Wednesday, September 19, 2018


Presided over by: Arbitrator – Charlotte Gold, IAMAW Acting PDGC – Mike Perry, NCCC Representative – Ken Gradia.

Representing the IAMAW District Lodge 19:

Carmen Percelli of the Law Firm

Guerrieri, Bartos and Roma, PC.


Carmen Percelli began with an opening statement of the points addressed in our submission. They were that we recognize Pattern Bargaining and patterns being established.  But the IAM does not fall into that category as the work they do from other crafts, makes us distinct. That there would be witnesses that would testify to these facts, from John Lawrence, LC and E-Board Member CSX-Transportation; Michael Mills – LC and E-Board Member Norfolk Sothern; Josh Cox, LC Union Pacific Railroad and James McAninch, LC BNSF. Mr. Richard Pantoja Economist and GLR would be presenting information on cost, the financial stability of the Railroads. Acting PDGC Mike Perry would testify, establishing the history of our negotiations, our move in doing other craft and management work. Why we are asking for the $1.00 differential pay, a 3% wage increase in 2020 as we did in the previous negotiations in 2010.


The Carrier’s Legal Representative Mr. Moore opened with Pattern Bargaining. That the IAM’s PDGC John Lacey endorsed the Tentative Agreement (T/A) as it was submitted. He showed that the NCCC is made up by:  Union Pacific (UP), Burlington Northern Santa Fe (BNSF), Canadian National (CN) CSX-Transportation (CSX-T), Norfolk Southern (NS) and Kansas City Southern (KCS).The Pattern Principle – Application of Pattern Principle all displayed in a power point presentation: That without a pattern the other crafts will have a rivalry against the IAM, Morale will be weakened and there will be no parity, that a pattern encourages an early settlement, that it was good enough for 95% of the workforce. Response to the IAM’s doing others craft work as incidental work. That the True-Up is not a penalty but an adjustment to repay money spent for Health and Welfare (H&W). That 12.5% over 5 years is a good deal. That it is not the NCCC’s responsibility to notify the members of the IAM of the downfalls of not ratifying the T/A. If the IAM, (based on an exert from the IAM DL19 Newsletter), believes that they should get a better deal just because they fight to the end is wrong. If a Presidential Emergency Board (PEB) could not get you to the wages and Health Care package you want, why do you thing that an arbitration will deviate? It does not make sense. There is a difference between a “Me Too” Clause and a Pattern. The parties have never agreed to a “me too” clause. That the IAM is saying that they should get 15.12% >12.50% of all other workers. The Skill/Equity/Shift Differential does not pan out to affording the IAM more money. It is merely part of the Incidental Work Rule. Further, the IAM did not ask for this in its initial Section 6 Notice. If it was so interested in more money they should have negotiated profit sharing.  The True-Up is part of the repayment of the H&W costs which continue even though the IAM has not ratified the T/A. There will be two Carrier witnesses. Mr. David Scofield will be giving the valuation on the Health Care plan and Mr. Ken Gradia the Chairman of National Railway Labor Conference will go over several issues discussed. Just because the IAM can show that the Railroads are doing well does not mean that because of that fact they are entitled to a wage increase.


RICHARD PANTOJA:  Economist and Grand Lodge Representative (GLR)

Class 1 Railroads employ 90% of the work industry. They employ 98% of IAM Railroad workers. The Class 1 Railroads combined brought in a net of $36.8 billion in 2017. Add to that the Tax Cut and Jobs Act (TCJA) in the industry giving them another 14% and the difference of 3.15 billion proposal to an increase to 3.2 billion is a minor increase.



MIKE PERRY:  Acting President Directing General Chairman (Acting PDGC)

Introduced himself and gave his background in the IAM.  Starting as a General Chairman in 2004. Becoming the APDGC and this year in August the Acting PDGC as the PDGC John Lacey is out on Medical Leave. He started by saying that there is a packet of documents that will show the day to day work that the Machinist do that is other craft work. Such as Pipefitters, Electricians, Sheet Metal Workers, Boiler Makers, Clerks, and non-skilled workers – Laborers NCFO, as well as working in the capacity of supervisors. In October of 2017 the CBG reached a Tentative Agreement and it was ratified December 8, 2017. The IAM DL19 members work other craft work and should be entitled to compensation for that work. A request of 3% GWI for 2020 was not out of the question because it had been done in the 2010 round of negotiations with a pay out in 2015. The $1 differential for work was an example from the Huntington WV Agreement with CSX. The True-Up of $73.24 was unreasonable and not something we agreed to negotiate.

JOHN LAWRENCE:  Local Chairman (LC) and Executive Board (E-Board) Member off of CSX-Transportation.

Mr. Lawrence testified to his fellow Machinists and himself doing the work of other crafts. They did the work of Utility workers (Laborers) of Pipefitters, Clerks, Electricians, Boiler Makers and Carmen. He referenced the exhibits submitted in the arbitration which demonstrated that fact.  Stating that for the past four (4) to five (5) years this work has been increased and no compensation has been given to do so. He also stated that the members have come to him and complained about doing other craft work. That because of the added duties there are times the members work overtime to finish the job. In the Huntington shop they are doing a Composite Mechanic workload but compensated through the Huntington Agreement for that work.


MICHAEL MILLS:  Local Chairman (LC) and Executive Board (E-Board) Member off of Norfolk Southern (NS).

Mr. Mills also testified to the fact that his fellow Machinists and himself are doing work of other crafts as well as supervisory duties. Carmen duties such as Cab windows, seats and other items. Sheet Metal Workers duties. Pipefitter work such as inspecting hoses, disassembling pipes on radiators, air cans, and reinstalling.  Just as an example.  He demonstrated some of the items they work through exhibits submitted in the arbitration. That members also have come to him asking if they are required to do the work of other crafts, to which he responds, you cannot be insubordinate. Overtime has been worked because they are required to do more but complete the tasks in the same amount of time, which is not possible.


JOSH COX:  Local Chairman (LC) Union Pacific Railroad (UP)

Carmen asked Mr. Cox if he was seeing the same type of issues with doing other craft work in his location and he said yes he was. That they work Carmen duties in the Cab and that he provided this evidence as an exhibit and it was attached to the submitted evidence by the IAM. That they are doing work of a supervisor, work of Pipefitters and other crafts.  Members have come to him as with Mr. Mills and asked about having to do the work of other crafts.  He gave them the same response, to do the work and not be insubordinate. That there are times they work overtime because of the added duties of other Crafts work. He also stated that in Council Bluffs only Machinists work there and they do all crafts work.




JAMES McANINCH:  Local Chairman (LC) off of Burlington Northern Santa Fe (BNSF).

Carmen also asked Mr. McAninch if BNSF was doing the same to the Machinists in his work location.  He responded that they did. He also gave testimony that the Murray yard had been closed for two (2) years but reopened and that it is mostly machinist there and that they are doing other craft work such as modification projects that are Electrician work. A type of Winterization. They do the work of First Line Supervisors and work of other crafts.  Even though there are other crafts working in the area, the Carrier has reduced the number and so the work load is given to the Machinist and only the Machinist Craft. He went through a tab with his exhibits attached.


KEN GRADIA: Witness for the NCCC – Chairman National Railway Labor Conference.

He presented a power point starting with the top 7 NCCC Class 1 Railroads and stated there were 21 others in that Coalition. He opened with Pattern Bargaining. That there were 7000 IAM Members in the Class 1 Railroads. The Section 6 Notice offered by the IAM in 2014 requested a substantial wage increase, Health Care Containment and no changes in the work rules. He went over a slide of Copay and Coinsurance. Then a detailed slide of Coalition Negotiations since 2014.  In November 2014 the Coalition of Unions presented their Section 6 Notices. October 2015 the CRU, of which the IAM was a part, began mediation. October 2017 the CBG Coalition agreed to a T/A. Between November and December 2017 the majority of that Coalition ratified the Agreement. December 2017 the CRU Coalition agreed to the T/A. January 2018 most of the CRU Coalition Ratified the Agreement. February 2018 the IAM Members voted it down. May 2018 BMWE/SMART Arbitrated and a decision was rendered. July 2018 IBEW Arbitrated and a decision was rendered. No change to work rules. In the Agreements that ratified or a decision was rendered they received: 2015  3%, 2016  2%, 2017  2%, 2018  2.5% and in 2019 there will be a 3% increase. Totaling 12.5% across the 5 year agreement. Health Care no change to Employee Contribution. Various benefit improvements. Modest Plan design changes to revitalize better health care utilization. The IAM would wish to increase that % to 3% in 2020. Modeling after the 2010 Agreement. Requesting a $1/hr. bringing it to 2.62% GWI.  This is not negotiable as doing the Craft work from other Crafts is Incidental and there is an Incidental Work Rule that applies. The Machinist make a wage of $30.54 hr. that is a 25% premium rate in other industries. The True-Up costs $3.9 million between February1 and October 1, 2018. that cost is calculated to $73.24 per member per month.


DAVID SCOFIELD: Witness for the NCCC – Health and Welfare Plan Valuation from Willis Towers Watson.

The Plan is self-insured. There is a lag time between when an employee goes in for a doctor visit and the time the bill is paid of two (2) months. Mr. Scofield showed a detailed power point. It is part of the submission from the NCCC. He stated that after a decision is made from the Arbitrator in ten (10) days, the H&W Plan will go into effect on October 1, 2018.


After Mr. Scofields testimony a recess was called. Upon the return to the room both sides rested their cases without closing statements as both sides felt the witnesses and the evidence would speak for itself.