Next State(s) of the Union

By Desiree J. Hanford

Just as railroads have evolved during the past five decades, so have the unions that represent rail workers at the bargaining table. And the up-and-down rail-union relationship has changed, and will continue to change, accordingly.

What follows is an edited version of insights into that relationship from interviews with Frank Wilner, spokesman for the United Transportation Union International, which represents 125,000 active and retired rail, airline and bus workers; Don Griffin, director of strategic planning for the Brotherhood of Maintenance of Way Employes Division, which has 35,000 members, primarily in the rail industry; and Edward Rodzwicz, president of the 55,000-member Brotherhood of Locomotive Engineers and Trainmen.

Q. What are the most important challenges facing the industry in the years ahead?

Wilner: How to protect our members jobs in the face of rapidly advancing technology. No union has ever been able to stop the implementation of technology, and the UTU takes the position that we serve our members best by assuring that new technology is safe, that our members receive appropriate training in its use, and that any job losses associated with the introduction of new technology be achieved through attrition or promotion and training into other productive positions. The other challenge we’re facing is peak operations and fatigue.

Griffin: There’s a number of them. One is demographics. The railroad workforce still is primarily composed of baby boomers, and they will be exiting the system within the next decade through retirement. Second, we have escalating health-care costs, and the parties at the bargaining table can only do so much to really control costs. Third is capacity. In some cases, railroads are capacity constrained. Lastly, trans-national operations. It’s something I think we’re going to see in the next couple of decades become very significant.

Rodzwicz: First, the industry must integrate a new generation of railroad workers as the baby boomers retire, taking with them much-needed expertise. Second, the industry will need to continue to make significant investments in infrastructure, both to answer capacity challenges — particularly those related to trans-Pacific container shipments — and to take advantage of even worse capacity problems on the nation’s highways. Third, the industry must successfully navigate through the implementation of next-generation technologies such as electronically controlled pneumatic brakes and positive train control, both of which hold great potential for increasing safety, velocity and productivity.

Q. How would you assess the tenor of the railroad-union dialogue these days?

Wilner: There needs to be a greater trust among the parties. This past round of negotiations was perhaps the most difficult in the past 20 years. A lot of fence mending will be required for the next few months to restore trust on both sides. These fences have to be mended because without mutual trust, we’re not going to be able to work together. A financially healthy industry is essential to pay the wages and benefits our members want.

Griffin: It’s probably better than it’s been at certain times. It’s really sort of a hit-or-miss proposition. Our union has better relations with some carriers than others. The problem is that in collective bargaining, the last time we tried our spokesperson referred to it as a data-driven bargaining round. Under the Railroad Labor Act, carriers have successfully been able to resist sharing information with the unions that would allow, for example, a detailed cost analysis to be made. Until you prove your case through data, the other side isn’t going to assume that you’ve presented a legitimate argument.

Rodzwicz: The round of national bargaining that concluded last year was the nastiest I’ve seen in more than 30 years in the industry. Moreover, the railroad industry has historically been plagued with a militaristic culture that dates back to its earliest days. At the same time, the U.S. has the most anti-union business culture of any First World nation, in my opinion. Thus, the context supports the ugliness of the last round. That being said, some positive signs are out there, if one wants to look for them.

Most of the significant regulatory achievements over the past 12 years have been supported by labor and management members of the Federal Railroad Administration’s Railroad Safety Advisory Committee. More recently, pilot programs have been established on a number of railroads that move away from the standard command-and-control model in

order to get a better look at human error and close calls. There are numerous small but significant areas where constructive dialogue is ongoing; however, whether those successes can be quickly or easily translated to the bargaining table is an open question, in my mind.

— Desiree J. Hanford, who worked for Dow Jones & Co. the past 10 years covering the equities market, including transportation, is a Chicago-based free-lance writer.