Union Pacific Business News

[Coyote]

Looming railroad strike could be devastating to economy in Nebraska and Iowa

A possible rail strike on Friday threatens to stymie an economy that has barely recovered from the pandemic. What will be the impact of a strike on the Omaha metro area?

[Coyote]

Upcoming vote on rail contract raises questions
Voting is scheduled to begin Thursday

Railroad workers across the country are scheduled to vote Thursday on a tentative contract that averted a massive strike earlier this month. NCN's Joe Jordan tells us there are unconfirmed reports that a deal which appears to favor the workers is in jeopardy of coming up short.

Railroad worker warns Biden agreement to avoid strike could fall apart | David Manning

On Tuesday's 'National Report', Railroad worker David Manning warns that the tentative agreement negotiated by the Biden Adminstration to avoid a strike could fall apart.


Bernie Sanders Fights For Neglected Railroad Workers

Railroad workers deserve more than 0 sick days! Jessica Burbank and Wosny Lambre break it down on The Watchlist. Watch LIVE on weekdays at noon ET. http://youtube.com/watchlisttyt/live

[Coyote]

NCN Transcript:

According to published reports, the possible deal brokered by President Biden, Big Rail and a dozen unions risks falling apart as some union leaders find the details "intentionally” vague. especially when it comes to sick days and other time off. The report says the average rail worker feels “a lot of anger, confusion and hostility." At the same time though the numbers made public find rail workers making a variety of financial gains, including salary increases not seem in 40 years. The deal includes pay raises of 24%, bonuses of $5,000, and back pay of $11,000. Railroad workers would also be able to take unpaid days off for doctor’s appointments without penalty, which has not been the case in the past.

Votes will be counted over the next few weeks.

[Coyote]

Rail union that rejected deal signs new tentative agreement

A union that rejected its deal with the nation’s freight railroads earlier this month now has a new tentative agreement. But officials cautioned that the contract dispute won’t be fully settled until all 12 rail unions approve their agreements this fall.
The five-year deal announced Tuesday includes a 24% pay raise and $5,000 in bonuses that were in the first deal along. It also has a couple of additional benefits, including a cap on health insurance expenses and a promise that each railroad will negotiate individually over expense reimbursement. Officials with the International Association of Machinists and Aerospace Workers said they hope those enhancements will be enough to pass the agreement.

[Coyote]

Rail union approves deal offering hope of avoiding strike
Another one of the 12 railroad unions narrowly approved its deal with the major freight railroads Saturday, offering some hope that the contract dispute might be resolved without a strike even though two other unions rejected their agreements last month.

OMAHA, Neb. (AP) — Another one of the 12 railroad unions narrowly approved its deal with the major freight railroads Saturday, offering some hope that the contract dispute might be resolved without a strike even though two other unions rejected their agreements last month. Now that 52% of International Association of Machinists and Aerospace Workers members who voted approved their deal, seven railroad unions have ratified contracts that include 24% raises and $5,000 in bonuses, but all 12 have to approve contracts to prevent a strike.

[Coyote]

U.S. moves closer to potentially crippling rail strike

The nation could be in for trouble on the tracks as the country faces the growing risk of a railroad strike in two weeks. (11-24-22)

[Coyote]

Nebraska congressman supporting House intervention in rail strike

[Coyote]

Union Pacific to look for new leader
Hedge fund pressuring Omaha-based railroad to change leadership

Omaha-based Union Pacific will be looking for a new leader. Lance Fritz has been CEO for eight years, but a hedge fund that has a $1.6 billion stake in the railroad wants him out. Soroban Capital Partners said since Fritz has been in charge the railroad has lagged its competitors in areas like safety, growth and cost management. Union Pacific did post a $1.6 billion profit in the fourth quarter, but it has faced challenges with delivering goods. In a statement, Fritz said he was honored to lead the railroad and praised U-P’s employees, but he did not address Soroban Capital’s criticism.

[Coyote]

Union Pacific will replace rail CEO amid hedge fund pressure

Union Pacific announced plans Sunday to replace its CEO later this year after a hedge fund that holds a $1.6 billion stake in the railroad went public with its concerns about his leadership. The managing partner of Soroban Capital Partners, Eric Mandelblatt, said in a letter that the Omaha, Nebraska-based railroad has lagged behind its peers during Lance Fritz' tenure over the past eight years and that a leadership change is overdue. The hedge fund has been privately pressuring Union Pacific to oust Fritz at least since last year.

[damonhynes]

Hedgies are what ruined Norfolk Southern. BNSF has it made, bring private and all...

[Louie]

He's been a source of internal strife for some time now

[Coyote]

Union Pacific CEO to leave amid hedge fund pressure

A new CEO will soon take the reins at Omaha-based Union Pacific. In a news release from the railroad company, that person will assume control sometime this year. The current Chief Executive Officer, Lance Fritz, has been in charge for the past eight years, but a hedge fund wants him out. Concerns cited by the hedge fund include safety and cost management. In a statement, Fritz said it has been an honor and a privilege to serve the company. He now looks forward to working with the board to lead the company into the future.

[Brad]

Union Pacific Appoints Jim Vena Chief Executive Officer

https://www.up.com/media/releases/vena- ... 230726.htm

Union Pacific Corporation (NYSE: UNP) today announced Jim Vena has been appointed as chief executive officer and a member of the Board, effective August 14, 2023.

The company also announced that Beth Whited, Union Pacific’s executive vice president, sustainability and strategy and chief human resources officer, has been appointed as president, reporting to Vena. Mike McCarthy, Union Pacific’s lead independent director, has been elected as chairman of the Board. These leadership changes are effective August 14, 2023, and reflect a strong focus on driving growth, improving service, and enhancing safety across the company’s rail system.

Vena succeeds Lance Fritz, who is stepping down as chairman, president and chief executive officer. Going forward, the operations, finance, marketing and sales, supply chain, and technology functions will report directly to Vena. Whited’s responsibilities will include the strategy, workforce resources, sustainability, law, corporate relations and government affairs functions.

Vena has more than 40 years of industry experience and is returning to Union Pacific after serving as its chief operating officer from 2019-2020 and as a senior advisor to the chairman in 2021.

[Louie]

Some layoffs occurred today. I don't have any details, though.

[Brad]

Some layoffs occurred today. I don't have any details, though.

Trains Magazine put out an article early this morning:

Union Pacific announces management layoffs in bid to speed decision making

https://www.trains.com/trn/news-reviews ... on-making/

“Union Pacific is changing its culture and announced organizational changes to reduce layers, expand spans of control and focus on empowering employees on the front lines to drive decision-making,” spokeswoman Kristen South says. “These changes included some reductions, which represent less than 5% of the total management workforce. All employees whose roles were impacted were given the opportunity to apply for hard-to-hire craft professional roles in other parts of the railroad.”

“You can’t have nine levels from CEO to the people who actually do the work and expect that the message is clear, decisions are made clear … I want to drive it so we have way less layers. And that means with less layers the people out in the field are empowered to make the right decisions.”

[ChadJK]

I've heard this around the company I work for too. This whole "make decisions faster" thing and empowering lower-level employees to make decisions. It must be the new Chapter 1 in the latest edition of "Management for Dummies." I swear they all read the same article over a weekend and then come into work on a Monday with the same ideas for change. lol

[Coyote]

Union Pacific implementing layoffs, largely in management



Union Pacific experienced company-wide layoffs on Wednesday as part of a cultural shift in UP to empower front-line employees to be more involved in decision-making. The staff reductions are particularly impacting management at the Omaha-based company. AP reported that UP planned to eliminate less that 5% of about 5,600 management employees. A statement emailed to 6 News on Wednesday afternoon from UP confirmed the percentage, noting that the personnel impacted by those layoffs were given an opportunity to apply for jobs elsewhere in the company.

[Coyote]

Federal Railroad Administration adopts two man train crew rule



HASTINGS, Neb. (KSNB) - The Federal Railroad Administration adopted the long proposed two man train crew rule on Tuesday to much relief by railroaders. The two man train crew rule requires an engineer and conductor on a train rather than just an engineer, a long time worry from railroaders. The ruling has major impacts for the state of Nebraska as well. The state has had a two man train crew bill in the legislature every year since 2012, and those bills have gotten stuck every session.

“We’ve had legislation introduced in the Nebraska legislature since 2012 straight and the railroads have been fighting tirelessly against this,” said Andrew Foust, a legislative representative for the SMART-TD union that represents many rail workers in the state. “Yesterday was a monumental day for all rail labor and the safety in our communities. It helps safety by having a second set of eyes.”

[Louie]

This is a real win for overall safety standards. Glad to hear this was adopted.

[skinzfan23]

I could be wrong, but I believe that UP replaced all their signs on top of their HQ building recently, correct?

In Brad's latest picture of the Mutual building you can see the much brighter color on UP's sign.

[nativeomahan]

Yes it used to be grey.

[Brad]

I could be wrong, but I believe that UP replaced all their signs on top of their HQ building recently, correct?

In Brad's latest picture of the Mutual building you can see the much brighter color on UP's sign.

Someone that visited my tent during the art fair mentioned that they had changed them a few days before the art fair. Must have been the last week of May.

[skinzfan23]

Either way, it looks a little brighter and cleaner. I like it.

[S.O.Boy]

https://www.msn.com/en-us/money/mergers ... ngNewsSerp


Union Pacific is in talks to merge with Norfolk Southern, according to The Wall Street Journal, in a deal that would shake up the railroad business in America.

The Journal cited people familiar with the matter. Union Pacific declined to comment. Norfolk Southern didn’t immediately respond to a request for comment.


Norfolk stock was up 3.8% in after hours trading at $280 a share. The stock gained 3.7% in regular trading, while the S&P 500 and Dow Jones Industrial Average added 0.5%. Union Pacific stock was up 1.1%.

Buying a large company, potentially with stock, can push down shares of any acquirer. Union Pacific is worth about $140 billion. The smaller Norfolk has a market value of $61 billion.

Still, consolidation has benefited the U.S. rail business over time, helping boost efficiency and profit margins. Union Pacific’s operating profit margins have risen to about 40% from below 30% 15 years ago.

A Union Pacific/Norfolk merger would marry Western and Eastern rail carriers together, creating a stronger network.

It’s a sound idea on paper, but any rail merger would face regulatory scrutiny. It will also have investors thinking about what could happen next. CSX has a market value of about $65 billion.

CSX stock was down 0.5% in after-hours trading.

The most recent significant rail merger was Canadian Pacific buying Kansas City Southern in 2023.

[NEDodger]

Ugh. Here’s hoping it falls through.

[OmahaOmaha]

UP is looking to purchase Norfolk Southern Railroad.

[damonhynes]

UP is looking to purchase Norfolk Southern Railroad.

Or CSX, according to Friday morning's scuttlebutt. I like that better because they could call the surviving company SUX.

[Garrett]

Could the merger be good for Omaha in any way?

[riceweb]

Ugh. Here’s hoping it falls through.

Why so?

[NEDodger]

Ugh. Here’s hoping it falls through.

Why so?

Mergers lead to job losses.

There’s also a chance that things get jacked up and the acquired company’s leadership takes over the acquiring company and we lose the HQ, a la “Northern Natural Gas/Enron”.

[NEDodger]

Could the merger be good for Omaha in any way?

I suppose in the slim chance UP has Norfolk Southern’s HQ gutted and moves a bunch of the people here?

[riceweb]

I don't think this by itself will lead to any significant changes to Omaha operations.

[GenX]

Perhaps they’ll decide they now need more space and build a new HQ on the old HQ site!

[NEDodger]

Perhaps they’ll decide they now need more space and build a new HQ on the old HQ site!

Or shift the HQ to Atlanta.

[almighty_tuna]

Perhaps they’ll decide they now need more space and build a new HQ on the old HQ site!

Or shift the HQ to Atlanta.

I thought UP was contractually obligated since like the 1800s to keep their HQ here. Or at least something along those lines...

[Bob from Omaha]

Perhaps they’ll decide they now need more space and build a new HQ on the old HQ site!

Or shift the HQ to Atlanta.

I thought UP was contractually obligated since like the 1800s to keep their HQ here. Or at least something along those lines...

Obligated to whom?

[Garrett]

Perhaps they’ll decide they now need more space and build a new HQ on the old HQ site!

Or shift the HQ to Atlanta.

I thought UP was contractually obligated since like the 1800s to keep their HQ here. Or at least something along those lines...

They were in Dallas and St Louis for a while, and didn’t return until their new HQ in 2004 I think

[almighty_tuna]

Hmm, I don't know what I'm thinking of then. I thought Omaha and UP had some sort of contract or struck some sort of deal. Guess not.

[NEDodger]

Hmm, I don't know what I'm thinking of then. I thought Omaha and UP had some sort of contract or struck some sort of deal. Guess not.

Nope. They’ve been threatening to leave multiple times in the past decades.

[Cermak]

Mergers generally haven’t worked out well for Omaha. Especially when the other company is from a larger, more glamorous and warmer metro.