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Fighting furloughs: UP lays off 143 in PRB, accused of contract violation

By JOHN STUART: Reporter

With the economic slowdown impacting nearly every industry across the nation, railroad giant Union Pacific is continuing a trend of downsizing by furloughing 143 railroaders in the Powder River Basin and putting 30 others on standby status. According to an individual with knowledge of the situation (who wished to remain anonymous due to the sensitive nature of the information), it was expected that 10-20 railroaders would be furloughed with the slowdown of coal trains to and from the Powder River Basin rail network. But, in February, UP officials told railroaders in an employee meeting that 40-50 people would be downsized, at most. The numbers were further cut as recently as Monday when six more workers were furloughed in a single day. The furloughed railroaders represent about 50 percent of the UP force operating out of the Bill depot north of Douglas.

According to the source, the moderate coal train slow down in the PRB doesn’t justify the 143 railroad workers who have been furloughed in the last two months. “A month ago we would’ve had 78 pools and extra boards were up around 45,” the source said. The two-man pools now number about 55 and extra board employees number around 37. “I think we’re down to 36 trains (per day) and that’s down about six from our average we did the prior month,” the individual said. Brotherhood of Locomotive Engineers and Trainmen (BLET) Local Chairman O. Don Hill said the slowdown has dropped the number of trains to about 30 each day. The number peaked in the summer of 2008 when there were 35-40 per day. Hill said a moderate seasonal slowdown is to be expected, but the low train numbers are far beyond normal. The busiest months are in the spring and summer, but Hill said he hasn’t yet noticed the pickup that usually comes in March.

UP officials declined to comment on the number of trains the railroad runs each day. With fewer numbers, the remaining workers are running increasingly longer routes, often times in violation of their contracts, the source said.

Trip rates

The BLET contends the railroad is violating the trip rates of Bill crews by forcing them to run routes in excess of 136 miles per shift, according to Hill. The union contends the trip rate is contractually established at 136 miles per shift for the crews operating out of Bill. UP officials declined comment on trip rates.

The 136-mile trip rate was established in 2005, based on an average of thousands of trips performed by Bill crews, according to sources who spoke on condition of anonymity. With fewer workers lining the UP ranks, Bill crews are now frequently traveling upward of 160-200 miles during a shift, according to the sources. Crews are also increasingly being picked up and bused to multiple trains and rail lines per shift. Before the furloughs, crews would typically run on one track during a shift and perform one trip either to or from a PRB coal mine. “My personal opinion is that they are deliberately trying to manipulate contracts so they can have fewer workers, more productivity, not pay as much in wages, about anything you can think of,” Hill said. UP is stating that the trip rates are not set and that crews can be required to perform miles in excess of traditional route lengths, according to Hill. Hill also expressed deep concern for an alleged incident several weeks ago in which a railroad radio dispatcher gave railroaders a startling announcement. “They had a dispatcher come on the radio and say that all the contracts for workers in the Powder River Basin are null and void,” Hill said. That statement is absolutely false, according to Hill.

Last year, UP was listed as a $1 billion company. Of those earnings, the Bill crews earned $400 million for UP, according to Hill. “(Hauling from) the coal mine(s) of Bill, Wyoming, pay for everything,” he said. “As we go, the rest of the nation goes. “We are the ones they’re trying to squeeze the most. If that means they can get higher profits, that means more money. The more they make off us the more they can pay for other stuff.” With shorter staffs, employees are also being denied personal days and other compensatory time off, sometimes in violation of the Family and Medical Leave Act, Hill charged.

In 2008 UP boosted the compensation of President and CEO Jim Young by 20 percent to nearly $12 million. But in UP documents recently released to the Securities and Exchange Commission, UP stated that none of its top 150 executives would receive pay raises in 2009 because of economic hardship.

Short Turnaround

Under contractual agreements, UP can authorize crews to perform Short Turnaround (STA) Service from Bill. Crews can be requested to drive a cumulative 100 miles under the STA service but cannot drive farther than 25 miles in one direction from the Bill depot. But the source contended that Bill crews are often traveling farther than the 25-mile one-way limit. The BLET claims the 136-mile trip rate and STA service agreements are clearly established within contract agreements. If this is the case, UP would be responsible for paying over-miles for crewmen for any miles in excess of 136. “No, they wouldn’t like that at all,” the source said. “Over-miles add up incredibly quick.” But more than earning copious overtime checks, the individual said Bill crews would rather see their staff rolls returned to full strength. “If you talked to a lot of us, you’ll get the consensus it’s not the money we want, it’s the jobs and the people back,” the source said. The individual also expressed concern that the furloughs aren’t over. “I don’t think so, I don’t think this is going to get any better,” he said. “I don’t see how it can.”

Speeding up

With fewer non-coal trains on the rails, average velocities of coal trains have increased in recent months, from about 14 mph to about 21 mph, the source said. This is a large factor in allowing Bill crews to drive more miles during their federally mandated 12-hour maximum shifts. “The moving of crews from mine to mine under local management terms . . . have an enormous effect on the operating practices at Bill. We feel not only do they violate our Schedule Rules and Agreements, but make our current trip rate nothing but a farce,” the local BLET wrote in a letter submitted March 3 to representatives of UP’s Labor Relations.

In a March 2 BLET letter to UP Labor Relations, the BLET requested that UP formally train Bill crews to operate between Bill and South Morrill, Neb. Previous Bill crews did not frequent this route, but are now doing so in the face of diminished workforce personnel, according to the individual. “We hereby formally request that the Carrier (UP) train and qualify said employees on their assigned territory between Bill, WY and South Morrill, NE. This training should commence immediately,” the letter stated. Improper training and experience on a route can lead to a potentially unsafe work environment, the individual said. “This organization contends that no Bill Interdivisional Pool Freight or Extraboard Crew has ever been trained East of Bill, WY, on a loaded or empty coal train, either Eastbound or Westbound, as should have been upon implementation of this agreement,” the letter further stated. BLET is requesting that UP crews be trained on company time for this route and not be forced to “ride the road” on their own time to qualify for route competence.

Nationwide

The local furloughs show what’s happening at the national level with UP, which has furloughed 3,600 employees. The company also cites significantly lower carload volumes nationwide. “The economy has had a dramatic effect on companies as we recently announced,” UP Spokesman Tom Lang said. “Carloads are down 18 percent across the nation. It’s having an effect on all industries.” Lang would not confirm the numbers of local furloughed employees due to company policy but said UP has no current plans to reinstate the thousands of furloughed employees across the country. He said the transportation giant will consider bringing employees off furlough in proportion to the market. “Our plan is to be ready when the economy starts to turn around that we can start to bring people back and be ramped up and provide the service to customers,” Lang said. “Our plan is to be ready to do that and hopefully that’s sooner (rather) than later.” The UP spokesman declined to comment on specific issues addressed by the BLET, stating the matter would have to be handled by Labor Relations. The Budget could not talk to Labor Relations officials directly as they do not speak to the media.

Arbitration

Usual protocol stipulates that a disagreement between the BLET and Labor Relations would eventually go to third party arbitration if a resolution can’t be met through discussions. Decisions reached in federal government-directed arbitration are binding for all parties. “At this time (the BLET) feels that putting arbitration on the fast track would not be in the best interest of the organization or the carrier,” a letter to Labor Relations stated. “This in no means is a refusal to try and negotiate with the carrier these unpleasant and morale lowering issues that we currently have on the table.” Labor Relations canceled two meetings scheduled between the BLET and UP in March, to Hill’s frustration. It isn’t clear whether Labor Relations is intentionally stalling, Hill said, but he hopes for a successful meeting in the future. No new meeting date has been set as of press time. “The end goal is to get back what’s ours and make things right,” Hill said. “I’ve been out here for 21 years, but I’m not going to hang my hat on it. I hope we can get all these people back and get them to work and contracts and pay issues straightened out.” The arbitration and preceding discussions can often take six months to a year before a decision is reached.