Health & Welfare Cost‐Sharing Employee Contributions – National Agreement

Under terms of the 2011 National Agreement covering freight railroads, from January 1, 2010 through December 31, 2014, the health & welfare employee cost?sharing contribution was $200 per month, from January 1, 2010 through June 30, 2012. Effective July 1, 2012, the employee contribution was reduced to $198 per month and has remained frozen at that amount through June 30, 2016. During this period we have received six general wage increases, including a 3% wage increase effective January 1, 2015 ?? the first date of the next contract (presently under negotiations).

Effective July 1, 2016, the employee contribution will be subject to the formula set out in the National Agreement for cost sharing, which provides that “employee cost?sharing contributions shall be adjusted so as to equal the lesser of 15% of the carriers’ monthly rate for 2016 or $230”. Pursuant to the formula shown on the attached, effective July 1, 2016, the employee cost?sharing contribution shall be adjusted to $228.89 per month.

Click here to read the full letter from TCU President Scardelletti.

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