Dear Tony:

 

Since your letter was publicly posted around the property, I accept your challenge and present the following facts.

 

Jack Gains states in ACRE's Spring 2004 newsletter “as ACRE members you have undoubtedly come in contact with the scribbled graffiti and stickers that have defaced Metro-North equipment…” Paul Holland states in his letter titled “Crap in the Cabs, I'm just curious how you folks feel about all the anti-union b.s. graffiti in our train cabs”. Now you state “much more honorable than the graffiti defacing our cabs and making all of us look unprofessional”. Tony where was any concern shown for Metro-North equipment or professionalism during the campaign for ACRE when train cabs were full of anti BLE and UTU graffiti? After the formation of ACRE, ACRE decals appear all over MTA property, in train cabs and on lockers. Why haven't you spoken up and notified the ACRE membership not to deface Metro-North property with ACRE decals. Are you or any other ACRE officers going to see to it that they are all removed? As a matter of fact the ACRE organization not only endorses graffiti but also promotes it. Let's talk about the rocks that were spray painted “GO ACRE” along the right of way on the New Haven line heading east towards Stamford. ACRE was so proud of this that pictures of this graffiti were posted on the home page of their web site. What ACRE officers really imply is that as long as the graffiti is going ACRE's way, ACRE officers have no problem and turn a blind eye. Only when the graffiti turns to anti-ACRE messages, does it become a problem and now must be stopped and removed.

 

Tony you state “Because we are no longer flushing our money down what has become the UTU cesspool we have built up a surplus of more that $90,000 in just over 4 years. During my 11 years as your General Chairman, your committee has worked with the yearly budget that it provides to you for review and passage. This budgeting has enabled us to create a surplus while not having to raise dues for the past 11 years”. If ACRE has only been on the property since March of 2000, which is 4 ½ years, why must you take credit for years of service back in the UTU cesspool? Why do you and other ACRE officers constantly promote bitterness towards our former Internationals, but when the need arises you go back and claim credit for what was done under your leadership and under the guidance of our former Internationals? This is like being married for 7 years and then getting divorced. Later you get remarried and are together with your new spouse for 4 years. Now you are out with your new spouse and someone asks you, how long have you been married? Are you going to say for 4 years and 7 years before that to someone else? Would you constantly remind your new spouse with what happened from your previous marriage? Don't you think ACRE members are tired of reading and hearing about your biased opinions about our former Internationals? Is the reason for your constant badgering because you and most other ACRE officers have been banned from these Internationals? It is time to move on. ACRE members left the protection of our former Internationals. It is time for the ACRE and its officers to stand on their own.

 

As General Chairman of the UTU for 7 years, didn't Local 77 operate with a dues surplus or is the concept of a dues surplus something new under ACRE Local 1? Let's review some membership numbers since you mention that there has been no dues increase in 11 years. When you became General Chairman of Local 77 you had approximately 650 members. When ACRE was voted in you had approximately 730 members. Now you have approximately 805 members. ACRE Local 1 dues is currently $68.50 / month per member. So you had 80 more members when you left Local 77 than when you started. This means that you had an additional $65,760.00 ($68.50 X 80 members =$5,480 / month X 12 months =$65,760 / year) member dues coming in under Local 77. Under ACRE Local 1 you have an additional $61,650.00 ($68.50 X 75 members =$5,137.50.00 / month X 12 months =$61,650.00) member dues coming in since the formation of ACRE. So is it safe to say that the reason for not having a dues increase in the past 11 years is really due to the increase in Conductor membership. Currently ACRE Local 1 brings in an additional $127,410.00 ($65,760.00 + $61,650.00) in dues per year more than Local 77 did 11 years ago. Over the course of 4 ½ years this amount could be as large as $573,345.00, and you only have $90,000.00 to show, where does all of the money go?

 

What if ACRE members had to pay your full-time union release salary and benefits that you receive from MTA M-N, how much, if any, of a dues surplus would be left over? A $90,000.00 surplus in 4 ½ years averages out to $20,000.00 per year. Estimate you receive about $100,000.00 from the MTA M-N for your union release position per year. This means that if ACRE Local 1 paid this $100,000.00 out of their budget they would operate with a loss of $80,000.00 per year. ACRE Local 1 without receiving this full-time union release subsidy from MTA M-N for the past four years would actually be in the red for $320,000.00. What does MTA M-N receive back from you and Local 1 for their financial salary contribution to ACRE? The details speak loudly and clearly in ACRE's historic 2002 contract agreement with MTA M-N. By the way, what ever happened to the dues reduction that was promised to the membership during the campaign for ACRE? ACRE members are still waiting for it to take effect. Another point to consider. You and Peter Cannito, President of M-N Railroad make roughly the same amount of money. He is responsible for over 5,000 employees and oversees a budget in excess of 438 million dollars. You are responsible for around 800 employees and oversee a budget of 650 thousand dollars.

 

Tony aren't you a product of the UTU cesspool? Without the dedication, efforts and hard work of UTU officers over the years, do you honestly believe that rail labor, as a whole and this ACRE membership along with their families would be enjoying the standard of living they have today? Where did all of the contracts and work agreements that Local 1 members currently work under come from? Did ACRE negotiate them or were they inherited from the UTU? All that ACRE officers can do is modify what is already in place.

 

Even ACRE's claim of their historic pension agreement was accomplished through the efforts of Mike Canino, General Chairman of the UTU on The Long Island Railroad. ACRE just piggybacked on to the agreement he negotiated with the MTA. All ACRE officers had to do was step up to the plate and sign. How did ACRE do? It took an established pension plan that had no givebacks, no work rule changes, no medical co-payments for anyone, with day one sick time at 100% and turned it into a MTA giveback windfall. Without Mike Canino, ACRE would never had received any type of pension agreement on Gary “D's” watch. Especially since the membership walked away from a pension deal in 1999. The only one to consider this ACRE pension deal historic, besides ACRE officers, is the MTA. They will now try to force it and it's many givebacks on its entire unionized work force.

 

Tony you state, “now under ACRE we are the most open, cost effective and democratic union in the country”. Do you have any proof what so ever from any other creditable source besides ACRE officers' opinions supporting this claim? Do you have any studies or interviews to share with us? Is the changing of ACRE's Constitution without the knowledge, consent or approval from the membership, an example of ACRE's open, democratic union? I have a file cabinet full of unanswered certified letters that were sent to various ACRE officers seeking protection and enforcement of my ACRE rights and privileges. Letters were sent to Jim Fahey, Executive Director of ACRE, Jack Gaines, Legislative Director of ACRE, Mike Doyle, General Chairman of Local 9 and Joe Lindenberg, Secretary /Treasurer of Local 9. Why won't ACRE officers release information that is guaranteed through the ACRE Constitution and Local Division By-laws and divulge the facts to ACRE members?

 

Lets compare ACRE's expenses to their dues receipts. The following figures were taken from the LM2 reports ACRE filed with the Department of Labor in 2003. The Executive Board listed $342,750.00 in dues receipts and $330,549.00 in expenses creating a dues surplus of $12,201.00. The Executives Boards operating ratio is 96.44%. 96.44% of the money the Executive Board receives goes to cover its expenses. ACRE Local 1 lists dues receipts totaling $657,081.00 and $637,600.00 in expenses creating a dues surplus of $19,481.00. Local 1's operating ratio is 97.03%. 97.03% of the money Local 1 receives goes to cover its expenses. Local 9 lists $318,781.00 in dues receipts and $ 335,975.00 in expenses creating a negative dues balance of $17,194.00. Local 9's operating ratio is 105.40%. Local 9 spends 5 ½ % more money on expenses then it receives in dues. This must be the reason why Local 9 books have never been audited by a Certified Public Accountant. This by the way is a direct violation of the ACRE Constitution. ACRE Local 9 claims the trustees audit their books. The trustees for ACRE Local 9 have never signed the certification page of the LM2 reports that have been filed with the Department of Labor for the past four years. Why doesn't Carmine M. Disanto, the CPA who does the yearly audits of ACRE's Executive Board and Local 1 review and sign off on Local 9's books? Why hasn't Jim Fahey, Executive Director of ACRE enforce the ACRE Constitution and have ACRE Local 9 books audited by a CPA for the past four years? Would Carmine support and back up your claim with a letter to the ACRE membership concerning ACRE being the most cost effective union in the country?

 

Local 1 union meetings are held on Wednesday mornings. What is the percentage of ACRE members that can attend union meetings on Wednesday mornings? If it mirrors the numbers from Local 9, this would mean approximately 15% of the membership could possibility attend a union meeting. If member union attendance mirrors that of ACRE Local 9 then approximately 3% show up. This would calculate out to about 24 members attending union meetings. So 24 members out of about 800 actually get to decide what goes on. How many Local 1 members voted on their budget this year? When ACRE goes for a dues increase, will a ballot be sent out to the entire membership for a vote or just the 3% who are able to show up at the union meeting?

 

The following statement appears on the ACRE web site in the member's only section “the administrator (Paul Holland) reserves the right to eliminate any postings deemed inappropriate. Is this ACRE's definition of an open union? Why must ACRE officers spend a lot of time dealing with rumors? If everything were out in the open, would there be any rumors to deal with or worry about?

 

Tony you state “…nor have I received any sort of compensation that has not been made a matter of public record and presented to the membership. I challenge anyone to come up with even a shred of evidence to the contrary”. Tony please release the complete (salary and benefit) details of your negotiated agreement with MTA M-N for your full-time union release position that has never been made a matter of public record nor released to the ACRE membership. Why did the ACRE membership not have a say or given the chance to compensate you before you went to the MTA M-N to negotiate this deal for yourself? I have sent certified letters to Mike Doyle, General Chairman of ACRE Local 9 and Peter Cannito, President of M-N seeking the release and complete details of this negotiated agreement. To date, both have ignored my certified letters. Why must ACRE and the MTA M-N keep the details of this agreement in the dark and out of the sight of public record and from the ACRE membership? Will you be true to your word and bring copies of this negotiated agreement with you to the October 6th union meeting and release it to the ACRE membership? Or will you go down the road of those before you and keep it hidden in the shadows. The ACRE membership would still not know about this privately negotiated agreement if it were not for the need of ACRE General Chairman responding to an unsigned letter. Why was it that the ACRE membership “being the most open and democratic union in the country” never had a say or got to vote on how ACRE officers are compensated and by whom? Would you care to put your negotiated salary arrangement with MTA M-N up for a vote by secret ballot before the ACRE membership? If you had felt this way with nothing to fear, ACRE officers would never have negotiated this deal behind the memberships back in the first place. Tony please explain what happened to you right after the UTU removed you from office during the campaign for ACRE. Didn't M-N place you on training duties? Then after the formation of ACRE you were placed on a full-time union release position? I would say that these events just worked out to be very convenient for you.

 

Tony you state “I am sick and tired of apologizing for negotiations that have put all of you into a pension system that other employees around the country can only dream of”. I do not care what other employees around the country dream about. I only concern myself with what happens here at M-N and in my own backyard. Let's compare ACRE's pension deal to other pension deals here in New York. ACRE members, according to the ratification package sent out by ACRE officers, “…employees shall commence participation in a new defined benefit program within the MTA Defined Benefit Plan (“New Program”) and such program shall have the same terms and conditions as those applicable to non-represented employees of Metro-North in the Defined Benefit Plan except as follows” . Then 3 items are listed. So we are lead to believe that we have the same exact plan as M-N management. Let us compare the costs of these plans for both sets of M-N employees for receiving supposedly the same exact pension plan that goes back to 1983. I would say that M-N had just as many management employees if not more who wanted to go back 1983 as ACRE did. Management employees had the Vanguard from 1988 to 1994. ACRE members had the Vanguard from 1988 till 2004. Management only gave up 7 years of Vanguard money while ACRE members gave up 16 years worth of Vanguard money. Management co-pays for their medical. Newly hired ACRE employees co-pay for their medical. Management does not make any salary contributions towards this pension plan. ACRE members pay 3% of their salaries towards this pension plan. ACRE employees gave up a choice holiday, switched two other holidays and switched life insurance policies to help fund this plan. Same exact plan but two totally distinctly different costs for M-N employees.

 

How does this historic ACRE deal compare against any of the pension agreements on the LIRR? They just signed for a similar deal and their post 1988 employees gave up their Vanguard. They only pay 3% of their salaries for ten years, incurred no work rule changes, no co-payments for their medical for current or future employees, and received day one sick time at 100% of their rate. Is anyone or any union on the LIRR interested in this historic ACRE negotiated deal?

 

Have any of the other unions on MTA M-N property publicly endorsed or rushed into see “Gary D” to sign onto this ACRE deal? No. As a matter of fact the M-N coalition of unions rejected this ACRE deal. In January they stated “…we want to make it perfectly clear that the tentative ACRE agreement does not establish a pattern on the property. It is our position that the potential consequences for all present and future employees are disastrous. The medical give-back in particular will have profound negative effects on all current and future generations of railroad employees. In addition the concession of the Life Insurance will have adverse consequences for our members. Furthermore if this agreement is ratified, our members will fall further behind their counterparts at the LIRR and the other commuter railroads. Collectively we will resist the tentative ACRE agreement in form and content to the greatest degree possible”. I would say that was quite an endorsement. It seems the only ones crowing about this ACRE pension deal are ACRE officers and the MTA. ACRE lowered the bar and made this deal so rich in givebacks that the MTA will use this ACRE deal as a wedge and try to force it upon all of their other unionized workers. All of the other unions on M-N property and across the country remain silent and are in a complete utter state of disbelief. Yes ACRE officers should be proud of their negotiated deal.

 

The ACRE organization under the leadership of Tony Bottalico and Mike Doyle will always be remembered for firsts on MTA M-N property. Under your leadership M-N employees for the first time ever in their contract history took a zero percent wage increase and for the very first time ever employees now co-pay for health and welfare benefits. ACRE's very first contract on MTA M-N property where they could have set themselves apart and made a name for themselves. Without any International backing, and standing on their own for the very first time against seasoned MTA negotiators, ACRE officers folded like a deck of cards and not only give away the house but mortgaged away not only the futures of it's new hires, but the futures of all unionized employees under the MTA umbrella. For only five years worth of service credits (going from 1988 back to 1983) a new giveback pattern for contract negotiations has evolved. The cost to the ACRE membership for these five years worth of service credits was never documented or justified. How many ACRE members will truly and fully benefit from these additional five years? How many current and future ACRE members will receive absolutely no direct benefit for these five years but will be stuck paying for them throughout their entire railroad careers? What benefits are left over from the 1999 contract? None, you gave them all back to the MTA in 2002. In essence, this historic ACRE contract actually cost ACRE members 8 years (4 from 1999 and this current agreement) worth of contract enhancements.

 

Tony you state “I would also like to offer a bit of advice for all the junior members who have their entire careers ahead of them. Creating financial disincentives will discourage members from taking union positions”. Isn't this exactly what ACRE officers have accomplished with their pension deal? ACRE created financial disincentives for new hires and has created a distinct division among ACRE members. New hires already come in at 70%; on top of this they now must pay 3% of their salary towards this pension and co-pay 18% of the cost of their medical including all future adjustments for their entire railroad careers. How about the senior guys running out of the door today, what did they pay? Absolutely nothing.

 

How do current ACRE members feel about the new hires “well they knew exactly what they were getting into when they came here. No one is forcing them to take this job. They can go work somewhere else. They would be lucky to have this job”. Now, all of a sudden, to become an ACRE officer the membership needs to create financial incentives to bring in the right people? You continue with “if you want to make sure the best people are available and representing your interests make sure the job has some rewards and personal satisfactions”. Two ACRE General Chairman receive dual salaries, one from MTA M-N and another from the ACRE. Two ACRE officers hold down multiple positions between the Executive Board and the Locals, which they also receive dual salaries for. All ACRE officers receive a salary from the union complete with expenses. ACRE officers come and go as they please, mark off union business as they please, get their vacations as they please, have their holiday schedules changed as they please and take special duty positions as they please. One would believe ACRE officers already receive some pretty good rewards and financial incentives.

 

Currently Local 1 spends 51.11% of their memberships dues on ACRE officer's salaries. If the Conductors had to include your estimated MTA M-N full-time union release salary, this figure would increase to 66.33%. Currently Local 9 spends 50.73% of their membership dues on officer's salaries. If the Engineers had to pay Mike's estimated MTA M-N full-time union salary, this figure would increase to 82.10%. How many more incentives can this ACRE membership afford? How many more incentives do ACRE officers need and want?

 

As far as personal satisfaction goes, I did not know that you could buy it. I always thought that it came from within a person for accomplishing ones job. In the past union members ran for office to make a difference. They wanted to advance their cause and insure a safe and effective work environment, to maintain or increase the standard of living for their members and to leave the railroad a better place for future generations of railroad workers. Pay and perks were never a consideration when they ran for office. Most were happy if they just got their expenses back. Like everything else under ACRE, attitudes, philosophies, conceptions and work agreements have changed. It used to be, what could I do for the union and the membership, to make this a better place. Under ACRE, it has now become, how much can I get out of the union and the membership to make my life better. ACRE officers should follow the same advice the membership has for new hires. You know what the job entails, what it pays and its perks when you ran for office. If you do not like the job and the responsibilities that come with the job, then do not run for office. Currently if any ACRE officer is unhappy with their job, then they should immediately resign their position. To my knowledge, no ACRE officer has ever resigned from office. I guess the ACRE pay and perks outweigh the toll from the membership.

 

If you have a problem with any of these facts or you would like me to dig out some more facts concerning ACRE, please let me know. It will be interesting to see if this letter makes it onto the ACRE web site.

 

 

Sincerely,

 

Jim Ekberg

ACRE Member

 

CC: www.mtacre.com