Arbitrator Michael H. Gottesman said the merger agreement to create the Sheet Metal, Air, Rail and Transportation (SMART) Workers Union is an enforceable agreement. Gottesman was named by AFL-CIO President Rich Trumka to decide the question of enforceability after binding arbitration was ordered by Federal District Court Judge John Bates.

Gottesman acknowledged that there is pending before Judge Bates another merger related case – a complaint by several UTU members that Titles I and V of the Labor Management Reporting and Disclosure Act (LMRDA) were violated. When Judge Bates ordered binding arbitration to determine if the UTU-SMWIA merger agreement is enforceable, he said the LMRDA claims were beyond the purview of the arbitrator, and that he would decide those claims following the outcome of the arbitration.

Although the SMWIA asked Gottesman to allow the SMWIA to, in Gottesman’s words, “effectively micromanage the implementation of the merger, complete with timelines and very detailed instructions for the behavior of UTU officials,” Gottesman denied the request.   

Ruled Gottesman: “It is far better that the parties decide how to implement the merger than to have an arbitrator do so.” Accordingly, the award simply directs the presidents of UTU and SMWIA (or their designees) to meet “to discuss any and all issues pertinent to implementation of the merger … and to continue meeting on a regular basis until all such matters have been resolved.”

Railroads represented by the NCCC include BNSF, CSX, Kansas City Southern, Norfolk Southern, Union Pacific and many smaller railroads. Some 38,000 UTU members, including yardmasters, are covered by the tentative new agreement.

UTU District 1 general chairpersons voted unanimously June 2 to submit the tentative agreement to the membership for ratification under the craft autonomy provisions of the UTU constitution. The general chairpersons also voted unanimously to recommend ratification.

General chairpersons now have until June 20 to submit questions regarding details of the tentative agreement. The questions will be submitted to the NCCC for answers. The agreed upon questions and answers will become part of the tentative contract submitted to the membership for ratification.

Additionally, forums will be scheduled nationwide at which UTU International officers will brief members on the contract’s details and respond to member questions. A ratification vote will later be scheduled.

“In the 41-year history of the UTU, this wage increase is the highest in excess of the current and projected consumer price index,” said UTU International President Mike Futhey. The Consumer Price Index, or CPI, is a barometer of prices for goods and services as measured by the federal Bureau of Labor Statistics.

“Combined with the previous agreement this administration reached with the NCCC in January 2008, our members will realize a more than 40 percent increase in their base wages at the conclusion of this agreement, if it is ratified,” Futhey said. “A UTU member earning $80,000 in 2007 will be earning about $112,000 on the same job by 2015.”

The tentative agreement is retroactive to Jan. 1, 2010, and extends through Dec. 31, 2014. The contract provides that retroactive pay, commencing with the July 1, 2010, increase, will be made by the carriers within 60 days of the effective date of the final agreement.

The cap on employee healthcare cost contributions is a major provision of the tentative agreement. The $200 cap on monthly contributions compares with an average of more than $330 monthly paid by workers in other industries.

Without the negotiated $200 cap, and under provisions of current UTU agreements, UTU member healthcare cost contributions could soar to $355 monthly by 2015.

To retain the current $200 monthly cap, adjustments are made to copayments to reflect more economical ways to purchase medicines and reduce plan costs.

A new annual deductible is capped at $200 per individual ($400 per family), and an out-of-pocket maximum of $1,000 per individual ($2,000 per family) can be reached only if family medical costs exceed $40,000, which statistically affects only 2 percent of members.

The national rail agreement’s five-year entry rates provision has been amended to four years. Individuals under the five-year plan — as of May 1 and until the effective date of the final agreement — will receive a one-time $3,000 payment. Individuals on properties with modified service-scale rules will receive a one-time payment of $1,200. Individuals under entry-rate agreements that commence at 90 percent, and increase to 100 percent within two years, shall not receive a bonus payment.

Additionally, the tentative agreement provides that local agreements may be negotiated — not subject to binding arbitration if the sides cannot agree — for alternative compensation, compensated leave, compensation enhancement, and electronic bidding and bumping.

Yardmasters have essentially the same agreement, but with additional pay increases unique to their craft.

The UTU national negotiating team, in addition to Futhey, included Assistant President Arty Martin; National Legislative Director James Stem; UTU International Vice Presidents Robert Kerley and Delbert Strunk; and General Chairpersons John Lesniewski (CSX, GO 049), Pate King (NS, GO 680) and Doyle Turner (CSX, GO 347).

To read the tentative national agreements, select one of the links below:

• National rail agreement
• Yardmaster agreement

UTU Political Action Committee

The United Transportation Union’s Political Action Committee (UTU PAC) is "An Investment in the Future."

UTU members, active and retired, need and deserve good government and sympathetic legislators. That’s because, compared with others, their jobs, pensions and futures are more directly affected by the actions of state and national lawmakers.

We in the UTU must work for and help those people who we feel are capable, knowledgeable and who recognize the problems that affect railroad, bus and transit workers.

The best way to help elect representatives that understand the concerns of UTU members is by contributing to UTU PAC.

The best way to have a voice, a say, in matters that affect your finances and your family, is by contributing to UTU PAC.

You joined your fellow workers for the fraternal benefits of UTU membership, so why not join them to help elect compassionate state and national lawmakers?

• UTU PAC contributions can be started or increased anytime, and they are deducted automatically from your paycheck.
   
• UTU PAC contributes to qualified state and national political candidates, regardless of party affiliation.
   
• UTU PAC protects the interests of active and retired members and safeguards laws, working conditions and pension rights.
   
• UTU PAC has well-organized advisory committees in 49 states and the District of Columbia, and an office in Washington, D.C.
   
• UTU PAC contributions can be made on a one-time basis by check, anytime, by active members, retirees, and all individuals who seek a more responsive government.
   
• UTU PAC has more than 28,000 members across the country. They welcome your support and investment in the future of our great nation.

Print out a UTU PAC Application, complete it and give a copy to your local treasurer.

Click here to download a UTU PAC APPLICATION in PDF format.

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Jake Kelly
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