(The Associated Press circulated the following story by Todd Dvorak on November 24.)
IOWA CITY — The Iowa, Chicago & Eastern Railroad Corp. and its union employees have agreed to enter binding arbitration to resolve a two-year-old contract dispute.
Railroad officials accepted principles set forth by the National Mediation Board late Tuesday, setting the stage for an arbitrator to hear the case next month, said John Mullen, representative for the Brotherhood of Locomotive Engineers and Trainmen.
Binding arbitration means more than 250 union workers in Iowa and other Midwestern states could have a contract soon after the New Year.
“I think it’s a positive step for the members and the (railroad) because it puts both parties on a level playing field and provides an avenue to get issues resolved,” Mullen said.
The original contract expired nearly two years ago and negotiations have gotten bogged down over wages and health benefits.
Mullen said veteran arbitrator David Casher will take written and oral arguments then hand down a contract that attempts to strike a compromise.
The union is seeking a 12 percent raise spread over a three-year contract and caps on health care costs, Mullen said.
Railroad president Kevin Schieffer declined to comment on company bargaining strategy earlier this week. Last month, he told reporters that employees have gotten pay raises and shortened work days in the past two years.
The railroad, formed three years ago, is based in Sioux Falls, S.D., and has more than 1,400 miles of track in Iowa, Minnesota, Illinois, Missouri and Wisconsin. It has about 490 employees.