NORTH OLMSTED, Ohio — The team negotiating the next National Rail Contract which will affect more than 40,000 SMART Transportation Division members has been finalized by the union’s leadership.
The team will be led by TD President Jeremy Ferguson with the assistance of Vice Presidents Brent Leonard; John J. Whitaker III; Chadrick Adams; Jamie C. Modesitt; Joe M. Lopez and David B. Wier Jr.
Also part of the team are five General Chairpersons, Mike LaPresta (BNSF); Gary Crest (Union Pacific); Roger Crawford (Illinois Central); Thomas Gholson (Norfolk Southern) and Christopher Bartz (yardmasters).
“We are prepared to do whatever it takes to get the most out of this round of national contract talks,” President Ferguson said. “It will be a challenging process and it could be quite contentious at times. However, we on the negotiating team are confident that as we work through the process we can achieve a positive result.”
The opening meeting of negotiations is scheduled for February 26 and 27 in Washington, D.C., with talks occurring in Cleveland, Omaha, Washington, D.C. and Chicago, as the year progresses.
SMART-TD is part of a Coordinated Bargaining Coalition that consists of it and nine other unions representing rail labor. Carriers BNSF, CSX, Kansas City Southern, Canadian National, Norfolk Southern, Soo Line, Union Pacific and numerous smaller railroads are represented by the National Carriers’ Conference Committee (NCCC) during negotiations.
In related news, CSXT will not be part of national bargaining, except for health and welfare issues. For the wages and rules portion, SMART-TD and CSX have agreed to begin bargaining locally on behalf of trainmen starting Jan. 21, 2020.
A joint meeting for the negotiating parties regarding facilitated bargaining is scheduled in Jacksonville, Fla., on January 22 and 23.
Additional meeting dates for these negotiations are currently under discussion, and a tentative schedule will be set in the near future. Neither the SMART-TD nor CSX have exchanged any proposals, and an agenda for the subjects to be discussed during these contract talks, which are separate from the National Rail Contract negotiations, has yet to be finalized.
Tag: CSX
Brother McConihay, 32, was a U.S. Marine veteran and lived in Southside, W.Va., with his wife, Megan, and their two daughters. He joined SMART-TD in May 2015 and was a conductor for CSX.
“We lost not only a dedicated employee, but a forever union brother in C. C. McConihay. Our pain pales in comparison to the void that is left in his loved ones’ hearts. It is a void that can never be filled,” said Local 1386 Chairperson W.R. Parsons. “Please let us keep his family in our thoughts and prayers, as his family is now our family. We will keep his memory alive by remembering the good times as we are better people for knowing him. God bless his wife Megan and his precious daughters. Rest in peace, Brother Curtis McConihay.”
Parsons said a memorial fund is in the works for Brother McConihay’s family.
SMART-TD National Safety Director Jerry Gibson has requested that the National Transportation Safety Board launch an investigation into the accident due to divergences in the reports of the circumstances surrounding the fatal accident. Gibson continues to be in contact with the agency.
CSX and the Federal Railroad Administration are currently the only parties investigating.
However, Gibson states that an internal report into the incident will be performed by SMART-TD.
SMART-TD offers its sincere condolences to Brother McConihay’s family and friends and to the members of Local 1386 who worked with him and knew him.
His obituary can be read here.
Net Earnings: $1.466 billion, a slight increase from the $1.4 billion in 2018’s third quarter
Revenue: $6.021 billion, a decrease of 2% from the same period in 2018
Operating Income: $1.9 billion, an increase of 3.3% from the same period in 2018
Operating Expenses: $3.809 billion, a decrease of 4.9% from the same period in 2018
Operating Ratio: Improved to 63.3%
Berkshire Hathaway’s third quarter earnings reports is available in this PDF — the in-depth BNSF analysis begins on Page 35.
Net Earnings: Increased to C$1,195 million from C$1,134 million
Diluted Earnings Per Share: Increased 8% to $1.66 from $1.44
Revenue: Increased 4% to C$3.830 million from C$3,688 million
Operating Income: Increased 8% to C$1,613 million
Operating Expenses: Increased 1% to C$2,217 million from C$2,196 million
Operating Ratio: Improved 1.6 points to 57.9% from 59.5%
Click here to read CN’s full earnings report.
Net Earnings: Decreased 1% to C$618 million from C$622 million
Diluted Earnings Per Share: Increased 3% to $4.46 from $4.35
Revenue: Increased 4% to a record C$1.98 billion from C$1.90 billion
Operating Income: Increased 10% to C$869 million from C$790 million
Operating Expenses: Increased to C$1.11 billion from C$1.10 billion
Operating Ratio: Improved 220 basis points to a record-low 56.1% from 58.3%
Click here to read CP’s full earnings report.
Net Earnings: Decreased 4% to $856 million from $894 million
Earnings Per Share: Increased 3% to $1.08 per share from $1.05 per share
Revenue: Decreased 5% to $2.98 billion from $3.13 billion
Operating Income: Stayed flat at $1.29 billion
Operating Expenses: Decreased 8% to $1.69 billion from $1.84 billion
Operating Ratio: Improved 1.9 points to a record 56.8% from 58.7%
Click here to read CSX’s full earnings report.
Net Earnings: Increased to $180.6 million from $174 million
Diluted Earnings Per Share: Increased 6% to $1.81 from $1.70. Adjusted Diluted EPS increased 24% to a record $1.94 from $1.57
Revenue: Increased 7% to a record $747.7 million from $699.0 million
Operating Income: Increased to $282 million from $265.4 million. Adjusted Operating Income increased 15% to a record $294 million
Operating Expenses: Increased to $465.7 million from $433.6 million
Operating Ratio: Worsened 0.3 points to 62.3% from 62.0%
Click here to read KCS’s full earnings report.
Net Earnings: Decreased 6% to $657 million from $702 million
Diluted Earnings Per Share: Decreased 1% to $2.49 from $2.52
Revenue: Decreased 4% to $2.8 billion from $2.9 billion
Operating Income: Decreased $24 million to $1.0 billion
Operating Expenses: Decreased 4% or $82 million to $1.8 billion from $1.9 billion
Operating Ratio: Improved to a third quarter record 64.9% from 65.4%
Click here to read NS’s full earnings report.
Net Earnings: Decreased 2% to $1.55 billion from $1.59 billion
Diluted Earnings Per Share: Increased 3% to $2.22 from $2.15
Revenue: Decreased 7% to $5.5 billion from $5.9 billion
Operating Income: Decreased 2% to $2.2 billion from $2.3 billion
Operating Expenses: Decreased 10% to $3.3 billion from $3.7 billion
Operating Ratio: Improved 2.2 points to a quarterly record 59.5% from 61.7%
Click here to read UP’s full earnings report.
Notes:
- 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. The lower the operating ratio, the more efficient the railroad.
- All comparisons are made to 2018’s third quarter results for each railroad.
- All figures for CN & CP are in Canadian currency, except for earnings per share
A Florida judge has dismissed a lawsuit that three CSX shareholders had filed last summer against the carrier regarding the 2017 hiring of late CEO E. Hunter Harrison.
The matter was settled by Virginia state law, which required that the suit be dismissed after a committee of “disinterested” CSX board members determined that the suit, which involved the company suing itself, should not go forward.
The shareholders who filed the lawsuit, John Robertson, James Ekis and George Triefenbach, have the option of filing an amended derivative complaint 30 days after the June 3 dismissal by Judge Kevin Blasz of Florida’s Fourth Judicial Circuit Court.
For more background, see this previous story.
Net Earnings: Increased 9.4% to $1.25 billion
Revenue: Increased 2.5% to $5.57 billion
Operating Income: Increased 2.3% to $1.78 billion
Operating Expenses:Increased 2.5% to $3.79 billion
Operating Ratio: Improved by 2 points to 66.5%
Click here to read BNSF’s full earnings report.
Net Earnings: Increased 6% to C$786 million from C$741 million
Earnings Per Share: Diluted earnings per share increased 8% to C$1.08 from C$1.00 and adjusted diluted EPS increased by 17% to C$1.17
Revenue: Increased by 11% to C$3.5 billion from C$3.2 billion
Operating Income: Increased 5% to C$1.08 billion from C$1.03 billion
Operating Expenses: Increased 14% to C$2.5 billion from C$2.2 billion
Operating Ratio: Worsened by 1.7 points to 69.5%; Adjusted operating ratio improved 0.6 points to 67.2%
Click here to read CN’s full earnings report.
Net Earnings: Increased 25% to C$434 million from C$348 million
Earnings Per Share: Diluted earnings per share increased 28% to $3.09 from $2.41; adjusted diluted earnings per share increased 3% to $2.79 from $2.70
Revenue: Increased 6% to C$1.77 billion from C$1.66 billion
Operating Income: Increased 1% to C$543 million from C$540 million
Operating Expenses: Increased 9% to C$1.2 billion from C$1.1 billion
Operating Ratio: Worsened 180 basis points to 69.3% from 67.5%
Click here to read CP’s full earnings report.
Net Earnings: Increased 20% to $834 million from $695 million
Earnings Per Share: Increased 31% to $1.02 from $0.78 per share
Revenue: Increased 5% to $3.01 billion from $2.9 billion
Operating Income: Increased 17% to $1.22 billion from $1.04 billion
Operating Expenses: Decreased 2% to $1.79 billion from $1.83 billion
Operating Ratio: Improved to a first quarter record of 59.5% from 63.7%
Click here to read CSX’s full earnings report.
Net Earnings: Decreased to $103.2 million from $145 million
Earnings Per Share: Decreased 27% to $1.02 from $1.40; adjusted diluted earnings per share increased 18% to $1.54 from $1.30
Revenue: Increased 6% to a record $675 million from $639 million
Operating Income: Decreased to $160.3 million from $219 million; adjusted operating income increased 10% to a record $242 million
Operating Expenses: Decreased to $514.5 million from $515 million
Operating Ratio: Worsened 10.4 points to 76.2% from 65.8%; adjusted operating ratio improved 1.6 points to 64.2% from 65.8%
Click here to read KCS’s full earnings report.
Net Earnings: Increased 23% to $677 million from $552 million
Earnings Per Share: Diluted earnings per share increased 30% to $2.51 from $1.93
Revenue: Increased 5% to a first-quarter record of $2.8 billion from $2.7 billion
Operating Income: Increased 16% to a first-quarter record of $966 million from $835 million
Operating Expenses: Decreased by $8 million to $1.874 billion from $1.882 billion
Operating Ratio: Improved to a first-quarter record 66.0% from 69.3%
Click here to read NS’s full earnings report.
Net Earnings: Increased 6% to $1.4 billion from $1.3 billion
Earnings Per Share: Increased 15% to $1.93 per diluted share from $1.68 per diluted share
Revenue: Decreased 2% to $5.4 billion from $5.5 billion
Operating Income: Increased 1% to $2.0 billion from $1.93 billion
Operating Expenses: Decreased 3% to $3.4 billion from $3.5 billion
Operating Ratio: Improved 1.0 point to 63.6% from 64.6%
Click here to read UP’s full earnings report.
Net Earnings: Decreased to $38.8 million from $76.0 million
Earnings Per Share: Diluted earnings per share decreased 42.9% to $0.68 from $1.19
Revenue: Increased 2.1% to $332.4 million from $325.6 million
Operating Income: Decreased 5.3% to $69.3 million from $73.2 million; adjusted operating income decreased 4.2% to $70.3 million from $73.4 million
Operating Expenses: Increased to $263.1 million from $252.5 million
Operating Ratio: Worsened to 79.1% from 77.5%; adjusted operating ratio worsened to 78.9% from 77.5%
Click here to read G&W’s full earnings report.
Notes:
- 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. The lower the operating ratio, the more efficient the railroad.
- All comparisons are made to 2018’s first-quarter results for each railroad.
- Figures for G&W are for North American operations only, with the exception of Net Earnings & Earnings Per Share, which includes all G&W operations, as solely North American figures were unavailable in these categories.
- All figures for CN & CP are in Canadian currency, except for earnings per share for CP
The National Transportation Safety Board (NTSB) ruled last month on the probable cause of a fatal accident in June 2017 that killed both a CSX conductor and a conductor trainee.
The men were struck from behind at 11:18 p.m. June 27, 2017, by an Amtrak train while walking to the cab of their train in Ivy City, a neighborhood in Washington, D.C.
The men had just completed a railcar inspection.
The NTSB report, released April 9, stated that there had been no rail traffic for about an hour on the active tracks upon which the men were walking as they returned.
As they walked, a pair of Amtrak trains, one northbound and one southbound, approached the men, the report stated.
NTSB said the northbound Amtrak train approached the men from the front on tracks to the left of those upon which they were walking, and that both trains sounded their horns and bells at virtually the same time in attempts to alert them.
“Given the simultaneous and similar horn and bell sounds from the two trains, the conductors may not have discerned two sources of the sounds and, consequently, concluded that the sounds originated from only one train — the one that they had detected ahead of them.
“As a result, it appears the conductors were unaware that a second train was approaching them from behind,” the report stated.
NTSB issued a new safety recommendation to the two carriers involved in the accident at the conclusion of its report:
“Prohibit employees from fouling adjacent tracks of another railroad unless the employees are provided protection from trains and/or equipment on the adjacent tracks by means of communication between the two railroads.”
Read the full NTSB report here.
A ruling is expected in January on whether a lawsuit by a trio of CSX shareholders who have sued the carrier’s board over the hiring of late CEO E. Hunter Harrison in 2017 can advance, the Florida Times-Union reports.
The 72-year-old Harrison sought an $84 million financial package when brought aboard from Canadian Pacific to lead the Jacksonville, Fla.,-based carrier in March 2017. Harrison began implementing his Precision Scheduled Railroad (PSR) strategy at CSX, resulting in reports of service disruption that led to a hearing before the federal Surface Transportation Board (STB).
Harrison died at age 73 in December, nine months after his hiring and just two days after the carrier had placed him on medical leave.
“CSX board failed to properly vet Harrison’s medical condition before agreeing to his demands involving compensation, reimbursement arrangements to be made with Mantle Ridge, and the addition of conflicted Board members,” the lawsuit claims. “Knowing that Harrison’s demands were extraordinary and outrageous, couple with their overriding fears concerning Harrison’s poor health, the Board resolved to see guidance from its shareholders and called a special meeting to do so.”
However, the lawsuit claims, after being influenced by CSX minority shareholder Mantle Ridge, the carrier’s board went ahead with the hiring and took the decision out of shareholders’ hands.
“Instead of taking proper steps to protect CSX and offload some of the financial risk of Harrison’s hiring, the board instead approved and disseminated false and misleading proxy statements to shareholders, and in doing so ensured that the outcome of the shareholder vote regarding the reimbursement arrangement was predetermined to favor Harrison and Mantle Ridge…” the lawsuit states.
More than 90 percent of CSX shareholders voted to support the reimbursements at the annual shareholder meeting in June.
“CSX’s Board knew about, hid and outright deceived shareholders about Harrison’s ill health and physical infirmities,” the lawsuit states.
The shareholders’ suit was originally filed in April 2018, dropped and then re-filed in mid-July. If Judge Kevin Blazs of Florida’s Fourth Judicial Circuit Court rules in favor of the shareholders, their lawsuit could move ahead to a jury trial, the Times-Union reported.
The lawsuit’s case number is 2018-CA-004625.
According to the Jacksonville Business Journal, two more lawsuits were filed Nov. 29 alleging that CSX Corp. has violated employees’ rights protected under the Family and Medical Leave Act (FMLA).
According to the Department of Labor, “FMLA provides eligible employees up to 12 workweeks of unpaid leave a year…and entitles employees to return to their same or equivalent job at the end of their leave.”
One suit was filed by a former employee from West Virginia who alleges that she was fired for absenteeism while using approved FMLA time off to address migraines and recover from knee surgery, the Journal reported.
The Journal said the other suit was filed in Ohio by an employee who states he’s been denied bonuses for good attendance because he took covered leave. This suit has been filed as a class-action suit, according to the Journal.
CSX has been accused by multiple others of having violated FMLA this year. In February, a suit was filed in West Virginia claiming that CSX fired 46 employees who were covered under FMLA. In March, a similar claim was made in Maryland after the railroad fired 20 more employees for the same reasons. Three more suits filed this year in Alabama and Pennsylvania also allege the company violated rights covered under FMLA.
Late last year, CSX investigated a number of employees for taking FMLA leave, leading to one of SMART TD’s Designated Legal Counsel to offer services.
Net Earnings: Increased 34 percent to $1.4 billion
Revenue: Increased 16 percent to $6.1 billion
Operating Income: Increased 9 percent to $2.1 billion
Operating Expenses: Increased 20 percent to $4.0 billion
Operating Ratio: Increased 2.1 points to 64.5 percent
Click here to read BNSF’s full earnings report.
Net Earnings: Increased 18 percent to C$1,134 million
Earnings Per Share: Diluted earnings per share increased 21 percent to C$1.54
Revenue: Increased 14 percent to a record C$3,688 million
Operating Income: Increased 8 percent to C$1,492 million
Operating Expenses: Increased 19 percent to C$2,196
Operating Ratio: Increased 2.3 points to 59.5 percent
Click here to read CN’s full earnings report.
Net Earnings: Increased 22 percent to C$622 million
Earnings Per Share: Diluted earnings per share increased 24 percent to a record C$4.35
Revenue: Increased 19 percent to a record C$1.9 billion
Operating Income: Increased 27 percent to C$790 million
Operating Expenses: Increased 14 percent to C$1,108 million
Operating Ratio: Decreased 270 points to a record low of 58.3 percent
Click here to read CP’s full earnings report.
Net Earnings: Increased 106 percent to $894 million
Earnings Per Share: Increased to $1.05 per share from $0.51 per share
Revenue: Increased 14 percent to $3.13 billion
Operating Income: Increased 49 percent to $1.29 billion
Operating Expenses: Declined 2 percent to $1,84 billion
Operating Ratio: Improved 970 basis points to a record 58.7 percent
Click here to read CSX’s full earnings report.
Net Earnings: Increased to $174 million from $129 million
Earnings Per Share: Diluted earnings per share increased 38 percent to $1.70
Revenue: Increased 6 percent to a record $699 million
Operating Income: Increased 14 percent to $265 million
Operating Expenses: Increased to $433.6 million from $422.8 million
Operating Ratio: Improved 2.4 basis points to 62 percent
Click here to read KCS’s full earnings report.
Net Earnings: Increased 39 percent to $702 million
Earnings Per Share: Diluted earnings per share increased 44 percent to a third quarter record of $2.52
Revenue: Increased 10 percent to $2.9 billion
Operating Income: Increased 14 percent to a third quarter record of $1.0 billion
Operating Expenses: Increased 9 percent to $1.9 billion
Operating Ratio: Declined 1.1 basis points to a record 65.4 percent
Click here to read NS’s full earnings report.
Net Earnings: Increased from $1.2 billion to $1.6 billion
Earnings Per Share: Increased 43 percent from $1.50 to a record $2.15 per diluted share
Revenue: Increased 10 percent to $5.9 billion
Operating Income: Increased 9 percent to $2.3 billion
Operating Expenses: Increased 10 percent from $3.3 billion to $3.7 billion
Operating Ratio: Stayed flat at 61.7 percent
Click here to read UP’s full earnings report.
Financial results of the largest shortline:
Net Earnings: Increased to $69.6 million from $50.2 million
Earnings Per Share: Increased 45 percent to $1.16
Revenue: Increased 11.5 percent to $355.7 million from $318.9 million
Operating Income: Increased 24.7 percent to $102.5 million, up from $82.2 million
Operating Expenses: Increased to $253,225 from $236,724
Operating Ratio: Improved 3 points to 71.2 percent from 74.2 percent
Click here to read G&W’s full earnings report.
Notes:
- 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. The lower the operating ratio, the more efficient the railroad.
- All comparisons are made to 2017’s third quarter financial results for each railroad.
- Figures for G&W are for North American operations only with the exception of Net Earnings & Earnings Per Share, which includes all G&W operations, as solely North American figures were unavailable in these categories.
Net Earnings: Increased 27 percent to C$1,310 million; diluted earnings per share increased 30 percent to C$1.77
Revenue: Increased 9 percent to C$3,631 million
Operating Income: Increased 7 percent to C$1,519 million
Operating Ratio: Increased 0.7 points to 58.2 percent (worsened as compared to the same period in 2017, but an improvement from the first quarter 2018)
Click here to read CN’s full earnings report.
Net Earnings: Decreased 9 percent to C$436 million from C$480 million; Diluted earnings per share declined 7 percent to C$3.04, down from C$3.27
Revenue: Increased 7 percent to C$1.75 billion from C$1.64 billion
Operating Income: Increased 3 percent to C$627 million
Operating Ratio: Increased 140 basis points to 64.2 as compared to last year’s 62.8 percent
Click here to read CP’s full earnings report.
Net Earnings: $877 million or $1.01 per share, up from $510 million or $0.55 per share
Revenue: Increased 6 percent to $3.10 billion
Operating Income: Increased 34 percent to $1.28 billion from $957 million
Operating Ratio: An all time company quarterly record of 58.6 percent as compared to last year’s 67.4 percent
Click here to read CSX’s full earnings report.
Net Earnings: Increased to $149 million or $1.45 per diluted share, as compared to last year’s $135 million or $1.27 per diluted share. Adjusted diluted earnings per share increased 16 percent to a record $1.54
Revenue: Increased 4 percent to a record $682 million
Operating Income: Increased 3 percent to a record $246 million
Operating Ratio: Increased 0.5 points to 64 percent as compared to 63.5 percent a year ago
Click here to read KCS’s full earnings report.
Net Earnings: Increased 43 percent to $710 million; Diluted earnings per share increased 46 percent to $2.50 per share
Revenue: Increased 10 percent to $2.9 billion
Operating Income: Increased 18 percent to a record $1.0 billion
Operating Ratio: A record 64.6 percent
Click here to read NS’s full earnings report.
Net Earnings: Increased to $1.5 billion from $1.2 billion, or a record $1.98 diluted earnings per share an increase of 37% from $1.45 per share
Revenue: Increased 5 percent to $2.1 billion
Operating Income: Increased 8 percent to $5.7 billion
Operating Ratio: Increased 1.1 points to 63.0 percent
Click here to read UP’s full earnings report.
Financial results of the largest U.S. shortline:
Net Earnings: Decreased to $44.2 million or $0.73 diluted earnings per share from $46 million or $0.74 per share
Revenue: Increased 7.6 percent to $339.6 million from $315.7 million
Operating Income: Increased 0.7 percent to $80.3 million from $79.7 million
Operating Ratio: Increased 1.6 points to 76.4 percent
Click here to read G&W’s full earnings report.
Notes:
- 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. The lower the operating ratio, the more efficient the railroad.
- All comparisons are made to 2017’s second quarter financial results for each railroad.