Workin’ on the Railroad

If a licensed driver runs through a red light and gets pulled over by a police officer, what happens? First offense: it’s usually a ticket or warning, and the driver continues on his way. If a railroad engineer runs a red signal light, the resulting penalty is far harsher. Even an inadvertent running of a red-signal, the engineer is subject to suspension without pay for at least 30 days – even on a first offense. Due to the prickly relationship between railroad management and organized labor, railroad employees face harsh discipline, and that’s where the Locomotive Engineers & Conductors Mutual Protective Association based in Detroit, Michigan, serves its fundamental role.

Founded in 1910, and organized in Michigan as a non-profit, cooperative plan insurer, the association “self-protects” members from the loss of wages as long as the infraction was not intentional, according to Susan Tukel, LECMPA president. LECMPA offers two kinds of insurance: wage-loss indemnity due to discipline and wage indemnity with an accidental death feature.

Doing business in all states except Hawaii and operating with a 10-person staff, membership in the association is available to any transportation worker who is a member in good standing of a recognized union and subject to discipline under a collective bargaining agreement. New members must be free of discipline and incidents that might lead to discipline for three years prior to his or her application for membership.

Approximately 83 percent of its membership is made up of railroad conductors or engineers. Other rail crafts, such as maintenance of way, signal maintenance, and electricians, are also members. Transportation workers from other industries, including truck drivers, longshoremen, and airline flight attendants, make up the rest of the association’s membership.

“As a niche, we need to continue being attentive to our traditional membership pool, while continually expanding into other areas,” said Tukel. “This expansion is particularly important to help us control claims experience.

“Traditionally, there has been no underwriting based on risk characteristics,” explained Tukel. “Members purchased insurance only by a unit price, paying a certain amount for each $3 increment of wage loss, not to exceed their average daily wage. This is the pricing method used by the other ‘job insurers’ in our industry.

“We have recently started issuing policies based on a two-tiered plan, with higher-risk categories receiving fewer days of indemnity for the same price,” added Tukel.

Reaching out to members and potential members is done through attending regional meetings and conventions of the unions, as well as attending local union meetings to make its “pitch,” according to Tukel. Representatives also go out into the field and yards to introduce themselves and the association’s products to potential members. “The vast majority of our sales representatives work with us only on a part-time basis, and are still actively employed as transportation workers,” said Tukel.

Posted: Tuesday, October 16, 2007 12:00:00 AM. Modified: Tuesday, October 16, 2007 3:55:55 PM.

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