UTU News Digest - Wednesday, February 2, 2000

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Wednesday, February 2, 2000

MINNESOTA: Union, DM&IR end strike and will let court settle dispute

DULUTH -- A two-day strike against the Duluth Missabe & Iron Range Railway ended Tuesday night when company and union attorneys agreed to adjudicate a time-off dispute in court, the Duluth News Tribune reported.

The accord was reached three hours after DM&IR sought a temporary restraining order against the Brotherhood of Maintenance of Way (BMWE), which on Monday established picket lines that brought transportation operations to a near halt. In its petition, filed late Tuesday in U.S. District Court in Minneapolis, the DM&IR said the strike was costing $1.5 million per day and soon would force the suspension of all operations.

Mark Thudin, general chairman of BMWE Local 1710, said both parties concluded a court should settle the matter.

"The parties have agreed to explore ways to resolve the issue and, if necessary, return to court in late March,'' he said. "It's an agreement that's good for both parties.''

Union members were immediately instructed to return to work for shifts Tuesday night and this morning, Thudin said.

Angered by a dispute over family medical leave, the union's 180 members established picket lines at 5:30 a.m. Monday in Duluth, Proctor, Two Harbors and several Iron Range cities. The picket lines were honored by other unionized railroad crafts, forcing DM&IR to assign supervisors to operate its trains.

The use of management employees, however, is a stopgap measure, at best,'' the DM&IR said in court documents filed Tuesday. "Unless enjoined, BMWE's strike will soon require the suspension of all or most of DM&IR's operations.''

The railroad's civil action indicated the dispute involved an employee's request for unpaid leave following the birth of a child. James R. Sonneson, represented by the BWME, sought unpaid time off from Dec. 3 to Dec. 15 under provisions of the Family and Medical Leave Act (FMLA), DM&IR said.

"On Dec. 9, DM&IR notified Mr. Sonneson in writing that he was eligible for leave under the FMLA, and that company policy required him to substitute his accrued paid leave for unpaid FMLA leave,'' the railroad said.

That decision, Thudin said Monday, violates the BMWE contract with DM&IR.

"We view this as a major dispute, and we can strike under this situation,'' he said.

The railroad company disagreed, arguing BMWE never previously objected to the policy of requiring employees to substitute paid leave for unpaid FMLA leave.

"The dispute between DM&IR and BMWE is what is known under the Railroad Labor Act as a 'minor dispute,' '' the company argued in its petition. "Under the RLA, a dispute between a railroad and a union over the interpretation and application of their existing labor agreements, like ours, may be resolved only through final and binding arbitration before the National Railroad Adjustment Board, or before a private arbitration board.''

Three Iron Range taconite plants count on DM&IR to haul pellets to Duluth or Two Harbors and, on backhaul, deliver bentonite and limestone, which are needed during the production process. So far, plant officials at EVTAC Ispat-Inland and Minntac said Tuesday, they were relatively unaffected by the strike. A prolonged dispute, they said, could force them to develop new storage areas or, in the worst case, shut down.

"As a result of BMWE's strike, DM&IR's three mining customers would initially expect to lay off hundreds of employees, but over time, layoffs by DM&IR's mining customers could exceed 1,000 employees,'' DM&IR said in its court petition.

A court hearing on the dispute has been scheduled for March 23, Thudin said. Until the court rules, DM&IR has agreed to suspend its time off policy.

DM&IR officials could not be reached for comment Tuesday evening.

OHIO: City opposes strings on CSX funds so residents can go to Las Vegas

EAST CLEVELAND - With the city poised to receive $500,000 to soundproof houses near the CSX rail lines, home owners are deciding whether to put in new storm windows or use their cut for lavish vacations or other purposes, the Cleveland Plain Dealer reported.

The City Council last night gave preliminary approval to an ordinance that would give residents unrestricted use of the $4,000 that each household will receive from CSX to soundproof their homes.

Eligible for the noise abatement funds are 120 residents who live near the CSX "Short Line" along E. 133rd St. between Lakeview and Wood worth roads.

Each stands to get $4,000 of the $2 million that CSX agreed to pay the city and its residents as compensation for increased train traffic through the city.

The CSX-East Cleveland agreement states that the bulk of the $2 million is to be used to create jobs and train the police and fire departments for railroad-related emergencies and that the rest is to go to homeowners for insulation, storm windows and other modifications to muffle train noise.

"One lady came to a council meeting and said, That's my money; if I want to go to Vegas, that's my money, " Councilwoman Saratha Goggins said.

The legislation, which appears before the council for a final vote in two weeks, stipulates that absentee landlords must use the money for soundproofing and other improvements to the homes.

Crowds of residents have come to recent City Council meetings demanding the money without restrictions. Last night, they cleared the first hurdle when the council approved an ordinance on first reading.

Goggins - who is happy that absentee landlords will be forced to invest money in their proper ties - is concerned about homeowners.

"If we give this money to people, they are not going to invest it back into the property," she said. "With our housing stock depreciating as it is, we can't afford to waste this opportunity."

Goggins and Council President Jeremiah Johnson said they hope residents use the money wisely. But Councilman O. Mays believes residents should be free to use the money as they wish.

"I think what they do with their money is up to them and the IRS," Mays said. "This is not city money, and the city shouldn’t be telling them how to spend their money. They are not little kids."

CALIFORNIA: N. Hollywood's hopes are riding on the subway

LOS ANGELES -- After spending $117 million in an attempt to revitalize North Hollywood, officials are now counting on a new subway station and a new developer to provide the catalyst that has eluded them for 20 years, the Los Angeles Times reported.

But local residents and merchants, mindful of past mistakes, already see trouble signs ahead.

Less than a year after they were announced, ambitious new plans to build offices and sound stages have been scaled back, and there has been no development around the Red Line subway station, with two agencies watching to see if the other will take the first step.

"I hope the subway will make things better," businessman Patrick Berberian said. "That is my wish. But I have to see it to believe it."

Berberian said he heard the same promises 20 years ago, when the Los Angeles Community Redevelopment Agency launched its effort to rescue the area from blight.

Two decades later, many residents are still stuck in poverty, dead-end jobs and crowded housing, according to a Times analysis published Sunday.

Will the subway make the difference?

The combination of redevelopment and transit in other cities has failed to rescue run-down neighborhoods, according to numerous studies during the last two decades.

"Just improving access by rail trains . . . won't turn a neighborhood around," said Robert Cervero, author of a recent study and a professor of city planning at UC Berkeley. "The bigger problems of crime and urban blight are much more deeply rooted. Rail won't change those problems."

Many North Hollywood civic leaders are concerned that the subway is now seen as a panacea, and worry that the transit and redevelopment agencies will fail to work in tandem.

They cite the Metropolitan Transportation Authority's installation of a sidewalk over the objections of the Redevelopment Agency, which plans to tear out that work when it widens a nearby street this summer. Transit officials said they went ahead because of safety concerns and a preexisting contract.

In another case, the agencies still have not agreed on how to free up land for commuter-oriented development while providing enough parking for commuters.

"We need to get the MTA to do more than just develop parking on this site. It's an awful waste. We're really disappointed," Redevelopment Agency planner Walter Beaumont said. The parking lot idea, he said, "is just a killer."

Both agencies try to dispel such fears by saying they are cooperating. But each pointedly suggests the other should be the first to break ground.

"What I am afraid of is they will open the station in May or June and there will be huge amounts of acreage that nobody will do anything with for a long time," said Larry Applebaum, past president of the Universal City/North Hollywood Chamber of Commerce. "It's a tragedy."

Transit officials said they have been waiting for a revitalized North Hollywood that will attract new developers to the 17.5 acres that the MTA owns around the subway station.

CRA officials see development on the MTA site as the spark to revitalization. A consultant is set to make a recommendation soon on how the transit agency should proceed.

Meanwhile, Lillian Burkenheim, the CRA executive in charge of the North Hollywood project, is struggling to find a business to move in near the corner of Lankershim and Chandler boulevards by the time the subway opens in June. Today, there is nothing but empty lots and boarded-up buildings.

"I'm going to work really hard to make sure that at least something is on the corner [near the subway exit] that looks interesting," Burkenheim said. Her goal, she added, is to bring in a business so that commuters "don't come out and look at nothing."

The CRA's long-term plans are more ambitious for the properties to the south of the subway, where developer J. Allen Radford has proposed building office towers and 10 film sound stages. That project, heavily dependent on public subsidies, plays a key role in current CRA planning for North Hollywood.

The subway and Radford's project will benefit from the redevelopment that has already taken place, said Larry Kosmont, a Los Angeles real estate consultant.

"Those two things could provide the critical mass to get North Hollywood over the hump," said Kosmont, whose company is advising the transit agency on how to develop its property in the area.

But just how delicate that balance is was shown last summer, when the Walt Disney Co. announced that it will build a movie studio of its own in nearby Glendale.

Officials fret that because Disney is already the major tenant in two large North Hollywood office projects--the old Hewlett Packard building and the Academy--any relocation would create a huge loss of jobs. Disney's new studio could also potentially lure customers away from Radford's planned studio.

"It sounds good, but you have a slowdown in production in entertainment," said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp. "You have the mouse and their Grand Central [campus]. It's tough."

In fact, Radford and the Redevelopment Agency have already begun to scale back, dropping plans for new housing and cutting the overall size of the project by two-thirds, to a total of 500,000 square feet. Beaumont said there are questions about whether the sound stages will be part of the early phase.

In addition, the project is not likely to break ground until 2001, later than originally planned.

Burkenheim said that even the scaled-back project will require large subsidies. As a result, she has asked Radford for more changes, scrapping underground parking, and shrinking the height of the office towers.

"We're not going to see anything close to the 20-story building they proposed," Burkenheim said.

As another hope for the future of North Hollywood, the agency has wholeheartedly embraced the fledgling local arts district of theaters and galleries, the idea conceived by theater owners and Chamber of Commerce officials.

The CRA has become a major sponsor of the annual NoHo Arts Festival and has provided loans and grants to theater groups. In the last decade, about 20 small theaters have moved into the area. Troupes such as Actor's Alley and Renegade Theater hope their productions, along with the subway, will put North Hollywood back in the spotlight.

"The potential now is quite good," said Bob Cane, head of Actor's Alley, which has renovated the historic El Portal Theater. "There are a lot of possibilities. Hopefully, it will all create some positive interest in the area."

One who will not wait to see what happens is Steve Soboroff, a senior advisor to Los Angeles Mayor Richard Riordan.

Soboroff, a candidate for mayor, recently sold a vacant warehouse he owned just north of the subway station, saying he had too many good offers to pass up.

Soboroff said in an interview that selling the property wasn't a sign of lack of confidence in the future of the North Hollywood project.

"I don't think [property owners] have felt the benefit" of redevelopment, Soboroff said. "It hasn't kicked in yet. But these things take a lot of time."

NORTH CAROLINA: CSX freight train derails, catches fire

BETHEL-- A CSX freight train carrying phosphoric acid and other chemicals derailed and caught fire Tuesday, spewing a plume of acrid, black smoke that forced authorities to evacuate a wide area, the Associated Press reported.

Fifteen cars from the 38-car train left the track and tumbled into a creek about 10:45 a.m., said Pitt County spokesman Arlen Holt. At least four cars caught fire, he said.

No injuries were reported, but officials evacuate the sparsely populated area around the crash site. Phosphoric acid vapor can burn skin on contact and lungs if inhaled.

"We've got a 10-mile area blocked off," Holt said, adding that the evacuation order may stand through the night. He didn't know how many people were forced to leave.

Holt said crews were trying to extinguish the fire so hazardous materials experts could remove the chemicals.

WASHINGTON: States form high-speed rail coalition

WASHINGTON -- Members of the American Association of State Highway and Transportation Officials (AASHTO) representing states in the nine federally designated high speed rail corridors and other states seeking expanded rail services are forming a coalition supporting intercity passenger rail and the development of high speed rail corridors across the country, a press release said.

The coalition was introduced at a congressional briefing today. Its goal is to speak as one voice for the states on the need for federal funding support for capital investments in passenger rail and high-speed rail corridors. In addition, the coalition will keep states informed of key technical developments and information, and aid in the planning and implementation of high-speed rail projects.

"A diverse group of states including Alabama, Missouri, and Maine are joining us in this effort," said Terry Mulcahy, deputy secretary of transportation for the state of Wisconsin whose governor, Tommy G. Thompson, has been leading the formation of the coalition. "What the states all share is the need for a balanced transportation system that includes passenger rail along with highways and airports."

In addition to Mulcahy, participants in the congressional briefing included Jack Guinan, assistant commissioner, New York Department of Transportation; David King, deputy secretary, North Carolina Department of Transportation; Kirk Brown, Secretary, Illinois Department of Transportation; and Wayne Brown, Southern District Commissioner, Mississippi Department of Transportation. Also in attendance were Senator Frank Lautenberg (D-NJ), George Warrington, president of Amtrak, and representatives from cities, rail labor, the rail supply industry, and passenger rail advocacy groups.

"This coalition will build on state efforts to make high speed rail a reality across the country," said Joseph Boardman, commissioner of Transportation for the state of New York. "New York's program for high speed improvements on the Empire Corridor between Albany and Buffalo, including the introduction of new high speed trainsets, is an example of the kind of commitment that states are ready to make. Now we need the federal government to join us in supporting the types of infrastructure improvements required to create a 21st century passenger rail system in this country."

High speed rail is most effective in corridors of 100 to 500 miles in length that are currently served by crowded highways and congested air service. States that are successfully developing high speed rail networks are doing so through an incremental approach that seeks to gradually build up services and speeds on existing rail lines. This approach is recognized as the most reliable method to build high-speed rail, minimizes initial capital costs, allows time to establish ridership and reduces the financial risk to states and the federal government.

FLORIDA: RailAmerica, RailTex shareholders approve merger

BOCA RATON, Fla. - Shareholder of shortline rail operators RailAmerica and RailTex overwhelmingly Tuesday to approve the acquisition of RailTex by RailAmerica, a wire service reported.

The transaction, subject to customary closing conditions, is expected to close on or before February 8. Approximately 99% of RailAmerica's voting shareholders voted to approve the issuance of up to 7.8 million shares of RailAmerica stock for the acquisition of RailTex.

At RailTex, the holders of approximately 72% of RailTex's outstanding shares, representing approximately 99% of all shares voted, voted to approve the merger of the companies.

At closing, RailTex shareholders will receive $13.50 in cash and two-thirds of a share of RailAmerica stock in exchange for each share of RailTex stock.

Upon completion of the acquisition, RailAmerica will own or have equity interests in 50 railroads operating over 12,500 total track miles in key regions of the United States, Canada, Chile, Mexico and Australia. In North America, the company will operate railroads in 24 states and six Canadian provinces, and serve over 1,100 customers.

PENNSYLVANIA: State makes regional railroad grants

HARRISBURG -- Pennsylvania Transportation Secretary Bradley L. Mallory announced $2.5 million in second-round funding grants Monday for 23 rail-freight assistance projects aimed at stimulating local economic development, a wire service reported.

The state is working to preserve and improve essential local rail-freight operations as Norfolk Southern Corp. (NSC) and CSX Corp. (CSX) take over routes that Conrail formerly operated, he said in a press release.

The funded projects strengthen and expand services provided by short-line and regional railroads, Mallory said.

Gov. Tom Ridge's administration announced $7 million in September to help finance 51 projects. The money can be used for construction, maintenance, repair and rehabilitation of rail lines, siding and grade crossing.