Hotline #7 - November 7, 1997

The Senate today passed on a voice vote S.738, the Senate Amtrak reauthorization bill. This important step towards Amtrak vitality was achieved after many hours of negotiation last week over the labor and liability issues. Principally, these are:

• Removing labor protection from statute, but continuing it for another 180 days while it is negotiated between labor and management.
• Removing the ban on contracting out from statute, making it part of current contracts that are up for renewal about two years from now.
• Placing a global liability cap of $200 million per Amtrak accident.

Now the issue moves back over to the House, which is expected to be in session for only a couple more days -- Saturday, November 8, and possibly Sunday, November 9. Please call your Representative right away -- the Capitol switchboard number is 202/224-3121. Tell them that the Senate acted favorably today and that the House needs to adopt similar compromises for Amtrak -- indeed any passenger service -- to have a future.

A strong speech today from Sen. John Kerry (D.-Mass.) should reassure Representatives who are close to labor that it's all right to support the labor provisions adopted by the Senate. Kerry has been the lead negotiator on labor issues in S.738.

Amtrak and the Brotherhood of Maintenance of Way Employes announced on November 2 a tentative agreement on a new labor contract, thereby averting the immediate danger of a strike. The agreement provides for most of the wage increases the union wanted, but also for significant productivity improvements. The agreement is contingent on further actions by Congress to pay for it. Therefore, Amtrak has the right to cancel the agreement if Congress does not deliver on enough of the contingencies. The union can strike 60 days after an Amtrak cancellation.

The contingencies require cooperation from Congressional Republicans, who were not part of the negotiations that were led by some Democratic members of the Amtrak board. The conditions include enactment of an Amtrak reauthorization, enactment of higher operating grants, enactment of a supplemental appropriation to make up for operating grant shortfalls in 1996 and 1997, agreement by Congress not to subtract the 1998 capital appropriation of $199 million fro the $2.3 billion in capital from the budget agreement, and a promise by the White House to seek gas-tax revenues for Amtrak capital needs in 1999 and 2000.

The Senate seems to have given up on passing a six-year ISTEA renewal bill, S.1173, this year. It is not even clear if the Senate will pass a six-month extension, as the House has done, given the mounting tension over state allocations. A hearing was held November 4 to look at the impact to states from going all winter without authorization for highway and transit programs.

Union Pacific has decided to accept Amtrak's proposal for an additional Texas Eagle frequency, through to Los Angeles, starting in February.

Voters in Denver November 4 rejected a sales-tax increase and bond issue to pay for bus and light-rail improvements.

San Francisco Mayor Willie Brown on November 3 broke ground for the BART extension to San Francisco International Airport. It should be complete in 2001. Rail links to airports are a good thing, but some rail supporters in the area believe the region would have been served better by an intermodal terminal connecting an internal airport shuttle to BART, Caltrain commuter trains, and future high-speed trains.

St. Louis Mayor Clarence Harmon announced last week at the RailVolution conference that construction on a new intermodal facility would begin next summer. It will replace the current, unpleasant trailers under a freeway that were installed supposedly temporarily in 1978, when Amtrak had to leave Union Station.