Were all these “managers” not useful? What jobs were they doing? Sounds like a cut staff, don’t think, just cut. As a shareholder, I am concerned for the ramifications of this type of action.
I’m buying more stock on the dip. Woo hoo!
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?
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.
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.
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 dont 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.
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.
Carl:
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’…
How can U.P. cut costs with layoffs without any loss of productivity when CSX cannot accomplish the same feat?
Most companies could benefit from a reduction in their work force. The hard part is knowing where to cut without damaging the company.
UP is cutting it’s workforce to save some money.
Everything CSX is doing is to make money for the gamblers.
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.
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.
Jeff
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.
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?
Because UP has someone who cares for the railroad at the top?
I have to wonder what effects the stated goal might have on the steam program.