By Sholnn Freeman
Washington Post Staff Writer
Saturday, January 19, 2008

Amtrak said yesterday it reached tentative agreement on a long-sought contract with 12 labor unions, averting what would have been the railroad's first strike in its 36-year history.

As part of the deal, Amtrak agreed to pay workers thousands of dollars in back wages built up through the years when they worked without contracts. Union negotiators said the payments amount to about $200 million, part of which is contingent on congressional funding. Amtrak also backed off of sweeping demands to change work rules, including contracting out more work and giving the railroad more leeway over terminations and overtime.

The new agreement covers about 10,000 workers. Amtrak has 19,500 employees, 16,000 of whom are unionized.

"The last eight years have been very tough on the members of the union and our families," said Jed Dodd, the bargaining chairman of the Brotherhood of Maintenance of Way Employes. "We're glad this period is over."

The labor dispute has been the subject of federal mediation attempts since 2001. A strike would have come as a devastating blow to the railroad, which has been climbing back to financial health. Amtrak said it carried 26 million passengers last year, its highest ridership ever.

A strike would have affected Amtrak service nationwide, but the Washington region and other densely populated areas along the heavily traveled Northeast corridor would have been hardest hit. About 70,000 passengers and 95 trains go through Union Station every day, according to AAA Mid-Atlantic.

Amtrak employees also operate the MARC and VRE commuter lines in Maryland and Virginia, respectively. Commuters feared a Amtrak strike would bring train service in the region to a halt and strangle area roadways with thousands of additional cars.

The turning point in the dispute came last month when an emergency mediation board appointed by President Bush concluded that Amtrak was largely to blame for the inability of the parties to reach an agreement. The agreement, which still must be ratified by union members, largely follows the board's recommendations.

In recent weeks, federal lawmakers pushed hard for a resolution. Amtrak receives $1.3 billion from the U.S. government annually. Senate labor committee chairman Edward M. Kennedy (D-Mass.) called the deal a landmark in labor-management relations. In a statement, he said the agreement gives Amtrak the "peace and stability it needs to build a stronger future."

In a statement from Amtrak, chief executive and president Alex Kummant said he and workers "shared a sense of relief and resolve to move forward in a cooperative spirit."

Union leaders said the agreement calls for Amtrak to make payments averaging $12,800 per person, depending on length of service and individual wage rates. Forty percent of the back wages would be paid within the next two months. The second payment would be due next year, though it's conditional on congressional funding enabling the railroad to make the payment.

The contract, which covers the years 2000 to 2010, includes a 4 percent wage increase this July and a 4.5 percent increase in July 2009, according to union negotiators. However, they said workers will pay substantially more for health care and other benefits.

Amtrak officials have argued that part of their financial problems are related to the number of unions, many of which duplicate functions. For example, the officials say three different unions are responsible for repairing air conditioners.

Union officials said Amtrak workers make far less than workers at commuter rail systems around the country.

"If the country wants a real passenger service, they are going to have to pay something for it -- they are going to have to pay workers fairly," said Joel Parker, vice president of the Transportation Communications Union, whose members repair passenger cars.

Dodd said Amtrak employees in his union make make about $19.50 per hour, with salaries of about $55,000 a year, one-third of which comes from overtime. Their job is to build and maintain tracks, bridges and electrical wires.

"Nobody is getting rich working on the railroad," he said.

Staff writers Nick Miroff and Lena H. Sun contributed to this report.