Congress passed the Railway Labor Act in 1926 for the purpose of securing prompt resolution of disputes between interstate railroads and their employees.

To accomplish this purpose, the Railway Labor Act established mandatory procedures for the resolution of all disputes and denied the courts jurisdiction to hear these types of disputes.

Disputes arising between the carriers and their employees who are covered by collective bargaining agreements are divided by the Act into two categories: major and minor.

Minor disputes are those which grow out of grievances over the interpretation or application of an agreement. Generally speaking these grievances involve such things as a railroad's refusal to pay certain rates of pay and rules violations.

Major disputes are those which arise over the formation of or change to collective bargaining agreements covering rates of pay, rules and working conditions.

Under the Act, any party to an existing collective bargaining agreement wishing to change any part of the agreement must give a minimum of 30 days written notice of the intended change. This written notice is known as a Section 6 Notice because it is covered by Section 6 of the Act.

Section 6 Notices were served on the carriers as well as received from the carriers on November 1, 1999 and copies of both documents follow this article.

Bargaining sessions held after Section 6 Notices are served can have one of three results: 1) an agreement; 2) self-help (strike and/or lockout); 3) mediation.

If the parties reach a deadlock and neither side requests mediation and the National Mediation Board doesn't insert itself into the process, either side can use self-help. This normally doesn't happen. Usually one side or the other requests mediation or the Board assets its authority.

Mediated bargaining sessions then follow one of several avenues. First, the parties may reach agreement.

Second, the Board can proffer arbitration which either party can accept or reject. If both parties accept arbitration, then the end result will be an arbitrated agreement. If either party rejects arbitration, they have 30 days from the rejection to engage in self-help. 

The third option is that the Board can recommend that the president appoint a presidential emergency board. This is usually what happens in every national round of bargaining when agreement is not reached with the major railroads.

A presidential emergency board has 30 days from the date of its appointment to make non-binding, fact finding recommendations for the settlement of the dispute. The parties have 30 days after the date the recommendations are issued to accept or reject the recommendations and to reach agreement, as they did in 1996.

If either party rejects the recommendations and the parties are still unable to reach agreement, either party is free to resort to self-help. If self-help is used, Congress intervenes and either imposes the recommendations of the presidential emergency board as happened in 1991 or orders the parties to binding arbitration as happened in 1992 on Conrail and Amtrak.

BMWE SECTION 6 NOTICE

Any request for changes herein is not an admission, expressed and/or implied, directly and/or indirectly, that those changes requested are not already contained within the terms and conditions in any existing collective bargaining agreement between Brotherhood of Maintenance of Way Employes and the carrier.

Revise, amend and supplement existing collective bargaining agreements to:

1. Effective January 1, 2000 provide for a general wage increase in basic rates-of-pay and for periodic general wage increases thereafter.

2. Effective July 1, 2000 provide for a full cost-of-living adjustment and for periodic full cost-of-living adjustments thereafter.

3. Effective January 1, 2000 provide an across the board equity wage adjustment.

4. Effective January 1, 2000 provide skill adjustment on various agreed to classifications.

5. Effective January 1, 2000 provide across the board rate increases to compensate employees for productivity gains arising from expansion in operating territories due to mergers and/or consolidations and/or purchases of railroads and/or rail lines and/or parts of railroads and/or seniority district consolidations and/or other operating changes.

6. Effective January 1, 2000 raise rates for each classification to the highest rate paid for that classification. Items 1-5 shall be applied effective January 1, 2000 after this item 6 is provided.

7. Provide arrangements for the establishment of an early retirement benefit.

8. Provide Health Care Coverage for employees eligible to retire under any pension or retirement system established by statute or agreement.

9. Provide for the elimination of contracting maintenance of way work to outside concerns without agreement of the General Chairman.

10. Provide arrangements for the stabilization of employment including successorship of existing contracts in any sale, lease or other transaction involving a carrier's rail line.

11. Provide for the improvement in all health care benefits as set forth in Attachment A.

12. Provide arrangements to protect employees from losses involving accidents with uninsured or under insured motorists

13. Provide arrangements to continue all health insurance benefits to all furloughed employees.

14. Provide arrangements for employees on leave of absence as accredited representatives of the Organization to: (1) retain and accumulate seniority; (2) be considered in continuous employment for vacation eligibility purposes; and (3) for purposes of statutory or contractual employee protective arrangements have such time on leave considered as active service time.

15. Provide for additional vacation, holiday, personal leave and bereavement leave benefits and reduce and liberalize qualifications for them and establish sick leave benefits.

16. Provide arrangements to establish a shorter standard work week with no reduction in pay.

17. Provide for the elimination of camp cars, outfit cars, trailers and other mobile lodging facilities provided by the Carrier and provide that all employees shall receive single occupancy lodging and full reimbursement of expenses for meals and telephone while away from home.

18. Provide mileage reimbursement and pay at the applicable straight time or overtime rates for all time expended traveling between home and away from home lodging locations and from one work point to another.

19. Provide premium pay for all hours worked outside of normal day shifts Monday through Friday (Monday through Thursday when working 4 day work week).

20. Provide for the elimination of all entry rates-of-pay.

21. Establish a rule guaranteeing employees a safe working environment.

22. Provide for the improvement in supplemental sickness and off-track vehicle benefits.

23. Provide for the establishment of a carrier contributory 401(k) Plan.

24. Provide for an employee's voluntary furlough without loss of seniority.

25. Provide that employes will not be held in positions when they are entitled by virtue of their seniority to move to different positions.

26. Provide for the exercise of seniority to any position in a classification in which the employee possesses seniority rights with no loss of seniority in other classifications.

27. Require the General Chairman's agreement prior to seniority districts being altered, combined and/or realigned.

28. Provide for a 4 day work week, Monday through Thursday, without a reduction of pay.

29. Increase the pay of all employees required to have a Commercial Driver's License (CDL)or other state or federal requirement for operation of highway and/or highway/rail equipment and require the carrier to provide necessary training and pay for all costs associated with obtaining and maintaining a CDL or other state or federal requirement for operation of highway and/or highway/rail equipment.

30. Bar the carrier from stopping any employee from obtaining any position requiring a CDL if the carrier has failed to: (a) perform necessary administrative functions in a proper and timely manner; and/or (2) train any employee in a proper and timely manner; and/or (3) pay for all costs associated with obtaining and maintaining a CDL in a timely and proper manner.

31. Require the carrier to allow employees to obtain positions solely on the basis of seniority, including requiring the carrier to train employees based strictly on seniority.

32. Eliminate: (1) work site reporting; and (2) alternate work weeks; and (3) starting times outside of 6:00 a.m. to 8:00 a.m. unless agreed to by the General Chairman.

33. Require the carrier to bulletin and maintain a fixed paid meal period between the ending of the 4th hour and the beginning of the 6th hour computed from the assigned starting time and provide a wholesome meal served under sanitary conditions and 30 minute paid meal period every 5 hours after the bulletined meal period.

34. Require the carrier to provide a wholesome meal served under sanitary conditions and 30 minute paid meal period within 5 hours after the commencement of work and at 5 hour intervals thereafter when employees are called to perform work outside of their regularly assigned hours.

35. Provide a discipline rule which provides for appropriate due process.

36. Provide for jointly established and administered program for training of employees, including, but not limited to, current positions and those positions requiring the introduction of new technology.

37. Provide a standardized advertisement and award rule.

38. Provide for a rule for setting rates of pay for new positions or when additional duties or qualifications are placed on existing positions or classifications or when technological changes are made to existing positions or classifications.

39. Provide for a jointly established and administered centralized employee manpower management office to handle maintenance and distribution of job bulletins, rosters, assignments and for all other exercises of seniority.

40. Provide a rule requiring the carrier to provide periodic information to the union regarding location and complement of gangs or other permanent and temporary assignments.

41. Provide for a company paid, union administered program for education of carrier employees.

42. Provide a monthly tool and clothing allowance.

43. Provide for a rule requiring the carrier to provide information to the union necessary to administer and negotiate the agreement.

44. Provide a rule requiring the carrier to pay employee on active military duty the difference between pay received on active military service and pay employee would have received if retained in active railroad service, such payments would also be considered as qualifications for vacation and other longevity based benefits.

ATTACHMENT "A"

LANGUAGE OF PROPOSED SECTION 6

HEALTH & WELFARE DEMANDS

Railroad Employees National Health and Welfare Plan

(GA-23000)

Eligibility -

(1) Provide extended benefit coverage to eligible dependents for one full calendar year following the death of a covered employee.

(2) Provide extended coverage to furloughed employees for twelve (12) months following the month in which such employees last render compensated service or receive vacation pay; provided the employer has transmitted at least three (3) monthly payments to the Plan on behalf of such employees prior to furlough.

(3) Provide full Plan coverage to an employee and eligible dependents who is suspended or dismissed from service until final disposition under the Railway Labor Act.

(4) Eliminate the application of the seven (7) calendar days per month eligibility requirement for benefit coverage under the health and welfare, dental and vision plans.

Life/AD&D Insurance -

(1) Increase Active Employee Life Insurance to $50,000.00.

(2) Increase Retired Employee Life Insurance to $10,000.00.

(3) AD&D - increase coverage to the following:

______________________________________________________________

TABLE OF COVERED LOSSES AND BENEFIT AMOUNTS

COVERED LOSSES BENEFIT AMOUNTS

Life $30,000

A hand $8,000

A foot $8,000

Sight of an eye $8,000

Loss of more than one of the above

in any one accident $16,000

Paralyzation $25,000

Loss of sight of an eye means that the eye is entirely blind and that no sight can be restored in that eye.

Loss of a hand means that all of the hand is cut-off at/or above the wrist.

Loss of a foot means that all of the foot is cut-off at/or above the ankle.

Paralyzation means the loss of use of the extremities of the body as a result of an accident such as but not limited to paraplegic or quadriplegic, and hemiplegia occurring from a traumatic brain injury.

Not more than $30,000 will be paid for all covered losses caused by all injuries which you sustain in one accident.

_________________________________________________________

Coordination of Benefits -

(1) For benefits in connection with on-duty injuries, eliminate any application of such amounts toward the lifetime maximum benefit.

(2) Increase COB benefit to allow reimbursement up to a maximum of 100% of allowable charges.

Lifetime Maximum -

(1) Increase lifetime maximum to unlimited.

Reasonable and Customary Determinations -

(1) Increase the threshold for R&C determinations to the 95th percentile of data selected by the Plan.

Hearing Benefits -

(1) Establish Hearing Benefits under the Plan.

Birth Control/Reversal -

(1) Provide coverage under the plan for voluntary sterilization and/or reversal as well as prescription benefits for contraceptive medications.

Employee Contributions -

(1) Eliminate any and all reference to required employee contributions as referred to in current National Agreement.

Mobile Facilities -

(1) Amend the current Plan definition of a facility to include a mobile facility used by licensed physicians or other qualified medical personnel to deliver services to employees and their dependents.

Managed Medical Care Program (MMCP)-

(1) Reduce all co-payments under MMCP to $5.00 per visit including emergency room.

(2) Reduce all out-of-network penalties to 10%.

(3) Eliminate the gatekeeper requirement.

Comprehensive Health Care Benefit (CHCB)-

(1) Provide uniform application of immunization and well person physical benefits provided under MMCP to CHCB.

(2) Provide 90/10 co-payments under the CHCB plan.

(3) Eliminate the annual deductible.

(4) Provide benefits comparable to MMCP for employes who do not live in MMCP networks.

Managed Mental Health and Substance Abuse Benefit (MHSA)-

(1) Reduce all co-payments under MHSA to $5.00 per visit including emergency room.

(2) Reduce all out-of-network penalties to 10%.

Railroad Employees National Early Retirement Major Medical Benefit Plan (GA-46000)

Eligibility -

(1) Provide coverage for anyone collecting an annuity pursuant to the Railroad Retirement Act.

(2) Provide automatic enrollment into GA-46000.

(3) Provide extended benefits for five (5) calendar years to a dependent spouse who is under the age of 65 when the retired employee qualifies for Medicare.

(4) Eliminate the COBRA exclusion from age annuitant eligibility.

Managed Care -

(1) Establish managed care benefits under GA-46000 that are identical in all respects to the MMCP under GA-23000.

Comprehensive Care -

(1) Establish comprehensive care benefits under GA-46000 that are identical in all respects to the CHCB under GA-23000

Railroad Employees National Dental Plan (GP12000-A)

Eligibility -

(1) Provide full Plan benefits to new employees and eligible dependents on the first day of the month following the month in which such employees render compensated service.

(2) Provide full Plan coverage to an employee and eligible dependents who is suspended or dismissed from service until final disposition under the Railway Labor Act.

(3) Establish benefit coverage for employees who are collecting an annuity pursuant to the Railroad Retirement Act.

Benefits -

(1) Eliminate the annual deductible.

(2) Increase the annual maximum to $3,000.00.

(3) Increase Type B coverage to 100%.

(4) Increase Type C coverage to 75%.

(5) Increase orthodontia benefit to 90% with a maximum of $2,500.00.

(6) Provide orthodontia coverage to all employees and covered dependents regardless of age.

(7) Eliminate the alternate treatment provisions of the Plan.

RAILROAD EMPLOYEES NATIONAL VISION PLAN

Network -

(1) Expand network coverage to the Vision Service Plan (VSP) Standard Network.

In-Network Benefits -

(1) Increase the frame allowance to $112.50.

(2) Include fitting costs for contact lenses in the covered examination costs.

(3) Provide full coverage for the following options:

Scratch Coating

UV Protection

Anti-Reflective Coating

Photochromic Lenses

Progressive Lenses

(4) Laser surgery benefit. Provide full coverage for laser surgery to correct vision in one or both eyes.

GENERAL

(1) The Joint Plan Committee (JPC) will continue to function in the same manner as previously agreed to by the parties. When required, the JPC shall be joint policyholders and will jointly participate in the selection of the insurance company or companies or other administrators required to administer such Plans, jointly determine the plan benefits needed to meet the changing needs of the employees and otherwise jointly administer all of the Plans' activities. The Joint Plan Committee shall oversee and administer the Railroad Employees National Health and Welfare Plan, the Railroad Employees National Early Retirement Major Medical Benefit Plan, the Railroad Employees National Dental Plan, the Railroad Employees National Vision Care Plan, the various plans established to provide supplemental sickness benefits to covered employees and any and all plans which may hereafter be developed or introduced to provide health and welfare benefits to active and retired employees and their eligible dependents.

(2) Any funds accumulated from payments that are not needed to provide current benefits or to cover Plan costs, and any interest thereon, shall be used only to provide additional or improved employee benefits.

Hospital Associations

(1) Hospital Association benefits will continue to be set by the individual Hospital Association.

(2) Effective January 1, 2001, the so-called "Dues Offsett" formula for Hospital Association members, as provided in Article V, Financing the Policy Contract, of the 1973 Collective Bargaining Agreement, will be amended to provide a monthly payment equal to the projected monthly cost for the calendar year of providing employee medical care for the Railroad Employees National Health and Welfare Plan (the National Plan). Any benefits provided to Hospital Association employees by the National Plan, such as life insurance or dependent coverage, shall not be included in the calculation of the "Dues Offset." The projected monthly cost shall be based on the average contract rates for employee medical care, without adjustment to reflect payments actually made by the Railroads.

(3) Thereafter, adjustments, if any, shall be made annually on January 1st of each subsequent year.

(4) The so-called "pick-up fees" for any employees (or dependents, if applicable) transferring from Hospital Association Railroads to Non-Hospital Association Railroads will be borne by the Railroads.

(5) Disabled or Retired Hospital Association members whose coverage is disrupted for any reason will be allowed to enroll in the Railroad Employees National Early Retirement Major Medical Benefit Plan (GA-46000) without penalty, provided they would have met the eligibility requirements at the time they retired.

@ heading = CARRIER SECTION 6 NOTICE

Based on competitive realities in the transportation and financial marketplaces, the carriers propose that the parties agree to make all necessary changes in contracts, rules and practices to improve efficiency and productivity to the maximum degree possible, facilitate discontinuance of redundant positions and personnel, eliminate waste, reduce time paid for but not worked, contain and curtail the costs of wages and benefits, and prevent primary or secondary strikes, boycotts or other job actions; and at the same time give due consideration to the interests and concerns of employees so that a result is achieved that promotes the competitive and financial needs of the industry as well as the mutual interest of employees and employers in realistic rules, rates of pay and working conditions.

More specific and detailed itemizations of the changes requested are presented below, and the carriers reserve the right to make additional proposals.

1. Compensation Elements

Revise existing pay rules and adjust pay levels in relation to competitive labor market data to correspond to pay of comparable positions in other industries and to offset impediments to productivity under existing rules and practices insofar as there is no agreement to eliminate such impediments to productivity.

II. Rules

A. Eliminate any existing restrictions on the right of a carrier to select agreement supervisory personnel and individuals for certain designated positions; and provide that a carrier may in its discretion select agreement supervisory personnel and designate individuals for certain jobs as it deems appropriate.

B. Utilization of Employees

1. Eliminate any existing restrictions on the use of employees, whether or not represented by the Organization, to perform any work as and where needed without claim or penalty; and provide that a carrier in its discretion may require any employees represented by the Organization to perform any work as and where needed that the carrier deems appropriate.

2. Eliminate any remaining restrictions on a carrier's rearranging forces and/or work, including any existing impediments to establishment by a carrier of a territorial and/or system gang(s) or position(s) as well as any existing restrictions or limitations as to notice, staffing, or covered work regarding such gang(s) or position(s); and provide that a carrier may in its discretion rearrange forces and/or work without limit as it deems appropriate.

3. In order to enhance flexibility in meeting customer needs and service requirements, eliminate any remaining restrictions on establishment and modification of work schedules and rest days, blanking and/or combining jobs, starting times, meal periods, and hours of assignment, and any existing necessities for filling vacancies; and provide that the carrier may in its discretion address such matters as it deems appropriate.

4. Amend any existing rules or practices restricting a carrier's ability to transfer surplus employees to provide that the carrier may in its discretion transfer surplus employees to any location(s) on any part of its system without regard to seniority district or collective bargaining agreement boundaries, including the ability to assign such employees on a temporary basis.

5. Eliminate any remaining restrictions on a carrier's realigning and/or combining of seniority districts; and provide that the carrier in its discretion may realign and/or combine seniority districts as it deems appropriate.

6. Where restricted, revise existing rules to provide that a carrier may designate specified positions on which incumbents may neither bid from nor be displaced for a defined time period.

C. Eliminate any existing scope rules or other restrictions on subcontracting of work, and any other existing impediments to less costly and/or more efficient alternative methods of performing work; and provide that a carrier in its discretion may subcontract work and/or adopt other alternative methods of performing work that the carrier deems to be less costly and/or more efficient.

D. Eliminate existing rules concerning meals, lodging, and travel expenses for traveling employees and adopt new rules that the carrier deems will fairly address the financial burdens actually and necessarily incurred by such employees while eliminating unjustified or unreasonable payments, consistent with the carrier's administrative needs and operational circumstances.

E. Revise existing rules to provide limitations on successful bids to the same or lower rated positions.

F. Where restricted, revise existing rules to provide that an employee bidding or displacing to specified positions must be qualified (or demonstrate qualifications on own time) prior to assignment.

G. Where restricted, revise existing rules to provide that employees in specified classifications who have received training from the carrier must bid to higher rated jobs in such classifications and, pursuant to arrangements specified by the carrier, are subject to force assignment to vacancies within such classification.

H. Where restricted, revise existing rules to provide for temporary use of employees in other seniority districts on the carrier's system without claim or penalty.

I. Revise existing rules to provide process for establishment of special work rules that would apply in case of rehabilitation projects done on an expedited basis.

J. Where restricted, revise existing rules to apply work site reporting to any non-production gang traveling employee(s).

K. Eliminate any existing restrictions on the establishment by a carrier of temporary positions or on the use by a carrier of part-time employees or others, and provide that the carrier in its discretion may establish temporary positions and may use part-time employees or others upon such terms as it deems appropriate.

L. Where not already provided, revise existing rules to provide that overtime shall not be payable until the employee has worked forty (40) hours at straight time during the work week.

III. General

A. If and where any restrictions exist, provide that there will be no restrictions on (or additional compensation for) the use of new technology by employees in any craft, and such use shall not create an exclusive right thereto.

B. Except in circumstances where already established, provide for the establishment of special boards of adjustment to arbitrate disputes growing out of grievances or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions with the parties sharing equally the fees and costs of the arbitrators.

C. Health and Welfare

With respect to The Railroad Employees National Health and Welfare, Early Major Medical Benefit, Dental and Vision Plans:

Expand cost-sharing by employees and more effectively contain costs incurred by the Plans. Matters to consider include, among other things, benefit design changes; modifying deductibles, annual out-of-pocket and lifetime maximums, co-payments and coinsurance; expanding exclusions; and limiting eligibility and the duration of extended or continued coverage.

Improve Plan administration. Matters to consider, include, among other things, experience rating by railroad, mandatory managed care where available; universal non-duplicative COB; and stand-alone deductibles.

D. Vacations

Where restricted, revise existing agreements to permit carrier to distribute, at its discretion, any portion (or all) of the work load of a vacationing employee among any employees or others without penalty or additional compensation.

E. Improved Injury Compensation System

By mutual consent, in lieu of existing system develop joint legislative proposal governing employee compensation for on-the-job injuries that reflects current trends and is more equitable to injured employees, provides benefits in a more efficient and less adversarial manner, is structured with incentives to reduce the number of injuries and the cost of any injuries that may occur, and promotes a more constructive approach to safety.

F. Protection

1. Amend dispute resolution procedures of the Washington Job Protection Agreement (WJPA) to facilitate expedited resolution of disputes.

2. Revise February 7, 1965 Job Stabilization Agreement (as amended), and local protection agreements, as follows (except where existing rules meet or exceed proposals):

a. require a minimum often (10) years continuous employment relationship in the craft, computed in accordance with Section 7 of the WJPA, to achieve protected status;

b. amend the decline in business provisions to provide carrier, consistent with parties' original intent, with meaningful relief from protective obligations in the event of business downturns;

c. permit carrier, at its discretion, to transfer protected employees to vacant positions at any location on the carrier's system.

3. Amend existing collectively bargained protective provisions, where now restricted, to require protected employees (or forfeit protected status):

a. To accept all available work opportunities with the carrier or with other employers. Protection payments due shall be offset by the employee's earnings from such employment.

b. If in furlough status, either to accept retraining (and associated obligations), without regard to seniority, offered by a carrier or, at carrier's option, to accept a lump sum separation allowance equivalent to one week's pay for each year of service.

4. Eliminate restrictions on a carrier's ability to transfer an employee to any location within its system in order to mitigate the cost of protection.

5. Amend existing collectively bargained protective provisions that provide for payments based on comparison of Test Period Average earnings to actual monthly earnings to require adjustment, on an annual basis, to take into account variations in an employee's monthly earnings during such period.

G. System-wide Agreements

Establish an expedited procedure with finality to provide, at carrier's discretion, for the cost neutral consolidation of separate schedule agreements on a carrier system into a single collective bargaining agreement for that system.

H. Service Disruptions

1. In addition to prohibitions imposed by existing requirements, provide that, except for lawful primary strikes and picketing of the carrier or carriers involved in a major dispute with the Organization, engaging in or respecting strikes or picketing of any carrier or of anyone else including shippers, secondary boycotts, slowdowns and any other concerted self-help activities, are prohibited. Appropriate penalties will be applied for an employee and/or Organization which violates this provision.

2. Provide that: During any work stoppage or disruption of operations due to other forms of concerted self-help by employees in any part of the railroad industry, a carrier shall have the unilateral right to suspend all bulletin, assignment, displacement, mileage or earnings rules or regulations; any pay and protective provisions of any applicable agreements; any other applicable agreements or rules relating to the use or compensation of employees; any agreements which provide for union or agency shop, deduction for union dues, union fee checkoff or political contributions. Such agreements and rules may be suspended by the carrier for the duration of such work stoppage or disruption and employees will be assigned any compensation on a basis to be determined by the carrier in its discretion. This provision is not intended to and will not modify protection provided in agreements adopted pursuant to the Interstate Commerce Act, or pursuant to some other statutory provision, if any, requiring employee protection.

I. Direct Deposit

Eliminate any existing restrictions upon a carrier's right to require that wages be paid by direct deposit into an account with a bank, credit union, financial services organization or similar institution.

IV. Miscellaneous

A. Contract duration to be mutually agreed upon.

B. Adopt same moratorium as contained in the last national settlement.

C. Provide for the disposition of all claims and grievances.