Dave,
I'm going out on a limb here and speculating, but I think Harrison has met his match. CSX is nothing like CN and CP that were basically end to end railroads. The 'spider web' that constituents CSX is a 'whole nuther critter'. There are only a few end to end points on CSX while coal was, until recently, the lifeblood of the company. I think Harrison has failed to take that into account in his plan to run a scheduled railroad. If memory serves coal loads depart not on schedule but when the requested number of cars are filled and ready for departure. That may not meet Harrison's schedule but is reality.
Norm
BaltACDIf 1200 applied it is indicative of a serious management morale issue - to my way of viewing it. Rats wanting off a sinking ship.
Not necessarily. It is specifically targeted at those who are near retirement as an incentive to get them to retire sooner. Pretty much everybody who applied is going to be leaving the company in the next 5 years or so anyway. Plus a postion has to be eliminated when they go.
As far as "precision railroading", the MP has had scheduled car and train movements since 1972 and the UP at least since the MP-UP merger. Every car has a schedule and trip plan and measurements and so does every train. Has for decades.
The UP spends a lot of time figuring out how many people it needs. Even though it in the midst of a buy out its still hiring people in other places (mainly crafts).
Prior to Harrison the CSX and the other roads had interchange agreements where the roads would build blocks for each other in order to have run through trains that didn't have to switch at the interchange point. Harrison cancled all those agreements, so the CSX doesn't build blocks for the other roads and the other roads, in return, don't build blocks for the CSX. Everything in interchange to or from the CSX is a switcher. You can imagine what that's done to Chicago.
Dave H. Painted side goes up. My website : wnbranch.com
Or a manifestation of the old saw - the second best day of your life is the day you go to work for the railroad. The best day is the day you leave...
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
Will the layoffs be posponed until all the Harvey damage is corrected.
jeffhergertTalk going around is that 1200 put in for the management buyout. Jeff
Jeff
If 1200 applied it is indicative of a serious management morale issue - to my way of viewing it. Rats wanting off a sinking ship.
Never too old to have a happy childhood!
Talk going around is that 1200 put in for the management buyout.
From a starting point of just under 30K employees, CSX has shed 2800 so far according to published sources. Nearly 10% of the work force in a 'slash and burn' manner. Cut the numbers - no matter the muscle, no matter the operation that is disrupted.
This happening is all over the industry as a whole. Too many chiefs. There should be no issue w management positions finally, finally going away. Long overdue. When Berkshire Hathaway entered the biz in 2009, they at once noticed the operation was too management heavy. It took this long to address the issue. At yards where trainmasters have been abolished and left in the hands of footboard yardmasters, the ebb & flow is doing just fine. Less micromanaging. Road foreman titles are slowly becoming history. One RFE said that once all inward cameras are installed, RFE positions will likely be gone. W/technology way it is, this makes sense. Remote download/audits are done on every mainline train from one central location. No need to pay two people to do job of one.
Euclid tree68 jeffhergert I disagree. UP is doing it for Wall Street, just as CSX (and probably NS too) are doing. CSX is just going through a phase of more extreme measures to please a more focused group on Wall Street. I agree that UP is likely doing it for Wall Street. As for CSX, your "focused group" is my "gamblers..." If U.P. is doing it for Wall Street just like CSX is, then why is U.P. not losing productivity and driving all the customers away just like CSX is?
tree68 jeffhergert I disagree. UP is doing it for Wall Street, just as CSX (and probably NS too) are doing. CSX is just going through a phase of more extreme measures to please a more focused group on Wall Street. I agree that UP is likely doing it for Wall Street. As for CSX, your "focused group" is my "gamblers..."
jeffhergert I disagree. UP is doing it for Wall Street, just as CSX (and probably NS too) are doing. CSX is just going through a phase of more extreme measures to please a more focused group on Wall Street.
I agree that UP is likely doing it for Wall Street. As for CSX, your "focused group" is my "gamblers..."
If U.P. is doing it for Wall Street just like CSX is, then why is U.P. not losing productivity and driving all the customers away just like CSX is?
Maybe because UP isn't making radical changes quickly. Although I question that they haven't lost some productivity or haven't driven away some customers. It's just not as extreme or apparent as EHH has done at CSX.
No they aren't laying anyone off. Yet. If they don't get enough voluntary separations then they will.
Supposedly there is talk of a buyout for agreement people in the works. Some of us are thinking it will be aimed at the remaining pre-1985 people.
Euclid Having a PLAN would seem to imply that U.P. was paying close attention to the operation. But if they were paying close attention, it seems to me that they would have seen the need to eliminate unproductive jobs before it reached the point where it was suddenly necessary to lay off 750 employees.
Having a PLAN would seem to imply that U.P. was paying close attention to the operation. But if they were paying close attention, it seems to me that they would have seen the need to eliminate unproductive jobs before it reached the point where it was suddenly necessary to lay off 750 employees.
UP isn't laying off anybody. They are reducing (early retirement or separation) non agreement positions. It is mainly applying to managers. Here is part of the announcement from the employees web site:
August 16, 2017 | 07:40 a.m. CDT
Program application deadline is Aug. 25
Union Pacific today announced a nonagreement employee workforce reduction program that will offer nonagreement employees the option of applying for participation in the program.
"Union Pacific for some time has leveraged employee attrition and technology to reduce general and administrative costs," said Lance Fritz, chairman, president and CEO. "Unfortunately, attrition alone will not keep pace with our need and ability to reduce these costs."
The specific components of the workforce reduction program differ depending upon early retirement eligibility. This is the first step in the company's plan to reduce approximately 500 nonagreement positions by mid September.
I have to wonder what effects the stated goal might have on the steam program.
Johnny
jeffhergertI disagree. UP is doing it for Wall Street, just as CSX (and probably NS too) are doing. CSX is just going through a phase of more extreme measures to please a more focused group on Wall Street.
BaltACD Euclid Well, the impression being given by all the reporting on CSX is that it is impossible to save money without losing customers, by cutting the workforce and operations. Yet U.P. is able to do just that. So how do we know that Harrison's intentions are nefarious and not constructive like those on the U.P.? With a PLAN, much can be done to satisfy customers, reduce costs, reduce head count and keep a fluid operation. Without a PLAN you have what EHH has done to CSX.
Euclid Well, the impression being given by all the reporting on CSX is that it is impossible to save money without losing customers, by cutting the workforce and operations. Yet U.P. is able to do just that. So how do we know that Harrison's intentions are nefarious and not constructive like those on the U.P.?
With a PLAN, much can be done to satisfy customers, reduce costs, reduce head count and keep a fluid operation.
Without a PLAN you have what EHH has done to CSX.
tree68 UP is cutting it's workforce to save some money. Everything CSX is doing is to make money for the gamblers.
UP is cutting it's workforce to save some money.
Everything CSX is doing is to make money for the gamblers.
I disagree. UP is doing it for Wall Street, just as CSX (and probably NS too) are doing. CSX is just going through a phase of more extreme measures to please a more focused group on Wall Street.
My personal feeling is that UP started G55-0 to head off some group making a play for UP and bringing in an EHH type and replacing the current top level management. A year or two ago there was some worry about this happening.
EuclidWell, the impression being given by all the reporting on CSX is that it is impossible to save money without losing customers, by cutting the workforce and operations. Yet U.P. is able to do just that. So how do we know that Harrison's intentions are nefarious and not constructive like those on the U.P.?
Well, the impression being given by all the reporting on CSX is that it is impossible to save money without losing customers, by cutting the workforce and operations. Yet U.P. is able to do just that. So how do we know that Harrison's intentions are nefarious and not constructive like those on the U.P.?
Most companies could benefit from a reduction in their work force. The hard part is knowing where to cut without damaging the company.
I tried to sell my two cents worth, but no one would give me a plug nickel for it.
I don't have a leg to stand on.
How can U.P. cut costs with layoffs without any loss of productivity when CSX cannot accomplish the same feat?
CShaveRR I'm wondering whether this reduction in nonagreement employees is in addition to, or inclusive of, the management eliminated by the consolidation of at least two service units this summer.I've noticed, on social media, that there are some places in which UP is hiring.
I'm wondering whether this reduction in nonagreement employees is in addition to, or inclusive of, the management eliminated by the consolidation of at least two service units this summer.I've noticed, on social media, that there are some places in which UP is hiring.
Aren't you glad you are now retired, and out of the range of 'collaterally damaged' ? But it is tough to be on the sideline when people you know are in the range of these 'adjustments of force'...
Carl
Railroader Emeritus (practiced railroading for 46 years--and in 2010 I finally got it right!)
CAACSCOCOM--I don't want to behave improperly, so I just won't behave at all. (SM)
It looks as if UP is racing CSX to see which company will destroy customer service first by eliminating service. When I started working, I was told that customers paid my salary. Seems as if UP and CSX don`t understand that fact. These poor sould losing their jobs were not `deadwood`and obviously performed work. Now that work will not get done. Seems that corporate greed is alive at UP.
It would appear that Mr. Fritz may be trying to get to a sub-60 operating ratio by the end of 2017.
The UP second quarter 2017 OR came in at 61.8.
UP finished 2016 with a 63.5 OR, up from 63.1 in 2015.
UP has a stated goal of "G55 + 0", which as I understand it means a 55 OR and 0 injuries.
Is UP more quietly implementing a version of "Precision Scheduled Railroading" but only more gradually?
Just observations - thanks for any thoughts for the discussion.
If some of those folks are engineering technical people, UP is taking a giant step backwards. There already is a brain drain causing havoc and a lack of new blood being trained to take over as a function of the lack of foresight after the last dumbsizing exercise.
Are these U.P. layoffs and downsizing the same as the mistakes that EHH is making at CSX, or are these U.P. moves correctly justified and necessary?
If it is the latter, does that mean that all of this job elimination on the U.P. was to eliminate those who were not justifying their employment in terms of performance?
I'm buying more stock on the dip. Woo hoo!
Our community is FREE to join. To participate you must either login or register for an account.