philadelphia Council AFL-CIO to blast SEPTA as "union busters."

No new talks have been scheduled.

On June 1, the 5,300 SEPTA workers represented by the Transportation Workers Union Local 234 went on strike because they have failed to reach a new contract after their old pact expired on March 15.

Mexico to cut back passenger rail service nationally

MEXICO CITY – Mexico’s railroad director said that due to the dramatic decline of passenger traffic on the national railways that the railroad will eliminated passenger rail service on all but five routes.

And that’s only because those five routes are the only means of transport at a passenger’s disposal.

The announcement stunned many in the Mexican public. But the government says that passenger traffic plummeted from 30 million two decades ago to only 4 million this year.

Possible French train strike could halt European freight traffic

PARIS – If a national railroad strike aimed primarily at passenger services takes place today, all rail traffic in Europe, including freight, could be brought to a halt.

French trade unions have called for a national railroad strike to begin today, a day before the World Cup soccer matches begin in France.

The strike would last until June 15, the unions say. This is another in a series of strikes paralyzing French transportation.

British track workers prepare to strike

LONDON – Workers who repairs Britain’s railroad tracks threatened Monday to strike for 11 days creating fears that travelers and commuters will face numerous delays and cancellations.

Union bosses said the workers would stop maintaining tracks for four days beginning June 19, then for seven more days beginning June 29.