THE RAILROAD SETTLEMENT

DOES the railroad settlement end featherbedding on the rails? No. But it does reverse a longtime trend and should enable the carriers to make more efficient use of their manpower, which could lead to an end of featherbedding some day.

Actually, a big step was taken last November under an arbitration award by a panel created by the Congress. It granted carriers the right to eliminate gradually 90% of the firemen on diesels, along with unneeded trainmen, including some brakemen and switchmen. This reduction of up to 40,000 employees would save the carriers about $325 million a year. The unions have appealed to the U.S. Supreme Court.

Under the terms of last week's settlement, the carriers also won authority to eliminate about 550 employees who man such self-propelled maintenance devices as roadway cranes and cleaning machines, at a saving of about $4,800,000 a year.

They gained limited authority to require road employees to do yard Work in small yards or on late shifts where yard work is minor. This will save them $8,000,000 annually.

Other details of the settlement:

o PAY. The carriers dropped their demand that the mileage a train crew must cover to qualify for a day's pay be increased from the antiquated minimum of 100 to a new standard of 160. They thus lost potential savings of $107 million a year. The unions, in return, agreed to delay until Jan. 1, 1968, a push for an increase in the rate of pay for mileage worked beyond the 100. They also dropped their demands for a night differential and a new overtime rule. Some 100,000 yard employees will get pay increases averaging 31%. Examples: yard foremen, up 120 to $3.10 an hour; yard helpers, up 80 to $2.90. The raises will cost the railroads about $24 million a year.

o HOLIDAYS. Of some 125,000 employees paid on an hourly basis, all will now get seven paid holidays a year. Until now, about 40,000 got none. This could cost the carriers as much as $20 million.

o LODGING & MEALS. Carriers agreed to provide lodging and a $1.50 meal allowance to road employees who must lay over away from home for four hours or more. Added cost: $20 million.

o INTERDIVISIONAL RUNS. The carriers' attempt to eliminate rules under which new crews often are required to take over a train whenever it enters a new geographical division of a company was held for further mediations. The carriers had hoped to save some $20 million by changing this rule.

Since last week's terms will cost the carriers about $50 million a year, their net saving from the entire package, including the arbitration award, will be about $275 million.

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