Uncle Pete --- A New Meltdown?

[kenneo]

02/08/04
BRENT HUNSBERGER and ALICE TALLMADGE THE OREGONIAN

A rash of early retirements has left Union Pacific railroad with too few locomotive engineers and conductors to keep pace with brisk business, disrupting rail traffic and commerce from Washington to California.

The worst problems have occurred in the Willamette Valley, where Union Pacific freight trains have sat dead on the tracks for hours at a time while awaiting replacement crews. Railroad workers call them "dead trains," and they've slowed freight deliveries and caused headaches for passenger trains and motorists. The fallout:

The average wait time for a freight railcar at Union Pacific's main transfer yard in Hinkle jumped from 29 hours in January 2003 to more than 40 hours last month, according to the Association of American Railroads.

Amtrak, which pays to run passenger trains on Union Pacific's tracks, saw its on-time performance between Eugene and Vancouver, B.C., plunge from 74 percent in January 2003 to 51 percent last month. Twice since Jan. 24, Amtrak trains have become stuck in and around Portland for five hours behind a Union Pacific freight train, say Oregon and Washington transportation officials.

Oregon Department of Transportation officials say they are preparing to fine the railroad for violating a law that prohibits blocking public crossings for more than 10 minutes during the day. Some motorists have complained about trains blocking public crossings for more than an hour, state transportation officials say.

Union Pacific, the state's largest track owner, has gone on a hiring spree to fix the problems.

"If anybody ever wanted to become a railroader, this is a golden opportunity," said John Bromley, a spokesman for the Omaha, Neb.-based company.
Meanwhile, Amtrak officials say they are losing patience with the delays.
The delays are unacceptable, said Vernae Graham, spokeswoman for Amtrak. "We've been working with them and the state to try to improve it. So far, there has not been any improvement."

Retirements create shortage Many of the problems stem from Union Pacific's failure to foresee the number of early retirements among its engineers and conductors -- and an increase in shipping demand throughout last year, Bromley said.

A change in federal law in 2001 allowed railroad workers with 30 years on the job to retire at age 60, launching a rash of retirements in Portland and elsewhere across the country, Bromley said.

The railroad could not say how many workers had retired in Oregon. But nationwide, the number of applications received by the federal Railroad Retirement Board from all railroads jumped from 6,165 in 2001 to 11,942 in 2002 and about 8,000 last year. In Oregon and six Washington counties, applications jumped from 75 in 2001 to 214 in 2002 and 120 last year, the agency said.

"That, coupled with the economy, has left us short of people," Bromley said.
Across the nation, Union Pacific's business volume, in gross ton miles, rose 5 percent between 2002 and 2003, Bromley said. Truck trailers and container traffic was up 13 percent. Industrial product volumes, including lumber, were up 9 percent, he said. The railroad employs 1,659 statewide, 505 in Portland.
The labor shortage is not unique to Union Pacific. Railroads nationwide expect to hire thousands of workers in the next five years as a result of retirements and increased demand. Burlington Northern Santa Fe Railway, which has a heavy presence in Washington, plans to hire 1,500 conductors a year for the next five years, spokesman Gus Melonas said, including 25 this year in Vancouver and 35 in Seattle.

So far, only Union Pacific appears to be struggling to manage the labor shortage, state officials say.

A local union leader said members have been warning the railroad to replenish its ranks for several years. "They've finally acknowledged what we've been telling them, that they need more people," said Russell Bennett, local chairman of Brotherhood of Locomotive Engineers and Trainmen, Division 236 in Portland.

To deal with its labor shortage, Union Pacific has brought managers in from out of state to recruit and train new conductors, Bromley said. Systemwide, it expects to hire 3,000 workers this year, 600 more than it hired last year, he said.

The railroad is actively recruiting in Wyoming, California and Nevada, as well, he said.

Union Pacific conductors start at $40,000 a year, can make $79,000 within two years and have a good chance at a quick promotion to engineer.
"Right now," Bromley said, "I wouldn't think it'd take very long."

Anatomy of a delay Adding workers is the key to unclogging the rail lines.
The company's staffing problems are so severe that its two-person crews often have no replacements when they get to the end of their shifts. Federal law prohibits railroad crews from working longer than 12-hour shifts.
"If there isn't a replacement crew there, the train just stays there," Bennett said. "You tie your train down wherever that happens to be." He said he left such "dead trains" on about one-third of his runs last month.

Some trains have sat tied down on a sidetrack for more than a day because the railroad couldn't find a replacement crew or had difficulties reaching the train, state officials said.

With a lot of single-track corridors throughout the Willamette Valley, dead trains slow the entire system, occupying sidetracks normally used to let Amtrak trains pass slower freight trains.

As a result, "Amtrak gets frogged," Bennett said. Amtrak Cascades trains have experienced long delays between Portland and Eugene as recently as Jan. 29, state officials say. The delays have also slowed Amtrak's Coast Starlight run between Seattle and Los Angeles.

"If they're stuck behind a train that's dead on the line, they're stuck," said Claudia Howells, rail division administrator for the Oregon Department of Transportation.

Howells was on an Amtrak Cascades train on Jan. 24 that got stuck behind a dead engine for five hours just south of Portland. Her train finally arrived in Salem at 2 a.m., she said.

Last week, a UP freight train went dead north of Kelso, Wash., on a track owned by its chief competitor, Burlington Northern Santa Fe Railway, said Jeff Schultz, rail operations expert for the Washington Department of Transportation.

"Having a UP train without a crew on the BNSF mainline is a really bad thing," Schultz said.

Public frustration grows The backups have triggered a spate of complaints in the Willamette Valley about blocked public rail crossings, Howells said, particularly near Natron, a railroad outpost southeast of Springfield.
"It's terrible, especially on weekends," said Arleen Lentz, who lives and operates a mill along a Union Pacific-owned rail line. "We can be stopped from 45 minutes to two hours. It's been going on for months now."
Lentz said she and her husband sat for several hours in their car one weekend night before they could turn onto their road.

"We're getting really tired of it," she said.

State law prohibits trains from blocking public crossings for more than 10 minutes during daylight hours. Penalties range as high as $3,000 per violation. The Oregon Department of Transportation has alerted the railroad of recent violations and is preparing penalties, Howell said. She could not say how much they would be.

Lloyd Haley, who has lived along the rail line near Natron for 40 years, said the blocked crossings are worse than they've been for years. Before its merger with Union Pacific in 1996, Southern Pacific owned the stretch of track crossing the road, and there weren't many problems, Haley said.

"But since this other outfit took over, there's been nothing but trouble," he said.
Both Haley and Lentz said horse owners who rent stables on the road have had to wait for long periods while transporting horses. The stable owner couldn't be reached for comment.

Businesses have complained about late freight pickups, Howells said, but she declined to name the affected companies.

Weyerhaeuser, one of UP's largest customers, has not seen anything out of the ordinary in rail service to its mills, said company spokesman Mike Moskovitz. Larry Phipps, president and general manager of Portland & Western Railroad, which carries 4,000 cars each month between Union Pacific yards and areas outside Portland and Eugene, also said he's noticed only "typical operating difficulties, but no chronic problems."

Bromley acknowledged that the railroad receives public complaints about the idle trains and that some delays have "cost us money." But he said he can't tell when the problems will clear up.

"I wouldn't guess on when we're going to get it fixed," Bromley said. "It certainly has our attention."

Brent Hunsberger: 503-221-8359; [e-mail]

[SSW9389]

A friend of mine has an uncle who works for UP in Kansas. His uncle told him that trainmen in Knasas have been offered plane tickets to go to Oregon to move the trains. Kind of sounds like TDY (Temporary Duty) in the military. Any body else heard this?

[overall]

Where was all this when I wanted to become a railroader years ago? Now I'm 46. That's too old to start over again as much as I would like to.

George

[jeaton]

I saw that article, and others dealing with the subject. I can understand the need to control payroll cost, but the UP screwed up on this one. It happens that I routinely see specific income information from people with manufacturing jobs. This is not scientific, but I would say that the 40K and up to 70 is a pretty good compensation range. I realize that there are many drawbacks to the job, 7/24 operation, random start times, etc., but at least they are not trying to fill the jobs on the cheap.

[Anonymous]

UP IS BEING CHEAP i would be happy to make 79K in 2yrs

[Anonymous]

Within the next decade or so you will start to see the Class One's start doing some major recruiting. Retirement by Conductors and Engineers alike is likely to send the turnover rate to around 70% within the next 10 years.

Already here in BC, Canada they have started to advertise for people to take the Railway Conductor courses at BCIT and SAIT in Alberta. It is expected that CN alone will be looking to hire one thousand new conductors in the next five to ten years or so, and it doesn't look any different in the states.

There's no better time than now to start looking into a career with the railroads! [:D]

[Anonymous]

Don't let your age stop you from a career change! I was 49 when NS hired me. I felt kind of out of place in the classes with all those 20somethings but I stuck it out. I heard a rumor that NS had hired a 53 yr. old shortly before I was hired.

[kenneo]

I would hire out for Uncle Pete, but at 59, they absolutely refuse to look. Age 50? Perhaps. I recall seeing all those posts from folks wanting railroad jobs. Well...Go West, go West. But stop by www.up.com

[Anonymous]

The UP has been in tough shape for upwards of 6 months now. They're slowly coming out of it in some corridors, but they have p-o'd a good number of shippers. They're remarkable inconsistant on transit times right now.

It may not be as bad as the SP - UP merger meltdown, but it ain't good by any stretch of the imagination.

[edblysard]

George,
I got hired at the PTRA when I was 38, I'm 45 now, so 46 aint that old.
Go give it a shot, the worst they can say is no thanks...
Ed

[Anonymous]

I've logged a lot of hours on my Microsoft and Maple Leaf Tracks simulators. Do you think they would take me?

[edblysard]

Hey Pop,
If Uncle Petet wont take ya, next time your in Houston, come on over, you can
go switching with me anytime you want.
Ed

QUOTE: Originally posted by Scottydog

I've logged a lot of hours on my Microsoft and Maple Leaf Tracks simulators. Do you think they would take me?

[broncoman]

I haven't fallowed the doings of the senior management of UP too much. They seem to have the same disease that many CEO of companies today do. Focus on profits today at the risk of problems in the future. I would submit that they are much the same way as the company I work for. We don't have the money to bring in new hires, even though they will grant themselves and the board upwards of $81million dollars. While I sit and look at my fellow workmates knowing that one of every two of them is elidgable to retire now. It makes it especially hard when there are government mandated inspections, or rules that must be followed that limits what the existing employees could do even with overtime. Don't get me wrong I am not looking for my instant bonus, it just saddens me when there are people looking for work. Then there is the potential for good paying jobs and a way to boost the economy, but corporate greed reigns supreme.
I'll get off the soap box now.
Thanks

[jeaton]

broncoman-Along with you speak off, here in Wisconsin, we have lost a ton of manufacturing jobs to foreign countries, and they are among the better paying jobs. I know all the arguments about free trade, got to remain competitive, to get the best CEO we have got to be competitive in the CEO market and pay the obnoxious salaries.

My question, what happens when the only jobs are service sector and service sector wages? Who will have the money to go over to Wal-Mart or where-ever and buy even the junk?

[broncoman]

JEATON,

I agree that we need to have quality CEO running the show. My problem is that most are quick to garner praise and a raise for work well done. However they need to pay when big mistakes are made...i.e. trains stopping, Enron collapsing. America is capable of doing almost anything competively, finding the leaders of the company who have the ability to do this are worth their weight. An example being G.E. vs EMD while some of EMD units are built in America I would venture that most are built in either Canada or Mexico. Yet G.E. manages to remain competitive in America with American labor.. If this is not entirely correct someone please correct me.

Thanks

[Anonymous]

EMD units are assembled in the U.S., Canada, and Mexico, but in recent years principally in Canada. Major components (prime mover, main generator, electrical cabinet ), which is most of the value of the unit, are manufactured at EMD's La Grange, Illinois, plant. The truck castings come from Atchison Casting at Atchison, Kansas.

One advantage of doing business in Canada is health insurance: in Canada, the federal government provides health insurance, whereas in the U.S., it's provided by private insurance companies. This greatly lowers the cost of doing business in Canada. It's particularly important with companies represented by the United Auto Workers Union because its contract has outstanding health care -- which isn't cheap. One reason Canada has cheaper health insurance is because it spends 16.7% of its health-care dollar on overhead and administration, whereas the U.S. spends 31.0% of its health-care dollar on overhead and administration. (Source: International Journal Public Health). In other words, if the U.S. only spent to Canadian standards on bureaucracy, it would save $982 per person.

Most U.S. heavy manufacturing concerns have a substantial presence in Canada -- GM, Chrysler, Ford, Pratt & Whitney are all there. GE Canada, according to its web site, has 12 major factories in Canada, making lighting, motors, generators, plastics, and aircraft engines.

By the way, one of the most widely used jet engines in the world -- the CFM engine that exclusively powers Boeing 737 models -- is a 50-50 joint venture of GE and SNECMA of France.

[Anonymous]

QUOTE: Originally posted by SSW9389

A friend of mine has an uncle who works for UP in Kansas. His uncle told him that trainmen in Knasas have been offered plane tickets to go to Oregon to move the trains. Kind of sounds like TDY (Temporary Duty) in the military. Any body else heard this?

In the USAF, it was TAD--Travellin' Around Drunk!!"

[jeaton]

I was generalizing a bit and didn't mean to say that there are not some really good corporate leaders around. And Mark is correct, there are lots of conditions in our environment causing jobs to go overseas.

I'll go back on the original point on this thread. Even if the UP has some guarantees for extra board employees, it was a major screw-up!! I mean, do some counting. OK-I don't have the numbers, but someone would have to show me the same before I would accept that the cost savings for going slow on hiring would offset the cost of being short of crews.

[broncoman]

Sorry got away from post to vent . Both you guys make great points. Does anyone out there know if lack of train crews is what is keeping UP trains stuck outside Roseville yard coming in from Reno? I have seen trains sitting on the inbound side of Roseville yard missing their lead engines but left with the helpers on the back.
I also heard that UP is looking for anyone in the management ranks who had train crew experience to go back to train duty. If this is true what a managerial bonus!

Dave

[kenneo]

QUOTE: Originally posted by broncoman

Sorry got away from post to vent . Both you guys make great points. Does anyone out there know if lack of train crews is what is keeping UP trains stuck outside Roseville yard coming in from Reno? I have seen trains sitting on the inbound side of Roseville yard missing their lead engines but left with the helpers on the back.
I also heard that UP is looking for anyone in the management ranks who had train crew experience to go back to train duty. If this is true what a managerial bonus!

Dave

Your "Headless Trains" are victims of no crews. With the SP, it was operable locomotives.

[daveklepper]

Mark, but would not you agree that if GM saw as its PRIMARY mission, truly meeting today's USA and North American total ground transportation needs, with EMD's expertise also directed to light rail, heavy rapid transit, and commuter rail, and remember that EMD's predicessor company, EMC, had gas-electric branch line cars as its first product, before the streamliners and the FT and the switchers, that there would be far more jobs in America? Even in the auto market, didn't GM delay far too long in brining out compact cars and thus lost market share initially to VW, but then the Japanese? Not only more jobs in the automotive and rail construction field, but also in steel, plastics, glass, you name it that is necessary for these products? Dave

[slotracer]

I work for a major shipper, UP is screwwing the pooch from California to Chicago badly and has been for many weeks. Not as bad as the melt down but very very badly. 3/4 of our day is preventing plant shut downs casued by UP delays.
Before you wi***oo hard to work for a railroad, consider it may not be all that rosie. If you gt a line job, plan on losts of time waway, over 75% of road crews end up divorced. I knew a few hard core buffs who wanted on as all they could dream about were railroads and could not picture anything but bliss in working for one. The last one left 2 years ago, working there a month before he saw the awful mistake I warned him about and immediately and desperately looked for another job so he could leave. Enjoy pictures and models, working for a class one is akin to sticking pins in your eyes.

[Anonymous]

If I had been laid off or needed work, I would move out west and try for one of those UP jobs!

Nothing ventured, nothing gained!

[broncoman]

Is the BNSF running any better. They seem to be taking care of business, but I don't see that much of them in my neck of the woods.

[edblysard]

BNSF did a hireing blitz last year, quickly ran these guys through a training course, and flooded the pool service and extra boards, so crew shortage isnt too bad there.
Not quite 90 day wonders though, but more of a warm body approach, with lots of one the job training.
They didnt get caught with their pants down, but they didnt have them all the way up either...
Ed

[broncoman]

I thought I read somewhere that BNSF had lost some UPS business to UP. Don't know if that was UPS not wanting all there eggs in one basket, or was unhappy with their service.

[kenneo]

Having your pants around your knees and running sure beats having them around your ankles and flat on your face.

[Anonymous]

REMEMBER--You can't spell stUPid without a U and a P. THey should change their slogan to "We Can't Handle It." or maybe "We Won't Deliver." Building America my @$$....what a bunch of clueless, head in the clouds, managers they have running that place.