THE LOCOMOTIVE NGINEER ENEWSLETTER · NOVEMBER 2001 Ballot deadline: Dec. 10
BLE members to vote again BLE members who have not received their ballots in the BLE-UTU merger referendum should call on proposed merger with UTU the following number to request a replacement:
Members will face one of the big- The tally was certified by the AAA. gest decisions in the 138-year history The referendum had been finalized on (800) 529-5218 of the Brotherhood of Locomotive En- September 17, but the counting of the gineers this month when they receive ballots was delayed by a lawsuit ballots to vote on a proposed merger brought by three BLE officers. Members can also call this number to request additional copies of with the United Transportation Union. The lawsuit challenged the voting the proposed Unification Agreement and Constitution. The ballots were mailed on Novem- process used by BLE in the first refer- ber 7 and are due by December 10 to endum, in which ballots were mailed on the American Aribtration Association August 6. The UTU vote was not (AAA), the neutral third party retained challeged in the lawsuit. However, that situation never arose as BLE’s National Mobilization Team are to tablulate the results. As a result of an out-of-court settle- the ballots were destroyed before they conducting informational workshops If a majority of members approve ment reached by attorneys represent- were counted. thorughout the U.S. and Canada. Spe- the merger, the Unification Agreement ing the BLE and the three officers, the If approved, the merger would cre- cial “get out the vote” flyers have also and Constitution of the newly estab- BLE agreed to destroy all ballots cast ate the AFL-CIO’s second-largest been posted on bulletin boards in the lished union will become effective Janu- in the first referendum and re-ballot the transportation union and largest rail- yard offices, and are available for print- ary 1, 2002. membership using new, secret ballots. road union, with nearly 200,000 active ing from the BLE website. The merged union would be named The BLE also agreed to allow both and retired members. Side Letter #1 In addition, the BLE has estab- United Transportation Union-Brother- U.S. and Canadian ballots to be counted of the Unification Agreement confirms, lished a toll-free hotline for members hood of Locomotive Engineers (UTU- together. In the first referendum, Ca- “the officers of (the) New Organization who have not received their ballots, or BLE), and the logos of both unions nadian ballots were cast and counted shall promptly apply for membership in for those who need a new copy of the would be retained. separately. If a majority of Canadian the AFL-CIO and the CLC.” The new Unification Agreement and Constitu- In a vote certified on October 29, members had voted against the merger union would be based in Cleveland. tion. That number is: (800) 529-5218. members of the UTU voted to approve while a majority of U.S. members voted Due to the extreme importance of For late-breaking information on the merger by an almost six-to-one ra- in favor, then the Canadian BLE mem- this referendum, the BLE is working to the proposed merger of the BLE with tio. The UTU vote was 23,368 in favor bership would not have been a part of make sure that there is a high voter the UTU, members are encouraged to of the merger and 4,146 opposed. the newly formed union on Jan. 1, 2002. turnout. As a result, members of the visit
BLE International President Don M. Hahs met with Employees of the Meridian Southern Railway While the BLE could savor the organizing victory, Secretary of Transportation Norman Y. Mineta, right, unanimously selected the Brotherhood of Locomotive President Hahs said the Brotherhood still has much on October 23 in Washington, D.C. Mineta attended a Engineers as their collective bargaining representa- more work ahead of it. meeting of the AFL-CIO’s Transportation Trades tive on October 15. “Anytime workers at a shortline railroad feel they Department, where he discussed homeland security BLE President Don. M. Hahs congratulated the need to be organized, I believe the BLE has an obli- with President Hahs and the other leaders of the BLE’s Department of Internal Organizing, Mobiliz- gation to do so,” President Hahs said. “There are ap- nation’s rail and transportation unions. ing and Strategic Planning for the successful orga- proximately 60,000 employees in the shortline indus- nizing campaign, and singled out Special Represen- tative Tommy Miller for his efforts. See Meridian Southern, Page 4
Brotherhood of Locomotive Engineers Since 1863, a tradition of forward thinking Page 2 Locomotive Engineer Newsletter · November 2001 BLE NEWS BLE regional meetings set for 2002
With 2001 drawing to a close, BLE reservation deadline is May 24, 2002. dian currency). For more details, con- the EUMA in order to receive the dis- members are making vacation plans for A dinner cruise is being planned as tact Chairman Amaya by calling (509) counted room rate. 2002. part of the festivities. Space is available 628-8844. Tentative activities include golf Many BLE members prefer to on a first-come, first-served basis, so IWC 2002, the “Unlimited Conven- tournament, formal banquet, visit to spend their vacations honing their you must register as soon as possible tion,” will coincide with the “Unlimited Steamtown National Historic Site, and skills at one of the many workshops of- if you are interested. Hydroplane” race series. Guests can a minor league baseball game. For de- fered at the BLE’s annual regional Hotel reservations can be made by extend their stays a few days to enjoy tails, contact Brother Kertesz by phone meetings. Others attend to rekindle old calling (800) 468-2722 (in Virginia the Columbia Cup hydroplane race, one at (570) 675-2417 or by e-mail at: friendships. Either way, the BLE’s four please call (800) 422-4747). For a pre- of the fastest sports on the planet.
will be born again as stand- nerable because they carry The FBI is concerned as UP trains to haul alone, publicly traded compa- Senate OKs $1.8 huge amounts of hazardous well. Olympic torch nies. billion for Amtrak materials through major popu- Attacks on or utilizing “It’s mission accom- lation centers. trains have long been recog- The Olympic Properties of plished,” said David O'Brien, Senators put aside diver- The U.S. Department of nized as a potential terrorist the United States has named chairman, president and chief gent ideas on Amtrak’s future Transportation is alerting threat. Union Pacific Railroad the of- executive of the company that and endorsed a $1.8 billion hazmat shippers to be careful, In a 1998 speech, then- ficial railroad services supplier grew into a Canadian icon af- measure to increase safety and warning: “In the wrong hands Deputy Transportation Secre- to the 2002 Olympic Winter ter building the transcontinen- security measures on passen- hazardous materials pose a tary Mort Downey said that ter- Games and an official provider tal railway in the 1880s. ger trains. threat to security. It doesn’t rorist training manuals “in- of the Salt Lake 2002 Olympic The breakup was ap- The Senate Commerce take a high degree of training, clude rail sabotage as a recom- Torch Relay. proved by 98% of CP’s common Committee voted unanimously technical expertise, or sophis- mended operation, so the po- UP is also the official rail- and preferred shareholders. It on October 17 to send the mea- ticated equipment to attack tential for destructive action is road services supplier of the became effective Oct. 1. Trad- sure to the full Senate. with devastating results.” clear.” • 2002 and 2004 U.S. Olympic ing of the separate units kicked Nearly $1 billion would ad- Teams. off on Oct. 3 on the Toronto and dress safety concerns in six Creating a specially New York stock exchanges. aging underwater tunnels painted two-locomotive and 18- Announced last February, owned by Amtrak that carry Uncle Sam seeks experienced car train, with cauldron car, the spinoff is unfolding in times rail passengers to New York’s Union Pacific will transport the of market turmoil and eco- Penn Station. locomotive engineers Olympic Flame and Torch Re- nomic malaise, worsened by An additional $515 million lay staff more than 3,200 miles the Sept. 11 terrorist attacks would be spent on security up- The Brotherhood of Lo- Anyone who is inter- through 11 states. in the United States. • grades throughout the Amtrak comotive Engineers is work- ested in finding out how The train will transport system — increasing the ranks ing with the U.S. Army Re- they can put their railroad two million gallons of propane, of its 325-person police force, serves in an effort to recruit skills to good use by serving 29 commuter rail cars and 30 Acela traffic jumps tripling the number of bomb- experienced railroad em- their nation in this time of carloads of television cabling sniffing dogs and adding new ployees for two railroad bat- need can contact the Army to Salt Lake City. after attacks surveillance equipment. talions as a result of the re- Reserves in the following This will be the second Amtrak’s high-speed Acela The measure also includes cent terrorist attacks on the ways: time the Olympic Flame will Express train service has seen $254 million to improve emer- United States. move by rail in the United a 35 percent jump in traffic, gency exits at Penn Station, According to Major Mar- For general information: States. UP also transported the due largely to setbacks in air- replace two aging bridges in tin Piech, the Army is look- Major Martin Piech Olympic Flame more than line shuttle service in the Connecticut considered sus- ing for railroad employees e-mail: 3,500 miles during the Olympic Northeast since the Sept. 11 ceptible to sabotage, and — especially those with [email protected] Torch Relay for the Atlanta attacks. implement a sophisticated prior military experience — 1996 Centennial Olympic Some early-morning and speed-control system in the in the areas of train opera- 757th contact information: Games. • late-afternoon departures from Northeast Corridor, where tions, maintenance of way phone: SSG Steve Willis at Boston, New York and Wash- Amtrak’s high-speed Acela and railroad equipment re- (877) 399-6595 CP shareholders ington are selling out on the Express operates. • pair. website: Acela Express. Amtrak re- The two units are: 757th http://www.usarc.army.mil/ give breakup 98% cently added four round trips Transportation Battalion 88thrsc/units/online/336_tc/ between Washington and Bos- Trains vulnerable (Railway) with units located 757_tc/ approval ton as trains arrived from the to terrorism in the Chicago and Milwau- manufacturer. kee metro areas, and the 1205th contact informa- Shareholders of Canadian Six days after the attacks, Politicians and intelligence 1205th Transportation Rail- tion: Pacific Ltd. bid adieu to the his- Amtrak said its average num- experts warn that the next ter- way Operating Battalion e-mail: toric conglomerate on October ber of riders had climbed to rorist attack could come on the with units located in Massa- [email protected] 1, approving by a huge margin 80,000 people from 60,000 ground instead of in the air. chusetts, Connecticut, and website: its breakup into five units that people a day. • Trains are particularly vul- North Carolina. www.1205thtrob.com Locomotive Engineer Newsletter · November 2001 Page 3 BLE NEWS Burlington Northern Santa Fe Canadian National Railway
Burlington Northern Santa Fe Corp. reported that its Canadian National Railway Co. reported in- third-quarter earnings fell 13.1 percent, hurt by flat freight creased third-quarter profit by 17% despite a slight revenues, and said it would cut about 400 nonunion jobs. decrease in revenue. BNSF said it posted net income of $225 million, or 58 cents Canada’s largest railway company posted net per diluted share, compared with $259 million, or 64 cents income of C$252 million on revenue of C$1.3 billion per diluted share, a year earlier. for the quarter ended Sept. 30. While revenue for the quarter was slightly lower In July, the company said third-quarter revenues would than last year, the company cut operating expenses by 3% to C$895 million, im- fall slightly from last year, due to lost business from proving the company’s industry-leading operating ratio to 67.5%. The company’s automaker General Motors Corp. diluted earnings of $1.21 per share, excluding a non-recurring deferred income Freight revenues for the 2001 third quarter were $2.31 tax recovery, beat analysts’ expectations by a penny. billion, even with last year on slightly higher ton-miles compared with the same Like the other five major North American railway companies, CN has been 2000 period. Freight revenues include a $32 million settlement related to a trans- in cost-reduction mode to counter falling shipments and revenue brought on by portation contract. Agricultural Commodities revenues increased $11 million, or the economic slowdown. While CN reported revenue gains in some business units, 3 percent, to $331 million, primarily due to an increased demand for corn. the company made clear the name of the game would continue to be cutting Operating expenses of $1.84 billion were $69 million higher than the 2000 expenses to match weakening revenue. third quarter. Compensation and benefits expense was $40 million higher than CN President and Chief Executive Officer Paul M. Tellier said: “CN’s perfor- 2000 due to higher wages, incentive compensation accruals and health and wel- mance during the quarter was solid. In a challenging economic environment, we fare costs. Operating income was $502 million for the third quarter 2001 com- delivered double-digit gains in earnings and earnings per share… CN has clearly pared with $571 million a year ago. • demonstrated financial durability in tough economic conditions.” •
Canadian Pacific Railway CSX Transportation Canadian Pacific Railway Co. CSX Corporation reported third-quarter earnings said it will continue to cut costs, from continuing operations of $100 million, or 47 cents and possibly another 500 jobs, as per diluted share, up 69 percent from $59 million, or 28 it journeys into an uncertain cents per diluted share, in the same period a year ago. economy. The railway also said it In the 2000 third quarter, CSX had an after-tax gain has carried out the 500 job cuts it of $365 million, or $1.73 per share, from the sale of the company’s contract logis- announced in April. tics business. Including discontinued operations and the gain, net earnings for Chief financial officer Mike Waites said the company will continue to exam- the 2000 third quarter totaled $427 million, or $2.02 per share. ine its labor costs and might cut another 500 jobs over the next 12 to 18 months. CSX said that it has largely completed a forward purchase fuel program at CPR has about 17,000 employees. CPR became an independently traded firm in the railroad to take advantage of current prices. Approximately 50 percent of October, after Canadian Pacific Ltd. was replaced by its five component busi- the railroad’s diesel fuel requirements for the next 15 months will be locked in nesses. under the program. One-time income tax benefits related to the spinoff helped CPR report a 42 Third-quarter operating income at CSX’s rail and intermodal businesses to- percent increase in third-quarter profit. Including one-time gains and charges, taled $237 million versus $190 million a year ago. While carloads were down 2.6 CPR reported profit of C$136.1 million or 86 cents a share for the three months percent, revenues were about the same for both periods, approximately $1.8 bil- ended Sept. 30, compared with C$95.8 million or 60 cents a year earlier. Exclud- lion. The operating ratio, which measures costs as a percentage of revenues, ing one-time items, profit was C$99 million or 62 cents compared with C$96 mil- was 86.7 percent, improving 2.7 percentage points from 89.4 percent in the 2000 lion or 60 cents a year earlier. third quarter. Revenue was down slightly to C$898.2 million from C$910.4 million. Rev- CSX earned $228 million, or $1.07 per share, from continuing operations for enue from automotive shipments was up 15.1 per cent in the quarter, while bulk the first nine months of 2001, compared with $132 million, or 62 cents per share, shipments, such as coal and fertilizer, were up 6.1 per cent. Forest products were for the same period last year. • down 7.5 per cent, while grain shipments fell 5.8 per cent in the quarter. •
Kansas City Southern Norfolk Southern
Kansas City Southern Industries Inc. reported that Despite flagging its third-quarter revenues were flat and net earnings sales due to the were down. Nevertheless, the results were encouraging slowing economy, for the railroad company. Norfolk Southern Corp. reported third-quarter profits that were 49 percent bet- For the three months ended Sept. 30, Kansas City ter than last year’s third quarter and posted per-share earnings that met Wall Southern earned $9 million, or 15 cents a share, on Street expectations. $144.6 million in revenues. During the same time last The Norfolk-based railroad holding company made $79 million, or 20 cents a year, the company earned $23.2 million, or 39 cents a share, compared with net operating income of $53 million, or 14 cents a share, in share, on $144.1 million in revenues. the third quarter of 2000. The 2000 third-quarter results included a $23.4 million gain from the spinoff The company’s overall results in the previous third quarter were fattened 12 of Stilwell Financial Inc., the company’s financial services unit. Before such items, cents a share by a nonrecurring, $46 million sale of timber properties through Kansas City Southern reported $9 million in income from continuing operations its Pocahontas Land Corp. arm. for the 2001 third quarter, compared with $2.6 million during the same period The railroad’s increased operating profit this quarter came mostly from cut- last year. ting costs. Operating revenues for the quarter fell 1.8 percent to $1.51 billion. For the first nine months of the year, Kansas City Southern earned $19.6 Decreases of 1.8 percent in general merchandise revenues, to $862 million, and million, or 32 cents a share, on $431.8 million in revenues. During the same time of 4.8 percent in intermodal revenue, to $280 million, more than offset a 1 per- last year — which again includes a big gain from the Stilwell spinoff — the com- cent increase in coal revenue to $366 million. Intermodal revenues come from pany earned $376.9 million, or $6.39 a share, on $437.4 million in revenues. • ocean shipping containers moved by rail and then trucks. •
Union Pacific Railroad The Union Pacific Corp. reported that its third-quarter Union Pacific said record employee productivity and cost-control measures, earnings rose 4 percent on record productivity, moderat- combined with moderating fuel prices, were key factors in its improved perfor- ing fuel prices and cost controls. mance. Its operating ratio — or the cost of generating one dollar of revenue — It also forecast that fourth-quarter earnings would be fell to 79.7 percent from 80.1 percent from last year, making it the best quarterly slightly higher than those of the same period last year. performance since 1996, when it merged with Southern Pacific Corp. Union Pacific, which operates North America’s biggest Union Pacific also said it is taking advantage of lower fuel costs by locking railroad, reported net income of $267 million, or $1.04 per them in at current prices. It paid 86 cents per gallon, compared with 92 cents one diluted share, compared with net income of $256 million, year ago, and expects a reduction in fuel costs in the fourth quarter. • or $1.00 per diluted share, a year earlier. Revenues de- clined slightly to $3.03 billion from $3.05 billion. Page 4 Locomotive Engineer Newsletter · November 2001 BLE NEWS NOVEMBER 2001 Railroad Retirement CALENDAR & EVENTS bill slows in Senate DECEMBER 7… Railroad Retirement Board Informational Conference in Jacksonville The U.S. Railroad Retirement Board will conduct a free informational conference in Jacksonville, Fla. On-site registration begins at 8 a.m. with sessions starting promptly at 8:30 a.m. All sessions sponsoring this legislation are listed end at 12:30 p.m. To be held at the Holiday Inn-Baymeadows, 9150 Baymeadows Rd. For details, Railroad Retirement below: visit the RRB website at
International President Don M. Hahs—International Office: General supervision of BLE activities; Mtg. w/ Sweeney & Trumka; Mtg. w/ Turner & Chambers of American Short Line Assoc.; TTD executive cmte. mtg.; Ed Hamberger of AAR; Reception of Congressman Pomeroy, N.D.; Mtg. w/ Ed Wytkind, TTD; Mtg. w/ Bob Allen & David Lee of NCCC; Mtg. w/ J. Strang & B. Chipkevich of NTSB; Mtg. w/ BLE passenger/commuter general chairmen; Mtg. w/ VP & NLR Holmes; Advisory Board mtg.; Mtg. w/ Congressman S. Lynch (MA) and several other congressmen from Massachusetts. second shortline organizing victory First Vice-President & Alternate President Edward W. Rodzwicz— International Office duties; Correspondence & general super- Meridian Southern vision; Publications committee; Contacted various GCofAs; UP/SP conference call; Mtg. w/ Sweeney & Trumka; Mtg. w/ Turner & for the BLE this year. Chambers of American Short Line Assoc.; TTD executive cmte. mtg.; Ed Hamberger of AAR; Reception of Congressman Pomeroy, N.D.; Mtg. w/ Ed Wytkind, TTD; Mtg. w/ Bob Allen & David Lee of NCCC; Mtg. w/ J. Strang & B. Chipkevich of NTSB; Mtg. w/ BLE passenger/ Continued from Page 1 In August, workers on the Indi- commuter general chairmen; Mtg. w/ VP & NLR Holmes; Advisory Board mtg. General Secretary-Treasurer William C. Walpert—General supervision of BLE financial and record depts.; ID office; BLE Education ana & Ohio — a subsidiary of & Training Dept.; Internal Organizing, Mobilizing & Strategic Planning Dept.; BLE Safety Task Force; Advisory Board mtg.; UP/SP conference call; Mtg. w/ Sweeney & Trumka; Mtg. w/ Turner & Chambers of American Short Line Assoc.; TTD executive cmte. mtg.; Ed try working without union contracts, RailAmerica — selected the BLE as Hamberger of AAR; Reception of Congressman Pomeroy, N.D.; Mtg. w/ Ed Wytkind, TTD; Mtg. w/ Bob Allen & David Lee of NCCC; and they deserve a better standard Mtg. w/ J. Strang & B. Chipkevich of NTSB; Mtg. w/ VP & NLR Holmes. their collective bargaining represen- Vice-President Paul T. Sorrow—Advisory Board mtg.; Southwestern Convention Meeting; SBA 1063; PLB 6199; I&O negotiations; of living. Our goal is to see that they GTW mtg. w/ all Local Chairmen; Assisted NS, GTW, CSX properties. tative. Vice-President Joseph A. Cassidy Jr.— Study & paperwork; General office duties; Duluth, Missabe & Iron Range Rwy.; Mtg. w/ get it.” General Chairman Delano & committee; PLB 6420; Prepare for upcoming arbitrations; Mtg. w/ Western Caucus; Advisory Board mtg. RailAmerica is the world’s larg- Vice-President & U.S. Nat’l Legislative Representative Raymond A. Holmes—Washington D.C. office; Annual rail labor/DLC The Meridian Southern is the est shortline railroad operator. barbecue, Rockdale, TX; Hunt County, TX democratic dinner; Railroad Retirement coalition mtg.; Reception: Cong. Sheila Lee Jackson (D-TX), Boswell (D-IA), Oberstar (D-MN), Pomeroy (D-ND), Napolitano (D-CA), Shows (D-MS); FRA hearing on Webtech’s waiver petition; AFL-CIO admin. mtg.; TTD legis. mtg.; Mtg. w/ AFL-CIO President Sweeney and S-T Trumka; Mtg. w/ Frank Turner, President, and Ray Chambers, Shortline and Regional Railroad Assoc.; TTD Exec. Cmte. mtg.; Mtg. w/ Bob Allen, NRLC; Mtg. w/ Railroad Div. of NTSB; Mtg. w/ Ed Hamberger, AAR; Advisory Board mtg. Vice-President Merle W. Geiger Jr.— Assigned to: Kansas City Southern; Midsouth; South Rail; Gateway Western; Delaware Hudson/ Springfield Terminal; Assigned to SBA 1062, PLB 5527, PLB 6145; Advisory Board mtg. Vice-President Stephen D. Speagle— Assisted the following properties: All BNSF General Committees of Adjustment; Montana Rail Steam engineers needed for documentary Link; Attended ID convention. Vice-President E.L. “Lee” Pruitt — Assigned to following properties: UP-Western Lines; UP-Western Region; UP-Central Region; UP- Southern Region; Tacoma Belt; Advisory Board mtg.; Union Central Life Insurance mtg.; UP General Chairmen mtg.; On-property UP- Western Lines; Constitution & Bylaws Committee. Producers of an upcoming docu- Doug Kirkpatrick of Streamliner Vice-President Richard K. Radek— International Office; BLE Decertification Helpline services; Director of Arbitration Dept; National Railroad Adjustment Board (NRAB); Illinois Central; Wisconsin Central; Indiana Harbor Belt; METRA; Belt Rwy. of Chicago; Paduca & mentary, which will record the experi- Productions in New York is producing Louisville; Chicago Central & Pacific; NRAB administration, Chicago; FRA Part 240.409 pre-trial interviews, case screening, St. Louis; CN/IC contract negotiations; RLA 152 6th mtgs.; IC GCofA assn. mtg.; Meta labor/management quarterly mtg.; EAP drug & alcohol ences of veteran locomotive engineers the documentary. Members can e-mail testing mtg., Metra; Metra labor-management exec. cmte. mtg.; Safety Task Force mtg., Metra; Advisory Board mtg.; FRA Part 240.409 proceedings this month: EQAL 98-84, 01-06, 00-51, 00-67, 00-41. around the country during the last 50 him at:
THE LOCOMOTIVE ENGINEER NEWSLETTER PERIODICALS SAFETY TASK Brotherhood of Locomotive Engineers POSTAGE PAID AT Since 1863, a Tradition of Forward Thinking CLEVELAND, OH FORCE HOTLINE and additional mailing offices BLE Publications Committee: Don M. Hahs, International President (800) 306-5414 Edward W. Rodzwicz, First Vice-President & Alternate President William C. Walpert, General Secretary-Treasurer Raymond A. Holmes, Vice-President & U.S. National Legislative Rep. John V. Bentley Jr., Editor Contact us: www.ble.org • (216) 241-2630 Kathleen Policy, Associate Editor
COPYRIGHT 2001, ALL RIGHTS RESERVED VOLUME 15 • NUMBER 11 • NOVEMBER 2001
THE LOCOMOTIVE ENGINEER NEWSLETTER (ISSN No. 0898-8625) is published monthly by the Brotherhood of Locomotive Engineers, 1370 Ontario Street, Cleveland, OH 44113-1702. Periodicals postage paid at Cleveland, OH and additional mailing offices.
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