[Federal Register Volume 61, Number 230 (Wednesday, November 27, 1996)]
[Notices]
[Pages 60320-60321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30289]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board 1
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\1\ The ICC Termination Act of 1995 (ICCTA), Pub. L. No. 104-88,
109 Stat. 803, abolished the Interstate Commerce Commission and
transferred certain functions to the Surface Transportation Board
(Board) effective January 1, 1996. This notice relates to a
transaction that is subject to Board jurisdiction pursuant to 49
U.S.C. 10902.
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[STB Finance Docket No. 33116]
Wisconsin Central Ltd.--Acquisition Exemption--Lines of Union
Pacific Railroad Company
AGENCY: Surface Transportation Board.
ACTION: Notice of filing of a petition for exemption and a request for
public comments, including comments on labor protective arrangements to
be provided by a Class II railroad under 49 U.S.C. 10902.
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SUMMARY: Wisconsin Central Ltd. (WCL), a Class II rail carrier, seeks
an exemption under 49 U.S.C. 10502 from the prior approval requirements
of 49 U.S.C. 10902 for its acquisition of two lines of railroad from
Union Pacific Railroad Company (UP) in central Wisconsin. Section 10902
is a new provision added by the ICCTA governing purchases of active
rail lines by Class II (medium sized) and Class III (small) carriers.
Under subsection 10902(d), a Class II railroad that acquires a rail
line subject to the Board's jurisdiction must provide a fair and
equitable arrangement for the protection of employees who may be
affected by the transaction. The arrangement shall consist exclusively
of 1 year of severance pay equal to the employee's earnings during the
12 months preceding the application filing date.
WCL has proposed an employee protective arrangement to comply with
subsection 10902(d). The labor protective arrangement that results from
this proceeding may be used as a model for conditions we impose
governing the minimum labor protective arrangements we require with
respect to acquisitions by Class II railroads. Such arrangements have
in the past consisted of two elements: (1) Procedural (i.e., when must
employees be notified of their options and by whom); and (2)
substantive (i.e., how many years of protection should be provided and
what should that level of protection be). Plainly the new provision
explicitly limits substantive aspects of any arrangement we may
require. We seek comments on whether WCL's proposed arrangement meets
the statutory requirements, and on whether and to what extent we should
establish and/or oversee the procedural aspects of labor protective
arrangements under this statute.
DATES: Comments are due on December 27, 1996.
ADDRESSES: Send comments (an original and 10 copies) referring to STB
Finance Docket No. 33116 to: Surface Transportation Board, Office of
the Secretary, Case Control Branch, 1201 Constitution Avenue, N.W.,
Washington, DC 20423. In addition, send one copy of comments to
petitioner's representative: Janet H. Gilbert, General Counsel,
Wisconsin Central Ltd., P.O. Box 5062, Rosemont, IL 60017-5062.
FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar (202) 927-5660. [TDD
for hearing impaired: (202) 927-5721.]
SUPPLEMENTARY INFORMATION: WCL, a wholly owned subsidiary of Wisconsin
Central Transportation Corporation, proposes to acquire from UP two
rail lines, the ``Hayward Line'' between Hayward and Hayward Junction,
WI, and the ``Wausau Pocket'' between Kelly and Wausau-Schofield, WI,
totaling 17.8 miles in central Wisconsin. There are two shippers on the
Hayward Line and eight shippers on the Wausau Pocket that jointly
generate approximately 12,300 carloads a year. WCL submitted supporting
statements from each shipper on the two lines. The Board seeks comments
on the proposed transaction.
As noted, the ICCTA included a new statutory provision--49 U.S.C.
10902--that applies to the acquisition or operation of additional rail
lines by Class II and Class III railroads. As enacted, subsection
10902(c) requires the Board, after application by a Class II or III
rail carrier, to issue a certificate
[[Page 60321]]
authorizing the transaction ``unless the Board finds that such
activities are inconsistent with the public convenience and
necessity.'' Under subsection 10902(d), a Class II railroad receiving
such a certificate must provide a fair and equitable arrangement for
the protection of employees who may be adversely affected by the
transaction. The arrangement shall consist exclusively of 1 year of
severance pay equal to the employee's earnings during the 12 months
preceding the application filing date. The parties may agree to terms
other than as provided. The Board may approve the requested certificate
as filed or may include conditions (other than labor protection
conditions) the Board finds necessary in the public interest. 49 U.S.C.
10902(c). While petitioner seeks an exemption from subsection 10902,
the Board's exemption authority may not be used to relieve a rail
carrier of its obligation to protect the interests of employees. 49
U.S.C. 10502(g).
Petitioner expects that the transaction, while eliminating nine UP
positions, will create eight new positions on WCL. WCL indicates that
it will offer these new positions to displaced UP employees on a
priority basis, subject to application and employee qualification. WCL
will provide affected UP employees with written notice of the
positions, including wage and benefit levels, job responsibilities, and
other relevant data, at least 1 month before consummation of the
transaction. WCL proposes to inform displaced UP employees of any
option they may have to decline a WCL job and elect a severance
payment.
Under petitioner's protective arrangement, for any severed UP
employee not hired by WCL, WCL will provide a single payment equal to
the employee's railroad earnings for the 12-month period ending October
18, 1996. For severed UP employees hired by WCL, severance payments
will be paid for 1 year on a prorated, monthly basis, reduced each
month by the employee's WCL earnings for the corresponding month. WCL
estimates that its pay scales are 90% of those of Class I carriers.
In view of the requirement of subsection 10902(d) that a Class II
railroad provide a fair and equitable arrangement for the protection of
employees adversely affected by the carrier's acquisition, the Board
invites comments on whether WCL's proposed employee protective
arrangement meets the requirements of 49 U.S.C. 10902. As noted, such
arrangements have in the past consisted of two elements: (1) Procedural
(i.e., when must employees be notified of their options and by whom);
and (2) substantive (i.e., how many years of protection should be
provided and what should that level of protection be). Plainly the new
provision explicitly limits substantive aspects of any arrangement we
may require. Thus, specifically we seek comments on whether and to what
extent we should establish and/or oversee the procedural aspects of
labor protective arrangements under this statute.
Comments may address such issues as the minimum standards or
conditions for the arrangement, the carrier's responsibility to
negotiate an arrangement or, failing agreement, to disclose those
standards or conditions prior to consummation, and criteria for
determining whether the arrangement is fair and equitable. The
resulting labor protective arrangement imposed in this proceeding may
be used as precedent for the labor protection we impose on future
acquisitions by Class II railroads.
Comments (an original and 10 copies) must be in writing, and are
due on December 27, 1996. Additional information may be obtained from
petitioner's representative. We encourage any commenter to submit its
comments as computer data on a 3.5-inch floppy diskette formatted for
WordPerfect 5.1, or formatted so that it can be readily converted into
WordPerfect 5.1. Any diskette submission (one diskette will be
sufficient) should be in addition to the written submission.
This action will not significantly affect the quality of the human
environment or the conservation of energy resources.
Decided: November 15, 1996.
By the Board, Chairman Morgan, Vice Chairman Simmons, and
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-30289 Filed 11-26-96; 8:45 am]
BILLING CODE 4915-00-P
