Passenger Trains > Out of Service Insurance for Railroaders/How does it work?????

I've always heard about it. Thanks!

There are different amounts of fired insurance. It's normally deducted with ones bi-monthly union dues and well worth it.

Every trainman that can't cut it and gets into management tries his or her best to get agreement employees on any little slip up.

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Railroaders can get job insurance through many sources. The UTU has one for their members and other companies like BRCF and LECMPA offer for all train yard and engine service employee. Dues can either be taken out of an employee's pay check from the carrier or may be paid directly by the employee to the job insurance provider. Coverage can be selected on a per day basis in the range of as little as $6 per day to $250 per day. This varies by company. 

Now, how it works is if an employee is accused of a rules violation severe enough to be held out of service (usually violations like exceeding limits of authority, red signal violations, speeding by more than 10 mph over authorized, etc), an employee is held out of service pending an investigation. The carrier typically drags this process out as long as possible in an attempt to starve the employee held out of service being as most job insurance companies will not pay out until after the investigation. There are some exceptions as I believe the UTU will pay out immediately upon removal from service. After the conclusion of the investigation, usually any time already served is counted toward the total to be served on the street. If an investigation was held 15 days after a removal from service for a thirty day suspension, then the employee will only have to remain out of service another 15 days. The investigation paperwork is submitted to the job insurance company for review as not all infractions are covered. Some examples of those are Rule G violations (drugs and alcohol), fighting, and insubordination. The job insurance company will issue payment for each day held out of service at the level of coverage selected by the employee. This coverage ranges from $150 to up to $300 a day and possibly more. Some double dip with coverage through multiple job insurance companies but I'm not sure that in those instances the other company will always pay out. 

Another income that that can be added in is that a suspended employee can apply for unemployment through railroad retirement. That will kick in after I believe $14 days on the street until an employees time is served. 

One more note. If an employee is accused of a rules violation and is held out of service but is then found to not be guilty of the rules infraction, the employee will be immediately reinstated with back pay for any time held out of service. This is why most job insurance companies will want an investigation finding before paying out. Lastly, if many years down the road in arbitration, an employee found guilty is then found not guilty, the company will once again be on the hook for back pay for an employee held out of service. In this case, I do not believe any money paid by the job insurance companies needs to be repaid. Others can correct me on that if I am wrong. 

Now, me personally, I had UTU job insurance when I hired out but dropped it when I went into engine service. It was not until a year after I went into engine service when I felt threatened by a manager did I get coverage again, this time with BRCF. I only have the minimum of $150/day. In the 10 years I have had it, I have not had a single held out of service day or even been to a single investigation. I probably would have been better off putting that money into a rainy day account for "self coverage". I figured I would have to collect a minimum of 5 days a year just to break even, so I'd need almost 2 months off to break even. I point this out only to say that job insurance may not be for everyone but one day, all of the sudden, you may need it. 

Edited to to add hotlink to UTU site and change the daily payout ranges to reflect actual amounts. 



Edited 1 time(s). Last edit at 05/19/15 04:38 by imrl.

IMRL does a good job of explaining job insurance, with one little error.
Both the UTU and the BLE agreements with both the former Southern Pacific and the Union Pacific require an "out of service" investigation to be held within FIVE days to prevent financial penalties to the accused.  If the accused requests a postponement, then the financial penalty clause is waived.

A couple of the job insurance companies are very hard to get to pay, where the union insurance is much better.  Some of the companies will return part of your premiums as a pension if you don't use them.

I had a BRCF policy for my 34 years as a engineer on the UP for near the max amount;  I think I used it twice, but it was comforting to know I had it. If you are young with little experience you must have it. In my few dealings with them, they were always very nice and concerned.  When you retire they give you a little refund of a few hundred dollars.  

Thanks for your very informative reply! I do not think I've ever seen this explained in the fan/buff/hobbyist magazines.

imrl Wrote:
-------------------------------------------------------
> Railroaders can get job insurance through many
> sources. The UTU has one for their members and
> other companies like BRCF and LECMPA offer for all
> train yard and engine service employee. Dues can
> either be taken out of an employee's pay check
> from the carrier or may be paid directly by the
> employee to the job insurance provider. Coverage
> can be selected on a per day basis in the range of
> as little as $6 per day to $250 per day. This
> varies by company. 
>
> Now, how it works is if an employee is accused of
> a rules violation severe enough to be held out of
> service (usually violations like exceeding limits
> of authority, red signal violations, speeding by
> more than 10 mph over authorized, etc), an
> employee is held out of service pending an
> investigation. The carrier typically drags this
> process out as long as possible in an attempt to
> starve the employee held out of service being as
> most job insurance companies will not pay out
> until after the investigation. There are some
> exceptions as I believe the UTU will pay out
> immediately upon removal from service. After the
> conclusion of the investigation, usually any time
> already served is counted toward the total to be
> served on the street. If an investigation was held
> 15 days after a removal from service for a thirty
> day suspension, then the employee will only have
> to remain out of service another 15 days. The
> investigation paperwork is submitted to the job
> insurance company for review as not all
> infractions are covered. Some examples of those
> are Rule G violations (drugs and alcohol),
> fighting, and insubordination. The job insurance
> company will issue payment for each day held out
> of service at the level of coverage selected by
> the employee. This coverage ranges from $150 to up
> to $300 a day and possibly more. Some double dip
> with coverage through multiple job insurance
> companies but I'm not sure that in those instances
> the other company will always pay out. 
>
> Another income that that can be added in is that a
> suspended employee can apply for unemployment
> through railroad retirement. That will kick in
> after I believe $14 days on the street until an
> employees time is served. 
>
> One more note. If an employee is accused of a
> rules violation and is held out of service but is
> then found to not be guilty of the rules
> infraction, the employee will be immediately
> reinstated with back pay for any time held out of
> service. This is why most job insurance companies
> will want an investigation finding before paying
> out. Lastly, if many years down the road in
> arbitration, an employee found guilty is then
> found not guilty, the company will once again be
> on the hook for back pay for an employee held out
> of service. In this case, I do not believe any
> money paid by the job insurance companies needs to
> be repaid. Others can correct me on that if I am
> wrong. 
>
> Now, me personally, I had UTU job insurance when I
> hired out but dropped it when I went into engine
> service. It was not until a year after I went into
> engine service when I felt threatened by a manager
> did I get coverage again, this time with BRCF. I
> only have the minimum of $150/day. In the 10 years
> I have had it, I have not had a single held out of
> service day or even been to a single
> investigation. I probably would have been better
> off putting that money into a rainy day account
> for "self coverage". I figured I would have to
> collect a minimum of 5 days a year just to break
> even, so I'd need almost 2 months off to break
> even. I point this out only to say that job
> insurance may not be for everyone but one day, all
> of the sudden, you may need it. 
>
> Edited to to add hotlink to UTU site and change
> the daily payout ranges to reflect actual
> amounts. 

Didn't pay much attention to job insurance until I got nailed at Tunnel 1 in the City. We were working a hostling job, dragging engines from Bayshore to 7th St. We had a low yellow that had us lined into the outside pullman. Looked up and here comes a lite engine on the westbound main. and I told Ken, "Coming east" so he could dim his headlight.. I looked again and he was still coming but at speed, past the red pot signal. I jumped over almost on Ken's lap and the firemans side of the cab was gone. Most of them were wood lined back then. 

Even though we were not at fault, I took out job insurance the next day with BRCF. Had it until I retired. And yes, over many years, I did use it a couple of times. Good to have. When the carrier has a investigation, its a kangaroo court and you could be clean as driven snow. But they need sombody to hang, sooooo 


Nudge

I too had BRCF for the 39 years I was an enginer. Used it once and they paid right away. When I retired last month they gave me $1800  back and a real nice retirement letter. I got absolutely no thanks from UP for 39 years injury free  or the BLE for paying dues that probably totaled $35.000 . Glad I am done with the RR except on a hobby basis !
Tom



Edited 1 time(s). Last edit at 05/20/15 15:33 by switchlamp.