On May 24, as reported in the Wall Street Journal and elsewhere, BNSF announced "it will cut 1,400 jobs, reduce capital spending and make major organizational changes." The cuts include 1,000 unionized jobs out of a total work force of about 44,000.

BNSF also announced that Matthew Rose was elected president and chief operating officer effective June 1, succeeding Robert Krebs, who retains the positions of chairman and chief executive officer. "Mr. Krebs has been under increasing pressure from investors to realize anticipated efficiencies and freight growth from Burlington Northern Inc.'s $4 billion takeover of Santa Fe Corp. in 1995," reported the Wall Street Journal.

As part of its ongoing plan "to realize anticipated efficiencies," BNSF notified the BMWE on April 7, 1998, that they intended to consolidate 47 seniority districts into nine. Maintenance of way workers don't need to be told the devastation caused by such massively increased territory sizes over BNSF's 35,000 plus miles of track operated.

In the months that followed this announcement BMWE officers met many times with BNSF officers in efforts to reach an agreement on this issue. Although the BMWE felt an agreement was close more than a few times, the BNSF always ended up changing their position, which required further negotiations. "It was increasingly clear that the BNSF did not want to reach an agreement; they simply wanted to go to arbitration on this issue," said David Joynt, BMWE General Chairman on the Burlington System Division.

And that's exactly what they did. In August 1998, BNSF notified the BMWE that they were submitting the seniority district consolidations and "common points" (nine locations where the former BN and the former Santa Fe meet) issues to arbitration.

Arbitration sessions were held November 4 with Arbitrator Sickles (common points) and November 11 with Arbitrator Mittenthal (seniority district consolidations). While the provisions of the regulations called for a decision in 30 days, the arbitrators stated they could not render a decision for 60 to 90 days. In February of this year, Arbitrator Mittenthal contacted the parties and suggested they again attempt to reach a negotiated settlement to the seniority district consolidations issue.

During the two-day session held on March 8 and 9, many proposals were exchanged but the parties could not reach an agreement. At the same time, the BNSF sent a letter to its maintenance of way employees outlining what they were offering during negotiations. However, BNSF failed to include in their letter the problems and consequences of the proposals offered which precluded the parties from coming to an agreement. In response, Joynt wrote a seven-page letter to all affected BMWE members discussing BNSF's offers and explaining in detail why certain items were unacceptable to the BMWE. Essentially, Joynt said, "the BNSF simply wanted too much in return for not changing the seniority district boundaries. ... Their proposal just set the price too high for us to reach an agreement."

Since the parties were unable to reach an agreement, Arbitrator Mittenthal issued the award on March 11 which permitted the BNSF to consolidate its 47 seniority districts into nine. Weighing BNSF's "large operational need" against the "clear adverse impact on the work force," Mittenthal chose the carrier. He did, however, "add extra conditions until he felt the scale was balanced."

"I do not believe what he gave us for extra conditions comes close to equalizing the scale when you look at the horrendous effects the extra time away from your family could have, not to mention the extra cost," said Joynt following the issuance of the award.

In late March and from early May to the middle of June, the BMWE continued to meet with BNSF officials in an attempt to ensure that both parties were interpreting the Award in the same manner and to determine the BNSF's plan to implement the changes permitted by the Award. During many intense sessions, Joynt said, "we tried very hard to minimize as much as possible the hardship associated with the expanded seniority districts that have been imposed by the Mittenthal Award."

On June 16 a tentative agreement was initialed which encompassed three areas: 1) the "common points" for which the New York Dock Award required the parties to reach implementing agreements for each of the nine locations; 2) the seniority district consolidations from 47 to nine as imposed by Arbitrator Mittenthal; and 3) work rule changes and understandings. "While this agreement does not and could not reverse the Awards, it does address some of the problems created by these very large districts," said Joynt.

As this JOURNAL goes to press, a ratification process is underway relative to number three, which is a supplement to the seniority district consolidation implementing agreement. Voting will be completed by early August.