AmtrakWorkforceandLaborUnion PrimerforStatePartnersǦ January2012

asof1/26/2012 AmtrakandRailLabor PresentationOverview PrimerforStatePartnersǦ January2012 I. AmtrakBackground II. RailwayLaborAct III. LaborUnionsonAmtrak IV. Standard RailLaborContractProvisions V. Current LaborNegotiationsStatus2010Round–Amtrak VI. CurrentLaborNegotiationsStatus2010Round–Freight

asof1/26/2012 1 I.AmtrakBackground

asof1/26/2012 AmtrakandRailLabor I.AmtrakBackground PrimerforStatePartnersǦ January2012 ¾ Amtrak,TheCompanyǦ Background – Product: Intercityrailpassenger service(May1971) – 20,200+ employees – Over 500stations,46states – 22,000 routemiles–mostoverfreights – Ofroute miles: • 750 trackmilesowned/maintainedbyAmtrak– primarilyin Northeast,Michigan

• Performmaintenanceofwayanddispatching,primarilyalong NortheastCorridor(exceptMetroNorth)andMichigan

– Performtrainoperationandmaintenanceofequipment nationwide

– Multipleequipmentserviceandinspectionfacilities;three(3) heavylocomotiveandcaroverhaulfacilities asof1/26/2012 3

– Performoperatingand/ormaintenanceservicesforvarious commutersystemsandstates:

AmtrakandRailLabor I.AmtrakBackground(Cont.) PrimerforStatePartnersǦ January2012 ¾ CommuterService–Varietyofservices Commuter Service PrincipalAmtrakProvidedServices Caltrain(SanFrancisco– Traincrews/operationsandmaintenance. San.Jose) DelDOT(Wilmington) Trainaccess,electricpropulsion,capitalimprovementagreement,shared

stations. LIRR(LongIsland) Capitalimprovementagreement;trainaccess,electricpropulsion,NYPenn

Stationshareduse. MARC(MarylandǦ DC) Traincrews/operations(PennLineservice),equipmentmaintenance.Train

access,electricpropulsion;capitalimprovementagreement,sharedstations. MBTA(Bostonarea) Trainaccessandtrackmaintenance;traindispatchingofAttleboroLineand

SouthStation. Metra(Chicagoarea) Trainaccess,sharedstation.

Metrolink(LosAngelesarea) Traincrews/operations. NJTRANSIT(NYǦTrenton) Trainaccess,electricpropulsion,sharedstations,mechanicalservices,capital improvementagreement. RIDOT(ProvidenceArea) Trainaccess,capitalimprovementagreement,sharedstation.

SEPTA(Philadelphiaarea) Trainaccess,electricpropulsion,capitalimprovementagreement,shared stations. ShoreLineEast(NewHaven Traincrews/operations;equipmentmaintenance.Trainaccess,shared

east) stations. Sounder(Seattle) Equipmentmaintenance(atAmtrakmaintenancefacility).

TriǦRail(MiamiǦWestPalm) Traindispatching. asof1/26/2012 4 VirginiaRailwayExpress Trainaccessandtrackmaintenancewithintheterminaltostorageyard; (NorthernVirginiaǦ DC) capitalimprovementagreement,sharedstation.

AmtrakandRailLabor I.AmtrakBackground(Cont.) PrimerforStatePartnersǦ January2012 ¾ CurrentStateTrains– primarilyoperation&maintenanceof equipmentwithincreasedsupportrelatedtoSection209ofPRIIA

State/Agency Service/Corridor California San Joaquin, Pacific Surfliners CCJPA Capitol Corridor Illinois Lincoln Service, Illini/Saluki, and llinois Zephyr/ Carl Sandburg Illinois Hiawatha Service Michigan Pere Marquette, Blue Water; Wolverine (post 2013) Missouri Missouri River Runner New York Adirondack; Empire Service (post 2013) NNEPRA Downeaster North Carolina Piedmont, Carolinian Oklahoma Heartland Flyer Oregon Cascades Pennsylvania Keystone Service; Pennsylvanian (post 2013) Texas Heartland Flyer Vermont Vermonter, Ethan Allen Express asof1/26/2012 5 Virginia NE Regional - Extension to Lynchburg; Richmond Washington Cascades Wisconsin Hiawatha II.RailwayLaborAct

asof1/26/2012 AmtrakandRailLabor II.RailwayLaborAct(RLA) PrimerforStatePartnersǦ January2012 TheRailwayLaborAct(RLA)governslaborrelationsintheAirline andRailroadindustries– carriersinvolvedininterstateactivities. Actdatesfrom1926.

Purposes: ¾Avoidinterruptionstointerstatecommerceortotheoperationof anycarrier(limitstrikesandlockouts)

¾Provideforsettlementofmajordisputes (negotiationprocessǦ formationofnewcontractterms:wages,rulesandworking conditions)

¾Provideforsettlementofminordisputes (claimandgrievance handling,bindingarbitration)

¾Assureemployeerepresentation rights(unionelections) ¾NationalMediationBoard(NMB)administers theRLA’skey provisions:representation,arbitrationandmediation asof1/26/2012 7 AmtrakandRailLabor II.RailwayLaborAct(RLA)(Cont.) PrimerforStatePartnersǦ January2012 ¾ UnionRepresentation–KeyPoints – Craft andClassDetermination • Historical perspective • System Ǧwideemphasis • Election processoverseenbyNationalMediationBoard – Stability ¾ Arbitration –KeyPoints – Claim andGrievancedisputessubjecttobindingarbitration–not astrikeableissue

– Arbitrationcancreateprecedent,especiallywheninterpreting contractlanguage

¾ NegotiationsǦ KeyPoints

– Contracts neverexpire Ǧ Remainineffectuntilchanged. asof1/26/2012 8 – Can belengthy;Designedtoprevent strikes;Notimelimits. – Generally acontractterm;voluntaryagreementsanytime.

AmtrakandRailLabor II.RailwayLaborAct(RLA)(Cont.) PrimerforStatePartnersǦ January2012 ¾ NegotiationsProcess(Cont.) – Party seekingtochangecontractservesbargainingdemands (“Section6Notice”)

• Precededbyreviewofoperationalandfinancialneeds • Wages, workrulesandbenefitplans • Company officersand/orcollaborationwithcustomers,such asstatesandcommuters.

– Directnegotiationsbeginwithin30daysandcontinueuntil agreementormediationrequested.

– MediationcontinuesuntiltheNMBissuesa“profferof arbitration” or,ifrejected,theNMBreleasestheparties.

– Ifreleased,30Ǧday “coolingoff” periodbegins. – Thereafter, ifdisputethreatensasubstantial disruptionto interstatecommerce,theNMBmayrecommendappointmentof asof1/26/2012 9 aPresidential EmergencyBoard(PEB)

AmtrakandRailLabor II.RailwayLaborAct(RLA)(Cont.) PrimerforStatePartnersǦ January2012 ¾ NegotiationsProcess(Cont.) – President usuallyappointsaPEB;30Ǧdayperiodtoinvestigate andissuereportfollows

– PEBmakesnonǦbindingrecommendationstoguidepartiesin furthertalks;final30Ǧday“coolingoff” periodbegins

– Ifnoagreementafterthe30ǦdaycoolingǦoff period,partiesmay exerciseselfǦhelp.

– Congressionalinterventionandoptions: • Imposition ofrecommendations • “Baseball Ǧstyle” finalandbindingarbitration • Other? Note: CommuterRailroadsarecoveredunder amendmenttoprovideforasecondPEBifdeadlockafterthe

firstPEB.(Section9A) asof1/26/2012 10

III.LaborUnionsonAmtrak

asof1/26/2012 AmtrakandRailLabor III.LaborUnionsonAmtrak PrimerforStatePartnersǦ January2012 ¾ AmtrakLaborEnvironment – 13 unions – 2councils – 24labor agreements – 17,200 unionrepresentedemployees – Ofthese unions: • Rail oriented(BMWE,BRS) • Craft oriented(IBEW,IAM) • Other (TCU,UTU,Councils)

asof1/26/2012 12 AmtrakandRailLabor III.LaborUnionsonAmtrak(Cont.) PrimerforStatePartnersǦ January2012 ¾ AmtrakUnions

¾ FraternalOrderofPolice(FOP) ¾ InternationalAssociationofMachinistand ¾ International Brotherhoodof AerospaceWorkers(IAM) Teamsters ¾ InternationalBrotherhoodofElectrical

– BrotherhoodofLocomotive Workers(IBEW)

EngineersandTrainmen(BLET) ¾ NationalConferenceofFiremenandOilers

– BrotherhoodofMaintenance DivisionofServiceEmployeesInternational

ofWayEmployeesDivision Union(NCFOǦSEIU)

(BMWED) ¾ SheetMetalWorkersInternational

¾ AmericanTrainDispatchers Association(SMWIA)

Association(ATDA) ¾ TransportationCommunications

¾ BrotherhoodofRailroadSignalmen InternationalUnion(TCU)

(BRS) ¾ UnitedTransportationUnion(UTU)

¾ InternationalBrotherhoodof ¾ UNITEǦHERE

BoilermakersandBlacksmiths(IBB) ¾ TransportWorkersUnion(TWU)

¾ AmtrakCouncils ¾ AmtrakServiceWorkersCouncil ¾ JointCouncilofCarmen,Coach (ASWC)(TWU,UNITEǦHEREandTCU CleanersandHelpers(JCC)(TWUand unions) TCUunions)

asof1/26/2012 13 Note: MixofunionsonAmtrakevolvedprimarilyhistoricallyfromassumptionsoffunctionsand employeesfromfreights.

AmtrakandRailLabor III.LaborUnionsonAmtrak(Cont.) PrimerforStatePartnersǦ January2012 ¾ AmtrakUnionswithIllustrativeJobTitles/Occupations

UNION JOBTITLEEXAMPLE Fraternal OrderofPolice Sergeants,Detectives,PoliceOfficers,SpecialAgents

InternationalBrotherhoodofTeamsters PassengerLocomotiveEngineers Ǧ BrotherhoodofLocomotiveEngineers andTrainmen Ǧ BrotherhoodofMaintenanceofWay MaintenanceofWayForces:Track,ElectricTraction

EmployeesDivision &Structures/Facility,Foreman,Trackmen, EquipmentOperators,Welders,B&BMechanicsand

Linemen

BrotherhoodofRailroadSignalmen Signalmen,Maintainers,Inspectors,Foremen

InternationalBrotherhoodofBoilermakersand BoilermakersandBlacksmiths Blacksmiths InternationalAssociationofMachinistandAerospace Machinists

Workers InternationalBrotherhoodofElectricalWorkers ElectriciansandTechnicians

NationalConferenceofFiremenandOilersDivision UtilityWorkers,EquipmentOperators,Stationary ofServiceEmployeesInternationalUnion Engineers SheetMetalWorkersInternationalAssociation PipefittersandSheetmetalWorkers

COUNCILS asof1/26/2012 14 AmtrakServiceWorkersCouncil Chefs,ServiceAttendants,FoodSpecialists, Train/SleepingCarAttendants JointCouncilofCarmen,CoachCleanersandHelpers CarmenandCoachCleaners AmtrakandRailLabor III.LaborUnionsonAmtrak(Cont.) PrimerforStatePartnersǦ January2012 ¾ AmtrakUnionswithIllustrativeJobTitles/Occupations(Cont.) UNION JOBTITLEEXAMPLE Transportation CommunicationsInternationalUnion Clerical TicketClerks/Agents,Baggagemen,Secretaries,Data EntryClerks,ReservationSalesAgents,Material ControlClerks

TCDivision(Tower) BlockOperators

AmericanRailway&AirwaySupervisors ForemenI,II,III Association(ARASA)MechanicalForemen AmericanRailway&AirwaySupervisors Supervisors,Asst.Supervisors,GeneralForemenof Association(ARASA)MWSupervisors C&S,ET,B&B,Track

AmericanRailway&AirwaySupervisors Cus.ServiceQual.Supervisors,Admin.Chiefs,Crew Association(ARASA)OBSSupervisors BaseSupervisors AmericanTrainDispatchersAssociation PowerDirectors,TrainandLoadDispatchers

UnitedTransportationUnion

Conductors PassengerConductors&Asst.PassengerConductors

Stewards DiningCarStewards asof1/26/2012 15 Yardmasters Yardmasters IV.TypicalRailLabor ContractProvisions

asof1/26/2012 AmtrakandRailLabor IV.StandardRailLaborContractProvisions PrimerforStatePartnersǦ January2012 ¾ Pay ¾ Benefits –Medical,Dental,etc. ¾ Scope/Work Classification–WorkAccruesto WhatCraftand/orWho

¾ HoursofAssignmentǦWorkWeek ¾ Seniority ¾ Job Assignment,QualificationsandSelection ¾ Overtime ¾ Claims andGrievanceProcedures,includingArbitration ¾ Discipline Procedures,includingArbitration ¾ Other: – Contracting Out – Employee Protection(AppendixCǦ2) asof1/26/2012 17

AmtrakandRailLabor IV.StandardRailLaborContractProvisions(Cont.) PrimerforStatePartnersǦ January2012 ¾ ContractingOut – Amtrak generallyhasrightstocontract,butcannotifitresults infurlough

– Typicalreasons:skills,manpower,timeframetocomplete,etc. – Examples oftypesofworkcontracted: • Commissary andprovisioningoftrains • Stationcleaning • Moveablebridgereplacement • Stationrehabilitation,particularlyoffcorridor

asof1/26/2012 18 AmtrakandRailLabor IV.StandardRailLaborContractProvisions(Cont.) PrimerforStatePartnersǦ January2012 ¾ EmployeeProtection(AppendixCǦ2) – Provides employeesaffectedby“traindiscontinuance” below triǦweeklywageandbenefitsprotection

– NotuniquetoAmtrakǦrootedinhistory.“ModernDay” – 1933 onward:Continuesonfreightstodaycoveringavarietyof transactions orevents:Mergers,Consolidations,Closings, TransferofWork,ContractingǦOutandTechnologicalChange.

– Examples: • Washington JobProtection–1936(coordination, consolidation,merger)

• PennCentralMerger–1968 • Title VofRegionalRailReorganizationAct(3R)1973– Northeastbankrupts=Conrail

• RailroadRevitalizationandRegulatoryAct(4RAct)–1976 asof1/26/2012 19

AmtrakandRailLabor IV.StandardRailLaborContractProvisions(Cont.) PrimerforStatePartnersǦ January2012 ¾ EmployeeProtection(AppendixCǦ2)Examples(Cont.) • NewYorkDock(mergers,consolidationsandacquisitions) • Oregon ShortLine(abandonment) • Mendocino Coast(Leasetransactions) • Norfolk andWestern(Trackagerights) – Other • September 1964(contracting,closingoffacilities–shop crafts)

• February1965Agreement(technologicalchange–BRS,TCU, BMWE)

– Someprotectioninothertransportationindustries • Urban masstransit–UrbanMassTransitAct1964(protecting interestsofemployeesbecauseofFederalassistance)(“13C”) asof1/26/2012 20 AmtrakandRailLabor IV.StandardRailLaborContractProvisions(Cont.) PrimerforStatePartnersǦ January2012 ¾ WageandBenefitprotectionamountsupto5Ǧyearpaymaximum basedonaslidingscaleofservice: YearsofAmtrakService Duration 0to2 0mos. 2+ to 3 6mos. 3+ to 5 12mos. 5+ to 10 18mos. 10+ to 15 24mos. 15+ to 20 36mos. 20+ to 25 48mos. 25+ 60mos.

–Doesnotapplytonewtrainserviceornewemployeesfor

thefirst2years.

–Doesnotapplytocommuterservices. –DoesnotapplytoanynewFederallymandatedtrains. –Doesnotapplytoanyprivate/insourcedwork. –AppliestoStateSupportedtrainsasfollows: asof1/26/2012 21 • Amtrakdiscontinuanceaction–abovelevels • Statediscontinuanceaction–1/3ofabovelevels

V.CurrentLabor NegotiationsStatus2010RoundǦ Amtrak

asof1/26/2012 AmtrakandRailLabor V.CurrentLaborNegotiationStatus2010Round–Amtrak PrimerforStatePartnersǦ January2012 ¾ Settledorindirectnegotiationswithall Employee Percent Count of Total RATIFIED (Ratified contracts run through January 1, 2015) 12,481 72.6% •American Train Dispatchers Association 180 •Amtrak Service Workers Council 1,850 •Fraternal Order of Police 409 •International Association of Machinist and Aerospace Workers 514 •International Brotherhood of Electrical Workers 1,184 •International Brotherhood of Boilermakers and Blacksmiths 60 •Joint Council of Carmen, Coach Cleaners and Helpers 1,879 •National Conference of Firemen and Oilers 266 •Sheet Metal Workers International Association 440 •Transportation Communications International Union – Clerical 3,605 •Transportation Communications International Union – ARASA 799 •Brotherhood of Locomotive Engineers 1,295

OPEN 4,722 27.4% •Brotherhood of Maintenance of Way Employees – (PRLBC) 1,974 •Brotherhood of Railroad Signalmen (PRLBC) 629 •United Transportation Union – Conductors, Stewards, Yardmasters 2,119 asof1/26/2012 23

PRLBC – Passenger Rail Labor Bargaining Coalition December Headcount 17,203 (January 5, 2012) AmtrakandRailLabor V.CurrentLaborNegotiationStatus–Amtrak(Cont.) PrimerforStatePartnersǦ January2012 ¾ SummaryTermsofAmtrakPattern – Term • 5 years,January1,2010throughJanuary1,2015 – WageIncreases •January1,2011: 1.5% • July 1,2010: 1.5% •January1,2012: 1.0%

• July1,2011: 1.5% •January1,2013: 1.5%

• July1,2012: 1.5% •January1,2014: 1.0%

•January1,2015: 1.5% • July 1,2013: 1.5% • July 1,2014: 1.5% – Medical Plan • Medical MonthlyCostSharingFormula: Lesserof15%orrisingcapsupto$230

NOTE:Currentlyat$181.62or$177.54 asof1/26/2012 24 • EmergencyRoomcoǦpayto$75

AmtrakandRailLabor V.CurrentLaborNegotiationStatus–Amtrak(Cont.) PrimerforStatePartnersǦ January2012 ¾ ThemesAcrossUnions – Payroll ProcessingReform • Direct Deposit • BiǦweekly Pay – Discipline Reform – Allowance forIncentivePlanPay ¾ CraftSpecific Issues

asof1/26/2012 25 VI.Labor NegotiationsStatus2010Round Ǧ Freights

asof1/26/2012 AmtrakandRailLabor VI.LaborNegotiationStatus2010Round–Freights PrimerforStatePartnersǦ January2012 ¾ InitialAgreementǦ UTU(September2011)(~27%offreight employees)

¾ AllotherunionswentthruNMBmediation,releaseandPEB process(PEBappointedbyPresident)

¾ PEB243ReportissuedNovember5,2011. ¾ Issuance ofreporttriggeredafinal30day“coolingoff” period whichended12:01AM,December6,2011.

¾ Allunions,exceptBMWEsettledalongPEB243recommendations. Ofthesettledunions,allratifiedagreementsbuttheBRSand ATDA whichareinratificationphase.

¾ BMWEreachedagreementwithfreightsextendingselfǦhelp perioduntil12:01AM,February8,2012.Negotiationswith individual freightscontinuingovermealandtravelallowance increases,anissuePEB243declinedtoaddress.

¾ Ifnoagreementreachedwithintimeframe,partiesfreetoexercise asof1/26/2012 27 selfhelp– strike,lockǦout,etc.