How does Contracting Work?

Hey guys I have a question about working for a transportation contractor like Herzog, Veolia or whatever else is outthere as a conductor or Hoghead. My question is, say for example you work for a contractor for a commuter rail agency and the contract expires. Do you just pack up and go somewhere else or can you stay and work under the new operator? I notice some Rail Agencies change operators like Metrolink who went from Veolia to Amtrak and so on. If you work for those contractors, is moving around from place to place just part of the job or can you opt to stay somewhere?

I ask because I currently work for a Class 1 in California and think eventually I wouldn't mind jumping over to passenger operations. Does anybody have experience with this? Is it a good transition? Are pay and benefits similar? I'm just wondering.

before making a move like that, be sure the contractor pays into railroad retirement, cause some do not. you would loose about 20% of retirement income.

Yeah, I've noticed that most positions for Conductors don't offer Railroad Retirement where as it's available for Engineers. I definitely want to keep my railroad retirement. It would suck to lose it lol

Don't even think about taking a contract job that does not pay Railroad Retirement. I worked through two agencies that supplied both engineers and conductors, and those jobs were always covered.

If you are working for an engineering contractor (like Herzog) doing maintenance of way work, you will probably not be covered. But T&E positions should always be covered.

Here is how it works: Apply to a contracting company (like Railtemps). If they accept you as an engineer or conductor, they will find a railroad looking to hire contractors. You actually will work for the railroad, but through a contracting firm. Both you and the railroad have the option of rejecting each other for any or no reason. You will have no seniority, and the jobs are usually short duration (9 months or less).

The contracting firm acts as a "match maker". You are not expected to work for the railroad as a regular employee. You will be paid more than the regular employees, likely. You will have no benefits from the employer. The railroad pays you a per diem, plus your hotel room (generally $75/day), plus supplies your transportation while you work, and your transportation both ways (once) from your home to the job site. This can either be a rental car with a railroad-supplied fuel card, or, if you wish, drive your own car and get a mileage allowance. I've done it both ways.

Les

Nice things abot this arrangement are you get to see part of the country and get experience you otherwise would not get, plus, you will leave the railroad before you get tired of it. Of course, your Railroad Retirement follows you from one place to the other.

RRB figures your retirement pension on your best five years. Doing this for five years will set up up nicely for retirement.

Les

Desertdweller wrote:Don't even think about taking a contract job that does not pay Railroad Retirement. I worked through two agencies that supplied both engineers and conductors, and those jobs were always covered.

If you are working for an engineering contractor (like Herzog) doing maintenance of way work, you will probably not be covered. But T&E positions should always be covered.

Here is how it works: Apply to a contracting company (like Railtemps). If they accept you as an engineer or conductor, they will find a railroad looking to hire contractors. You actually will work for the railroad, but through a contracting firm. Both you and the railroad have the option of rejecting each other for any or no reason. You will have no seniority, and the jobs are usually short duration (9 months or less).

The contracting firm acts as a "match maker". You are not expected to work for the railroad as a regular employee. You will be paid more than the regular employees, likely. You will have no benefits from the employer. The railroad pays you a per diem, plus your hotel room (generally $75/day), plus supplies your transportation while you work, and your transportation both ways (once) from your home to the job site. This can either be a rental car with a railroad-supplied fuel card, or, if you wish, drive your own car and get a mileage allowance. I've done it both ways.

Les

Nice things abot this arrangement are you get to see part of the country and get experience you otherwise would not get, plus, you will leave the railroad before you get tired of it. Of course, your Railroad Retirement follows you from one place to the other.

RRB figures your retirement pension on your best five years. Doing this for five years will set up up nicely for retirement.

Les

I see. Thank you. I am T&E so I prefer to stay where conditions are best, at least for now. I imagine if I left my current seniority for a contractor I would be leaving it for good? I know you can take a leave of absence but...you know, I feel fishy doing that.

I doubt if any railroad would give you a leave of absence so you can go work as a contractor. You need to either do this or not, and don't try to have it both ways.

Most contract agencies will not let you quit contracting to work for the railroad they sent you to. There is an agreement with them you must sign not to do things like that. They will also not send you to work as a contractor to a railroad you have worked for as an employee.

Contract agencies will treat you right if you don't try to play games with them.

Les

That's what I figured. Thank you for clearing a lot of that up.

MichaelB86 wrote: I imagine if I left my current seniority for a contractor I would be leaving it for good? I know you can take a leave of absence but...you know, I feel fishy doing that.

There was an engineer a few years ago here where I work that took a leave of absence to try his luck running commuter trains. While in training, a manager at commuter agency called him in the office and asked him if he was in any way still connected with his past employer. So, he told them the truth... Yes, I am technically still employed over there. They charged him with direct violation of GCOR rule 1.18 (Unauthorized Emplyment) and fired him on the spot.

So, he figured, no loss there and marked back up at Class I, where he initially took the LOA... About a week later, he got an investigation letter charging him also with rule 1.18. Shortly after the investigation he was terminated for unauthorized employment, conflict of interest and dishonesty. Little did he know that railroads communicate with each other...

As far as what to expect from the contractors at commuter agencies, that's entirely up to them. There is no guarantee that the new contractor will honor your current contract and rates of pay. When Herzog took over the Coaster contract, they offered different rates of pay, worse benefit package and offered to start everyone off with 2 weeks of vacation. Some engineers and conductors were already up to 4 and 5 weeks of vacation at that point...

Choose wisely, as there is no more turning back once you make that move.

I never worked under GCOR being east of the Mississippi. Most railroads have rules that address conflict of interest. Taking a LOA to work for another railroad most definitely a conflict. I've known people that had their own "on the side" businesses that the railroad forced their hand to make a choice if it interfered with availability for the railroad. Back in the '70s when I worked in Ohio I knew a few that were school teachers that worked 2nd trick yard jobs where people covered for them on showing up an hour or two late. Also there were a lot of farmers back in the '70s that worked for the railroads to get the benefits ect...they would use an old agreement of being able to mark off personal business for up to 28 days mark up for 2 then back off again. The 2 days a month kept their benefits & RRB current. During late fall to early spring they marked back up regular and put around 20 people in the street furloughed. Those old agreements had there good & bad side.

jz441 wrote:

MichaelB86 wrote: I imagine if I left my current seniority for a contractor I would be leaving it for good? I know you can take a leave of absence but...you know, I feel fishy doing that.

There was an engineer a few years ago here where I work that took a leave of absence to try his luck running commuter trains. While in training, a manager at commuter agency called him in the office and asked him if he was in any way still connected with his past employer. So, he told them the truth... Yes, I am technically still employed over there. They charged him with direct violation of GCOR rule 1.18 (Unauthorized Emplyment) and fired him on the spot.

So, he figured, no loss there and marked back up at Class I, where he initially took the LOA... About a week later, he got an investigation letter charging him also with rule 1.18. Shortly after the investigation he was terminated for unauthorized employment, conflict of interest and dishonesty. Little did he know that railroads communicate with each other...

As far as what to expect from the contractors at commuter agencies, that's entirely up to them. There is no guarantee that the new contractor will honor your current contract and rates of pay. When Herzog took over the Coaster contract, they offered different rates of pay, worse benefit package and offered to start everyone off with 2 weeks of vacation. Some engineers and conductors were already up to 4 and 5 weeks of vacation at that point...

Choose wisely, as there is no more turning back once you make that move.

Thank you for that info. I definitely don't want to end up in that situation.