Congress Authorizes Funds for Amtrak Back Wages; Railroad Pledges to Make Payments on May 1

On March 10, Congress passed an appropriations bill that cleared the way for the second of two installments of back wages due under the Amtrak contract reached last year. The nation’s passenger railroad received $1.49 billion in funding in the legislation.

In a message to employees, Amtrak CEO Joe Boardman reiterated his pledge to use a portion of the funds to pay the remainder of retroactive wages. Later in the month, he announced that the Board of Directors unanimously approved paying the back wages to all eligible employees on May 1.

Last spring, workers received the first back pay installment of a long-delayed 10-year agreement. TWU Railroad Division Director and International Vice President Gary Maslanka said that workers received checks for about 40% of the total back pay. The remaining 60% will be paid on May 1.

Amtrak finally agreed to a negotiated settlement with its shop craft unions, including TWU, in January 2008. Contract terms include wage increases that average 35.2 percent over the life of the agreement, which is January 1, 2000 – December 31, 2009, or 3.1 percent compounded per year. Retroactive pay varies, but averages $12,800.

Boardman told employees that the Amtrak authorization was up from previous funding levels, although he noted that capital funds (or any stimulus funding) couldn’t be used for back pay. “I want you to know that we’re going to meet our commitment to deliver the back pay this year,” he wrote. “We have a dedicated workforce and I value the work you do – delivering on the back pay is one way we can show our commitment to you.”

In his second message, Boardman was upbeat about Amtrak’s role in the stimulus package. “It is critical that we all work together as we begin to invest an unprecedented $2 billion in stimulus and FY ’09 funding for capital programs, and I look forward to seeing us live up to our collective potential.”

Amtrak workers are hoping that stimulus spending will increase employment. Maslanka said that early estimates point to an increase of 150-160 jobs, including 50 TWU Carmen jobs at Beech Grove, Indiana and 25 at Bear, Delaware.