Brotherhood of Locomotive Engineers
Dennis R. Pierce |
GENERAL COMMITTEE OF ADJUSTMENT |
VICE
CHAIRMEN |
|
General Chairman |
801 CHERRY ST., SUITE 1010 Unit 8 |
J.H. NELSON SECRETARY-TREASURER GALESBURG, IL 61401 |
ALL LOCAL CHAIRMAN | April 20, 2004 |
BNSF NORTHLINES | File: 2003 National Agreement Retroactive Health and Welfare Contributions |
Dear Sirs and Brothers:
This is in reference to our previous letter
dated February 3, 2004 concerning Retroactive Health and Welfare Contributions
pursuant to the 2003 National Agreement. In that letter we advised that if UTU
and BLET reached accord with the Carriers at the National level in this matter,
all claims of record would he handled according to that settlement. Attached you
will find a fully executed settlement of the issue. In the settlement, UTU
agreed that those in its plan during the retroactive period would pay
retroactive costs based upon a “preponderance of service” in each of the
involved months. In the process, UTU obtained a side letter allowing these
retroactive costs to be recouped by those whose earnings in 2004 are affected by
UTU’s 2004 wage increase deferral. This reimbursement is to be applied on an
individual basis and the conditions are spelled out in the included examples.
That side letter is enclosed as well.
While this settlement varies from the one
suggested by the General Committee, it is a settlement nonetheless and all
claims of record for improper withholding of retroactive health and welfare
costs must be settled in this basis. I hope that this assists you in your
handling of this matter. Again, we do know that this issue has generated many
calls and questions to the Local Chairmen. Please contact the office if you have
any questions,
Fraternally,
/s/ Dennis R. Pierce
General Chairman
cc: BLET General Chairmen, BNSF
Don Hahs, International President, BLET
Ed Rodzwicz, First International Vice President, BLET
Bill Walpert, General Secretary Treasurer, BLET
Steve Speagle, Assigned International Vice President, BLE
Jim Nelson, BLET Secretary Treasurer, BNSF/MRL GCA
Brotherhood
of Locomotive Engineers and Trainmen
A Division of the Rail Conference—International Brotherhood of
Teamsters
NATIONAL DIVISION
Phone: (216) 241-2630 Fax: (216) 241-6516
www.ble-t.org
National President
RE:
Ebb and Flow Letter for December 16, 2003 National Agreement.
Enclosed is a copy of
the March 22, 2004 letter from Ken Gradia, Vice Chairman - National Railway
Labor Conference to which he attached a copy of the March 16, 2004 Ebb and Flow
Agreement. from Robert F. Allen, Chairman, NRLC and jointly signed by Paul C.
Thompson, President - UTU and myself concerning the arrangements reached to
address the proper deductions for. employee contributions to their health and
welfare premiums. I have also enclosed a second letter dated March 16, 2004,
between Mr. Allen and UTU President, Paul Thompson setting forth their
understanding with example of their intent. We have requested a similar
understanding for the BLE&T.
It should be noted
that continuing discussions will take place on the best approach to handle the
employee contributions for those members who find themselves in ebb and flow
positions after July 2004.
It is hoped that this
information will be beneficial to each of you.
With best wishes and kindest personal
regards, I am Fraternally yours,
President
Enclosure
cc: Advisory Board
(w/enc.)
State Legislative Board Chairmen (w/enc.)
NATIONAL
RAILWAY LABOR CONFERENCE
Chairman
A. Kenneth
Gradia
John F. Hennecke
Vice Chairman
Director of Labor Relations
General
Counsel
VIA FEDERAL EXPRESS
March 22, 2004
Mr. Don M. Hahs
National President
Brotherhood of Locomotive Engineers
and Trainmen
1370 Ontario Street
Cleveland
,
Dear Mr. Don Hahs:
Enclosed are three duplicate originals of
the Letter Agreement (“Agreement”) between BLET, UTU., and the Carriers
that, as previously discussed, addresses employee cost-sharing by “ebb and
flow employees”. The documents have been executed on behalf of the UTU and the
carriers represented by the NCCC.
Please review the Letter Agreement and, if
it conforms to our understanding, sign all three originals. Please keep one
original for your records and return the other two to me for transmittal to UTU
and the carriers.
Please give me a call if you have any
questions or wish to discuss the document. As always, your assistance is much
appreciated.
Very truly yours,
/s/ A.
Kenneth Gradia
NATIONAL
RAILWAY LABOR CONFERENCE
Chairman
A. Kenneth
Gradia
John F. Hennecke
Vice Chairman
Director of Labor Relations
General
Counsel
March 16, 2004
Mr. Don M. Hahs
National President
Brotherhood of Locomotive Engineers
and
Trainmen
14600 Detroit Avenue
1370 Ontario Avenue
Cleveland
,
Cleveland
,
Gentlemen:
This confirms the mutual understanding reached on
behalf of the Carriers represented by the National Carriers’ Conference
Committee, the United Transportation Union, and the Brotherhood of Locomotive
Engineers and Trainmen with respect to employees who from time to time move
between work under collective bargaining agreements held by UTU and BLET
(“ebb/flow employees”) and the application of certain employee cost-sharing
provisions in the November 6, 2003 Supplemental Agreement between such Carriers
and the United Transportation Union, and the December 16, 2003 Agreement between
such Carriers and the Brotherhood of Locomotive Engineers.
Our understanding is set forth in the Attachment
to this Letter. The Attachment describes our mutual intentions as to the
appropriate interpretation and application of such employee cost sharing
provisions to ebb/flow employees, notwithstanding anything in the aforementioned
Agreements that may be deemed inconsistent with or contrary to its terms.
Please indicate your concurrence by signing in the
space indicated below.
We concur:
Very truly yours,
/s/ Robert F.
Allen
We concur:
/s/ Don M. Hahs
ATTACHMENT
1. July 2001 through June 2003
A.
An ebb/flow employee would pay a retroactive employee contribution for
each month with respect to which he/she was deemed to be covered by the BLE
agreement.
B.
An ebb/flow employee would not pay a retroactive employee contribution
for any month with respect to which he/she was deemed to be covered by the UTU
agreement.
C.
Determinations regarding whether an ebb/flow employee is deemed to be
covered by the BLE or the UTU agreement in any particular month shall be based
on the preponderance of service rendered.
2. July
2003 through June 2004
B.
An ebb/flow employee not covered by paragraph A would pay $79.74 per
month for the period July 2003 through June 2004.
3. July 2004 forward
The
parties recognize that the BLE and UTU health and welfare arrangements differ in
certain material respects such as plan design and implementation timing and
mutually agree that the parties should continue to explore the potential impacts
of such variations on ebb /flow employees and any further arrangements that may
be appropriate to address such concerns.
NATIONAL
RAILWAY LABOR CONFERENCE
Chairman
A. Kenneth
Gradia
John F. Hennecke
Vice Chairman
Director of Labor Relations
General
Counsel
March 16, 2004
International
President
United
Transportation
14600 Detroit Avenue
Cleveland
,
Dear Mr. Thompson:
This will confirm the further understanding
reached between the Carriers represented by the National Carriers’ Conference
Committee and the United Transportation Union in connection with implementation
of the Letter Agreement dated March 16, 2004 between and among the UTU, such
Carriers, and the Brotherhood of Locomotive Engineers and Trainmen (“Letter
Agreement”). Pursuant to the Letter Agreement “ebb/flow” employees (as
that term is defined therein) are subject to payment of health and welfare cost-sharing
contributions for months falling within the period July 1 2001 through June 30,
2003 under certain circumstances. The parties recognize that an ebb/flow
employee who is required to make such contributions may also be subject to
Section 2 of the November 6,, 2003 Supplemental Agreement Document “A
between the UTU and certain carriers represented by the NCCC, which
provides for deferral of a General Wage Increase from July 1, 2004 to December
1, 2004 (“2004 wage deferral”) to defray health and welfare costs.
This will confirm our understanding that an
ebb/flow employee who makes cost-sharing contributions pursuant to the/Letter
Agreement for months within the period July 1 2001 through June 30, 2003
(“July 01-June 03 cost-sharing contributions ")and whose compensation is
affected by application of the 2004 wage deferral shall be reimbursed by his
employing carrier the amount (if any) by which the sum of (i) his/her actual
wage deferral, plus (ii) his/her July 01 -June 03 cost sharing contributions,
exceeds the value of the 2004 wage deferral to the carrier if he/she had been
subject to such wage deferral for the entire period of July 1 2004 through
November 30, 2004. Such reimbursement shall not exceed the ebb/flow employee’s
actual wage deferral amount. The intended application of this paragraph is
illustrated in the Attachment to this Letter,
Each carrier covered by this understanding shall
provide the following information to the appropriate UTU General Chairmen:
(i) Not later than July 1, 2004, a list containing
the names of the employees who have paid a July 01-June 03 cost-sharing
contribution pursuant to the Letter Agreement; and
(ii) Not later than January 31, 2005, a list
containing the names of the employees whose compensation has been affected by
application of the 2004 wage deferral.
A request for reimbursement pursuant to this
understanding shall be made
in writing to the carrier official designated for that purpose on or before March
1, 2005, and shall be handled on a case-by-case basis. Such request may be made
by the employee or by his/her union representative. Reimbursement payments due
to employees shall be made on or before April 1, 2005.
Please indicate your concurrence by signing in the
space indicated below.
Very truly yours,
/s/ Robert F. Allen
I concur:
/s/ Paul C. Thompson
ATTACHMENT
AGREED-TO EXAMPLES
3.
Job 111 works 109 days during the deferral period of July 1, 2004
through November 30, 2004. Thus, the “full”amount of wage deferral
attributable to such assignment is $487.23 (109 X $4.47).
4.
Employee X performed compensated service as a locomotive engineer at some
time during the period July 1, 2001 through June 30, 2003 and must pay
retroactive health and welfare cost-sharing in accordance with the Letter
Agreement between UTU, BLET, and the carriers.
Illustrative
Examples
Based on the
above assumptions, the following examples illustrate the intended application of
the March 16, 2004 Letter of Understanding between UTU and the NCCC—represented
carriers. In each case, it is assumed that X’s UTU-agreement covered
compensated service is limited to Job 111.
Example
1: X works 109 days on Job 111 during the deferral period and paid $902.16 in
retroactive cost-sharing.
Result:
X’s actual wage deferral is $487.23 (109 x $4.47) and his total cost-sharing
is $902.16. The sum of those amounts is $1389.39, which
Example 2:
X worked 90 (ninety) days on Job 111 during the
Result:
X’s actual wage deferral is $357.60 (80 X $4.47) and his/her total
cost-sharing is $295.92. The sum of those amounts is $653.52, which
exceeds the “full” deferral amount by $166.29 ($653.52-$487.23). The
carrier reimburses X $166.29 of the wages that were deferred.
Example 4:
X worked 50 (fifty) days on Job 111 during the deferral period arid paid $133.56
in retroactive cost-sharing.
Brotherhood of Locomotive Engineers
Dennis R. Pierce |
GENERAL COMMITTEE OF ADJUSTMENT |
VICE
CHAIRMEN |
|
General Chairman |
801 CHERRY ST., SUITE 1010 Unit 8 |
J.H. NELSON SECRETARY-TREASURER GALESBURG, IL 61401 |
ALL LOCAL CHAIRMAN | February 3, 2004 |
BNSF NORTHLINES | File: 2003 National Agreement Retroactive Health and Welfare Contributions |
Dear Sirs and Brothers:
This is in reference to
the numerous questions that have been received by this office regarding
application of employee contributions to Health and Welfare benefits found in
the December 16, 2003 National Agreement. As all of you know, BLET’s agreement
included employee contributions retroactively going back to July 1, 2001. The
retroactive costs for those in the BLET Plan are to be taken from the back
pay/lump sum check that will be received this week. Conversely, UTU’s
agreement made other adjustments of similar value to avoid retroactive costs for
their Plan, with regular monthly employee contributions beginning in November of
2003 forward. We have attempted to obtain written clarification from the BLET
National Division on how retroactive costs would be handled for those who have
stayed in the UTU plan while working as engineers during the retroactive period,
or for those who have changed plans between July 2001 and now. Unfortunately we
have not received any written clarification as of this writing, nor do we expect
it before the back pay is calculated and retroactive costs are deducted.
Due to the large
differences in benefits and employee contributions between BLET and UTU’s
plans, we had fully expected that the plan of record would be used to determine
employee costs going forward and going backward. in other words, those employees
working as engineers or trainmen who are currently paying 119.00 due to their
being in the UTU Plan would not be subject to any retro active Health and
Welfare costs if they were actually participating in the UTU Plan for the entire
retroactive period. As we have said, UTU has made it clear that their plan had
no retroactive costs. As information on the actual process involved, each
operating employee is locked into UTU or BLET’s plan each calendar year,
January 1 through December 31. This annual determination is based on an
“active craft” measurement taken sometime in the preceding August of each
year. Once the plan is locked in place on January 1, the employee may not move
between the two plans until the following year. As we have said, we expected
that the plan of record would be the determining factor as to the employee’s
liability for cost sharing. If the plan that the employee was in during each
calendar year included cost sharing for that year or a portion of that year,
then the employee would be subject to the corresponding retroactive costs.
However, if that same plan had no costs for the involved year, there would be no
retroactive costs.
The Carrier has
advised that while they are using a “Plan” based measurement to determine
current employee contributions, they do not intend to use this method to
determine retroactive employee contributions. Instead, a “preponderance of
service” craft based monthly measurement will be used to determine retroactive
responsibility from July 1, 2001 until June 31, 2003. In other words, if arty
employee worked predominantly in a craft represented by BLET in any one of the
involved months, then retroactive contributions would be due for that
particular month
As
stated above, we do not necessarily agree that the agreement supports the Carrier’s
methodology and our expectations have been forwarded to the BLET National
Division. Quite plainly, we cannot find agreement support to charge any employee
a monthly contribution if the plan that he/she was in at the time had no such
charge. Plan designation is locked in place for a year at a time and no employee
may move between plans on a monthly basis. Again, we cannot see that it is
appropriate to charge employees based on the preponderance of service each month
in the retroactive period, while the actual plan and corresponding benefit level
had already been determined and locked down. For that reason, any employee who
is charged a retroactive monthly contribution for a month that he was not in the
BLET plan may file a claim for the value of the monthly contribution, and,
absent settlement at the National level indicating otherwise, we will progress
the claims.
In
closing, while we have developed what we believe to be a sound position in this
matter, please recognize that this Office is not the signatory party to the
National Agreement. For that very reason, BNSF has deferred handling of this
matter to the National level for settlement. While we have yet to receive any
settlement between the parties from the BLET National Division, we do understand
that they have been discussing the matter. In addition, please recognize that
UTU is involved in those discussions and we cannot speak to their position or
intentions for those that were in the UTU plan during the retroactive period.
Pending a settlement by the involved parties, we are forwarding this advice to
protect the claims of the involved employees. However, if the BLET and/or UTU
come to a “national settlement” in this matter, all claims of record will be
settled according to the conditions of that settlement.
I hope that this assists you in your handling of this matter, we do know that this issues has generated many calls and questions to the Local Chairmen. Please contact the office if you have any questions.
Fraternally,
General Chairman
cc:
BLET General Chairmen, BNSF
Don Hahs, International President,
BLET
Ed Rodzwicz, First International Vice President,
BLET
Bill Walpert, General Secretary Treasurer, BLET
Steve Speagle. Assigned International Vice
President, BLE
Jim Nelson, BLET Secretary Treasurer,
BNSF/MRL GCA