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URGENT AMTRAK UPDATE

Amtrak PEB Report Supports Rail Labor

January 8, 2008

Presidential Emergency Board (PEB) 242, empanelled to investigate the contract dispute between Amtrak and nine labor unions, issued its report to President George W. Bush on December 30, 2007. The lengthy report, which recommends adoption of most of labor’s proposals, was made public on January 3, 2008 and can be viewed by clicking here.

The PEB agreed with labor that the National Freight Agreement serves as a pattern for resolving this dispute. The recommendations include that Amtrak workers should receive the wage increases proposed by the unions, that full retroactive pay is warranted and that no work rule changes should be adopted.

When considering retroactive pay, the PEB agreed with the union’s position that Amtrak had in essence received an interest-free loan from its employees. The members of the PEB found that, “Amtrak appeared content to continue to work its employees at 1999 wages levels…” The Board determined that, “In this case, nothing short of full retroactivity is fair and equitable and appropriate to restore to employees lost wages that resulted from their inability to obtain a successor Agreement over the unprecedented eight year period that employees have continued to work without a new agreement.”

In rejecting Amtrak’s proposal for dramatic work rule changes, the members of the PEB noted Amtrak workers’ increased productivity and said,” The evidence introduced by Amtrak in support of its claimed need for these sweeping reforms was weak, at best, and with respect to many of the proposals bordered on non-existent.”

While the report significantly validates the arguments labor has made for more than eight years, not all the recommendations are favorable. For example, while endorsing full retroactive pay for employees, the PEB recommends it be paid in two installments, 40% within 60 days of ratification and the remaining 60% on or before the anniversary date of the first installment. Further, it recommends the retroactive pay be restricted only to employee on the payroll as of December 1, 2007, the day the PEB was created, excluding workers who retired since the current agreements became amendable. The Amtrak Shopcraft Coalition disagrees with this particular recommendation.

The Amtrak Shopcraft Coalition, consisting of the Machinists Union, Transportation Communications Union, International Brotherhood of Electrical Workers and the Transport Workers Union, will attempt to resume negotiations with Amtrak, using the PEB’s non-binding recommendations as the roadmap to an agreement the membership can consider for ratification.

If no agreement is reached by 12:01 a.m. on January 30th, 2008, Amtrak workers who have not received a wage increase in more than eight years will finally be able to strike. However, the possibility still exists that Congress may intervene in the dispute and impose an agreement. The Amtrak Shopcraft Coalition is preparing for all three scenarios: a negotiated settlement, Congressional intervention or a strike.

The memberships’ continued solidarity and support is crucial as we head to an ultimate resolution. You will be updated as developments occur.