July 15, 2008  

(Washington, D.C.) - The Brotherhood of Maintenance of Way Employes Division (BMWED) of the International Brotherhood of Teamsters has successfully concluded negotiations for first contracts with WATCO subsidiaries’ South Kansas & Oklahoma Railroad (SKOL) and Stillwater Central Railroad.

These bargaining victories occurred after BMWED prosecuted two federal lawsuits against WATCO for bad faith bargaining and other violations of the Railway Labor Act. 

“I am so proud of the men at SKOL in South Kansas for staying the course with the BMWED,” said Mark Hemphill, BMWED General Chairman. “They struggled for the last two years to make better lives for themselves through collective bargaining.”

The two agreements will raise the hourly rates of pay for track inspectors to $18; those of track foremen to $16.25; truck drivers to $15.25. In addition, both Stillwater and South Kansas will pay overtime at punitive rates for work beyond the basic work week.

BMWED and WATCO agreed to binding interest arbitration over the amount of annual wages for track laborers; whether or not a signing bonus should be paid; the structure of entry rates and the effective date of the wage adjustments. The arbitrator will choose among BMWED's and WATCO's “last, best offers” and will not have jurisdiction to create a compromise solution. The BMWED will retain the services of The Labor Bureau, Inc. to present its case. The Labor Bureau, Inc. has represented most rail unions for many years in collective bargaining.

Bargaining was conducted by BMWED General Chairmen Rick Sandlin and Mark Hemphill. Assisting negotiations were BMWED Vice Presidents David Tanner and Roger Sanchez. 

“A great deal of credit must be given to our two attorneys, Harry Zanville and Charlie Collins, who stayed on top of this case and helped us deliver a good first agreement for our members,” said BMWED Vice President Dave Tanner.

“Our victories at these two WATCO properties demonstrate how collective bargaining benefits workers,” said BMWED Vice President Roger Sanchez.  “No longer will employees at both railroads be paid substandard wages or denied pay for overtime work—that’s what unions can do.”

“I hope this success on Stillwater provides a lift to other unorganized short line workers,” said Fred Simpson, National President of the BMWED and Teamsters Vice President. “Anyone who looks at this struggle will know that the BMWED will fight to get a fair first contract.”

The BMWED is a division of the Teamsters Rail Conference. The BMWED represents more than 35,000 men and women engaged in the construction, repair and maintenance of railroad track, bridges and structures.