Rogue’ Fed Panel Proposes Amtrak Breakup

Amtrak faces an uncertain future after a federal oversight panel proposed to strip valuable assets from Amtrak’s route system.

The Amtrak Reform Council (ARC) seeks a liquidation plan that could lead to open bidding for Amtrak’s 40 intercity routes.

“Instead of providing an objective assessment of Amtrak’s operations and finances, the ARC sought to sell off Amtrak to private interests,” said Mark Filipovic, IAM Railroad Coordinator and chairman of the AFL-CIO Rail Labor Division (RLD).

Transportation labor groups argue privatizing the nation’s passenger rail system is not in the public interest. “Large portions of the country could be left without any long-haul passenger rail service,” said Robert Roach, Jr., IAM Transportation General Vice President. “We should be debating ways to secure Amtrak’s future, rather than wasting valuable time fighting proposals designed to speed its demise.”

Eleven AFL-CIO rail unions in the RLD recently filed a lawsuit to block the Reform Council’s proposal to dissolve Amtrak. The suit claims the council acted arbitrarily and “in excess of its authority” by recommending the breakup of Amtrak, when it was legally mandated to offer a plan for a “restructured” national rail system.

Railroad Retirees Welcome Benefit Boost

U.S. railroad workers, retirees and their spouses celebrated a major victory on December 21, 2001, when the new Railroad Retirement and Survivors Improvement was signed into law.

The legislation, strongly supported by the IAM, allows workers with 30 years of service to retire with full benefits at age 60, down from 62, and increases benefits for surviving spouses of railroad retirees by an average of $300 a month.

The reform bill reduces payroll taxes paid by railroad companies and allows $15.3 million of the rail retirement fund to be invested in private securities.

A new Railroad Retirement Investment Trust will oversee the retirement assets, managed by a seven member Board of Trustees; three appointed by labor, three by management and one appointed by the other six.

IAM Opposes Merger  At Aloha-Hawaiian

The rush to restructure air travel continues, as the global recession shows no sign of letting up. In Hawaii, Machinists are opposing the recently announced merger of the two island-based carriers.

The proposed transaction dissolves Aloha Airlines and creates Aloha Inc., but the combined carrier will operate as Hawaiian Air.

“If this unfortunate merger goes forward, any integration process will be fair and equitable for our members at both carriers,” said Robert Roach, Jr., IAM General Vice President.