Tag: BNSF

Canadian National:

Canadian National Railway July 25 reported an 8 percent increase in profit for the second quarter 2011 versus the second quarter 2010, citing a 10 percent increase in intermodal loadings (trailers and containers on flat cars) and a 14 percent increase in intermodal revenue.

CN’s second quarter 2011 operating ratio of 62.3 percent showed little change from the 61.2 percent for the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.

Canadian Pacific:

Canadian Pacific Railway’s second quarter 2011 profit fell by 23 percent versus second quarter 2010, owing to widespread and prolonged flood disruptions, said the carrier.

CP’s second quarter 2011 operating ratio of 88.8 was four percentage points higher than the operating ratio for the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.

CSX:

CSX July 19 reported a 22 percent increase in profit for the second quarter 2011 versus the second quarter 2010, much of it the result of higher freight rates as traffic volume slowed.

CSX said the improved profits will allow $2.2 billion in spending to make improvements to its tracks, yards and signals, and purchase additional locomotives and freight cars. The railroad also said it will increase employment by 4 percent in 2011, double its proposed headcount increase announced earlier in the year.

CSX’s second quarter 2011 operating ratio declined to 69.3, versus 7.2 for the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

CSX operates some 21,000 route miles in 23 states and the District of Columbia

Kansas City Southern:

Kansas City Southern July 21 reported a 19 percent improvement in profits for the second quarter 2011 versus second quarter 2010, driven by improved auto, intermodal and coal traffic as it established records for the number of carloads handled.

Its operating ratio of 71.7 was almost a full percentage point better than its operating ratio in the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.

Norfolk Southern:

Norfolk Southern July 26 reported a record second-quarter profit – a 42 percent improvement for second quarter 2011 versus second quarter 2010. The railroad cited increased intermodal traffic (trailers and containers on flat cars) and coal loadings as significant contributors to the improved earnings.

The NS second quarter 2011 operating ratio of 69.5 percent was slightly improved from the 69.9 percent for second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

NS operates some 20,000 route miles in 22 states and the District of Columbia.

Union Pacific:

Union Pacific July 21 reported a 10 percent increase in profits for the second quarter 2011 versus second quarter 2010, citing prices increases and an 11 percent increase in chemicals and agricultural carloads. The railroad said it was the best-ever quarterly earnings.

UP’s operating ratio of 71.3, however, was 1.9 percent higher than second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

UP said it plans to hire some 4,500 new workers by the end of 2011 – 3,000 to replace those retiring and 1,500 to new positions.

Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.

As BNSF is now privately held, it does not report quarterly earnings.

Tags BNSF, Canadian National, Canadian Pacific, CSX, Kansas City Southern, Norfolk Southern, operating ratio, profits, Union Pacific

A Wisconsin Central conductor has won a whistle-blower complaint against the carrier – collecting more than $125,000 in compensatory and punitive damages – for unlawful harassment and intimidation as the result of reporting an injury.

This was the third successful whistle-blower complaint filed against a railroad in recent months for violation of a worker’s rights under the Federal Rail Safety Act of 2007.

In the most recent case, the Occupational Safety and Health Administration ordered Wisconsin Central to cease and desist in its practice of automatically issuing notices of investigation for employees who report work injuries.

OSHA also ordered the carrier to pay the conductor lost wages, plus interest; $100,000 in punitive damages for its reckless disregard for the law; and $25,000 in compensatory damages for mental pain and emotional distress due to the humiliation and loss of income from the wrongful suspension. OSHA also ordered Wisconsin Central to provide all employees with a fact sheet advising them of their rights for reporting work-related injuries and illnesses.

According to the conductor’s attorney, the conductor reported an on-the-job injury, as required by railroad rules. The railroad subsequently issued a notice ordering the conductor to attend a formal investigation to ascertain his responsibility for sustaining a personal injury and to determine if the conductor violated any railroad rules.

Although it was determined that the railroad had abandoned previous efforts to treat an ice covered service road that the conductor was required to use in the performance of duties – resulting in the injury – Wisconsin Central found the conductor guilty of violating several rules and issued a 10-day suspension. The railroad alleged that by sustaining an injury, the conductor had violated the railroad’s rules.

Earlier this year, OSHA required Union Pacific to rehire a machinist it had fired following the reporting of a work-related injury, finding UP had improperly retaliated against him.

And in December 2010, OSHA ordered a conductor employed by BNSF to be reinstated after finding BNSF guilty of improper retaliation after the conductor filed an injury report.

The Federal Rail Safety Act of 2007 protects rail workers from retaliation and threats of retaliation when they report injuries, report that a carrier violated safety laws or regulations, or if the employee refuses to work under certain unsafe conditions or refuses to authorize the use of any safety related equipment.

Retaliation, including threats of retaliation, is defined as firing or laying off, blacklisting, demoting, denying overtime or promotion, disciplining, denying benefits, failing to rehire, intimidation, reassignment affecting promotion prospects, or reducing pay or hours.

An employer also is prohibited from disciplining an employee for requesting medical or first-aid treatment, or for following a physician’s orders, a physician’s treatment plan, or medical advice.

This protection is known as “whistle-blower protection,” and the federal law is enforced by OSHA, as it was against Wisconsin Central, UP and BNSF.

Relief may include reinstatement with the same seniority and benefits, back pay with interest, compensatory damages (including witness and legal fees), and punitive damages as high as $250,000.

A rail employee may file the complaint directly with OSHA, or may contact a UTU designated legal counsel, general chairperson or state legislative director for assistance.

A listing of UTU designated legal counsel is available at http://www.utu.org/, or may be obtained from local or general committee officers or state legislative directors.

To view a more detailed OSHA fact sheet, click on the following link:

http://www.osha.gov/Publications/OSHA-factsheet-whistleblower-railroad.pdf

Tags BNSF, designated legal counsel, Federal Rail Safety Act, Union Pacific, whistleblower, Wisconsin Central

GREAT FALLS, Mont. — Two unidentified BNSF crewmembers – a conductor and engineer — were injured near here July 19 when their 110-car train, with three locomotives, ran into the rear of a stationary and unoccupied maintenance train, reports the Associated Press.

The injuries were said not to be life-threatening. The freight train was enroute from Laurel to Shelby, and 13 of the maintenance-train cars derailed.

Tags BNSF

A mining and natural resources company, Oxbow Carbon and Minerals, has filed an antitrust suit against BNSF and Union Pacific, alleging the railroads have illegally fixed freight rates, in violation of the Sherman Antitrust Act, “to gouge customers.” Oxbow mines and ships coal and petroleum coke.

The lawsuit, before the federal District Court for the District of Columbia, was filed the same day the Association of American Railroads and the American Short Line and Regional Railroad Association urged members of Congress to oppose legislation introduced in the Senate earlier this year by Sen. Herb Kohl (D-Wis.) to bring railroads more fully under the nation’s antitrust laws. That bill is S. 49, the Railroad Antitrust Enforcement Act of 2011.

There is no direct connection between the Oxbow lawsuit and S. 49, although they both deal with antitrust law. The lawsuit alleges violations of the Sherman Antitrust Act of 1890.

Oxbow, controlled by industrialist William Koch, is asking the federal court to order BNSF and UP “to stop their illegal practices that restrain competition,” and is seeking unspecified damages that would be tripled under antitrust law if the lawsuit is successful.

The lawsuit also alleges BNSF and UP “have colluded” with CSX and Norfolk Southern, with the four railroads “[conspiring] since 2003 to use the deceptive concept of a ‘fuel surcharge’ to raise prices charged to their customers. The so-called ‘fuel surcharge’ has little to do with the actual cost of fuel and is simply a mechanism to increase rail shipping prices,” alleges Oxbow.

An attorney for one of the law firms representing Oxbow said, “This lawsuit will finally force Union Pacific and BNSF to account, in federal court, for their long history of breaking American antitrust laws. The complaint filed today describes how the railroads have used monopolization and price-fixing illegally to drive up the price of shipping coal and many other products, and those higher prices affect every business and consumer in the country.

“Only the power of the federal court can compel the freight railroad industry to fundamentally reform its business practices and stop abusing customers, consumers and the national economy,” said the attorney representing Oxbow.

Additionally, the Oxbow complaint alleges that since passage of the Staggers Rail Act of 1980, which partially deregulated railroads, mergers have resulted in only four major rail carriers – BNSF, CSX, NS and UP — and that the four “control shipping in the western states and agreed not to compete with each other or encroach on each other’s service territories by offering lower prices to potential customers.”

A BNSF spokesperson told Bloomberg news, “BNSF has not colluded or conspired in violation of any law.” UP said in a prepared statement that Oxbow had long warned of litigation unless the railroad came through with “exceptional commerical concessions.”

In its letter to congressional lawmakers June 7, the Association of American Railroads and the American Short Line and Regional Railroad Association said S. 49 “purports to repeal the railroads’ antitrust exemptions in order to treat the railroads like all other industries. However, the bill goes much further than repealing the limited antitrust exemptions the railroads currently have. It would subject railroads to discriminatory provisions that do not apply to other regulated industries.

“Railroads are already generally subject to the same antitrust laws as other businesses,” said the railroad associations in regard to S. 49. “The limited exemptions that the railroads do have exist only where the Surface Transportation Board regulates the same matter or activity. There is no gap in government regulatory oversight.

“Going beyond the antitrust laws, the bill limits the application to the railroads of the judicial doctrine which allows courts to defer to the primary jurisdiction of an administrative agency on matters that are within the agency’s areas of expertise and oversight,” the railroad associations told lawmakers.

“This doctrine is common for all regulated industries and for all legal matters,” said the railroad associations. “However, [S. 49] singles out only the railroads for hostile treatment in a manner which has nothing to do with an antitrust exemption.”

Tags AAR, American Shortline and Regional Railroad Association, antitrust, Association of American Railroads, BNSF, Koch, Kohl, lawsuit, Oxbow, S. 49, Union Pacific

MINERAL SPRINGS, N.C. — CSX conductor Phillip E. Crawford Jr., 33, and locomotive engineer James Gregory Hadden, 36, were killed early May 24 in a rear-end collision here involving two CSX freight trains, according to news reports. Mineral Springs is some 30 miles south of Charlotte.

Crawford was a member of UTU Local 970, Abbeville, S.C. He signed on with CSX in October 2005.

Two crew members on the lead train, which was hit from the rear, suffered minor injuries, reported the Charlotte Observer.

The National Transportation Safety Board and the Federal Railroad Administration are investigating the North Carolina train collision, and a member of the UTU Transportation Safety Team is assisting the NTSB.

A CSX spokesperson told the Associated Press that the rear-end collision occurred on northbound tracks and involved one train enroute to Hamlet, N.C., from New Orleans, and another enroute to Charlotte from southern Georgia. Each train was pulled by two locomotives; one pulling nine freight cars, and the other 12, said CSX.

In Ft. Worth, a BNSF switch foreman and UTU Local 564 member, Paul Young, 28, with almost seven years’ service, lost both legs and an arm after being hit by a train in BNSF’s Alliance Terminal of May 23. Young, a resident of Haslet, Texas, reportedly was performing a gravity switch at an ethanol plant at the time of the accident.

Tags accident, BNSF, collision, CSX, dead, FRA, injuries, killed, Local 970, National Transportation Safety Board, UP

NORTH PLATTE, Neb. — A Union Pacific machinist here was ordered rehired with back pay in a ruling by the Occupational Health and Safety Administration (OSHA) that found Union Pacific violated the worker’s rights under the Federal Rail Safety Act of 2007.

OSHA ruled that in firing the machinist, after he had reported a work-related injury, Union Pacific had improperly retaliated against him.

The railroad also was ordered to post a workplace notice admitting it was found to have retaliated against an employee for reporting a work-related injury.

In December 2010, OSHA ordered a UTU member employed by BNSF to be reinstated with back pay after finding BNSF guilty of improper retaliation after the worker filed an injury report with the Federal Railroad Administration.

An employer also is prohibited from disciplining an employee for requesting medical or first-aid treatment, or for following a physician’s orders, a physician’s treatment plan, or medical advice.

This protection is known as “whistle-blower protection,” and the federal law is enforced by OSHA, as it was against UP and BNSF.

Relief may include reinstatement with the same seniority and benefits, back pay with interest, compensatory damages (including witness and legal fees), and punitive damages as high as $250,000.

A rail employee may file the complaint directly with OSHA, or may contact a UTU designated legal counsel, general chairperson or state legislative director for assistance.

A listing of UTU designated legal counsel is available at www.utu.org, or may be obtained from local or general committee officers or state legislative directors.

To view a more detailed OSHA fact sheet, click on the following link:

http://www.osha.gov/Publications/OSHA-factsheet-whistleblower-railroad.pdf

Tags BNSF, Federal Rail Safety Act, harassment, OSHA, retaliation, threats, Union Pacific, UP, whistleblower

A memorial fund has been established for the three killed in a collision between a shuttle-van and freight train in Kelso, Wash., March 23.
A second fund was established to assist a UTU-member and conductor critically injured in the accident.
Killed in the collision at a private highway-rail grade-crossing were BNSF conductor-trainee Christopher Loehr, 28; BNSF locomotive engineer Thomas Kenny, 58; and van driver Steven Sebastian, 60. Critically injured was BNSF conductor Dwight Hauck, 51, a member and trustee of UTU Local 324, Seattle.
Hauck, Loehr and Kenny, who had brought a BNSF freight train from Seattle to Kelso, were passengers in the BNSF-provided shuttle van driven by Sebastian when it was hit by a BNSF freight train at the crossing. A Federal Railroad Administration investigation is underway to determine the cause of the accident.
Donations to the memorial fund will be divided equally among the families of Loehr, Kenny and Sebastian. They should be sent to:

BNSF Memorial Fund 2011

Account 38430

Cascade Federal Credit Union

4035 23rd Ave.

Seattle, WA 98199

Donations to the fund to aid the injured Hauck and his family should be sent to:

Dwight Hauck Fund

Account 8277835552

Wells Fargo Bank

999 3rd Ave.

Seattle, WA 98104

Tags BNSF, collision, donations, Hauck, Kelso collision, Kenny, Loehr, memorial funds, Sebastian

WASHINGTON — President Obama Feb. 23 named BNSF CEO Matt Rose, AFL-CIO President Rich Trumka and United Food and Commercial Workers’ Secretary-Treasurer Joseph Hansen to the White House Council on Jobs and Competitiveness.

The three join a long list of mostly business executives and bankers on the council.

Its task is to recommend ways to promote growth and bolster U.S. competitiveness in fulfilling Obama’s State of the Union pledge to “out-innovate, out-educate, and out-build” other nations.

Tags AFL-CIO, BNSF, growth, Obama, White House Council on Jobs and Competitiveness

UTU Local 367 represented employees of Nebraska Central Railroad, which includes all crafts, have ratified a wage, rules and working conditions agreement with an 80 percent plurality.

The five-year agreement provides for a signing bonus, wage increases, a minimum-hours guarantee and improved working conditions.

Assisting Local 367 in the negotiations were UTU International Vice President John Previsich, Union Pacific General Chairperson Rich Draskovich and Union Pacific Vice General Chairperson Brent Leonard (both, GO 953).

The three praised the efforts of Local 367 Chairperson Brandon Glendy in determining member concerns prior to negotiations, and then assisting with negotiations and explaining to members the tentative agreement prior to its overwhelming ratification.

Nebraska Central Railroad operates entirely in Nebraska over 340 miles of former BNSF and Union Pacific track.

The local lost one of its members in June 2010 when 38-year-old conductor Jeffrey Scholl died in the collapse of a railroad bridge into the flood-swollen Elkhorn River. Two other members of Local 367 were injured in the bridge collapse.

Tags agreement, BNSF, contract, Local 367, Nebraska Central Railroad, pact, ratify, UP

How did major railroads perform in 2010?

Reviewing their calendar-year and fourth-quarter profit statements, one wouldn’t know they were operating in the midst of a nationwide recession.

Profits soared, stock dividends were raised and operating ratios improved. (Operating ratio — a railroad’s operating expenses expressed as a percentage of operating revenue — is considered by economists to be the basic measure of carrier profitability.)

Wall Street analyst Ed Wolfe reports the level of freight car and intermodal loadings for the year registered “the best” year-over-year growth in more than 50 years.

Wolfe and other analysts also point to the railroads’ pricing strength — the ability to raise rates on shippers with limited effective alternatives to railroad transportation. Many long-term contracts for hauling coal are expiring, and substantial rate increases on that traffic already are reflected in new contracts.

Indeed, railroad CEOs are predicting another strongly profitable year in 2011, which was reflected in year-end railroad stock prices, which were flirting with record highs.

Following are profit reports from the major railroads: