Local 200 chairperson, general chairperson and SLD’s combined efforts get opportunity for cut workers to remain in industry

E. Hunter Harrison has been dead since Dec. 16, 2017. His legacy known as Precision Scheduled Railroading (PSR) is still alive and kicking.  

Some of the railroads have said publicly that they are trying to steer away from PSR. But in an unexpected twist, the specter of Harrison is rearing its ugly head in the lives of all our Union Pacific members with the recent ascension of new CEO Jim Vena.   

Vena is a known student of Harrison. When UP employees, some stockholders and SMART-TD general chairpersons expressed alarm at Vena’s hiring, the carrier put out a well-polished piece of propaganda about how Vena 2.0 was a changed man. 

We were all supposed to be put at ease, that he had learned the hard way that PSR was an unnecessarily disruptive force to the industry, the supply chain and in the personal lives of railroad employees.  

For the record, SMART-TD never bought this idea. The five GCs of our UP General Committees in no uncertain terms informed the carrier that they strongly disagree with Vena’s hiring. In the letter sent to UP’s vice president of labor relations, our GCs said “As COO, Jim Vena enacted policies, practices, and procedures that deliberately destroyed our members’ quality of life for the sake of profit. 

“He orchestrated huge furloughs and cuts to every department in transportation, which resulted in the crew shortages we have yet to recover from,” the GCs wrote. 

This second point came into play almost immediately upon Vena taking over Aug. 14. Less than a week into his reign, Vena proved our GCs to be absolutely correct by announcing UP was going to cut 94 positions across four crafts and 13 terminals.  

These men and women whose jobs were erased through no fault of their own were represented by the IBEW, IAM, NCFO and SMART Mechanical Division. Many of these fellow railroaders worked in remote locations where the UP terminal was the largest employer. As a result, many of them were going to have to uproot their families and pursue new career opportunities. 

SMART-TD Local Chairperson Amanda Snide (Local 200, North Platte, Neb.) didn’t like what she was hearing. She was frustrated and confused why these railroaders, though from different crafts and unions, were being thrown to the wolves while her terminal was desperately looking to find candidates to fill their posted openings for conductor positions.  

Sister Snide took matters into her own hands at that point. She successfully brokered the idea with the local management at the North Platte terminal to offer 11 employees slated to be let go in the mechanical crafts positions as conductors.  

As we approach the Labor Day holiday, there can be no better example of the value of labor movement than what these three accomplished for these fellow railroaders and their families. We thank you for defending our rail labor brothers and sisters against the corporate greed that threatened everything they had worked to build.  

Snide’s results giving the workers affected by Vena’s malicious cuts at her home terminal the chance to preserve their income, health benefits and retirement, impressed Nebraska’s SLD Foust. He took what Snide had started and turned his attention to the 83 other casualties of Vena’s short-sighted greed. Foust contacted General Chairperson Luke Edington from GO-953. Brother Edington, who was already on the record with UP about not being on board with UP’s “new vision,” took it from there. 

Edington took Snide’s plan and Foust’s vision of expanding it straight to UP’s Human Resources Department. SMART-TD is very proud to announce that Brother Edington succeeded in reaching an agreement with UP that at all terminals where they are simultaneously attempting to hire conductors and laying off other craft employees will give the same opportunity to transfer to conductor positions that Snide had enacted in North Platte.  

As of Aug. 30, 50% of the affected employees in eligible terminals had applied for transfers to conductor positions — quite a few salvaged railroad careers.  

SMART-TD is very proud of the initiative taken by Sister Snide, SLD Foust and GO-953 GC Luke Edington to make this happen.  

As we approach the Labor Day holiday, there can be no better example of the value of labor movement than what these three accomplished for these fellow railroaders and their families. We thank you for defending our rail labor brothers and sisters against the corporate greed that threatened everything they had worked to build.  

There has always been and will always be Hunter Harrison and Jim Vena types in the rail industry. What is important is that we commit ourselves as a union and as individuals to make sure we can match them with the wits, fight, solidarity and humanity exhibited by members like Amanda Snide and that the union spirit embodies. 

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.

E. Hunter Harrison became CEO of CSX in March 2017.

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.

Harrison

CSX CEO E. Hunter Harrison, 73, has died just two days after CSX announced that he was going on medical leave due to complications from an illness.
CSX’s chairman of the board of directors, Edward J. Kelly III said on behalf of the board: “With the passing of Hunter Harrison, CSX has suffered a major loss. Notwithstanding that loss, the board is confident that Jim Foote, as acting chief executive officer, and the rest of the CSX team will capitalize on the changes that Hunter has made. The board will continue to consider in a deliberative way how best to maximize CSX’s performance over the long term.”

The Chicago Tribune reported that Hunter Harrison, CEO of CSX, is at it again – killing jobs and rolling over safety measures to increase profits that benefit only a select few.
According to the report, more than 60 engineers, conductors and switchmen at Barr Yard in Chicago have been furloughed, fueling speculation that the Chicago yard may soon close.
John Risch, SMART TD national legislative director was quoted for the story:
“There’s one person to blame, and it’s E. Hunter Harrison,” Risch said. “He’s the guy that plunged into this thing forcefully and just decided to make major changes, and they’re not very well thought through.”’
Read the entire article here.

In a letter dated August 3, that was emailed to CSX CEO Hunter Harrison, SMART TD general chairpersons batted down Harrison’s claims that workers are at the root of service disruptions.
General Chairpersons Steve Mavity (GO 049), John Whitaker (GO 851), Dale Barnett (GO 513), James Darby (GO AWP) and Travis Raynes (GO 201) wrote:

“Our members, the ballast line employees, rightfully take your comments as a personal attack on their professionalism. They have worked through numerous operational challenges and changes to their work routines. Despite harsh treatment, furloughs and repeated violations of their collective bargaining agreements, it has not deterred the employees from fulfilling their duties.”

Click here to read the letter sent to E. Hunter Harrison on behalf of our CSX membership.

E. Hunter Harrison, CSX Chief Executive Officer

RailwayAge.com reported that data released from a recent CSX  customer survey shows that more than eighty percent of customer participants have experienced problems with CEO Hunter Harrison’s ‘Precision Railroading’ plan. Many CSX customers have already left and many more are considering leaving.
Harrison’s derailed attempt to shift the blame for plummeting customer approval and retention on CSX workers has been rejected by both SMART TD and CSX customers who understand that profits-first models serve no one but the executive board.
The following customer comment is one of several that are included in the article:
“There’s more to running a railroad than cutting costs to make your bottom line look better. While I haven’t transitioned any of my business yet, that doesn’t mean that I can’t or won’t.”
Click here to read the article.