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JOURNAL
  
ONLINE VERSION NOVEMBER/DECEMBER 1999
 
Railroads Renege on "Cram Down" Settlement
 


PHOTO NO. 1 EXTENDED CUTLINE = From BMWE Colorado State Legislative Director Michael E. Thomas: Here is a photo of General Chairman Paul Beard and various family members who were vacationing in DC (summer 1999) while we were working on getting holds on Linda Morgan's reappointment to the Surface Transportation Board. One day they came up to the Hill with us and lobbied Senators from Ohio and Indiana where different family members live. We split up and went in with them to the Senators' offices and they were very effective. They gave the local connection and we lobbyists, who weren't constituents, were able to elaborate on the issues. It worked out well and I think it was a wonderful experience for the Beard family.


AFL-CIO Labor '98 Debriefing December 1998, left to right, Vice President Al Gore, BMWE State Legislative Directors Richard K. Bigard from California and Edward Posas, Jr. from Texas.


AFL-CIO Labor '98 Debriefing December 1998, left to right, BMWE Minnesota State Legislative Director Karl Knutsen, AFL-CIO President John J. Sweeney, and Richard Bigard.

In past issues of the Journal you have read about rail labor's endeavor to end cram down. The two- part campaign consisted of action to remove Linda Morgan from her throne as the Chairman of the Surface Transportation Board and the passage of legislation which would eliminate the abrogation of contracts, otherwise known as cram down.

Thanks to the efforts of labor's relentless campaign and New Jersey Democratic Senator Robert G. Torricelli, we were able to hold up the reappointment of STB Chairman Linda Morgan while we engaged in extensive efforts to pass legislation to end cram down. Senator Torricelli placed himself in the front line of fire by placing a hold on Morgan's confirmation, and stood steadfast in his actions to support our cause. His efforts were met with resistance from the railroads, the United Transportation Union, his Senate colleagues, and the Administration. No matter how insurmountable the odds, our champion did not waver from his support for rail labor. We also owe a debt of gratitude to Arlen Specter, Republican Senator from Pennsylvania, for placing a hold on Morgan's appointment.

Labor was able to induce Idaho Republican Senator Mike Crapo and Democratic Georgia Senator Max Cleland to introduce the bipartisan Senate Bill 1590, which, if passed, would put an end to the cram down issue.

When the railroads realized they were not going to be able to have Linda Morgan's appointment passed through the Senate, they agreed to engage in negotiations with labor. The purpose of the negotiations was to reach an agreement on amenable language to resolve the cram down issue. Edward Hamberger, President and CEO of the Association of American Railroads engaged in a series of meetings with not only rail labor, but also with AFL-CIO Secretary-Treasurer Rich Trumka.

After several months of negotiations a good faith agreement was reached between Trumka and Hamberger. The agreement included an up to thirty-six month moratorium on the carriers from serving section 4 notices (abrogation of contracts, i.e., cram down). It provided for this period to be used by the parties to negotiate new rules and to jointly enact legislation to end cram down and to reauthorize the Surface Transportation Board. It was further understood that the unions would immediately release the hold on Linda Morgan thereby allowing her a smooth ride back to her throne of "now limited" power.

Late in the afternoon of November 9, 1999, Hamberger contacted Trumka and advised that he agreed to the unions' terms of settlement. Hamberger then contacted the White House, the Department of Transportation, the Senate Commerce Committee, and other Senators to advise that the Association of American Railroads had accepted the unions' proposal. The following day Senator Torricelli removed his hold on the nomination of Linda Morgan and she received her Senate confirmation.

On November 10, the same day as the Morgan confirmation, Brother Trumka sent a letter to Hamberger requesting his signature confirming the agreement. Hamberger held his response until after Morgan's confirmation, and then sent back a letter reneging on the terms of the agreement.

It is difficult to comprehend the audacity of the carriers and their evident belief that they can defy all of rail labor, let alone the might of the thirteen million strong AFL-CIO, the Senate, and the White House.

It is now time for cries of injustice to be heard and for all of labor to unite in a strategic plan of action to insure that the carriers pay dearly for their acts of duplicity. We need you to be a part of this campaign by contacting your Senators, your Congressman, and the White House to express your outrage with the carriers' abhorrent actions and your desire for an end to cram down once and for all.

  
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