Canadian National and Burlington Northern Santa Fe announced they were calling off their merger plans following the July 17 decision of the United States Court of Appeals for the District of Columbia Circuit which upheld the Surface Transportation Board's 15-month moratorium on the filing of any major railroad merger proposals.

CN and BNSF had petitioned the Court to overturn the moratorium while Canadian Pacific, CSX, Kansas City Southern, Norfolk Southern and Union Pacific supported it. The STB had imposed the moratorium on March 17, 2000, following four days of hearings.

Linda Morgan, Chairman of the STB, stated the consensus of the hearings "was that a new round of mergers at this time would aggravate service problems; that the Board's existing merger policies and procedures are not appropriate for dealing with future large railroad merger proposals; and that fundamental changes in the Board's merger rules and policies are needed to properly address such proposals." The STB then instituted a rulemaking proceeding "seeking public comment on appropriate modifications to its merger regulations." The rulemaking proceeding is scheduled to be completed by June 11, 2001.

On June 9 the BMWE had reached agreement on protective arrangements for employes with CN and BNSF in exchange for BMWE's support of the proposed merger. BMWE represents about 10,000 members on BNSF and more than 4,000 on CN.

At the time, BMWE President Mac A. Fleming said, "the railroads don't need 'cramdown,' what they need is a willingness to meet the legitimate concerns of their employees. The fact that CN and BNSF stepped up to the plate and reached an early voluntary agreement with BMWE that resolved all major merger-related issues demonstrates that mergers can be structured in ways that protect the interests of employees."

RailWatch Releases New Report on Bad Railroad Track

Reprinted from U.S. Newswire, July 17, 2000. RailWatch [July 17] released a new report which takes a critical look at the condition of railroad track in the United States. The report, titled "Why Do Thousands of Miles of Track Go Uninspected Every Year?" was prepared by M. Cubed, an independent policy analysis firm based in San Francisco, California.

The report concluded that:

• Most of the 223,000 miles of railroad track currently operating in the nation is not inspected every year;
• Mergers and railroad reorganizations, including steep reductions in repair crews, have compromised safety;
• Increased transportation of hazardous materials has raised public health and environmental risks;
• There is substantial lack of federal and state oversight of railroad track inspection and maintenance; and
• Federal regulators impose low fines on railroads - even when fatalities occur.

"It's mind boggling that trains carrying massive amounts of hazardous materials, traveling at exorbitant speeds, are allowed to operate on tracks that have not been properly inspected and maintained," stated RailWatch Executive Director Sherry Kiesling Fox.

Fox cited the recent derailment and fire in Eunice, Louisiana that forced 3,600 people from their homes. It has been reported that bad track conditions most likely caused that derailment. "It seems obvious that reliable track inspections and maintenance procedures are essential to safe railroading. But this report indicates that's not being carried out by the major railroads in the United States."

Report author Steve Moss was surprised as well by some of their findings. "Illinois has more than 8,000 miles of track and Texas has more than 11,000 miles of track. Yet residents of those states can't be confident that the tracks are adequately maintained by the railroads and state officials have very little oversight authority," Moss commented.

This report comes on the heels of a special audit released by the Federal Railroad Administration in March that found widespread safety problems including substandard track maintenance and inspection procedures with CSX Transportation.

"It only makes sense that the larger railroads - which reported billions in profits last year should dedicate some of those profits towards inspecting all of the 223,000 miles of track that run throughout the U.S. and make all the necessary safety improvements," concluded Fox.

RailWatch is a non-profit public education organization dedicated to educating the public about railroad safety. To find out more about RailWatch, visit the website at www.railwatch.org or call toll-free at 1-877-RA-WATCH (729-2824).

"Living Tribute" to Cesar Chavez

Both houses of the California Legislature Aug. 10 passed a bill creating a paid holiday for state employees to honor Cesar Chavez, the late founder of the Farm Workers, on his March 31 birthday. Gov. Gray Davis signed the bill into law Aug. 18. The holiday "will be a living tribute" to his work, said his son, Paul Chavez.

Shining a Light on Injustice

For the third year in a row, thousands of union activists and their allies came together to shine a spotlight on employers that try to thwart workers' freedom to choose a voice at work. 7 Days in June, which ended June 17, featured airport workers in San Francisco launching a card-check campaign, giant inflatable rats marching in New York City to symbolize down-and-dirty employers and workers in Texas and Kentucky riding "justice buses" to thank employers who play fair and chide those who don't. In several cities, Delta Air Lines flight attendants garnered support for their efforts to organize with the Flight Attendants, while building and construction trades members leafleted temporary agencies.

Workers won victories in Las Vegas, where Santa Fe Casino employees waging a seven-year organizing campaign got word that their ferociously anti-union employer had sold the hotel; and in San Antonio, where, thanks in part to the solidarity shown by local union activists and national union leaders, the workers at KO Steel now have a date set for their election to join IUE.

Allies from AFL-CIO constituency groups, religious organizations and community groups joined in the actions from coast to coast, forging closer bonds and pledging to work together year-round to help workers win a voice on the job.