Originally Posted by Transport Workers Newsletter
The tentative agreement of the CBG, on the surface, avoids changes to work rules, and freezes monthly premiums for health care at the already burdensome rate of $228.89 per month. Unlike previous proposals, it contains back pay at varying rates from July 1, 2015 to the date the contract is signed. It contains meager raises that would barely meet or come in below the rate of inflation.
Railroad workers quickly uncovered that the cost of actually using their health care will dramatically increase, as out-of-pocket costs nearly double. Most estimate their wage increases would quickly be eaten up by increased spending on health care costs. The contract would extend until 2019, and during the next round of negotiations, the so-called “Cadillac Tax” that Obamacare will impose on supposedly overgenerous health plans will lead to further losses of income.
The rail unions, like the rest of the US unions, blocked any strikes in 2015-16 when millions of private and public-sector workers’ contracts expired. This enabled Obama to suppress a wages push by workers determined to recoup lost pay after the 2008 crash and during a full recovery of Wall Street and corporate profits. By waiting nearly three years and agreeing to what amounts to a two-year deal, the rail unions have allowed management to continue to cost cutting.
The unions of the CBG—the Brotherhood of Locomotive Engineers and Trainmen (BLET), SMART-TD, and others—will push for contract approval claiming that the proposal is the best workers can expect. Ever since the great railway strikes of the 19th and early 20th centuries, railroad labor negotiations have followed an anti-democratic maze under the Railway Labor Act, which is designed to block workers from striking. There are layers of steps and cooling off periods, federal mediation, and potentially even a board appointed by the US president to intervene in the contract discussions.
Under the Trump administration, the unions will claim that a rejection of the proposal and a move towards further federal intervention would only result in a worse deal. Despite this, workers have expressed wide opposition to the proposal, even with the back pay that is included.
The opposition is not only to the increased health care costs, but to decades of concessions to the railroads while they continued to make billions. In this round of negotiations, the NCCC pleaded poverty, saying the railroads are suffering and losing traffic. In reality, the 2016 profits of the major railroads were $3.5 billion for BNSF, $2 billion for Union Pacific, $1.7 billion for CSX, $1.67 billion Norfolk Southern, $1.27 billion for Canadian Pacific, and $812 million for Canadian National.