UTU Local 426 Archived News.
7/15/05
Members Local 426
Next Tuesday and I do not know for how long, hopefully a couple
of days Crew Manager Bobby Smith and AVP George Smallwood will
be in town for a informational meeting about crew office
computer glitches, and the discussion of the possibility of a
trial period foot of board in the Pasco pool. Before you make up
your mind, have a open mind and hear what George Smallwood has
to say, if we were to try this, it would be for a trial period
and have a ten day closure or get out clause so it is not a
permanent thing if you people decide to vote it in for a trail
period.
After I talk with Bobby Smith will put more in the website.
Local Chairmen attended a meeting with General Manager Ron
Jackson on July 8, 2005, in attendance were Doug Kayser and
Maxine Timberman. There was discussion that the Yardley-Hauser
terminal and road injuries were above anyone in the division and
the cost per car movement was the highest. We were told the BNSF
had the resources to move the work elsewhere if these costs were
not driven down. We had our agenda about discipline, in
particular the recent amount of insubordination charges.
It was pointed out that this has not happened with such
frequency in the 30 plus year a couple of Local Chairman have
been employed with the railroad. Officials attitudes toward the
rank and file were addressed, they in turn did not like some of
our attitudes viewing them as confrontational. We cited
instances that were not confrontational yet the attitude of a
couple of officials were the problem.
The Yardley-Hauser complex is to have a in print operating plan
and to be distributed to Local Chairman and rank and file to
show the expectations from management to the employees.
We closed the meeting with that we would speak to our members
about car counts and costs and injuries. They would contact
their people on issues.
Ron Jackson spoke on his attitude about discipline, we all
understand that issue.
Next: Claims: yard crews that go east of Hauser, show MP 66.1
then the turnaround MP. it must be past 41.5 to collect your
additional day per the 85 agreement with the 25 mile grace
afforded by the agreement, however there was no agreement when
switching limits were extended to increase the grace area as
outlined in the agreement.
Spoke with General Chairman Virgin on the NP side and we are not
unique in the carrier violating the schedule. Put in claims for
the violations, that is our tool to stop these actions, they
understand one thing:
MONEY, in their pocket not ours, if they get away with violating
the schedule and their costs are down who gets the bonus, I win
the bet, THEY DO, if you are instructed to violate the contract
and they do not get a claim against them they have saved a start
from one of your fellow employees and eventually they get part
of that.
Do not be insubordinate and refuse to do the work, politely tell
the officer that it is a violation then go do the task, do not
take verbal abuse from that person, just put in a call to the
EEO hotline and send them a letter about the issue with a copy
to the Local Chairman, they agreed to address the problems, this
is the way to address the problem.
Summer is in full swing and there are some activities scheduled
in the next couple of weeks, if you are around take the time to
enjoy them, they are posted in different areas on this web site.
Stay safe and remember that you are even in the rule book are
encouraged to use your PPE equipment at home, the safety glasses
you use mowing your lawn are free.
Jim Larkin L/C
I would like everyone to sign up for our email subscription service to keep informed. If you have not already, apply for secure access and sign up. If you would rather me add you, just send your email address to bslove@utu426.org
Thanks,
Brad Love
7/14/05
7/4/05
RAILROAD RETIREMENT BOARD
657 2nd AVENUE NORTH – ROOM 312
FARGO ND 58102-4727
(701) 239-5117 9:00am – 3:30pm Monday through Friday
(701) 239-5261 – fax
fargo@rrb.gov - email
For Publication July 2005
RRB Financial Reports
The Railroad Retirement Board is required by law to submit annual reports to Congress on the financial condition of the railroad retirement system and the railroad unemployment insurance system. These reports must also include recommendations for any financing changes which may be advisable in order to ensure the solvency of the systems. In June, the Board submitted its 2005 reports on the railroad retirement and unemployment insurance systems.
The following questions and answers summarize the findings of these reports.
1. What were the assets of the railroad retirement and railroad unemployment insurance systems last year?
As of September 30, 2004, total railroad retirement system assets, comprising assets managed by the National Railroad Retirement Investment Trust and the railroad retirement system accounts at the Treasury, equaled some $26 billion. The Trust was established by the Railroad Retirement and Survivors’ Improvement Act of 2001 to manage and invest railroad retirement assets. The cash balance of the railroad unemployment insurance system was $90.2 million at the end of fiscal year 2004.
2. What was the overall finding of the 2005 report on the financial condition of the railroad retirement system?
The 2005 report, which addressed
railroad retirement financing during the next 25 years, was
generally favorable, concluding that, barring a sudden,
unanticipated, large decrease in railroad employment or
substantial investment losses, the railroad retirement system
will experience no
cash-flow problems during the next 25 years. However, the
2005 report also indicated that the
long-term stability of the system is still questionable.
Under its current financing structure, actual levels of railroad
employment and investment return over the coming years will
largely determine whether corrective action is necessary.
3. What methods were used in forecasting the financial condition of the railroad retirement system?
The 2005 report projected the various components of income and outgo of the railroad retirement system under three employment assumptions for the 25 calendar years 2005-2029. The projections of these components were combined and the investment income calculated to produce the projected balances in the railroad retirement accounts at the end of each projection year.
Projecting income and outgo under optimistic, moderate and pessimistic employment assumptions, the 2005 report indicated no cash-flow problems occur throughout the 25-year projection period under any of these assumptions.
4. How do the results of the 2005 report compare with those of the 2004 report?
The 2005 report is an
improvement over last year’s report. The 2004 report
indicated that no
cash-flow problems occurred throughout the 25-year projection
period under the optimistic and moderate employment assumptions.
They did arise, however, under the pessimistic assumption,
although not until 2026.
The projected account balances are higher than in last year’s report due largely to the actual investment return of approximately 11.5 percent exceeding the expected investment return of 8 percent in calendar year 2004, along with actual 2004 average employment exceeding the range projected for 2004.
5. Did the 2005 report on the railroad retirement system recommend any financing changes?
The report did not recommend any railroad retirement financing changes. The payroll tax adjustment mechanism provided by the 2001 legislation will automatically increase or decrease tax rates in response to changes in fund balance. Even under a pessimistic employment assumption, this mechanism is expected to prevent cash-flow problems for the duration of the 25-year projection period.
6. What were the findings of the 2005 report on the financial condition of the railroad unemployment insurance system?
The Board’s 2005 railroad unemployment insurance financial report was also generally favorable. Even as maximum benefit rates increase 39 percent (from $56 to $78) from 2004 to 2015, experience-based contribution rates are expected to keep the unemployment insurance system solvent, except for small, short-term cash-flow problems in 2007 and 2008. However, projections show a quick repayment of the loans even under the most pessimistic assumption.
Unemployment levels are the single most significant factor affecting the financial status of the railroad unemployment insurance system. However, the system’s experience-rating provisions, which adjust contribution rates for changing benefit levels, and its surcharge trigger for maintaining a minimum balance help to ensure financial stability in the advent of adverse economic conditions.
Under experience-rating provisions, each employer’s contribution rate is determined by the Railroad Retirement Board on the basis of benefit payments made to the railroad’s employees. The report predicted that, even under the most pessimistic assumption, the average employer contribution rate remains well below the maximum throughout the projection period.
The report also predicted that the 1.5 percent surcharge in effect in calendar year 2005 will likely be followed by no surcharge for calendar year 2006 and a 1.5 percent surcharge for calendar year 2007. A 2.5 percent surcharge is expected for calendar year 2008.
7. What methods were used to evaluate the financial condition of the railroad unemployment insurance system?
The economic and employment assumptions used in the unemployment insurance report corresponded to those used in the report on the retirement system. Projections were made for various components of income and outgo under each of three employment assumptions, but for the period 2005-2015, rather than a 25-year period.
8. Did the 2005 report on the railroad unemployment insurance system recommend any financing changes to the system?
No
financing changes were recommended at this time by the report.
The Railroad Retirement
Board’s 2005 financial reports on the retirement and
unemployment insurance systems are available in their entirety
on the Board’s Web site at www.rrb.gov.
Information on the National Railroad Retirement
Investment Trust, including its quarterly and annual reports, is
also available
on the site.
7/2/05
CALLS, E-MAIL TIP HOUSE IN AMTRAK'S FAVOR
WASHINGTON -- Amtrak backers won a significant victory Wednesday (June 29) when the House of Representatives defied the Bush Administration and approved by voice vote an amendment boosting funding for the national passenger railroad to more than $1.17 billion in the next fiscal year, according to Reuters News Service.
The amendment to an annual funding bill for transportation and treasury programs would add $626 million to a proposed appropriation of $550 million for Amtrak, Reuters reported.
Key to the victory was the overwhelming number of calls and e-mail messages, sent by UTU members, their families and friends and others from all quarters of labor, said UTU International President Paul C. Thompson. "An active membership pays dividends again," Thompson said. "Thanks to UTU members who joined so many others who called their lawmakers, a vote that was expected to be contentious instead brought out wide support for Amtrak."
Thompson said a bipartisan effort played a major role in winning support for increased funding. "We greatly appreciate the work accomplished by Cong. Steven LaTourette (R-Ohio) and Cong. James Oberstar (D-Minn.), who cosponsored this funding amendment," Thompson said. "Their effort in reaching across the aisle makes all the difference for Amtrak employees, their families and all who support a strong, national passenger rail system."
Amtrak sought nearly $2 billion in aid for next year, emphasizing that its subsidy request was driven primarily by the cost of infrastructure upgrades. Amtrak received just over $1.2 billion for this year.
The Bush Administration proposed no funding for Amtrak for the fiscal year beginning Oct. 1 unless the railroad cuts costs sharply and radically changes how it operates. The House Appropriations Committee earlier had passed spending legislation that would have provided Amtrak with just $550 million, less than half of what it needs to provide the existing level of service and properly maintain equipment and run safely.
Amtrak President David Gunn and DOT Inspector General Ken Mead both have said that Amtrak will be forced to shut down on or shortly after Oct. 1 if Amtrak does not receive adequate funding.
"Today's win gives us great momentum as we now shift our focus to the Senate, where continued activism from UTU members gives us our best hope for another victory," Thompson said.