Amtrak 2013 Annual Report Download - page 87

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 48
11. Commitments and Contingencies (continued)
On September 17, 2014, the Company filed a lawsuit in the Southern District of New York
regarding insurance claims for losses following Sandy. The complaint seeks declaratory relief
and alleges that the insurance carrier defendants have breached more than 25 first-party all-risk
property insurance policies that defendants sold to the Company in 2011 in connection with
outstanding claims for losses following Sandy.
Labor Agreements
Approximately 85% of Amtrak’ s labor force is covered by labor agreements. On November 1,
2009, current labor agreements between Amtrak and its unions opened for negotiations.
Thereafter, each party was able to serve Section 6 demands under the Railway Labor Act.
Section 6 demands are proposals to change terms of the labor agreements affecting wages,
benefits, or work rules. Initial sessions to discuss Section 6 demands between Amtrak and some
of its unions began in December 2009, and continued throughout fiscal year 2013.
As of September 30, 2013, Amtrak has ratified five-year labor contracts with almost 84% of its
unionized workforce, which includes the Transportation Communications International Union;
Joint Council of Carmen, Coach Cleaners and Helpers; Amtrak Service Workers Council;
Brotherhood of Locomotive Engineers; American Train Dispatchers Association; International
Association of Machinists and Aerospace Workers; International Brotherhood of Electrical
Workers; National Conference of Firemen and Oilers, International Brotherhood of Boilermakers
and Blacksmiths; Sheet Metal Workers’ International Association; and the Fraternal Order of
Police. Subsequent to September 30, 2013, Amtrak ratified five-year labor contracts for the
remaining unions, Brotherhood of Railroad Signalmen and Brotherhood of Maintenance of Way
Employees.
With the exception of the Fraternal Order of Police, the new agreements for the unions provide
for specified general wage increases beginning July 1, 2010, and every six months thereafter,
until January 1, 2015. The new agreement with the Fraternal Order of Police provides for
specified general wage increases beginning April 1, 2011, and every six months thereafter, until
October 1, 2015.