ILLINOIS CENTRAL SIGNS CREW SIZE AGREEMENT WITH UNION
ILLINOIS CENTRAL SIGNS CREW SIZE AGREEMENT WITH UNION CHICAGO, Nov. 7 /PRNewswire/ -- The Illinois Central Railroad
(NYSE: IC) announced today that it had signed an agreement with the United Transportation Union that will enable the railroad to reduce the size of its train crews. The UTU represents all train crew personnel except locomotive engineers.
The new agreement, effective immediately, permits a standard train crew of two -- a conductor and a brakeman -- in addition to the engineer. Under the previous agreement, two brakemen and a conductor were required for each crew. With the agreement, the Illinois Central estimates that the average crew size will be reduced to 2.6 crew members from 3.4 crew members. Additionally, the new agreement also eliminates the requirement for brakemen on "through" trains -- trains that make no more than two stops. About 90 of the IC's 300 daily trains are through trains. Robert G. Richter, vice president of labor relations for Chicago based IC, says that under the new agreement, an estimated 200-225 jobs will be eliminated. The IC's separation package will give $60,000 to crew members who leave before Jan. 1, 1992. Those who leave after that date will receive $50,000. Although management continues to evaluate the financial impact of the separation package, such an eventuality was anticipated and an adequate reserve has been provided to handle separation payments. The Illinois Central operates a 2,800-mile freight railroad in six states -- Illinois, Kentucky, Tennessee, Mississippi, Louisiana and Alabama. -0- 11/7/91 /CONTACT: John Mulvaney of Illinois Central, 312-819-7927/ (IC) CO: Illinois Central Railroad; United Transportation Union ST: Illinois IN: TRN SU: SM -- NY092 -- 2391 11/07/91 16:39 EST
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|Date:||Nov 7, 1991|
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