OMAHA, Neb. — Union Pacific announced another round of layoffs on Tuesday that affects 700 employees and includes the closure of the locomotive shop in Pine Bluff, Ark. UP has notified the mechanical department that 450 positions will be elimi...
http://trn.trains.com/news/news-wire/2019/02/13-union-pacific-announces-another-round-of-layoffs-closure-of-pine-bluff-shop
Brian Schmidt, Editor, Classic Trains magazine
Gee - within the past year, wasn't UP offering like $10K - $25K 'signing bonuses' for shop employees with certain scarce skills?
- PDN.
Paul_D_North_Jr Gee - within the past year, wasn't UP offering like $10K - $25K 'signing bonuses' for shop employees with certain scarce skills? - PDN.
Guess those they are getting rid of don't have scarce skills.
Never too old to have a happy childhood!
I bet morale is at record levels.
zardoz I bet morale is at record levels.
It would be interesting to know how many of those whose jobs are being eliminated qualify for early retirement and/or other jobs in the system.
In the mid-90s the Fortune 200 Corporation that I worked for reduced its workforce from approximately 18,000 to 12,500 employees over a period of three months. Sounds pretty bad, until you drill into the numbers.
Slightly more than 2,800 employees qualified for and accepted early retirement. The company added five years to their service time to boost their retirement benefits. It also increased its portion of the pre-65 health insurance premiums, which provided coverage until the employee qualified for Medicare and the company’s retire health insurance, which is a Medicare Supplement plan.
Another 2,300 took a voluntary severance package. One of my co-workers opted for it. She got enough money to pay off the mortgage, which was substantial, and she was able to stay home with her young children, which is what she wanted to do.
Most of the remaining employees were offered comparable jobs, although in most instances they would have had to move. If I remember correctly, about half accepted the offer.
So, it is important to know the details of a workforce reduction.
UP has reduced its workforce by about 5000 over the last eight or nine years, so this news really isn't bucking the trend. Probably won't be the last as Vena only recently arrived and likely isn't even unpacked yet.
JPS1So, it is important to know the details of a workforce reduction.
1. Gather all of the employees that have the experience and knowledge needed to successfully fulfill their function.
2. Then, offer them large incentives so they will be likely to leave the company.
3. After all of the legacy employees are gone, those that remain will not be as astute regarding operations. Then the executive-types can make whatever decisions they want, regardless of whatever negative effects those decisions might have on the company.
4. However, the execs will not care, for they will be keeping their resumes up-to-date, showing their next potential victim how they cut costs, which resulted in larger bonuses for everyone (at least for those whose "work" does not entail their hands getting dirty).
Meanwhile, those on the front lines can only roll their eyes and say to each other, "WTF is going on around here? No one in management seems to know enough to come in out of the rain." Well, they problaly say other things too, but they would not be suitable for this environment.
They might know what they're doing..Jim Vena is a dyed in the wool railroader.. started as a brakeman and engineer in the 70s and worked his way into senior management. He probably understands the rail biz about as well as anyone does.
UlrichHe probably understands the rail biz about as well as anyone does.
I'm starting to have doubts that anyone for most of the class 1s understands the rail biz anymore.
"If it weren't for these customers, engines, and employees, we'd make so much money!"
It's been fun. But it isn't much fun anymore. Signing off for now.
The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any
UlrichThey might know what they're doing..Jim Vena is a dyed in the wool railroader.. started as a brakeman and engineer in the 70s and worked his way into senior management. He probably understands the rail biz about as well as anyone does.
Steps to Senior Management can be considered a wasting disease like Alzhiemers, where you lose the knowledge you learned, the higher you rise the more knowledge you lose.
BaltACDSteps to Senior Management can be considered a wasting disease like Alzhiemers, where you lose the knowledge you learned, the higher you rise the more knowledge you lose.
People in a hierarchy tend to rise to their "level of incompetence". - Lawrence J. Peter
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...
Has Carl previously mentioned, Proviso's future is in doubt. Possibly sold off to a third party operator, the hump closed but still some flat switching, or removed entirely. Hostler positions are starting to be eliminated at various locations. (These generally move engines from the diesel facility to departure tracks.) Yard jobs are starting to lose the switchmen (going foreman only). Some at flat yards that handle a lot of classification. There's talk that North Platte may lose one of the humps. The people at the Council Bluffs diesel servicing facility are worried they're going to be closed down.
They talk about improving service, but are so gung-ho about cutting to properity that they are doing things that are going to hurt service.
I dog caught two tied down trains yesterday. The first (11000') was only 25 miles out. It took 8 hours by the time we were able to get in the yard and be done with it. Sent back out for the second. This one 15000' with a mid train DP than couldn't maintain main reservoir pressure. Died on HOS 10 miles out. Had a light engine move tack on, change DP links, and still had air problems on the DP. Dead 5 and a half hours (I was on overtime longer than on straight time) before finally making it in and being able to tie up. It took 4 crews (although not all were on for their entire tour of duty) to run one crew district with this train. It also had a setout and when tying up, I heard them call that they lost their air pulling up to do their work. Had all but one crossing in town blocked. They would've been money ahead by splitting the train into two sections when it first started having problems.
Jeff
Ulrich They might know what they're doing..Jim Vena is a dyed in the wool railroader.. started as a brakeman and engineer in the 70s and worked his way into senior management. He probably understands the rail biz about as well as anyone does.
The railroad industry has a long history of cuts to eliminate so called “dead wood” in the form of assets and workforce that are no longer needed. Has all this been a mistake made by managers who did not know what they were doing?
EuclidThe railroad industry has a long history of cuts to eliminate so called “dead wood” in the form of assets and workforce that are no longer needed. Has all this been a mistake made by managers who did not know what they were doing?
A few years ago I went through the 'Pocket Guide to Railway Officials' that contained the names and titles for all the officials of all the railroads in the country.
Being interested in CSX, I counted up 146 individuals that had 'Vice President' as a part of their title. Deadwood indeed.
I am reminded of the Lancaster & Chester Railroad, which in 1953 had 33 vice presidents. Two were notable: Gypsy Rose Lee, who was in charge of unveiling, and W. F. Halsey (Adm, USN, Ret), who was in charge of White Horse Supply. The detail on Adm. Halsey's appointment was General "Vinegar Joe" Stillwell's request after he was liberated from the Japanese prisoner camp--he wanted the Emperor's white horse.
How many railroad vice presidents are of more value than the majority of those then on the L&C?
Johnny
Deggesty Lancaster & Chester Railroad,
Russell
Euclid The railroad industry has a long history of cuts to eliminate so called “dead wood” in the form of assets and workforce that are no longer needed. Has all this been a mistake made by managers who did not know what they were doing?
Only a one-person train crew, one locomotive, and one clerk are all you need if all you want to do is drag a train from A to B, then return the next day. And in your deeper fantasies, all of the above will be done by robots, with no people needed, except of course, you.
Of course, eventually the track will wear out, the locomotive will need servicing, and the signals will stop functioning. You might also have air problems, broken draft gear, or ROW incidents. But up until then, you will likely have a highly profitable operation.
Of course I'm being absurd; I'm just taking today's corporate philosophy to it's conclusion.
So will all of the work be sourced to UP's main loco shop in Little Rock? Or will the work be sourced to 3rd party vendors?
That probably depends on how the labor contracts are phrased. It may be safe to assume that the work and some of the employees will be transferred to North Litte Rock.
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