SOUTHFIELD, Mich. — Members of the Brotherhood of Maintenance of Way Employes set up picket lines at Escanaba & Lake Superior headquarters in Wells, Michigan at 6 a.m. (EDT) today.
Approximately 18 maintenance of way workers are employed by E&LS which operates about 350 miles of track in Michigan and Wisconsin.
The BMWE is the union that represents the 45,000 rail workers who build and maintain the track, bridges and buildings on the railroads in the United States and Canada.
On June 13, 2002, E&LS President John Larkin advised the BMWE that he was unilaterally suspending the railroad’s participation in all National Health Care programs for six months beginning July 1, 2002. Larkin said there was only one reason for cutting employees’ health care — so the railroad could pay its federal taxes.
At a meeting held on June 20, Larkin reiterated his unilateral decision to suspend participation in health insurance programs and said this was the only solution to E&LS’s tax delinquency. Since the meeting failed to produce a resolution which would continue health insurance coverage beyond June 30, 2002, preparations were made to strike.
According to General Chairmen Leon R. Fenhaus “records provided the BMWE by Mr. Larkin, the E&LS has a positive cash flow. The debt and tax problem associated with the E&LS are due to poor decisions by Mr. Larkin. Mr. Larkin already pays BMWE members employed by him at substandard industry rates. Now he wants to further erode these substandard wages by diverting money from his contractual obligation to provide health care coverage in order to pay for short falls he created. The members have decided they will no longer be forced against their wishes to be the responsible party for something they had no control over.”