Railroads disappointed with NMB decision to end mediation

The National Carriers' Conference Committee issued the following statement today on the decision by the National Mediation Board to release two coalitions representing 11 unions from federal mediation with the nation's largest railroads. The statement can be attributed to A. Kenneth Gradia, Chairman of the NCCC, the railroads' bargaining representative. "We are extremely disappointed by the Board's decision to end mediation. It is clear this action reflects the enormous pressure the unions have placed on the Board to obtain what we believe is a premature release given that neither coalition has bargained in good faith. "The carriers, with the assistance of the Board, have reached agreement with the industry's largest rail union, the United Transportation Union, covering nearly a third of railroad employees in collective bargaining. However, the two coalitions have rejected this contract as a pattern for discussion. They have refused to address the constantly escalating costs of employee healthcare in any meaningful way, despite the railroads' offer to freeze employee cost-sharing contributions. And they have dismissed as insufficient a proposed 17 percent wage increase for employees who are already among the nation's most highly-compensated workers. Their intransigence undermines not only current negotiations, but also the time-honored process used to reach voluntary agreements in the rail industry. "Although the railroads accepted the Board's offer of binding arbitration, the coalition unions did not. We fully expect that a Presidential Emergency Board will be appointed before October 7, the end of the statutory 'cooling off' period. This will defer the possibility of any service disruptions for an additional 60 days. In the past, PEB recommendations have provided the basis for voluntary settlements. We hope that will be the case in this round and that the nation will not experience disruptions to rail service that could threaten the nation's already fragile economy." The NCCC represents more than 30 railroads, including BNSF, CSX, Kansas City Southern, Norfolk Southern and Union Pacific, in national bargaining with the 13 major rail unions.