Chicago & Eastern Illinois Railroad Company

In 1898, Congress passed the Erdman Act, which provided for the mediation and arbitration of disputes in the railroad industry which involved the operating brotherhoods, telegraphers and switchmen. Within a year after its adoption the switchmen, represented by the Brotherhood of Railroad Trainmen, invoked the law, which failed when its principles were repudiated by the leading railroad companies involved.

The Act provided that when a controversy which could not be solved at the local level arose over rates of pay, working conditions, or grievances, a grand officer of the national organization would take the matter up with the railroads involved. If he failed to secure a settlement the matter was to be referred to the employees for a strike vote. If they voted to strike, a further effort was to be made by the national officer and the road to negotiate a settlement. If this failed either party could apply to the mediators designated in the Erdman Act for the use of their good offices to avert the strike. If the mediator was unable to get the parties to agree, he was authorized to try to get an agreement to submit the dispute to arbitration.

The next attempt to use the Erdman Act's procedures did not come until 1906, but by the end of 1909 24 controversies had been submitted to the mediators. These were settled by the mediators without resort to arbitration in all but four cases. It was in 1906 that the railroad unions began what has been called the "concerted movement" as a method of handling negotiations. Under this plan the railroads in a given territory were served with a notice that the union desired to revise the agreements, and a committee of managers and a committee representing the employees met for this purpose. The firemen have been given credit for starting the second "concerted movement" to raise wages and improve working conditions in 1910, undoubtedly because 26,000 men and 110,000 miles of railroad were involved, but the Switchmen's agreement to submit the issues to arbitration was signed on January 19, 1910 while that of the firemen was not signed until March 25, 1910.

The agreement listed several issues which were to be decided by the arbitration board. It was also agreed that the award would be binding on both parties, the men would not resign, nor the employer discharge anyone for a period of three months after the award was made because they were not satisfied with the conditions of the award.

The Board was composed of Carl R. Gray of St. Louis, Missouri, who represented the employers, S. E. Heberling of Moriority, New Mexico, represented the employees and S. S. Gregory was selected as the neutral chairman. Hearings were held in Chicago beginning on March 4, 1910. The first issue was a six cent raise for the switchmen. The following rates of pay were requested for all men on Chicago lines:

Day foremen: $.41 per hour

Night foremen: $.43 per hour

Day helpers: $.38 per hour

Night helpers: $.40 per hour

In addition, all the switch tenders, tower men and assistant yardmasters who were receiving less than this should be raised to the same scale as that of the helpers, anyone receiving more than this should have his rate increased accordingly. The switchmen based their request upon the increase in the cost of living, which they estimated to be 50%; the companies maintained that the cost of living was not a standard to be used in seating wage rates.

The switchmen insisted that they were entitled to a wage increase because their efficiency had risen as a result of the improved equipment, such as the larger engines and modern cars which had been introduced. They also maintained that the heavier engines and improved equipment increased the risk in an occupation already very hazardous.

The companies countered this by insisting the new equipment was not as hazardous, and accidents were not as frequent. If the switchmen's wages were raised, other employees would also demand increases, which the companies could not afford to pay, unless railroad rates were increased, which they could not do without permission. In addition, many roads were in the hands of receivers and wage increases would result in more receiverships.

In its report issued on March 22, 1910 the Board discussed each of these issues and awarded a three cent increase, retroactive to February 10, 1910. The transcript contains many references to questions of what proper procedures for a board of this type should be, and mentions that this was the first arbitration of its kind. Just why they considered this a precedent is not clear. The four arbitrations preceding this had involved fewer employees and with a single exception, only one railroad, while this one involved eight railroads and 3,100 employees covering 14,450 miles of track.

From the guide to the Switchmen's Union of North America. Arbitration proceedings, 1910., (Kheel Center for Labor-Management Documentation and Archives, Martin P. Catherwood Library, Cornell University.)