Amtrak - Labor Issues

Labor Issues

In the modern era, Amtrak faces a number of important labor issues. In the area of pension funding, because of limitations originally imposed by Congress, most Amtrak workers were traditionally classified as "railroad employees" and contributions to the Railroad Retirement system have been made for those employees. However, because the size of the contributions is determined on an industry-wide basis rather than with reference to the employer for whom the employees work, some critics, such as the National Association of Railroad Passengers, maintain that Amtrak is subsidizing freight railroad pensions by as much as US$150 million/year.

In recent times, efforts at reforming passenger rail have addressed labor issues. In 1997 Congress released Amtrak from a prohibition on contracting for labor outside of the corporation (and outside its unions), opening the door to privatization. Since that time, many of Amtrak's employees have been working without a contract. The most recent contract, signed in 1999, was mainly retroactive.

Because of the fragmentation of railroad unions by job, Amtrak has 14 separate unions to negotiate with. Plus, it has 24 separate contracts with those unions. This makes it difficult to make substantial changes, in contrast to a situation where one union negotiates with one employer. Former Amtrak president Kummant followed a cooperative posture with Amtrak's trade unions, ruling out plans to privatize large parts of Amtrak's unionized workforce.

In late 2007 and early 2008, however, major labor issues came up, a result of a dispute between Amtrak and 16 unions regarding which employees should receive healthcare benefits. The dispute was not resolved quickly, and the situation escalated to the point of President Bush declaring a Presidential Emergency Board to resolve the issues. It was not immediately successful, and a strike was threatened to begin on January 30, 2008. In the middle of that month, however, it was announced that Amtrak and the unions had come to terms and January 30 passed without a strike. In late February it was announced that three more unions had worked out their differences, and as of that time it seemed unlikely that any more issues would arise in the near future.