UTU ratifies national rail contract

A new national rail contract, delivering a 17 percent wage increase over 60 months (18.24 percent when compounded), a 78-month cap on healthcare insurance contributions and improvements in health care benefits, has been ratified by the United Transportation Union members in each of the six crafts eligible to vote. The new contract also provides certification pay, a faster process for new hires to reach full pay rates, provides for no work-rules givebacks and has no prior cost-of-living adjustment offsets. Healthcare plan design changes deliver expanded and improved health care benefits, such as personalized medicine and access to centers of excellence. Personalized medicine assures access to the most up-to-date healthcare products available, while centers of excellence provide access for members and their families to the most advanced treatment centers in America when serious illness strikes. Retroactive to Jan. 1, 2010, the ratified contract covers some 38,000 UTU members employed by BNSF, CSX, Kansas City Southern, Norfolk Southern, Soo Line, Union Pacific and more, all represented in national handling by the rail industry's National Carriers' Conference Committee. Lump-sum payments of the retroactive portion of the wage increases will be paid by the carriers, 2.0 percent covering the period July 1, 2010, through June 30, 2011 and an additional 2.5 percent from July 1, 2011. "The 17 percent wage increase over the life of this agreement is significantly higher than the rate of price inflation, providing a greater boost in purchasing power than any other national contract in the past 40 years," said UTU International President Mike Futhey, who led the UTU negotiating team. "The $200 monthly cap on healthcare insurance contributions, through July 1, 2016, is less than half what federal workers currently are paying and is more than $140 less than the average currently paid by private-sector workers," Futhey said. "With healthcare costs continuing to rise, this cap will be even more extraordinary in each successive year of this contract." Overall, the contract was ratified by a 60 percent to 40 percent margin. The craft-autonomy provisions of the UTU Constitution require that each craft ratify the agreement, and each of the six crafts did so by solid margins.