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Norfolk Southern CEO Alan Shaw testifies at a hearing before the Senate Environment and Public Works Committee on protecting public health and the environment in the wake of the Norfolk Southern train derailment and chemical release in East Palestine, Ohio in Washington, D.C., the United States, March 9, 2023. The board's focus on that other executive, chief legal officer Nabanita Nag, has not previously been detailed. Norfolk Southern said it won't comment until the conclusion of the probe. The Wall Street Journal earlier reported that Shaw was expected to resign, citing people familiar with the matter. The railroad's board is presented with a significant challenge: the alleged relationship involves the chief executive and Nag, who is also the company's corporate secretary — the two executives which have the most contact with the board.
Persons: Alan Shaw, Ancora, Nabanita Nag, Nag, Shaw, We're, Scott Bunten, We've, haven't, Bunten Organizations: Norfolk Southern, Environment, Public, Washington , D.C, of Locomotive Engineers, Trainmen, CNBC, Norfolk, Street Locations: Norfolk, East Palestine , Ohio, Washington ,, United States
The fight has split the railroad’s unions, who disagree which management team – the current Norfolk Southern leadership or one proposed by activist investor Ancora Holdings – would be best for safety and the railroad’s employees. Norfolk Southern CEO Alan Shaw, third from left, listens to testimony during a hearing held by the Senate Commerce, Science, and Transportation Committee on March 22, 2023 in Washington, DC. The committee heard testimony on "Improving Rail Safety in response to the East Palestine Derailment." BLET said that Orr’s appointment shows that Norfolk Southern is committed to additional use of PSR, no matter which side wins the the proxy fight. On February 3rd, a Norfolk Southern Railways train carrying toxic chemicals derailed causing an environmental disaster.
Persons: Alan Shaw, Amit Bose, Win McNamee, Bose, , , Jeremy Ferguson, Shaw, “ Shaw, Jerry Sturdivant, John Orr, BLET, Michael Swensen, Jim Barber, Glass Lewis, Ancora Organizations: New, New York CNN, Norfolk, Norfolk Southern, Ancora Holdings, PSR, Federal Railroad Administration, Senate Commerce, Science, Transportation, Shaw, SMART, of Locomotive Engineers, Trainmen, NS, Canadian Pacific, Canadian Pacific Kansas City, Way Employees, Norfolk Southern Railways, Teamsters, UPS, CSX, Union Pacific Locations: New York, Norfolk Southern, Atlanta, East Palestine , Ohio, Norfolk, East Palestine, Washington ,, Canadian Pacific Kansas, Palestine, , NS
A second Norfolk Southern union said Friday it would back activist Ancora's efforts to elect seven directors and oust CEO Alan Shaw, a sign of labor dissatisfaction with management and a key endorsement for Ancora as Norfolk Southern's shareholder meeting nears. The BLET Teamsters, which represents the engineers and trainsmen who operate Norfolk Southern's locomotives, said Friday they're throwing their weight behind Ancora. "It's a privilege to receive support from the BLET Teamsters, who believe in our plan to improve performance, safety and employee relations at Norfolk Southern," Barber said. The latest endorsement, coupled with the support of the BMWED Teamsters earlier this week, means roughly half of NSC's unionized employees are supporting the activist, Ancora said. "We recognize the hard work that the BLET Teamsters members and all of the Company's employees put in every day," Boychuk said.
Persons: Alan Shaw, John Orr, Edward Hall, Jim Barber, Jamie Boychuk, Barber, Ancora, Boychuk Organizations: Norfolk Southern, Teamsters, NS, BLET Teamsters, Norfolk, Ancora . Norfolk Southern Locations: Ancora, Norfolk, Ancora . Norfolk
Some railroad unions want more scrutiny of the safety of remote control operations major railroads have used for years in and around railyards without significant problems. Remote control train operators might have only a month or two of training before taking the controls, although the length of training varies by railroad. Safety statistics on railroad crashes are unclear because Federal Railroad Administration reports don't break out those involving remote control trains from incidents involving trains operated by engineers and conductors. Grissom said his union has had three members die in incidents involving remote control trains since 2015. He said Anderson's death, combined with fiery derailments that have happened across the country this year, reinforce the need for stronger railroad safety regulations.
Persons: Don Grissom, Brotherhood of Railway Carmen, ” Grissom, Grissom, hasn't, Fred Anderson, carmen, Anderson, Bryan Tucker, didn't, Eddie Hall Organizations: CSX, Brotherhood of Railway, National Transportation Safety, Federal Railroad Administration, NTSB, of Locomotive Engineers, Railroad Administration, Norfolk Southern Locations: OMAHA, Neb, railyards, Walbridge , Ohio, Jacksonville , Florida, Norfolk, East Palestine, Ohio
But NJ Transit is adamant they won’t negotiate at all,” said Jim Brown, president of the New Jersey Transit portion of the Brotherhood of Locomotive Engineers and Trainmen. “NJ Transit is currently engaged in active and ongoing mediation. Those rules unique to commuter railroads can mean it can take three times as long for a strike to be allowed. A freight rail strike would have kept about 30% of the nation’s freight from moving and been a crippling blow to the nation’s economy and supply chain. Phil Murphy’s press office declined to respond on the state of negotiations at NJ Transit when asked for a comment by CNN late last year, referring all questions to NJ Transit.
During a year marked by labor strikes and protests, flight attendants and rail workers told Insider that these points-based attendance policies create an industry culture that values efficiency over employee health and well-being. But workers say the point systems form the foundation of punitive attendance policies that force them to work while sick or dangerously fatigued. At American Airlines, flight attendants have pushed back on the system for years. "I don't think you'd speak to one flight attendant who thinks the point system is necessarily fair, or balanced," Anthony Cataldo, an American Airlines flight attendant of 33 years, told Insider. So we're on call 24 hours a day, seven days a week, 365 days a year," a BNSF railway conductor of over a decade told Insider.
During a year marked by labor strikes and protests, flight attendants and rail workers told Insider that these points-based attendance policies create an industry culture that values efficiency over employee health and well-being. But workers say the point systems form the foundation of punitive attendance policies that force them to work while sick or dangerously fatigued. At American Airlines, flight attendants have pushed back on the system for years. "I don't think you'd speak to one flight attendant who thinks the point system is necessarily fair, or balanced," Anthony Cataldo, an American Airlines flight attendant of 33 years, told Insider. So we're on call 24 hours a day, seven days a week, 365 days a year," a BNSF railway conductor of over a decade told Insider.
Rail workers might go on strike in December, potentially rattling the supply chain and the whole economy. BLET narrowly voted to ratify an agreement with management, but another major union voted to reject. Ultimately, if any union goes on strike, other rail unions likely will not cross the picket line. Rail workers voted in record numbers after feeling "alienated," "enraged," and "mistreated, all for the sake of profit"The Transportation Division of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD), which has over 28,000 eligible voting members, narrowly voted down the proposal. If any union does strike, Pierce said, "no other union is going to cross that picket line in the railroad biz."
The Surface and Transportation Board is calling Union Pacific management including CEO Lance Fritz to appear at hearings December 13-14 about the freight railroad's use of embargoes. UP carries nearly 27 percent of freight served by rail and nearly 11 percent of all long-distance freight volume. The risk of a nationwide freight rail strike in December has been rising. We have quality of life issues," said Jeremy Ferguson, president of SMART-TD, which on Monday voted to reject the labor deal, with a rail strike now potentially starting as soon as Dec. 9. Ferguson, similar to fellow union president Dennis Pierce of BLET, referenced a recent CNBC interview with Fritz, during which the Union Pacific CEO laughed when asked about the risk of a rail strike.
"There's a lot of anger about paid sick leave among the membership" who kept goods flowing during the early days of the COVID-19 pandemic, said Seth Harris, a professor at Northeastern University. Labor unions have criticized the railroads' sick leave and attendance policies and the lack of paid sick days for short-term illness. There are no paid sick days under the tentative deal. Unions asked for 15 paid sick days and the railroads settled on one personal day. Railroads have slashed labor and other costs to bolster profits and are fiercely opposed to adding paid sick time that would require them to hire more staff.
Train and engine service members of the transportation division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) narrowly voted to reject the deal. Three other unions that rejected the deal have already agreed to extend a strike deadline until early December. Labor unions have criticized the railroads’ sick leave and attendance policies and the lack of paid sick days for short-term illness. Beginning on Dec. 9, SMART-TD would be allowed to go on strike or the rail carriers would be permitted to lock out workers, unless Congress intervenes. The Biden administration helped avert a service cutoff by hosting last-minute contract talks in September at the Labor Department that led to a tentative contract deal.
Workers at two of the country's biggest rail unions split over a tentative contract their leaders had hashed out with freight rail companies — leaving open the possibility of a debilitating rail strike in the middle of the holiday season. The 28,000-member SMART-TD union, which represents rail conductors, voted no on the contract, after one of their divisions voted it down. A strike could also impact the country’s commuter rail system, with the potential to halt service entirely on some lines serviced by freight rail workers and cause backlogs and traffic snarls on others. The National Carriers’ Conference Committee, which represents rail companies in the bargaining process warned about the economic threats of a strike. The Association of American Railroads, the trade group which represents the rail companies, estimates losses of $2 billion a day.
One of the largest rail labor unions, the Brotherhood of Locomotive Engineers and Trainmen (BLET), will honor the Brotherhood of Railroad Signalmen (BRS) strike date of December 5, the first date upon which a rail union to reject the proposed labor deal with freight railroad companies can strike. "Our members will certainly honor the picket line of BRS," BLET president Dennis Pierce told CNBC. The BRS has not announced if it would extend a cooling-off period to match a later potential strike date of Dec. 9. On Monday, SMART-TD, one of the largest rail unions, voted down the labor deal, but its first strike date is December 9. Access to time off is one of the components of the BLET agreement, and rail unions have been pushing to make federal contractor sick pay policies a permanent benefit for union members.
SMART-TD, one of the largest railroad labor unions, voted down a tentative agreement with rail management, raising the likelihood of a strike in December. The BLET, the other largest union, voted to ratify the labor deal but said it will honor the picket line. But BMWED announced it would extend its cooling-off period if one of the larger unions voted not to ratify the tentative labor deal. SMART-TD, BMWED and BRS represent more than 50% of all rail labor. A strike would affect all of the major rail operators, including Union Pacific , Norfolk Southern and CSX .
The Brotherhood of Locomotive Engineers and Trainmen (BLET) and the transportation division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) -- representing about half of all unionized rail employees are set to report results. The standoff between U.S. railroad operators and their union workers disrupted flows of hazardous materials such as chemicals used in fertilizer and disrupted U.S. passenger railroad Amtrak service in September. The Biden administration helped avert a service cutoff by hosting last-minute contract talks in September at the Labor Department that led to a tentative contract deal. The unions represent 115,000 workers at railroads, including Union Pacific (UNP.N), Berkshire Hathaway Inc's (BRKa.N) BNSF, CSX (CSX.O), Norfolk Southern (NSC.N) and Kansas City Southern. Labor unions have criticized the railroads’ sick leave and attendance policies and the lack of paid sick days for short-term illness.
New York CNN Business —America faces a growing risk of a crippling national freight rail strike in two weeks after rank-and-file members of the nation’s largest rail union, which represents the industry’s conductors, rejected a tentative labor deal with freight railroads, the union announced Monday. The nation’s second-largest rail union, which represents engineers, ratified its own contract. But the failure of the conductors to ratify their own deal is another setback to efforts to avoid a crippling nationwide rail strike. Both unions reached tentative deals in September in a marathon 20-hour negotiating session just hours before their earlier strike deadlines. Although 64.5% of members who ride the locomotives with the engineers supported the deal, 50.87% members of train and engine service members of the union voted against ratification.
The strike prep calendar for rail operators, customers, and logistics managers continues to be in flux with a lack of coordination between key rail unions leaving open the potential for two strike dates in December. BMWED, which represents the Brotherhood of Maintenance of Way Employees, is scheduled to strike on December 5 with the The Brotherhood of Railroad Signalmen (BRS). But unlike BMWED, the BRS — which can also strike after its cooling-off period ends on Dec. 4 — has not indicated whether it will extend its deadline for talks. According to federal safety measures, railroad carriers begin prepping for a strike seven days before the strike date. The carriers start to prioritize the securing and movement of security sensitive materials like chlorine for drinking water and hazardous materials in the rail winddown.
Ninety-six hours before a strike deadline, all chemical shipments are no longer moved. "We would expect a similar dramatic reduction in chemical shipments if an embargo were to take place this month." The start of rail strike preparation will depend on the voting results from some of the largest rail unions yet to ratify the labor deal recommended by President Biden's Presidential Emergency Board. If SMART-TD or BLET rejects the agreement, the strike date would be December 9, the day after their cooling-off period ends. BMWED has said it would extend its own cooling-off period to align with the new strike date.
The Brotherhood of Maintenance of Way Employees Division, the third largest rail union in the country, is extending its status quo period (no strike, no lockout) during which it wants to continue negotiations with the freight rail carriers. Meanwhile, two major rail unions are set to vote on ratifying the deal on Nov. 21: The Brotherhood of Locomotive Engineers and Trainmen, and the Smart Transportation Division. The rail industry has previously estimated the cost to the economy of a rail strike at $2 billion per day. The BMWED was the first rail union to vote against ratification of a labor agreement negotiated in conjunction with Biden's PEB. All 12 labor unions must ratify a labor agreement to avoid the potential for a nationwide rail shutdown.
Washington CNN Business —Three hundred business groups are calling on President Joe Biden to intervene in the ratification of the national tentative agreement he helped broker last month between rail unions and US freight railroads. In a letter sent to the president Thursday, retail, agricultural, manufacturing, and trucking associations jointly asked the president to ensure that the tentative agreement is ratified. Sick time is unpaid in the current tentative agreement. They also give union members cash bonuses of $1,000 a year. All told, the backpay and bonuses will give union members an average payment of $11,000 per worker once the deal is ratified.
The White House struck a tentative deal Thursday to avoid a rail strike that risked major disruptions across the United States, with freight workers securing a key demand. Pandemic pressures, including those that scrambled supply chains, worked in freight workers’ favor, logistics experts said. A rail strike would dent many industries, as about 40% of goods that are shipped long-distance rely on the nation’s rail system. Rail workers often are on-call 24/7 year-round and are allotted time off only after being called to a number of consecutive on-call shifts. A labor union source told NBC News that getting rail carriers to negotiate on attendance policies was a major breakthrough.
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