Employment at U.S. Class I railroads has fallen 4% since February 2017, the month before E. Hunter Harrison began implementing Precision Scheduled Railroading at CSX Transportation. Harrison’s efficiency-driven operating model has since spread...
http://trn.trains.com/news/news-wire/2019/06/26-impact-of-precision-scheduled-railroading-shows-up-in-class-i-employment-figures
Brian Schmidt, Editor, Classic Trains magazine
Brian SchmidtEmployment at U.S. Class I railroads has fallen 4% since February 2017, the month before E. Hunter Harrison began implementing Precision Scheduled Railroading at CSX Transportation. Harrison’s efficiency-driven operating model has since spread... http://trn.trains.com/news/news-wire/2019/06/26-impact-of-precision-scheduled-railroading-shows-up-in-class-i-employment-figures
And were EHH to be asked - the decline should have been 10% if not 15%.
Efficiency has nothing to do with employment levels, reductions in servicing customers and reducing expenditures on maintenance of equipment and track account for most of the reductions.
Never too old to have a happy childhood!
BaltACDAnd were EHH to be asked - the decline should have been 10% if not 15%. Efficiency has nothing to do with employment levels, reductions in servicing customers and reducing expenditures on maintenance of equipment and track account for most of the reductions.
When business increases (despite the railroads best efforts to discourage), they will lament the fact that they do not have the necessary staff or equipment to handle it; customers will complain, and maybe the railroads will end up regulated again. So the railroads will rush to hire newbies, who within a few months will go out and handle 200+ train cars laden with hazmat--not good news for those living near the tracks.
This whole PSR BS reminds me so much of the lame-ass short-term thinking that years ago resulted in lines being torn up, skilled people bailing out (or being forced out) to go work for a more thriving industry, and employees that no longer give a rip.
Two items in this news article jumped out at me... the first is that rail freight volumes are up 24 % over two years ago (wow) and 2) the two carriers that have been on the PSR bandwagon the longest.. CN and CP... are both adding to their employment numbers now. Likely CSX, UP, and NS will go through a similar transition... cut people and resources.. and then when the dust settles, start hiring again in keeping with the new PSR reality. Looks as if Norfolk Southern has learned from the others and is going about it in a smarter way.. instead of hells bells shuttering hump yards and making all kinds of big changes in the short term, they're taking a more measured approach.. much smarter if you ask me...
zardozA few years from now the railroad industry, and possibly the country, will regret how these "quarterly earnings statement" types have raped the railroads to the point where the companies have no fall-back reserves to tap if (when) something drastic happens. When business increases (despite the railroads best efforts to discourage), they will lament the fact that they do not have the necessary staff or equipment to handle it; customers will complain, and maybe the railroads will end up regulated again. So the railroads will rush to hire newbies, who within a few months will go out and handle 200+ train cars laden with hazmat--not good news for those living near the tracks. This whole PSR BS reminds me so much of the lame-ass short-term thinking that years ago resulted in lines being torn up, skilled people bailing out (or being forced out) to go work for a more thriving industry, and employees that no longer give a rip.
Might be railroads expectations of Fed approval of reduced crew sizes (1 man in the cab) and more liberalization in regards to where remote control locos can be used. Maybe those changes will never happen or never be approved in which case your scenario might come to pass. I suspect the Feds will eventually cave to the 1 person in the locomotive cab rule and potentially even allow the locomotive cab to be fully automated without anyone in it over the railroad. Probably in sparsely populated crew districts first, then through major cities.
Which makes me think out loud. Will kids ever become railfans with no railroad crew interaction? Is an automated train devoid of humans......enough?
CMStPnPI suspect the Feds will eventually cave to the 1 person in the locomotive cab rule and potentially even allow the locomotive cab to be fully automated without anyone in it over the railroad.
CMStPnPWhich makes me think out loud. Will kids ever become railfans with no railroad crew interaction?
Which begs the question...Will locomotives made for the automated railroad even have cabs? Perhaps a B-type unit with a forward-facing camera might be all it needs.
I don't work for the railroad, but have a good friend who works for BNSF.
Our town had between 70 and 80 trains pass through each day, with almost all of them coal trains.
Today, we are down to about 40 trains per day. My friend tells me that this reduction in BNSF's coal business is hitting employment very hard.
As I said, I don't work for the railroad, and I have no inside knowledge, but this is what I hear for BNSF and probably Union Pacific.
York1 John
zardozWhich begs the question...Will locomotives made for the automated railroad even have cabs? Perhaps a B-type unit with a forward-facing camera might be all it needs.
Perhaps a small "riding position" in case it is necessary to actually be on board a unit while in motion, and for hosteling, a la "covered wagon" B units.
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...
Ulrich: The 24% increase in traffic was measured just on a monthly basis. That is, the traffic levels in May 2019 were 24% higher than February 2017, according to AAR monthly data. February is typically a weak month and February 2017 also happened to be part of the freight doldrums of 2017. So you've got a couple things going on there: first, a seasonal impact of comparing February to May; second, the freight recession that made 2017's numbers lower than they would usually be in a typical year.
Bottom line is that you'd expect railroads to adjust their train and engine staffing levels to match volumes.
Ulrich Two items in this news article jumped out at me... the first is that rail freight volumes are up 24 % over two years ago (wow) and 2) the two carriers that have been on the PSR bandwagon the longest.. CN and CP... are both adding to their employment numbers now. Likely CSX, UP, and NS will go through a similar transition... cut people and resources.. and then when the dust settles, start hiring again in keeping with the new PSR reality. Looks as if Norfolk Southern has learned from the others and is going about it in a smarter way.. instead of hells bells shuttering hump yards and making all kinds of big changes in the short term, they're taking a more measured approach.. much smarter if you ask me...
Within the last year, Railway Age had an article on CN. It seems CN was no longer enthralled with EHH. They weren't abandoning all of facets of PSR, but they had hit the limits of endless cost cutting. They realized they had to grow and this meant spending money on people, equipment and infrastructure. Spending more than maybe they would have had too, had not EHH cut to the bone.
I think all those going down the EHH style PSR road will eventually find that out. After the vocal activist investors have wrung out all the cash possible and left for other targets, those companies will realize they will have to think about growing their business. Actually growing it, not just giving lip service to it. They will end up spending more money in the long run.
Jeff
jeffhergertWithin the last year, Railway Age had an article on CN. It seems CN was no longer enthralled with EHH. They weren't abandoning all of facets of PSR, but they had hit the limits of endless cost cutting. They realized they had to grow and this meant spending money on people, equipment and infrastructure. Spending more than maybe they would have had too, had not EHH cut to the bone. I think all those going down the EHH style PSR road will eventually find that out. After the vocal activist investors have wrung out all the cash possible and left for other targets, those companies will realize they will have to think about growing their business. Actually growing it, not just giving lip service to it. They will end up spending more money in the long run. Jeff
But the activist investors (aka. thieves) will be long gone when that happens. Loot and leave - the motto of the 'activist investor'.
Railroads have some things in common with utilities, and yes - I know they are not -, but they enjoy right of ways, limited direct competition, and ongoing need for government subsidies. They hence have an obligation to the public that other corporations may not. Perhaps the main obligation is serving states and communities through which they travel effectively.
ROBIN LUETHE Railroads have some things in common with utilities, and yes - I know they are not -, but they enjoy right of ways, limited direct competition, and ongoing need for government subsidies. They hence have an obligation to the public that other corporations may not. Perhaps the main obligation is serving states and communities through which they travel effectively.
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