July 9, 2014

The Honorable Harry Reid The Honorable Mitch McConnell Majority Leader Minority Leader United States Senate United States Senate Washington, D.C. 20510 Washington, D.C. 20510

The Honorable John Boehner The Honorable Nancy Pelosi Speaker of the House Minority Leader U.S. House of Representatives U.S. House of Representatives Washington, D.C. 20515 Washington, D.C. 20515

On July 8, you received a letter from MTA Chairman Thomas Prendergast falsely alleging that "the union’s (sic) leadership has been unwilling to work constructively with the MTA to come to an agreement" and that MTA is seeking to avoid a strike.

This letter will set the record straight.

Our unions on Long Island Rail Road have been negotiating for a new contract since June 2010. On November 21, 2013, after more than three years of bargaining during which MTA refused to budge from its day one position that it would only agree to a net zero contract, Presidential Emergency Board (PEB) 244 was appointed.

PEB 244 was comprised of three renowned neutral arbitrators, all with prior PEB experience. Its Chairman, Ira Jaffe, served as Chairman or Member on three prior Emergency Boards, appointed by both Presidents Bush and Obama, including PEBs 242 (Amtrak-multiple unions) and 243 (national freight carriers - multiple unions). Both PEB 242 and 243's recommendations served as the basis for voluntary settlements, although it should be noted that Congress had drafted a Joint Resolution to impose the recommendations of PEB 243 should the unions not accept them.

The other Members of PEB 244 were former President of the National Academy of Arbitrators Arnold Zack and Roberta Golick, who between them served either as Chairman or Member on several prior Emergency Boards, including appointments by Presidents George H. W. Bush, Clinton and Obama. In no case did any of the recommendations of PEBs that these three arbitrators served on result in a strike. All resulted in voluntary settlements.

On December 21, 2013, PEB 244 issued its compromise recommendations. The recommendations fell between both parties' positions, falling short of the unions'

P a g e | 2 proposals by $100 million. Nevertheless, all eight involved unions stated they would accept the recommendations. MTA rejected the recommendations in their totality.

Pursuant to Section 9a of the Railway Labor Act governing disputes involving commuter railroads, a second PEB was appointed on March 22, 2014. Joshua Javits was appointed as Chairman. Mr. Javits had been appointed to the National Mediation Board by Presidents Reagan and George H. W. Bush, where he served as Chairman for three of the six years he was there. Mr. Javits also served on two prior Presidential Emergency Boards. The two remaining Members of PEB 245 were M. David Vaughn, who served on three prior Presidential Emergency Boards, and Elizabeth Wesman, current President of the National Association of Railroad Referees.

Under Section 9a of the Railway Labor Act, the second PEB must choose the “most reasonable” offer from the final offers submitted by the carrier and the union. The unions submitted the recommendations of PEB 244 as their offer to the Board; MTA submitted an offer of far less value.

PEB 245 chose the unions' offer as the most reasonable offer. The decisions of PEBs 244 and 245 were not made lightly. They were reached after days of intensive testimony by both sides and voluminous written evidence. Both Boards decisively rejected MTA's unsubstantiated claims that it could not afford the recommendations without raising fares.

All eight unions immediately accepted PEB 245's recommendations. MTA again rejected the recommendations, and demanded that bargaining start over, saying it would force the unions to strike before it would agree.

In his July 8 letter to Congress, Chairman Prendergast disingenuously accuses the unions of seeking a strike and asks Congress to consider extending the cooling off period. In fact, the unions have publicly stated they are agreeable to voluntarily extending the cooling off period for sixty days provided MTA agrees. MTA has repeatedly and publicly refused, as recently as yesterday. Ten bipartisan Congresspersons from the New York congressional delegation sent Chairman Prendergast a letter on June 19, requesting him to agree to extend the cooling off period. Again Chairman Prendergast publicly refused. As recently as yesterday, July 8, Harry Hoglander, Chairman of the National Mediation Board, asked both sides at NMB- convened negotiations in New York City to say whether they would agree to extend the cooling off period beyond June 20 for a period less than sixty days. The eight unions said yes. MTA again refused.

When Congress crafted Section 9a of the Railway Labor Act, it was with the express intent of avoiding commuter railroad strikes. And until today the PEB process has largely succeeded in resolving disputes peacefully. Since 1994, there have been twenty PEBs, many involving commuter railroads. In every case settlements were reached based on the Boards' recommendations.

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We believe it would be totally at odds with the express purpose of Section 9a of the Railway Labor Act to reward MTA's intransigence by ignoring the recommendations of both PEB 244 and 245 and establishing yet another dispute resolution tribunal. To do so would send a clear signal that any party whose last best offer is rejected by the second PEB could refuse to settle and instead appeal to Congress for another bite at the apple. To do so would nullify the clear intent of Section 9a.

We are not asking Congress to intervene. MTA should settle now on the basis of the recommendations of both Presidential Emergency Boards. Should Congress decide to intervene, the only fair and just course would be to impose the compromise recommendations of both Boards as the final settlement, as Congress has done four times in the past.

Thank you for your consideration.

R. Thomas Buffenbarger International President International Association of Machinists and Aerospace Workers

Edwin D. Hill International President International Brotherhood of Electrical Workers

W. Dan Pickett President Brotherhood of Railroad Signalmen

Joseph Nigro General President International Association of Sheet Metal, Air, Rail and Transportation Workers

John Previsich President, Transportation Division International Association of Sheet Metal, Air, Rail and Transportation Workers

Robert A. Scardelletti National President Transportation Communication Union/IAM

John R. Thacker President National Conference of Firemen and Oilers/SEIU

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cc: Representative Representative Pete King Representative Representative Carolyn McCarthy Representative Gregory W. Meeks Representative Representative Nydia M. Velazquez Representative Representative Yvette D. Clarke Representative Jerrod Nadler Representative Michael Grimm Representative Carolyn B. Maloney Representative Charles B. Rangel Representative Joseph Crowley Representative Jose E. Serrano Representative Representative Nita M. Lowey Representative Representative Chris Gibson Representative Paul D. Tonko Representative Bill Owens Representative Richard L. Hanna Representative Representative Dan Maffei Representative Representative Representative Chris Collins Senator Charles E. Schumer Senator