We have recently negotiated an agreement with Norfolk Southern which will return the work of distributing tie plates in conjunction with dual rail, single-side rail, curve rail, or gauging projects throughout the NW-Wabash system to the BMWED.

Approximately six years ago NS began to employ a contractor with a new technique (truck) for distributing the tie plates and claiming they had a right to contract this equipment for a variety of reasons.  They paid many claims for the use of this contractor but not all of the claims. The Union objected because we believe that NS stole the work from us and there was not a uniform method of dealing with the contract violation across the NS system.

NS took the position that they would arbitrate the issue rather than return the work immediately to us. While we believe that we could present a good case in arbitration, it is always a risk and we would prefer to negotiate a settlement rather than risk losing the work for good in arbitration. NS was also aware that their position could be overturned at arbitration and also had an incentive to negotiate a settlement. 

This settlement provides for the following:

1. All of the work involved in the distribution of tie plates is returned to the BMWED in four years.

2. The operator of all of the tie distribution trucks will be replaced by BMWED operators in two years.  The laborer work associated with handling the tie plates until they hit the ground may be performed by the contractor for another two years.

3. All hours worked by any contractor employee while on track and distributing tie plates for this four year period will be paid at 70% of the rate of pay involved.

4. A backlog of claims totaling $488,924.00 will be paid.

Obviously it is a settlement with both good and bad that always comes with a negotiated settlement.  The key aspect of this settlement that makes it a win for the BMWED is that all of the work will be returned to us in four years. This gives us a certainty that arbitration would not give to us. 
 
Overall this settlement can only be seen as a victory for the Union and we would like to thank all of our Vice Chairmen who worked very hard to make this victory possible and would also like to thank the General Chairmen from the other Federations who worked very hard to bring this settlement to completion.

View Agreement here...