2011 THIRD QUARTER REPORT 

ALL LOCAL UNIONS 
SYSTEM COUNCIL NO. 2

Dear Brothers and Sisters:

 On September 2, 2011, the National Mediation Board (NMB) proffered 
 arbitration under the provisions of the Railway Labor Act to the IBEW
 and the other Labor Organizations involved in the National Fright
 Railroad Negotiations. The IBEW along with the other Rail Labor Unions
 rejected the proffer and, as such, the NMB released the parties from
 mediation which initiated a 30 day cooling-off period that runs through
 October 6, 2011. A Presidential Emergency Board (PEB) will be
 appointed to hold hearings over the disputes and make
 recommendations to the parties for settlement. Once the PEB
 recommendations are released to the parties, another 30 day cooling-
off period will begin during which time the parties will attempt to reach
 agreements based on the PEB recommendations. At the end of this 30
 day period the parties would again be able to resort to self-help and
 then ultimately, Congress could intervene and legislatively impose
 agreements on the parties to the disputes.
(See attached – “National Freight Railroads Bargaining Update – Sept
 6, 2011”)

            The U.S. Department of Labor recently ordered Union Pacific
 Railroad Company to pay $400,000 in punitive damages, $90,315 in
 compensatory damages, $34,900 in attorney fees and more than
 $90,000 in back wages to three employees. Investigations by the
 department’s Occupational Safety and Health Administration (OSHA)
 determined that the company violated the whistleblower protection
 provisions of the Federal Rail Safety Act by terminating two employees
 and suspending another in retaliation for reporting workplace safety
 concerns and a work related injury.
(See attached – OSHA News Release – August 25, 2011)     

During the third quarter, the System Council discovered that
 numerous Union Pacific locomotives were being subcontracted to
 Kansas City, Missouri based “Mid-America Car” for various repairs,
 servicing and inspection work. With the assistance of Kansas City local
 1832, this office was able to obtain essential information needed to
 initiate a claim for the recognized electrical work. Subsequently, the
 IBEW together with representatives of the IAM and NCFO filed formal
 claims pursuant to Article II “Subcontracting” for the Carrier’s violation of
 the various sections of Article II and its failure to provide the General
 Chairmen with a proper notice of intent. After several discussions and
 meetings with the Carrier concerning this matter, it is my understanding
 that the locomotives have now been removed from the contractor. We
 are currently scheduled to meet with the Carrier in order to discuss a
 remedy to the claim. However, if the dispute cannot be resolved, the
 Organizations are prepared to submit this matter for joint arbitration. 

The Kansas City Southern Railway recently served this office with a
 notice of intent to subcontract installation of locomotive onboard
 components associated with the Positive Train Control mandate. We
 immediately responded by advising that the IBEW has a contractual
 right to such work and that the Carrier’s own electricians can perform
 this work quicker and at less cost than by using an outside contractor.
 We further advised that the Carrier’s notice was inadequate and failed
 to provide any supporting data to justify subcontracting a project of this
 magnitude. On the date of July 6, 2011, VC Shell and I discussed this
 matter with KCS labor relations in detail without resolution. I followed up
 with a letter confirming the conference setting forth the IBEW’s position,
 of which the Carrier failed to respond. On the date of September 12,
 2011, a formal claim was filed pursuant to Article II “Subcontracting” for
 and on behalf of the affected claimant’s working at the Carrier’s Kansas
 City, Missouri and Shreveport, Louisiana facilities. On the date of
 September 19, 2011, the Carrier contacted this office and requested
 another meeting to discuss the matter further. We are currently in the
 process of securing a date to meet with the Carrier with the intent of
 resolving this matter and securing the work associated with the
 installation and subsequent maintenance of the PTC onboard
 equipment.                     

            July 2011

1.  On the date of July 12^th, AGC Tortorice and I met with Union Pacific
 labor relations in Omaha to discuss outstanding claims and other
 various issues concerning the Engineering Department force
 stabilization agreement.  

2.  On the date of July 13^th, AGC Tortorice, AGC Starkjohann, and I met
 with Union Pacific Labor Relations and Telecommunication’s
 Department to discuss concerns with how the Carrier is utilizing its
 current IT forces. We also discussed proposals for wayside radio
 installations associated with the Positive Train Control project. We are
 currently scheduling another meeting to follow up further with these
 discussions.
 

4.  On the date of July 15^th, VC Shell met at Kansas City, MO with Union
 Pacific personnel to discuss outsourcing of locomotive work to Mid
 America Car.   

5.  During the week of July 25^th, I docketed seven cases for arbitration
 before Public Law Board 7001 concerning outstanding disputes with
 Union Pacific Railroad.

August 2011 

1.  On the date of August 16^th, myself, VC Shell, and representatives of
 the shopcraft coalition unions met in Omaha with Union Pacific labor
 relations Mechanical Department personnel to discuss the Carrier’s
 subcontracting of locomotive work at Kansas City, MO.

2.  On August 16^th, VC Shell and I toured the North Platte, Nebraska
 facility and met with the officers and committeemen of local 1920.

3.  On August 18^th, VC Shell and I attended the monthly meeting of
 Omaha local 618.  

4.  During the week of August 22^nd, AGC Tortorice handled several
 issues and company proposals concerning Progress Rail’s Rocklin,
 California facility, local 800.

5.  Throughout the month of August, the System Council staff and I
 finalized our case presentations and submissions for arbitration
 scheduled for September 8, 2011.

September 2011 

1.  During the week of September 5^th, the System Council staff and I
 attended arbitration before Public Law Board 7001 regarding disputes
 with Union Pacific Railroad. At this point, I have not received any of the
 decisions from this Board; however, I will advise the respective local
 unions and claimants as soon as the Awards are received.      

2.  On the date of September 13^th, AGC Tortorice assisted Houston
 Local 1814 with a disciplinary investigation.  

3.  On the date of September 14^th, VC Shell attended a disciplinary
 hearing in Morrill, Nebraska.       

4.  September 17^th – 24^th, the System Council staff and I attended the
 38^th IBEW International Convention in Vancouver. I am pleased to
 announce that 15 locals under the jurisdiction of System Council 2 were
 in attendance at this years convention.      
 

Please find the following attachments for your review and
 dissemination:

1.    RRB Labor Member Speakman’s letter – July 2011
 publication; (see rrb.gov)

2.    RRB Labor Member Speakman’s letter – August 2011
 publication; (see rrb.gov)

3.    RRB Labor Member Speakman’s letter – September 2011
 publication;  (see rrb.gov)

4.    RRB Scheduled Informational Conferences – August 30, 2011

5.    RRB Job Vacancy list – August 30, 2011;

6.    “National Freight Railroads Bargaining Update” September 6,
 2011;

7.    OSHA News Release – August 25, 2011;

8.    Federal Register – list of certified labs for Part 40 drug &
 alcohol testing.

  With best wishes, I remain

Fraternally yours,

                                                                                     Jim Wisniski

                                                                                    General Chairman

 Enclosures

 Cc:      IVP’s System Council 2
            Bill Bohne, Director of Railroads
            staff