Board backs labor pay increase; BLET unhappy

A board appointed by President Obama to review a dispute between freight railroads and labor unions recommended during the weekend that workers receive an 18.6% pay increase over six years.

The unions sought a 19% increase over five years; rail management had countered with 17% over six years.

“While we recognize that this proposed resolution is by nomeans the only reasonable resolution possible, we believe thatit is fair and appropriate,” the five-member Presidential Emergency Board No. 243 wrote in the report it submitted to Obama on Saturday.

The railroads remain at odds with 11 unions representing most of its labor force, including the Brotherhood of Locomotive Engineers and Trainmen, a unit of the International Brotherhood of Teamsters. BLET President Dennis R. Pierce is unhappy with the report.

“The 11 unions working in unison made a compelling case for status quo on health and welfare benefits and an even more compelling argument for wages increases greater than those found in the recommendation,” he said.

“BLET also made very specific agreements that were documented by substantial evidence, and made it quite clear to the Board that tour wage settlements with three of the four largest Class I carriers and on-property negotiations with the fourth meant that health care cost-fhifting would place a tremendous obstacle in the way of obtaining an acceptable settlement. Unfortunately, that is exactly the situation we now face,” Pierce said.

The United Transportation Union and its yardmasters division, with 30% of those workers, reached a five-year agreement with Class I railroads last April that includes a 17% raise and retains the $200 per-month cap on employee. UTU ratified the deal last September.

The value of the UTU’s raise plus other wage-relatedincreases that don’t apply to the other unions is comparableto the 18.6% raise the presidential board recommended forother labor groups, according to Frank Wilner, a spokesman forthe union.The board’s recommended settlement is aimed at preventing anational railroad strike that, according to the Association ofAmerican Railroads, would cost the U.S. economy as much as $2billion a day.

Obama appointed the board Oct. 6 to offer recommendationsfor resolving the stand-off, citing the National Mediation Boardas saying that the dispute threatened “substantially to interrupt” interstate commerce.