Adjustments to FELA Legislation

Though the railroads believe as a matter of principle that there is no basis for inclusion of a FELA adjustment in the asbestos legislation, they nevertheless are willing to negotiate with rail labor over this issue in an effort to reach a compromise agreement enabling rail labor to support the legislation.

However, the willingness to consider this special adjustment is predicated on the fundamental condition that no additional contribution from railroads be required to fund the special adjustment. Railroads already would be required to contribute to the Fund under Tier VII, Section 203(h).

Because FELA claims are practically the only asbestos lawsuits brought against railroads, these Tier VII payments – $10 million annually in the case of large railroads – are established to represent the railroads’ anticipated prospective pay out for FELA asbestos claims.

Therefore, if an additional payment were required, railroads will have paid more than their fair share: in essence, the substantial payments to be made by railroads under Tier VII would be made solely to cover others defendants’ claims. AAR has been assured that inclusion of a special FELA adjustment for rail employees will not require additional payment by the railroads. Accordingly, the railroads are willing to negotiate with rail labor in reliance on those assurances.

see also:

Claims Against Manufacturers Read about how the Ayers plaintiffs sued asbestos manufacturers
The Ayers plaintiffs sued asbestos manufacturers. Find out more.

FELA Legislation Why don't railroads think that adjustments to FELA legislation count?
Read what railroads think about adjustments to FELA legislation.

Transfer of Asbestos Claims Legislation that involves the transfer of asbestos claims: The Rules
The rules re:legislation involving the transfer of asbestos claims