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Derailment Spree Proves Railway Regulations Urgently Needed, Say Union Members
"These companies siphon billions into share buybacks, dividends, and bonuses rather than into the vital maintenance and infrastructure growth we need to build a safe, modern, and thriving rail industry," said one worker.
Apr 03, 2023
After at least six major freight train derailments occurred across the United States over the past week, the need for stronger rail safety rules couldn't be clearer, an interunion alliance of rail workers said Monday.
"The recent uptick in derailments across the U.S. highlights the dire need for stricter regulations on the length and weight of trains, as well as a focus on preventing unsafe operational practices such as precision scheduled railroading (PSR) which prioritizes short-term financial gains for Wall Street over the safety of communities and railroad workers," Jason Doering, a locomotive engineer and general secretary of Railroad Workers United (RWU), said in a statement.
The past week "was not a good one" for the nation's Class 1 rail carriers, RWU observed.
On Sunday, March 26, a Canadian Pacific train carrying hazardous materials careened off the tracks outside Wyndmere, North Dakota, spilling liquid asphalt and ethylene glycol and releasing propylene vapor.
Last Monday, a Union Pacific iron ore train reached 118 miles per hour as it ran away down Cima Hill in the Mojave Desert before wrecking on a curve, destroying two locomotives and 55 cars in San Bernardino County, California.
On Wednesday, a Canadian National iron ore train derailed in Butler County, Pennsylvania.
On Thursday, a BNSF train carrying ethanol and corn syrup crashed near Raymond, Minnesota, causing a fire that forced local residents to flee.
On Friday, a Norfolk Southern train went off the tracks in Irondale, Alabama.
One day ago, a train operated by the Class 2 regional Montana Rail Link—soon to be owned by BNSF—derailed on the banks of the Clark Fork River in Paradise, Montana.
"The recent uptick in derailments across the U.S. highlights the dire need for stricter regulations on the length and weight of trains, as well as a focus on preventing unsafe operational practices such as precision scheduled railroading."
"Rail workers are not surprised to see the dramatic increase in rail incidents following the widespread cuts to the industry," said locomotive engineer and RWU steering committee member Paul Lindsey.
"Each year these companies siphon billions into share buybacks, dividends, and bonuses rather than into the vital maintenance and infrastructure growth we need to grow a safe, modern, and thriving rail industry," Lindsey added.
Norfolk Southern has become the poster child for freight industry greed as the toxic aftermath of February's fiery train derailment and ensuing chemical spill and burnoff continues to unfold in East Palestine, Ohio.
Questioned last month at a U.S. Senate hearing about the ongoing public health and environmental disaster, Norfolk Southern president and CEO Alan Shaw refused to commit to giving workers seven days of paid sick leave or halting stock buybacks.
More Perfect Union has calculated that payouts to Norfolk Southern's shareholders soared by more than 4,500% over the past 20 years, from $101 million in stock repurchases and dividend bumps in 2002 to $4.7 billion in 2022.
Shaw also refused to commit to ending PSR, the profit-maximizing scheduling system that forces fewer workers to manage longer trains in less time, even though unions and progressive lawmakers argue the Wall street-endorsed model makes the U.S. rail system more dangerous and contributes to the 1,500-plus derailments seen nationwide each year.
Although Norfolk Southern epitomizes how railroad executives prioritize profits above all else, the corporation is far from alone in pushing for deregulation and implementing anti-worker, pro-investor policies.
An OpenSecrets analysis published last month found that the rail industry spent more than $713 million lobbying against enhanced rail safety rules at the federal and state levels between 2002 and 2022. Top spenders include the Association of American Railroads trade group, CSX, Union Pacific, Norfolk Southern, and BNSF's parent company Berkshire Hathaway, which is owned by billionaire Warren Buffett.
While RWU has made the case for nationalizing the railroads, it has also outlined a plan for reforms that can be quickly implemented in the absence of such a sweeping transformation. Specific provisions the alliance has called for include sufficient staffing; limits on train length and weight; adequate maintenance and inspections; and better training and employee benefits.
Last week, Sens. John Fetterman (D-Pa.), Bob Casey (D-Pa.), and Sherrod Brown (D-Ohio) introduced the Railway Accountability Act, which includes some of the measures sought by RWU and is supported by unions including the Transport Workers of America (TWU), the National Conference of Firemen & Oilers (NCFO), and the International Association of Sheet Metal, Air, Rail, and Transportation Workers-Mechanical Division (SMART-MD).
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While Blocking Paid Sick Leave, Union Pacific Spent More on Stock Buybacks Than Workers
"Instead of buying back their own stock, UP should be investing in their employees by offering paid sick leave, reasonable schedules, and a better quality of life for railroaders," said one union president.
Jan 25, 2023
Union Pacific, one of the largest rail corporations in the United States, said Tuesday that it brought in record revenue and profits last year as it successfully fought off workers' push for paid sick leave.
The company reported $7 billion in net income for 2022 as a whole and said it spent a whopping $6.3 billion repurchasing its own shares—significantly more than the $4.6 billion it spent on employee pay and benefits last year.
“Instead of buying back their own stock, UP should be investing in their employees by offering paid sick leave, reasonable schedules, and a better quality of life for railroaders," Ed Hall, the newly elected president of the Brotherhood of Locomotive Engineers, told CNN on Tuesday. "This is the only way the railroad will be able to solve their recruitment and retention problems and keep the trains running."
Union Pacific was one of the major rail carriers involved in White House-brokered contract talks late last year that produced an agreement without any guaranteed paid sick days, rejecting a central demand of rail workers.
Labor unions representing a majority of U.S. rail workers rejected the proposed agreement and threatened to strike, but Congress intervened in the long-simmering contract dispute in December to impose the White House-backed deal on employees, sparking furious backlash from rank-and-file union members and progressive allies.
"President Biden campaigned on a week of paid sick leave for all working people, and then he had the opportunity right here but didn't take action. He favored the corporations," Matt Weaver, a rail worker and member of the Brotherhood of Maintenance of Way Employes Division (BMWED) in Ohio, told In These Times contributor Jeff Schuhrke, who detailed rail workers' ongoing fight for paid leave and safety measures in a piece last week.
Facing continued pressure from employees and some activist investors, Union Pacific and other rail giants are "weighing offering paid sick days—or are already doing so—along with schedule changes and other steps to improve employees' work-life balance," Bloomberg reported Monday.
"Costs will still be a key consideration for the railroads—and their investors," the business outlet added. "Voluntary paid sick leave and more flexible schedules would add to the expense of the labor agreement, which over five years raises salaries by 24%, pays bonuses totaling $5,000, and adds one day a year of personal leave. That could come at the expense of dividends and share buybacks, which have soared in recent years."
"Workers remain skeptical that they'll truly benefit from the tradeoff," Bloomberg continued. "Railroads historically have been quick to furlough staff during downturns, have required long hours with little flexibility, and have imposed strict attendance policies that allow the railroads to operate with fewer workers."
As Railroad Workers United put it in a Twitter post on Tuesday, "Never take the Union Pacific at face value."
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While Fighting Workers, Railroads Made Over $10 Billion in Stock Buybacks
"Our research shows just how far railroad executives will go to funnel record profits to their shareholders—even if that means stagnant wages, inhumane attendance policies, and throwing our supply chain into further turmoil," said one Groundwork Collaborative analyst.
Sep 19, 2022
At the same time they have fought to deny sick days and other vital benefits to workers in the freight industry, rail carrier executives have been rewarding shareholders with billions of dollars in stock buybacks and dividend bumps.
"It's time for these railroad companies to start prioritizing the safety and well-being of their workers--or we'll all pay the price."
According to Railroad Operators: Bad for Workers, Good for Investors, a collection of data compiled by the Groundwork Collaborative and shared with Common Dreams on Monday, a handful of major rail companies reported more than $10 billion in buybacks and dividends over the first six months of 2022. Meanwhile, workers who try to visit a doctor amid a global pandemic continue to be disciplined, leading to higher staff turnover and soaring injury rates.
"Our research shows just how far railroad executives will go to funnel record profits to their shareholders--even if that means stagnant wages, inhumane attendance policies, and throwing our supply chain into further turmoil," Mike Mitchell, director of policy and research at Groundwork Collaborative, told Common Dreams.
Groundwork's analysis--based on recent corporate earnings calls from Union Pacific, CSX, Canadian National Railway, and Norfolk Southern--sheds new light on the dynamics underlying rail workers' ongoing fight for more safety and dignity in the workplace.
When it comes to shoveling more money to investors, Groundwork found that Union Pacific is leading the pack in 2022. Rather than using billions of dollars in revenue to improve pay and job conditions, Union Pacific gave $5 billion to shareholders through buybacks and dividends in the first six months of this year alone.
Other giants in the industry aren't far behind. CSX, for instance, funneled nearly $3 billion in buybacks and dividends to investors from January through June, while Canadian National Railway reported $2.3 billion in stock buybacks during the same time period, Groundwork noted.
Although exact figures weren't disclosed, Norfolk Southern's chief financial officer Mark George said on a July call that "shareholder distributions are up and you'll observe here the 19% higher dividend payments through six months on top of continued strong share repurchase activity."
Railroads have been enjoying record profits after decades of deregulation, consolidation, and "just-in-time" practices known as "precision railroad scheduling" transformed the industry into what Sarah Miller, executive director of the American Economic Liberties Project, describes as "another monopolized cash cow for Wall Street."
The safety of workers and communities, meanwhile, has been put in jeopardy by executives who have fired workers and increased hours, critics argue.
As Groundwork's new analysis points out, Union Pacific chief executive officer Lance Fritz told investors on a July call that the company had cut staff by a third since 2018 and said, "We've got to do some other unique and creative things with our labor unions in order to make our crews more available and more productive."
After admitting that Union Pacific's workforce "hasn't seen a raise in 2.5 or three years," Fritz praised the Presidential Emergency Board (PEB)--a panel of three arbitrators appointed by President Joe Biden earlier this summer in a bid to resolve heated contract negotiations between rail carriers and unions--and expressed hope that it would propose a "reasonable approach to wages."
He also said that Union Pacific is prepared to make further staffing cuts during an economic downturn, asserting that conductor-less trains would be "better for the conductors' quality of life."
Like Fritz at Union Pacific, CSX chief executive officer James Foote told investors on a July call that workers at his company "are not happy that they didn't get a raise for 2.5 years" and expressed hope that the PEB "puts out a recommendation that's a win-win for both sides."
CSX acknowledged that its injury rate in the second quarter "increased modestly from the near-record levels in the first quarter," only for Foote to blame the company's staffing challenges on what he described as pandemic-induced changes to "employees' work and lifestyle preferences."
"It's been somewhat of a surprise to all of us, the number of people that have dropped out after, again, going through all of the classroom training, all of the on-the-job training, and then working a few months and deciding that they don't like railroading as a profession," said Foote, just moments after stagnant wages and unsafe conditions were discussed.
Mark George, the CFO of Norfolk Southern, meanwhile, also attributed high attrition rates to a so-called "lifestyle challenge" occurring "in a very unique [labor] market where everybody is looking for talent."
He did go on to acknowledge, however, that "despite the very rich and attractive pay structure that the railroads offer, sometimes, [people would] rather work in a more predictable schedule in warehousing or in home construction, where they can be nearby where they live and not stay in hotels and also just not be on call."
Norfolk Southern's chief operating officer Cindy Sanborn said that the company is looking into "sign-on and attendance bonuses, retirement deferral, and referral incentive[s]" to boost hiring and retention, but she didn't say anything about workers' fundamental demands for sick days, paid leave, and other basic benefits revolving around better "quality of life."
\u201cAaron Hiles, 51, died from a heart attack in June weeks after postponing a doctor's appointment so he wasn't penalized at his railroad job.\n\nThis is one of the tragedies at the heart of the at least for now averted railroad strike. \n\nI spoke to his family:\nhttps://t.co/1hN0UCMlId\u201d— Lauren Kaori Gurley (@Lauren Kaori Gurley) 1663451764
Last week, labor lawyer Jenny Hunter and Terri Gerstein, director of the State and Local Enforcement Project at Harvard Law School's Labor and Worklife Program, argued in Slate that railroad companies nearly inflicted an economic catastrophe on the U.S. because they chose profit-maximization over humane workplace policies.
As the pair wrote:
It should not be controversial to say it, but: People should have sick leave so they do not have to come to work when they get sick. They should be able to take leave to attend doctors' appointments or deal with family emergencies without risking their jobs. Workers should also have regular time off, not be on call almost every day of their lives. This strike or lockout was threatened because of the railroad companies' refusal, right up until the last minute, to accept these basic human needs, and their willingness to bring an already weary country to the brink of yet another economic disaster, all in the name of ever more profits.
The United States, unlike many countries, does not have a national law guaranteeing sick leave; if we did, the railroads' attendance systems would be clearly illegal. The kind of point-based attendance systems that railroads employ can still be considered unlawful retaliation if workers lose points for taking leave that is legally protected, such as for absences guaranteed by the Family and Medical Leave Act, the Americans with Disabilities Act, or state or local sick leave laws. Apart from questions of legality, it is grossly irresponsible to punish people for unexpected illnesses ever, and especially during a pandemic.
A nationwide strike or lockout was at least temporarily averted last Thursday when the Biden White House announced a tentative agreement between rail carriers and unions that would enable workers to take days off for medical care without being punished, though just one of those days would be paid.
As a pair of unions representing tens of thousands of rail workers has stressed, however, the proposed deal still must be approved by rank-and-file members in an upcoming ratification vote.
Had it not been for Sen. Bernie Sanders' (I-Vt.) intervention last week, Senate Republicans may have succeeded in forcing rail workers to accept the PEB's original proposal, which many workers found intolerable because it excluded the sick leave benefits they sought, among other shortcomings.
Mitchell, for his part, said Monday that "it's time for these railroad companies to start prioritizing the safety and well-being of their workers--or we'll all pay the price."
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