WEBSITE LEGISLATIVE UPDATE FOR
OCTOBER 2008
This is the last website update I will be sending before the National Elections in November. Although I would never purport to tell you how to vote, I would like to point out some facts that I feel are important considerations for those of us whose livelihoods depends on what transpires in the rail industry on a daily, monthly, or yearly basis.
If you have not registered to
vote, do it now!!! Traditionally new voters must be registered 29 days in
advance of voting day... that means you must register by October 6 in order to
cast your vote on November 4. In many states, you can register to vote online
or by mail.
Because we never know what
might be happening in our lives from one day to the next (especially those of
us who work in the rail industry), I highly encourage EVERYONE to cast your
vote early if it is allowed in your state.
Click here for the chart to
find out the Absentee and Early Voting Laws for your state. Let’s all do our
part to make this a record year for voting – it’s the most important election
of our lifetime!
Combined Rail Safety/Amtrak
Authorization Bill Passed
On September 29, The Passenger Rail Investment and
Improvement Act, S. 294, was combined with H.R. 2095, the Railroad Safety
Enhancement Act of 2008, in an attempt to get these bills passed through
Congress before they adjourn for the year. The September 12 train accident in
Although
the passage of this legislation is good news for Amtrak, we are a little
disappointed in some of the provisions of the rail safety legislation, as it
does not really do enough to abate fatigue. Hopefully we can improve on this
next year under a new administration.
In a
statement issued by BLET National Legislative Representative John Tolman, he
states:
“The bill, an amended rail safety measure, would
authorize significant new funding for Amtrak at $5.3 billion in capital grants,
$2.9 billion in operating grants and $1.9 billion for intercity passenger rail
over five years.
“The legislation limits railroad operating crews to a
maximum 276 hours per month, including limbo time. It limits limbo time to 40
hours a month the first year after enactment and 30 hours a month thereafter.
“Some other rail safety provisions include:
“It now goes to the White House for the
President’s approval, the Bush administration threatened to veto an Amtrak bill
that the House passed in June, but has been silent on the measure now before
the Senate. House Transportation and Infrastructure Chairman Oberstar ,
D-Minn., said he is optimistic President Bush will sign it.”
SAFETY MEASURES INSTITUTED FOLLOWING SEPT. 12 TRAIN COLLISION
A number of safety measures have been instituted
following the tragic incident on September 12 when a Union Pacific freight train
and a Metrolink commuter train
collided head-on in the Chatsworth district of Los Angeles, leaving 25 dead and 135 injured.
·
Metrolink Adds Second Engineer to Some Trains
As an interim measure to provide “another set of eyes,”
Metrolink announced September 26 that it will begin adding a second engineer to
some of its commuter trains. The backup engineers will come from a pool of
10-15 relief engineers normally used to replace primary engineers who are on
vacation, sick or out on training.
·
FRA to Ban Cell Phone Use in Locomotive Cabs
On October 1, the National Transportation Safety Board issued a statement
verifying that the engineer operating the Metrolink train involved in the Sept.
12 collision in
·
Push for Automatic Train Stop
System on Metrolink
The Los Angeles
County Metropolitan Transportation Authority (MTA) board voted 9 to 0 to issue
a series of safety directives to Metrolink. The MTA said it is trying to find
$5 million to use toward securing an automatic train stop system for Metrolink
while seeking $97 million in rail safety money that may be available from the
state. California Gov. Arnold Schwarzenegger signed a bill on Sept. 25 that
would allow voters in
·
Positive Train Control
The Rail Safety Bill passed in the Senate on October 1, and awaiting signature of President Bush, would require implementation of positive train control by 2015. Metrolink Vice Chairman told the MTA Board that “It’s simply not acceptable to wait until 2015. The bottom line is if there’s anything that can be done in the interim, I want it analyzed, I want it looked at, and I want our experts telling us if it should be done.”
HEALTH CARE COVERAGE FOR BLET MEMBERS
COULD BE IN JEOPARDY
The health care “reform” plan being offered by Presidential candidate John McCain has uncovered some facts that should worry BLET members and all railroad workers. McCain’s plan would end the tax deductibility of employer-sponsored coverage. This move would have a significant impact on our coverage under the national industry plan. The following excerpt from the September 29 newsflash on the BLET website outlines how McCain’s plan would impact our health care coverage:
“This year, each railroad’s total contribution toward the various elements
of our national freight benefits package — including short-term disability —
exceeds $15,000 per BLET member. Enactment of the McCain plan would subject the
carriers to Medicare and Railroad Retirement Tier 1 and Tier 2 taxes on this
sum. Depending upon an individual’s taxable income, carrier costs could rise
over $3,000 per employee. This would be the equivalent of a 19.75% increase in
the carrier’s cost.
”Each member also would be subject to additional Medicare and Railroad
Retirement taxes of up to $2,000 or more. BLET members would be further
impacted in two other ways. First, the “pre-tax” status of the $166.25 monthly
employee premium contribution and the carrier’s $40 monthly short-term
disability contribution would end, and those contributions would have to be
made with after-tax dollars. Second, the value of the carrier’s contributions
would be included in each member’s taxable income.
”For someone in the 25% marginal tax bracket — which includes single people
with a taxable income in excess of $31,850, and married people filing jointly
with a taxable income over $63,700 — the total income tax impact is over
$4,500. For someone in the 28% marginal tax bracket — which includes single
people with a taxable income in excess of $77,100, and married people filing
jointly with a taxable income over $128,500 — the total income tax impact is
over $5,100.
”Promoters of the McCain plan point to $2,500 individual and $5,000 family tax
credits that are included in the plan. However, it is unclear whether workers
who receive employer-sponsored health benefits will be entitled to the tax
credit. What is clear is that, in either case, the railroads’ costs will rise
significantly, and your taxes also will increase steeply.”
RAILROAD
RETIRMENT FINANCES ARE SOUND
In the current financial crisis of our nation, I have to admit that the
status of our Railroad Retirement fund has crossed my mind a time or two. A
newsflash recently forwarded by NARVRE Legislative Director Gary Faley states
that: “The latest actuarial report on the finances of
the Railroad Retirement system proclaims it to be in ‘generally favorable’
financial health, with no cash-flow problems anticipated during the next 25
years.”
According to the Railroad Retirement Board, the
losses realized by the Railroad Retirement Investment Trust this year are less
than the 16% positive return from last year. The Board also stated that the
Trust has minimal exposure to the kind of investments that have caused
financial difficulties with other institutions. Additionally, the Railroad
Retirement financing changes ordered by Congress in 2001 provide for a payroll
tax adjustment to ensure the fund remains actuarially sound for the
long-term. The railroad carriers would
face the burden of higher payroll taxes, not the employees.
For more information on Railroad Retirement and
Railroad Retirement Unemployment Insurance, as well as the Railroad Retirement
Investment Trust, go to: www.rrb.gov.