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May 2011 - Amtrak

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10 | <strong>May</strong> <strong>2011</strong> <strong>Amtrak</strong> Ink<br />

S<br />

<strong>Amtrak</strong> Leverages Assets Through<br />

Reinvigorated Union – Management Partnership<br />

ince last fall, local union representatives and management<br />

employees at the mechanical facility in Beech Grove, Ind., have<br />

been holding weekly meetings to find answers to a pressing<br />

question: How to improve efficiency, save money and jobs —<br />

and position the shop to win competitive bids for new outside work?<br />

The result so far: More than $230,000 in estimated annual savings<br />

as employees at the shop repair or refurbish many items once purchased<br />

from suppliers and outside vendors.<br />

Similar conversations and changes are taking place at the shops<br />

at Bear and Wilmington, Del., with similarly positive outcomes.<br />

The renewed partnership between the unions and management<br />

has its roots, to a certain extent, in a shared recognition on both<br />

sides that future growth requires collaboration and a hard look at<br />

the present, without dwelling on the past.<br />

“It really comes down to the leadership at <strong>Amtrak</strong> right now,”<br />

says Gary Maslanka, international vice president of the railroad<br />

division for the Transportation Workers Union (TWU). “[President<br />

and CEO] Joe Boardman has really demonstrated his commitment<br />

to the value of employees and to working with union employees collaboratively.”<br />

Maslanka says the unions and <strong>Amtrak</strong> management have been<br />

Beech Grove recently won a competitive bid<br />

to rebuild three locomotives for the North<br />

Carolina Department of Transportation.<br />

studying the successes and experiences of American Airlines’<br />

mechanical operations. He and others visited American’s mechanical<br />

facilities in Tulsa, Okla., late last summer.<br />

American has been the only major airline to continue to overhaul<br />

its own equipment rather than using outside vendors, says<br />

Charlie Woodcock, chief labor relations officer at <strong>Amtrak</strong>, who went<br />

along on that visit. He says he’s seen renewed energy at the <strong>Amtrak</strong><br />

shops in the months since the visit.<br />

“The overarching goal now is to keep work in-house when it<br />

makes sense to do that, and to win outside contracts, to be competitive,”<br />

Woodcock says.<br />

“By that, I mean, to compete not just on price, but on quality,” he<br />

says. “We want to be a lean operation that pays good union wages<br />

and is able to deliver high-quality work with a quick turnaround<br />

from start to completion.”<br />

Looking to the Future<br />

At Beech Grove, one recent change has been to take used equalizers<br />

— which provide suspension for the cars when they’re attached<br />

to the trucks — and repair and refurbish them at the shop rather<br />

than buying new equipment.<br />

A new equalizer from a vendor costs the company just over<br />

Photo: Mike MIlburn

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