UTU News Digest - Wednesday, May 26, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Wednesday, May 26, 1999

WASHINGTON, D.C.: CN/IC merger receives final U.S. approval

WASHINGTON, D.C. -- The merger of Canadian National Railway (CN) and Illinois Central Corporation (IC) yesterday received final, written approval of the U.S. Surface Transportation Board (STB).

The decision was consistent with the STB's March 25, 1999, voting conference and is effective June 24, 1999. To date, agreements designed to implement the merger have been signed with unions representing 67 per cent of the organized workforce of CN and IC in the U.S.

CN said a step-by-step integration of the railroads will start July 1, 1999, with safety and continuity of service at the forefront of integration plans.

Plans call for a new divisional structure designed to focus the rail system's operations and marketing groups squarely on customer needs and traffic growth while securing the efficiencies of the merged company. A new corporate structure took effect May 1 in Canada and will be implemented July 1 in the U.S.

The end-to-end merger of CN and IC at Chicago promises shippers integrated, single-line service in fast-growing North American Free Trade Agreement corridors, new routings and gateway choices, and quicker, more efficient handling of freight shipments around and through the busy Chicago rail hub.

"The STB's written decision, like the agency's voting conference of March 25, affirms our view that the merger will increase competition in major North American transportation markets," CN President and Chief Executive Officer Paul M. Tellier said. "It also recognizes and supports the competitive merits of the marketing alliance CN, IC and Kansas City Southern Railway Company launched in April 1998. Of particular significance to me is that the STB's decision will permit us to realize the fundamental economic benefits envisaged for the CN/IC merger. We commend the STB for its thoughtful handling of the merger proceeding."

After taking control of IC, CN will have 16,700 route-miles (26,720 route-kilometers) of track, 23,500 employees and annual revenue of C$5.2 billion (US$3.5 billion).

CN launched its acquisition of IC on Feb. 10, 1998, and CN and IC filed a joint merger application with the STB on July 15, 1998.

The operational integration of CN and IC will occur over a one- to three-year period. CN said key steps include the following:

-- Centralized coordination of network operations, power distribution and car fleet allocation will commence in July 1999. This will simplify car interchange at Chicago, improving car transit times and productivity. No immediate changes will occur in front-line supervision or basic processes such as car ordering, car releasing and tracing. Future changes will be introduced and communicated to employees and customers well in advance of implementation.

-- A staged integration of CN and IC information technology (IT) systems will start July 1, with minor changes being made initially to allow the post-merger rail system to coordinate activities and share information. CN's and IC's IT systems will continue to operate separately until July 2000.

-- CN's Service Reliability Strategy (SRS) information system will replace IC's Traffic Control System (TCS) in July 2000. In the interim, an Interline Service Management System will link the two information systems for car tracing and estimated time of arrival for shipments.

-- Customers initially will continue to deal separately with CN and IC for electronic commerce, specifically for service requests, bills of lading, freight invoices and payments. Systems integration will be tested and implemented by July 2000, after which all CN and IC e-commerce will be available through a single source.

-- The post-merger rail system will retain dedicated account managers who will work closely with operations and service representatives. Major shared accounts will have the option of a single point of contact starting July 1, with all shared customers having that option by July 2000.

Canadian National operates track in eight provinces and six U.S. states, with principal routes to every major metropolitan area in Canada and to the major U.S. rail hubs of Buffalo, Detroit, Duluth/Superior, Wis., and Chicago. CN is North America's only transcontinental railroad, and Canada's largest railroad serving all five major Canadian ports on the Atlantic and Pacific oceans and the Great Lakes.

Illinois Central, whose principal subsidiary is the Illinois Central Railroad Company, operates track running north-south between Chicago and the Gulf of Mexico, and east-west between Chicago, Iowa and Nebraska. IC's main north-south route reaches the major metropolitan areas of St. Louis, Memphis, New Orleans and Baton Rouge, La. IC's east-west route extends from Sioux City, Iowa, and Omaha, Neb., to Chicago.

WASHINGTON, D.C.: Senate subcommittee okays Amtrak budget request

WASHINGTON, D.C. -- The Senate Transportation Appropriations Subcommittee chaired by Richard Shelby (R.-Ala.) yesterday approved Amtrak's full budget request for fiscal 2000.

Amtrak, the nation's passenger railroad, would get $571 million, $38 million less than this year, from a $48.9 billion transportation measure. The money approved for Amtrak could be used by the carrier for capital funding plus the full "transit definition" of allowable capital spending, which means capital funds could go to both maintenance of equipment and maintenance of way.

The full Senate Appropriations Committee is expected to act Thursday, May 27, 1999. The House Transportation Appropriations Subcommittee is also expected to act Thursday, but that could slip beyond Memorial Day due to other legislative matters. Conservative discontent with Republican leaders over spending legislation is slowing House debate over an agriculture bill, creating new uncertainty about how Congress will complete its spending work this year.

Things are less chaotic in the Senate, where subcommittees approved a $21.2 billion bill Tuesday covering energy and water programs, plus transportation measure. But GOP leaders there are unsure how must-pass spending bills can be approved that, under budget limits, are supposed to be $24 billion below this year's levels for domestic programs.

The spending restrictions in Congress' budget mirror spending reductions promised in the 1997 budget-balancing deal between Clinton and Congress.

The energy and water bill would spend $100 million less in the next fiscal year than this year and $400 million less than Clinton wanted. The transportation measure would spend $1.6 billion more than this year, but that's $1.3 billion less than Clinton proposed.

Those wishing to express their support for Amtrak can reach the Capitol Switchboard at 202/224-3121, or visit the web site at <http://www.narprail.org/links.htm#congress> for ways to make contact with lawmakers by e-mail.

INDIANA: CSX reopens rail line between Hobart and Gary, Ind.

JACKSONVILLE -- CSX Transportation Inc. (CSXT) is cautioning motorists in Indiana’s Lake and Porter counties to be aware of trains moving on the recently reactivated rail line between Hobart, Ind., and Gary, Ind., beginning June 1.

The line was reactivated by CSXT as part of the acquisition of Conrail. CSXT spent $6.5 million to rehabilitate the line between Hobart and Clark Junction formerly owned by Norfolk Southern, which will be used by CSXT as an alternative rail route between Chicago and Greenwich, Ohio, via Ft. Wayne. The rehabilitation included reconstruction of a connection at Tolleston, Ind., between the line and an adjacent Conrail line that will become part of CSXT on June 1.

After June 1, the line between Hobart and Tolleston will be used by approximately five trains per day, predominately for unit-train movements of grain and coal. Rehabilitation of the remainder of the line between Tolleston and Clark Junction will continue through July.

CSXT and the Indiana Department of Transportation have cooperated on reactivating grade-crossing warning devices on the previously inactive portions of the line. CSXT installed new warning devices at 19 crossings, returning them to the level in place when the line was deactivated approximately 10 years ago.

CSXT has conducted a public awareness campaign about reactivation of the line, including signs at affected crossings and a public education effort conducted by representatives of Operation Lifesaver, a non-profit organization dedicated to raising awareness about highway-rail crossing safety.

"CSXT reminds all motorists and pedestrians that trains may travel in either direction on any track," said Franklin E. Pursley, vice president- operations support and safety integration officer. "We urge drivers to exercise caution, obey all warning devices and look in both directions before proceeding through a highway crossing."

CSXT and its 28,000 employees provide rail transportation and distribution services over an 18,300 route-mile network in 20 states, the District of Columbia and Ontario, Canada. With the integration of Conrail, CSXT will continue to be the largest railroad in the Eastern United States, with a rail network spanning more than 22,000 route miles in 23 states and two Canadian provinces. CSXT is a business unit of CSX Corporation (NYSE: CSX), headquartered in Richmond, Va.

NEW YORK: Bombardier receives contract for LIRR/MTA commuter rail cars

NEW YORK CITY -- The Metropolitan Transportation Authority (MTA) and Long Island Rail Road (LIRR) have awarded a contract to Bombardier Transportation for the supply of 192 electrical multiple unit (EMU) commuter cars to begin replacement of its M-1 commuter car fleet.

The contract is valued at $445 million and calls for the design, manufacture and delivery of new M-7 commuter cars. The contract includes options for up to 808 additional EMU commuter cars that would be supplied to both MTA commuter railroad agencies, the LIRR and Metro North Railroad (MNR). Should all options be exercised, the total contract would be valued at $1.85 billion (US).

The MTA commuter agencies together are the largest commuter railroad network in North America, serving more than 500,000 riders every weekday.

The M-7 stainless steel carbodies will be fabricated at Bombardier's La Pocatiere, Quebec plant with final manufacturing and assembly at the Plattsburgh, NY plant. Manufacturing will begin 12 months following Notice to Proceed, and deliveries to the LIRR will begin in the second quarter of 2002 and will run through the second quarter of 2003.

Bombardier, through its comprehensive supplier network in New York State, will maximize New York State content for the M-7 program. It is estimated that the production work will generate some 500 job years at Bombardier facilities in the U.S.

The M-7 vehicles will incorporate advanced technologies. Areas of special design concentration include seating, toilet facilities, wheelchair passenger accessibility, and communications equipment. The stainless steel vehicles will be fully motorized married pairs, each having a full-width operator's cab at each end and capable of operating at speeds up to 100 mph. The cars will utilize state-of the-art technology, including IGBT propulsion, energy efficient dynamic braking, on-board monitoring, and diagnostic systems.

Bombardier Inc. is a Canadian corporation active in the fields of aerospace, rail transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in 12 countries in North America, Europe and Asia, and more than 90% of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1999 totaled $11.5 billion (CAN).

MARYLAND: Finalists picked for maglev projects

BALTIMORE -- U.S. Department of Transportation (DOT) Secretary Rodney Slater Monday announced the finalists in seven states who are in the running to build the nation's first magnetic levitation train, a high-speed rail system that promises to relieve congested highways and airports.

Making the announcement at the B&O Museum, with vintage locomotives and boxcars as the backdrop, Slater said the seven "maglev" finalists were in California, Florida, Georgia, Louisiana, Maryland, Nevada and Pennsylvania. Four others -- one each in Colorado and Virginia and two in Alabama -- were rejected for unspecified reasons.

The seven selected projects will get $12 million combined in grants for further studies on their feasibility, and one will be chosen next year for development and construction.

"We must get people out of the autos, off the highways," said Maryland Gov. Parris Glendening. "The only way we can do that is to have an acceptable alternative."

His state was designated a finalist for a Baltimore-Washington route expected to take 16 minutes, down from the current 35 minutes.

Joe Cioletti, manager of systems engineering with Maglev Inc., which is proposing a Pittsburgh-to-Philadelphia route, said maglev would offer advantages over airports by directly serving the city's downtown.

The trains, using electromagnetic forces to lift the train above ground and free it of speed-reducing friction, could run about three times the speed of conventional trains.

Maglev systems are already being tested in Germany and Japan, but no such system is in commercial service anywhere in the world. Critics say that while the technology works in test settings, many questions remain over full-scale operations and costs.

A transportation law last year authorized $1 billion to build one maglev system, but Congress still needs to appropriate most of that money. A U.S. maglev is not expected in full service for at least a decade, Slater said.

Maglev operates on basic magnetic principles: When two magnets are put together, opposite poles attract, similar ones repel. Either magnetic attraction or repulsion can be used to lift or push the car above the guideway. In both cases, the train moves as the magnetic field travels along the guideway.

To qualify for construction funding, sponsors must be able to show that trains will reach speeds of at least 240 mph, about three times the top speeds on most Amtrak routes. Researchers believe the trains can hit 310 mph.

Amtrak is expected to reach about half of maglev's theoretical speed when the 150-mph Acela trains are introduced between Washington and Boston later this year. Trains already run at 125 mph along the heavily traveled Northeast Corridor.

"Amtrak's approach is the incremental approach where we invest in existing rights of way," said Amtrak's Clifford Black. "It remains to be seen whether (maglev) technology will justify its costs."

Nevertheless, he said Amtrak was open to embracing the technology later once it is proven. For now, the projects are being pushed by state, regional and business leaders, who would have to come up with one-third of any costs.

AFL-CIO Work in Progress: May 24, 1999

New Members reported in this week's WiP: 1,672

New Members reported in WiP, 1999: 142,563

DESERT BLOOMS -- Seeking a voice in a pending merger, 507 service providers at Southwest Gas in Arizona turned to Electrical Workers Local 769. The workers help supply gas to parts of Arizona, California and Nevada. They got a boost when union members from as far as 120 miles away rallied to their support at the company's headquarters in Phoenix. The Arizona State Federation, the Central Arizona Labor Council, the Maricopa County Chapter of the Coalition of Labor Union Women and the IBEW international office cooperated on the successful organizing campaign, which the workers won 265-221.

TAKING CARE -- Some 798 health care workers chose SEIU in recent organizing wins. In Brockton, Mass., 400 aides and ward clerks at Good Samaritan Hospital are the newest members of SEIU Local 767. In West Virginia, 235 home care aides employed by Wayne County Community Services joined District 1199WO. Despite a virulent anti-union campaign, 98 workers at Meriden Nursing Center, owned by Genesis Eldercare, joined District 1199NE in Connecticut. And Local 150 now represents 65 employees of Extended-care nursing home in Mayville, Wis.

BETTER THAN A MINT ON THE PILLOW -- Hotel Employees & Restaurant Employees locals in Chicago, Minneapolis, Washington, D.C., and Vancouver are bringing the union advantage to 453 new members after several recent successful organizing campaigns. Some of the wins include a card-check victory for Local 1 in Chicago at the Raphael and Tremont hotels for 100 workers; 45 new members at the Dorchester Inn Hotel for Vancouver's Local 40; and 20 workers at All Right Parking in Washington, D.C., now members of Local 27.

RING THIS UP -- By a 2-1 margin, commissioned sales workers at Roberds Inc. furniture stores voted to join UFCW Local 1099 May 15. The 225 workers are employed at seven of the Dayton-based chain's stores in Ohio and Indiana.

CLEANING UP -- Seventy-five workers who keep the Newark Airport spic and span recently joined Retail, Wholesale and Department Store Union Local 262 in New Jersey. The mid-May vote was a resounding 50-0. "We are very pleased with the vote," said Business Agent Bill Ross. "It proves to the employer that the workers are united in their fight for better conditions." RWDSU is affiliated with the Food and Commercial Workers.

DIG THIS VICTORY -- Despite an anti-union campaign and logistical difficulties in organizing workers one by one across Wisconsin, 72 underground utility locators at Central Locating Service Limited voted for Electrical Workers Local 2150. The company runs a hot line for people doing residential and commercial excavating.

MECHANICS TUNE UP WIN -- Concerned about the cost of health insurance and capricious work rule changes, 39 truck mechanics at Wise International in Cleveland joined Machinists District 54 this month. To counter the company's daily phone calls to the employees' homes, the workers' spouses were invited to membership meetings.

MIDWESTERN PROGRESS -- The Laborers Midwest Organizing Project signed a voluntary recognition contract with West River Masonry of Black Hawk, S.D., the first such contract in the western part of the state in 20 years. The contract brings 17 new members into LIUNA Local 205.

DRY DOCK -- Hours after receiving an urgent request by the Steelworkers last week, the federal Occupational Safety and Health Administration launched an inspection of Newport News Shipbuilding in Virginia to investigate a rash of alleged safety lapses since the union struck April 5. At the request of the Federal Mediation and Conciliation Service, the two sides are scheduled to meet today. Meanwhile, at Ingalls Shipbuilding Inc. in Pascagoula, Miss., nearly 7,500 union workers rejected the company's contract offer and set up picket lines at the shipyard last week. The unions are the nine unions of the Metal Trades Council, Electrical Workers Local 733 and Machinists Local 1133. Ingalls' parent, Litton Industries, has made a bid to purchase the Newport News and Avondale shipyards.

VOTE FOR THE UNION LABEL -- Working families banded together and put six of their own on the Groton, Conn., City Council and into other municipal offices in elections this month. The four active union members and two members of union households ousted the Republican mayor and GOP-led city council. The Southeastern Connecticut Central Labor Council and its local unions rallied working families through door-to-door visits, phone banks, union gatherings and mailings. John Olsen, Connecticut AFL-CIO president, said the election was a "successful blueprint for 2000 in 2000," labor's drive to put 2,000 union members on the ballot in 2000. The winners are new mayor Dennis Popp, Marine Draftsmen Association/UAW Local 571; and council members Paul Duarte, Groton Municipal Employees Association/ SEIU; Beverly Herbert, AFSCME Local 2663; Charles LeMothe, IBEW Local 90; and Scott Beeney, from a family with Carpenters members. Deb Patrick, whose husband is a member of Steelworkers Local 9411, won the city clerk's race.

EXEC'S BONUSES BUMPED -- After pressure from Flight Attendants and other workers at US Airways' annual meeting in Charlotte, N.C., last week, Chairman Stephen Wolf conceded to AFA demands that he and CEO Rakesh Gangwal renounce bonuses of up to 500 percent of their base salaries. The pair earned $34 million and $36 million respectively in total compensation last year, more than the CEO compensation at American, Delta and United airlines combined. The 9,000 Flight Attendants have sought a new contract since early 1997 and are being asked to make sacrifices in negotiations to save the company money.

UNIONS, KAISER SEEK SAFE NEEDLES -- The Coalition of Unions at Kaiser Permanente and Kaiser, the nation's largest HMO, are backing new federal legislation to require the use of safer needles and other sharp instruments in health care facilities. About 1 million health care workers a year are unintentionally stuck and about 1,000 contract HIV, hepatitis B and C and other infectious diseases. The bipartisan bill, introduced last week, is H.R. 1899. AFSCME, AFT, Kaiser Permanente Nurse Anesthetists Association, Office and Professional Employees, Professional and Technical Engineers, SEIU, UFCW and Steelworkers are the coalition unions that represent 50,000 Kaiser workers.

WORKING WOMEN SPEAK OUT -- The AFL-CIO's Working Women's Department hosted two more Ask A Working Woman forums as part of a series leading up to a national conference in Chicago next March. Yesterday, House Minority Leader Richard Gephardt (D-Mo.), Rep. John Tierney (D-Mass.) and Massachusetts AFL-CIO Secretary- Treasurer Kathleen Casavant joined a group of women in Boston to discuss equal pay, child care, health care and Social Security. Today, working women got together in Baltimore with Maryland Lt. Gov. Kathleen Kennedy Townsend, AFL-CIO President John Sweeney and Working Women's Department Director Karen Nussbaum.

REPETITIVE MOTION: GOP BLOCKS SAFETY -- Ignoring years of research, several scientific studies and millions of annual workplace injuries due to repetitive motion, the House Workforce Protection subcommittee approved (along party lines) a Republican bill (H.R. 987) to halt OSHA's ergonomic rule-making until yet another study is completed. A similar bill was introduced last week by Sen. Kit Bond (R-Mo.). For many years, OSHA's efforts to develop ergonomic rules were stymied by GOP riders on spending bills that banned the safety agency from using the appropriated funds to develop such rules. The new study, backed by both big business and industry groups, is expected to take about two years.

FAST FOR JUSTICE -- Maria Elena Durazo, president of Hotel Employees & Restaurant Employees Local 11 in Los Angeles, ended her 11-day fast in support of more than 350 University of Southern California workers who have been struggling to win a contract with USC for four years. When Durazo ended her fast May 20, State Assemblyman Gil Cedillo took over, and other union, religious and community activists have signed on to join the protest. Durazo and others began a scheduled five-day fast May 10, but she decided to carry on further.

A HIT OR A MS.? -- What do Hillary Clinton and right-wing Rep. Bob Barr (R-Ga.) have in common? Both are on the Coalition of Labor Union Women's Hit and Ms. List. The first lady tops the "Ms. List" for people who have advanced the causes and images of women, while Barr takes his place on the "Hit List" for those who have hindered the advancement of women. Others on the Ms. list include Lt. Col. Eileen Williams, the first woman to serve as space shuttle commander, and the many college and university students who have joined the campus fight against sweatshops. Wal-Mart stores, where low wages and poor health benefits force many workers to seek government assistance, and New York Mayor Rudy Giuliani, who has overseen severe cuts to homeless programs and displayed insensitivity toward city minorities, join Barr and others on the "Hit List." To see the complete lists, go to CLUW's website at www.cluw.org.

RELIABILITY AD UNRELIABLE -- Rapid deregulation of the electric utility industry will compromise reliability, according to Electrical Workers President John Barry. The union blasted as "absurd" claims in an ad campaign by the industry-financed Americans for Affordable Electricity that quick deregulation will improve reliability of the nation's electrical grid. IBEW will lobby Congress for guarantees of reliability, including regular maintenance, a skilled workforce and sufficient capacity to meet the nation's energy needs.

RAT BEATS RAP -- After 36 days in the slammer, Asbestos, Lead and Hazardous Waste Laborers Local 78's 30-foot-tall rat is back on New York City's streets. The rat was busted during a demonstration outside CBS headquarters in April (see May 3 WIP). Local 78 member Fred Bianchi also was arrested when he protested the police order to remove the inflatable rodent. The city refused to release the rat while those charges were pending. When a municipal judge dismissed the charges, the rat remained locked up. Finally, as part of a federal suit filed by Local 78 charging that its rights to free speech and assembly were violated, the judge in that case ordered the rat released. The next day, the rat and Local 78 members were back in front of CBS.

OKLAHOMANS NEED YOUR HELP -- Union members in almost 600 locals lost their homes or sustained heavy damage in the deadly tornadoes that ripped through Oklahoma and Kansas May 3, and the number is growing daily. Both state federations have established special funds to help the victims. Donations can be made out to United Way-Metro OKC Working Families and mailed to Frank Burns, United Way of Metro Oklahoma City, P.O. Box 837, Oklahoma City, OK 73101-0837, or to the United Way of the Plains Tornado Relief Fund, 245 North Water, Wichita, KS 67202.

ARTFUL EXCHANGE -- The 21st annual Great Labor Arts Exchange will be June 20-22 at the George Meany Center for Labor Studies in Silver Spring, Md. Union activists, artists and labor educators will explore the use of songs, poetry, theater, posters, cartoons, films, websites and other media to strengthen the labor movement. Simultaneously, the second annual Conference on Creative Organizing will teach how to use songs, skits, games, costumes, theater and other creative strategies to boost interest in organizing campaigns. For more information, call the Labor Heritage Foundation at 202- 842-7810.