[Congressional Record Volume 140, Number 95 (Wednesday, July 20, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 20, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   SHORT-LINE RAILROAD SALES--S. 2264

 Mr. BAUCUS. Mr. President, today I asked Senator Dorgan to 
include me as a cosponsor of S. 2264, a bill to provide certain worker 
protections in the sale of short-line railroads.
  I am an enthusiastic cosponsor of this important bill because it 
closes an improper and too often used regulatory loophole in the 
Interstate Commerce Act. The bill is important to many railroad workers 
in Montana, and throughout the country. I, therefore, urge the Commerce 
Committee to swiftly act on this measure.
  Under existing law, when workers are affected by the abandonment or 
merger of rail lines, the Interstate Commerce Commission [ICC] requires 
that those workers are protected during the transaction. In spite of 
this, when a railroad company sells a short line to nonrailroad 
entities the ICC requires no such protection. This loophole has 
encouraged railroad companies to artificially create nonrailroad 
entities for the sole purpose of avoiding worker protection. This 
practice must stop.
  This legislation has the potential to save hundreds of high-wage rail 
jobs in Montana. It provides the employee protection these rail workers 
deserve. The bill would require railroad companies to provide the same 
degree of protections to workers affected by short-line sales as apply 
to approved mergers or abandonments. Under this bill, the ICC will 
prevent railroad companies from using the existing loophole to avoid 
labor protections.
  Mr. President, I ask that a letter I received from Jim Mular, State 
legislative director for the Transportation-Communication International 
Union in Butte, MT, be submitted into the Record immediately following 
my remarks. This thoughtful letter details the uses of this loophole in 
Montana and its devastating effects on rail workers.
  The hardships that have been imposed on workers by railroad companies 
using this loophole are painfully real. Our ability to correct this 
abuse with this legislation is equally real. I am proud to be a 
cosponsor of this legislation and I urge my colleagues to pass it 
without delay.
  The letter follows:
         Transportation Communications International Union, AFL-
           CIO--CLC
                                                     May 19, 1994.
     To: Senator Max Baucus--Montana, Washington, DC.
     Subj: Dear Colleague Letter Senator Byron Dorgan--North 
         Dakota, seeking co-sponsorship to Shortline Sale(s) 
         Employee protection.
       Friend Max: Reference is made to the subject matter. As you 
     know Short-Line Railroad sales (pursuant to 49 U.S.C. Sec. 
     10101) have been side-tracking rail labor contracts during 
     the Reagan/Bush administrations. Conservative ICC appointees 
     have been remiss in enforcing rail labor protection whenever 
     Class I rail carriers spun off rail lines to short-line 
     operators.
       Three significant short line sales in Montana imposed 
     hardships on rail employees. Butte Anaconda & Pacific 
     Railroad (BA&P) was sold to the Rarus Railroad. This 
     transaction was before the ICC for years seeking labor 
     protection. The Commission held that employee protection was 
     inherently permissive by the ICC. Sec. 49 U.S.C. 10101 states 
     that the commission MAY impose employee protection arising 
     from a short line sale.
       Senator Dorgan's bill would mandate employee protection by 
     striking the word MAY. . . . Rail employee protection is 
     mandated in all other rail transactions affecting employees, 
     ie: Mergers, Branch Line Abandonments, Facility 
     consolidations, joint track operations etc.
       Another sale between Burlington Northern (BN) and the (MWR) 
     Montana Western Railroad became an exempt bridge carrier from 
     Butte/Silver Bow to Garrison, Montana. Resulting in the 
     I.C.C. ignoring the severe economic impact to BN and BAP 
     employees. Wages were reduced by 40% and fringe benefits by 
     50%--without the ICC imposing 49 U.S.C. 10101 labor 
     protection.
       Central of Montana Railroad (CMR) between Denton/Lewistown, 
     Montana was sold by BN with the same scenario impacting BN 
     jobs, along with inferior working conditions such as crossing 
     craft lines.
       Exempt short lines transactions are usually conditioned 
     under direct control of the selling Class I railroad, ie: 
     Freight rate tariffs, inner-line costs, and rolling stock. A 
     shortline operator is merely an employee of the ``biggies''--
     they are legal images of the mother railroad under the 
     Staggers Act of 1980. The I.C.C. ignors ordering labor 
     protection for the employees who are affected by these exempt 
     transactions.
       Senator Dorgan's bill would remedy this unjust ICC action. 
     Moreover it would save hundreds of high paying Montana 
     railroad jobs.
       A similar bill has been introduced in the U.S. House of 
     Representatives (HR 3866 Congressman Bernard Sanders D-VT) 
     with over 90 co-sponsors.
       Max!! TCU members in Montana would appreciate your co-
     sponsorship on Senator Dorgan's bill. . . .
       During your tenure in the U.S. House and Senate you have 
     always supported Montana Rail Workers. We need you again to 
     maintain high paying railroad jobs in Montana. Thanks!!!
           Your friend,
     James T. Mular (Big Jim!)

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