Industry observers had wondered why the Brotherhood of Locomotive Engineers and Trainmen — which had vehemently opposed an activist investor’s plans to oust Norfolk Southern’s management team — flip-flopped on Friday and decided to support Ancora Holdings’ calls for change at the railroad.
The reason became apparent on Sunday, when the SMART-TD union that represents conductors released a memorandum of understanding that Ancora and BLET leaders signed last week.
If Ancora’s proxy battle is successful, the BLET would win a number of concessions — including taking over remote-control switching operations currently handled by conductors. Engineers also would no longer be required to work as conductors, and NS and BLET would end a related federal lawsuit that the union brought in 2021.
The deal between Ancora and the union also contains provisions regarding bonuses, gives BLET veto power over changes to seniority zones, and will allow the union to select three home and away terminals that will test advertising of call windows.
It also would change the definition of road service, allow the union to give input on operational changes, and permit BLET-chosen representatives to participate in the training of new hires and locomotive engineer trainees. The railroad and union also would explore expanding the confidential close-call reporting system to all locations.
The agreement was signed by Ancora Alternatives President James Chadwick and the BLET’s three general chairmen on NS.
SMART-TD, in a statement on its website, said the BLET was trying to get from Ancora what its leaders had not been able to negotiate with NS or achieve through national negotiations. SMART-TD, along with 10 other labor unions representing NS workers, remains opposed to Ancora’s plans to mount a full-blown implementation of Precision Scheduled Railroading at NS, with former UPS executive Jim Barber Jr. as CEO and former CSX operations boss Jamie Boychuk as chief operating officer.
“BLET is playing Judas and has chosen to sell out workers so they can get a do-over on past negotiations their organization fell short on with NS,” the SMART-TD statement said. “[BLET National President] Eddie Hall and everyone associated with BLET’s decision should be ashamed. They were willing to hand over everything our movement has done to defend our men and women against PSR at NS.”
“For the record, less than one day before BLET announced they were backing Ancora, they had given their word to the AFL-CIO’s Transportation Trades Department that they were standing with us,” SMART-TD claimed. “Apparently, the attached agreement was an effective sweetener. Eddie Hall and his NS general chairpersons have turned on us.”
The BLET’s general chairmen on Norfolk Southern in February firmly backed the railroad’s current management team. And they were highly critical of Ancora’s plans.
But Hall said on Friday that after careful review the union has determined that management change was in the best interest of the union’s members and the railroad.
“BLET’s three elected General Chairmen representing locomotive engineers and trainmen at Norfolk Southern met with Ancora’s leadership team yesterday and determined that they are the right leaders for Norfolk Southern moving forward,” Hall said in a statement. “After the railroad’s CEO Alan Shaw hired COO John Orr and following the public comments of both those executives on their strategy for NS, our General Chairmen determined that a change at the top is needed. Although this decision was not easy, the General Chairmen believe it is necessary.”
The union representing NS maintenance of way workers also switched its support to Ancora last week.
Representatives from Ancora and the BLET did not immediately respond to emails seeking comment on Sunday evening.
Ancora announced on Sunday that steelmaker Cleveland Cliffs, a major Norfolk Southern customer, said it now supports the activist investor.
The proxy battle is heading toward a shareholder vote at the May 9 NS annual meeting.
Share this article
