Transportation Industry Discussions Held at White House

"We discussed with Mr. Bonilla the need for the continued funding of Amtrak," said General Vice President Robert Roach, Jr. "The Machinists Union is committed to achieving a long term solution to the problems faced by our nations passenger rail carrier."

An immediate Amtrak shutdown was averted today when the Transportation Department approved a $100 million loan, which is about half of what Amtrak said it needed to operate through the end of its fiscal year in September. The Administration's proposed Amtrak funding for fiscal year 2003 remains at $521 million. Amtrak has said it must have $1.2 billion to continue operating. You can send a message urging Congress to support Amtrak funding at www.goiam.org/politics.asp .

US Airways has said it will need to restructure its operation in bankruptcy if it doesn't receive federal loan guarantees. The carrier filed its application for a $900 million loan guarantee on June 10, 2002. United Airlines also filed for $1.8 billion in federal loan guarantees on June 24, 2002, citing the need to address short-term financing needs aggravated by the aftermath of September 11. Both airlines are awaiting decisions from the Air Transportation Stabilization Board (ATSB).

"We stated our support for both carriers' applications", said Roach. "Mr. Bonilla understood our concern over the state of the aviation industry, but made it clear that the ATSB doesn't not fall under the Administrations control," said GVP Roach.

"We also expressed our agreement with the Administration's belief that CEO's should be held personally accountable for the actions of the corporations they oversee," said Roach. "With more accountability, the problems currently plaguing the transportation industry may have been avoided."

The Machinist representatives also spoke about the need for improving the way the Railway Labor Act is administered. "The problems that lead to drawn out negotiations can be fixed without amending the Act," said Roach. "A concerted effort between labor, management, and the National Mediation Board to reach agreements will help avoid the hostilities present in recent negotiations."

A letter by GVP Roach to Air Transport Association (ATA) CEO Carol Hallet inviting the ATA and its member airlines to discuss ways to improve the negotiating process can be viewed at www.goiam.org/territories.asp?c=3164 .