BNSF News

Public Policy Update: Unions Join Railroads in Antitrust Concerns

2009-04-09

In letters to Congress, both the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Transportation Communications International Union (TCU) urged lawmakers to oppose the Railroad Antitrust Enforcement Act.

Robert Scardelletti, TCU International president, warned that the bill "could cause unwanted problems for the employees of the railroads including the members that the TCU represents."

Scardelletti went on to point out that, "there is a common misconception that the railroads are exempt from antitrust laws. This is simply not a true statement and should be corrected on the public record. The railroads do have limited antitrust exemptions which are narrowly applied and only extend to those areas where the railroads' conduct is subject to oversight by the STB [Surface Transportation Board]."

The letters from both unions were addressed to members of the Senate Commerce, Science & Transportation Committee, Senate Judiciary Committee, House Judiciary Committee, and House Transportation and Infrastructure Committee.

In his letter, BLET National President Ed Rodzwicz wrote that "The BLET and its members would be significantly and negatively impacted by enactment of the act. Accordingly, we oppose passage of the legislation..."

The bills, S-146 and HR-233, were introduced by Sen. Herb Kohl and U.S. Rep. Tammy Baldwin of Wisconsin . Rail experts agree that the legislation would lead to an unprecedented and confusing regulatory scheme that subjects railroads to dual government agencies, leading to confusing and contradictory rules.

Rail experts agree that the resulting regulatory maze would be harmful to railroads and would jeopardize rail's efficiency, reduce revenue, choke investment and, eventually, lead to a smaller industry with fewer jobs.

In its letter, the BLET said that the bill "could result in crippling the industry just as the nation's dependence on railroads becomes critical."

In addition, the United Transportation Union (UTU) recently stated its concern about the consequences of ongoing legislative efforts targeting the freight rail industry and the "negative conversations dominating congressional hearings and crowding out the ability and willingness of Congress to focus on legislation to benefit carriers, their customers and rail labor," UTU President Mike Futhey said.

Under the current regulatory system, freight railroads are subject to almost all antitrust laws, including those that prohibit agreements to set rates, allocate markets or unreasonably restrain trade.

For more information on legislative issues, visit the Legislative Action Center on employee.bnsf.com. From the homepage, click on Departments, the Take Action Now - Legislative Action Center link in the Government Affairs channel (right side of browser).

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