FRA Certification Helpline: (216) 694-0240

CLEVELAND, February 22 — The BLE General Committee of Adjustment for the Gateway Western Railway, a subsidiary of Kansas City Southern, announced the signing of an agreement that gives some locomotive engineers pay increases of more than 49 percent.

General Chairman John R. Koonce said the recently ratified agreement combines the best portions of the Kansas City Southern agreement, the National Agreement, and the old Gateway Western contract. The result is a new agreement that is better than each contract individually, Brother Koonce said.

The contract was ratified on January 15 and is retroactive to January 1, with some retroactive payments to Jan. 1, 2000. Eighty-three percent of the ballots were returned with 100 percent of the membership voting in favor of the new deal.

Highlights of the contract include:

  • Under the old agreement, Express Freight engineers were paid one rate for 12 hours of work. Under the new agreement, an engineer working 12 hours on an Express Freight will make almost 44 percent more in wages for the trip.

  • Under the old agreement, Local Freights were paid one rate for 10 hours of work. Under the new agreement, if a Local Freight works 10 hours on a 100 mile day, then the engineer will make 22 percent more in wages for the trip. In some extreme cases on long mileage locals, the engineer will see pay increases of more than 49 percent.

  • Under the old agreement, Yard Assignments were paid overtime by dividing the rate of pay by 12. Under the new agreement, Yard Assignments get true overtime.

  • The new Gateway Western contract adopts the National Wages and COLAs, and engineers will receive all wage increases and/or lump sum payments settled in the National Wage movement retroactive to Jan. 1, 2000.

  • The Health & Welfare plan will be cost-free to employees. It allows employees to retire at age 60 after 30 years of service, and the Carrier will provide existing employees with free Health & Welfare, just as if they were active employees, until they and their spouse both reach age 65.

  • The new agreement increases the engineers’ certification pay to the National Rate of $5.00. It also retains language that the locomotive engineer will be paid $5.00 in additional compensation earned by any other train crew member.

Brother Koonce said that by negotiating to combine the best portions of the National Agreement with the KCS and Gateway Western contracts, BLE engineers will retain the following benefits:

  • Regular yard assignments working more than five days will be paid overtime rate on the 6th and 7th days.

  • Six personal leave days and six holidays — engineers are qualified for these whether working on the road or in the yard. All engineers qualify from the first day they are hired.

  • A 401(k) plan, which matches 50 cents on the dollar for the first 6 percent of employees’ salary.

  • A health incentive plan, which pays16 hours straight time pay per quarter, if the engineer stays marked-up. Not reduced for laying off for PLD, vacation, bereavement, jury duty or union business.

  • Annulment pay on all regular assignments.

  • Crew consist of one engineer on every assignment.

  • Black box agreement.

  • Continuous away from home meal allowance — two the first 12 hours and one every six hours until listed.

Brother Koonce also announced the signing of two other contracts with Kansas City Southern subsidiaries — MidSouth Rail and SouthRail. These contracts, like the Gateway Western deal, adopt the national general wage increases and COLAs, along with the early retirement and health & welfare packages. However, they opted for the single rates of pay instead of mileage pay.

Other benefits of the MidSouth Rail and SouthRail contracts include daily guaranteed pool assignments and overtime on the 6th and 7th day for regular road switchers. The SouthRail engineers also received an immediate 8.28 percent raise for Road Switcher assignments and a 20.78 percent raise for Freight Assignments, along with a $6,385 lump sum payment in lieu of back pay.