A Federal Railroad Administration study has validated that exhaustive and unpredictable work schedules, a two-tier pay system, and inadequate training are damaging efforts of railroads to recruit and retain qualified employees.

Seeking a mutually acceptable solution to this problem has been an objective of the UTU since bargaining on a new national agreement began in November 2004 with the National Carriers’ Conference Committee. The NCCC and its labor negotiators from BNSF, CSX, Kansas City Southern, Norfolk Southern and Union Pacific have been resolute in refusing to address the issues, however. The UTU has asked a federal court to order the carriers to honor a written commitment they made previously to address these issues.

The FRA study should cause the carriers to reconsider their refusal to bargain in good faith and honor their past written commitments, as their steadfast refusal to acknowledge the problems will not escape notice of a presidential emergency board or members of Congress if this round of bargaining results in an impasse.

The 101-page study, "An Examination of Employee Recruitment and Retention in the U.S Railroad Industry," was prepared at the request of the FRA by the consulting firm of Foster-Miller, following interviews with freight railroads, rail labor-union officials and 56 randomly selected contract employees, including those in train and engine service.

"The combination of heavy employee retirements, an aging workforce, relatively few new hires, and significant increase in business has recently resulted in a number of challenges to the U.S. railroad industry," says the study. "The ability of the railroads to meet the growing demand for freight transportation is dependent, in part, upon their ability to attract and retain highly qualified personnel."

Following are findings from the report:

"[To improve recruitment and retention of qualified employees, railroads should improve work schedules through] greater predictability and less time away from home ... working for the railroad industry creates a strain on family relationships ...

"[T]ime and effort spent on retaining good employees pays off in terms of a less strained staffing system and a reduced need to train new employees.

"Under an incremental pay rate system, for example, new hires enter at a fraction of their full earning potential ... conductors typically begin at 75 percent of their salary. Their pay rate increases five percent each year, therefore it may take a conductor five years to earn 100 percent of his/her salary.

"One railroad notes that it has lost employees to other railroads who were able to waive the incremental pay rate system. [Most employees leaving the industry do so within the first five years of employment because] within the first five years, new hires may grow weary waiting to gain ... full pay for those crafts that have an incremental pay rate system in place ...

"[One respondent said], 'As far as the job goes, I’m satisfied with the work, but I’m getting paid at 80 percent, but I have 100 percent responsibility for the job and 100 percent responsibility for what goes on that job; but I get 80 percent of the pay for that job.' [Another said], 'I'm paying 100 percent insurance, I'm paying 100 percent retirement, I'm paying 100 percent union dues, but I'm only making 85 percent. I'm doing 100 percent of the work.'

"The cost of turnover can be high ... it costs anywhere from three-quarters to one and one-half times an individual’s salary to replace an employee.

"Quick promotion also helps individuals see the long-term possibility of having a career which provides for continuous growth in the company.

"The unpredictability of some crafts' work schedules remains a challenge to the industry ... work-life balance continues to be a challenge ... unpredictability of the schedule; the inability to schedule personal time, including time with family and time for rest; the long hours and little time between shifts; the 24/7 nature of operations; and the lack of guaranteed start times.

"... more-and-more young workers require a family-friendly work environment ... the most recent generation of new employees seeks more personal time and a more regular work schedule ...

"Changes in railroad company employment practices to promote retention [can include] ... improving work-life balance through local efforts to modify calling and assignment rules in ways that meet railroad service needs and improve employees’ work-life balance by increasing conductors’ and engineers’ work schedule predictability ... [W]aive[ing] the incremental or step pay requirement for certain crafts ... [Providing] hourly wages with a guaranteed day off ... Providing management training to frontline supervisors to improve how supervisors manage their employees.

"[Insufficient training also is a problem in retaining employees.] Most respondents explained that they had expected better training, such as more thorough training, more training, or better preparation. One respondent explained that she had to seek out additional training on her own rather than being provided with it. Notes [an] engineer, 'I expected more training, but they cut us loose too early.' [Another said], 'They just kinda throw you out there.'

"[Management animosity is a serious problem.] One respondent explained, 'How can we work together hand-in-hand if I don’t trust you and you don’t trust me? You stood behind the bushes all the time to find out something I’m doing wrong, but it’s very rare that you come up to me and shake my hand and say, you did a really good job. You’re not going to look into your personnel file and see that you’ve done a really good job on this thing, but you ... sure will see in your file when you screw it up.'

"[As to safety], several respondents felt that ... safety takes a back seat to other concerns. One respondent explained that, in his experience, local railroad officers such as trainmasters are more focused on maximizing profits than on operational safety ... One respondent provided an example where he was working on the extra board with a lack of sleep and he did not feel this was a safe practice.

"[Suggestions to improve safety include] cleaning up facilities, improved communication about accidents to learn from them, better safety briefings, and eliminating the perceived double standard with respect to getting as much done as quickly as possible but then disciplining an employee when he breaks a rule. [Said one respondent], '[I]f you follow all the rules and are not getting as much work done, you are asked why it is taking so long.'"