The Association of American Railroads has implemented a new Car Repair Facility Labor Rate of $94.07 which is a decrease in its hourly rate of 1.7%. This is a decrease from the change last implemented in October 1, 2008 when the established Car Repair Facility Labor Rate of $95.74 was announced as a decrease from its July 1, 2008 rate of $97.75. The AAR announces that the recent reduction is due in part to:

1)       Back pay amounts related to last year's new national labor agreement with the Brotherhood of Railway Carmen were completely amortized and removed from the Labor Rate causing the base wage rate to decrease.

2)       Back pay amounts for the new national agreement with the International Association of Machinists and Aerospace Workers were added to the Labor Rate which will cause a higher base wage rate, but machinists have much less weight in the calculation compared to Carmen.

3)       New (2009) employer contribution rates were added to the Labor Rate for health and welfare, Railroad Retirement, and unemployment insurance.  Employee health and welfare contribution rates were updated where appropriate and railroad retirement costs went down due to lower taxable wages while other costs increased.