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CLEVELAND (April 6) — Leaders of the U.S. House of Representatives Committee on Transportation and Infrastructure are asking the Federal Railroad Administration (FRA) to take action on a 2008 Congressional mandate to address rail worker fatigue at Class I carriers, with a specific reference to attendance policies such as those imposed at CSX, Union Pacific, and BNSF.

In an April 6 joint letter to FRA Administrator Amit Bose, Rep. Peter A. DeFazio (D-OR), Chairman of the House Transportation and Infrastructure Committee, along with Rep. Donald M. Payne Jr. (D-NJ), Chairman of the Subcommittee on Railroads, Pipelines and Hazardous Materials, remind the FRA Administrator of the Rail Safety Improvement Act of 2008 (RSIA), which established a law requiring railroads to implement fatigue management and reduction plans.

U.S. Rep. Peter DeFazio

“The Congressional mandate to mitigate fatigue among crewmembers and other safety-related workers is now a decade late,” Rep. DeFazio and Rep. Payne wrote. “Crewmembers and other craft workers have raised their concerns about being excessively exhausted at work, which is worsened by PSR. These workers cannot wait any longer, and neither can the communities through which trains travel. To mitigate attendance policies that contribute to fatigue and help ensure all safety-related workers are rested and prepared to do the job safely, we respectfully urge your agency to issue the fatigue risk management program final rule without delay, require its swift implementation, and meaningfully enforce it to ensure that the 2008 bipartisan Congressional mandate is met.”

U.S. Rep. Donald Payne Jr.

In the letter, Rep. DeFazio and Rep. Payne lay the cause of fatigue at the feet of the nation’s Class I railroads. The industry’s self-inflicted problems, such as inaccurate train lineups and the implementation of harsh attendance policies, contribute greatly to rail worker fatigue.

“We believe that attendance policies that not only contribute to fatigue but also penalize workers for taking off when fatigued or ill simply cannot co-exist with any serious fatigue risk management program,” the Representatives wrote. “Rather, these policies could incentivize employees to show up to work fatigued in order to avoid reprimand or termination. They also ignore the unfortunate reality that crewmembers already have unpredictable and unreliable schedules, which makes this line of work difficult for many, even before policies that further restrict their lives and abilities to obtain proper rest.”

Rep. DeFazio and Rep. Payne are also highly critical of the industry’s implementation of the so-called precision scheduled railroading (PSR) business operating model.

“Class I carriers have substantially reduced the size of their workforces since implementing precision scheduled railroading (PSR) at the behest of Wall Street investors. Unions representing railroad workers and individual workers have sounded the alarm on rail worker fatigue, which they believe is worsened by the deployment of PSR and the resulting push to do more work with nearly one-third fewer people on the job.”

Leaders of the nation’s two largest railroad unions, which represent the nation’s train operating crews, applauded the April 6 letter.

“We want to make it clear that we are fighting attendance policies at all Class I carriers. Fatigue has long been a problem at CSX, UP, BNSF, NS and other rail carriers, but it has been made much worse because of extreme job cuts resulting from the implementation of PSR coupled with the industry’s determination to force harsh attendance policies upon the remaining workforce,” said SMART-TD President Jeremy Ferguson and BLET National President Dennis Pierce. “SMART-TD and the BLET have also put the issue on the table in our national negotiations, currently in mediation, demanding that all imposed attendance policies be rescinded with negotiated attendance contract rules to take their place. On behalf of our members, we thank Representative DeFazio and Representative Payne for shining a light on this pressing issue in our industry and being vocal leaders for rail worker safety.”

Read the representatives’ letter (PDF)

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The SMART Transportation Division is comprised of approximately 125,000 active and retired members of the former United Transportation Union, who work in a variety of crafts in the transportation industry.

The Brotherhood of Locomotive Engineers and Trainmen represents nearly 57,000 professional locomotive engineers and trainmen throughout the United States. The BLET is the founding member of the Rail Conference, International Brotherhood of Teamsters.

CLEVELAND, Ohio (April 6, 2022) — The nation’s two largest railroad unions continue to gather allies and momentum as they oppose the imposition of precision scheduled railroading (PSR) tactics by Class I carriers that put safety and the health and lives of working people at risk.

SMART Transportation Division President Jeremy Ferguson, Association of Flight Attendants-CWA President Sara Nelson, President of the Air Line Pilots Association Capt. Joe DePete and Brotherhood of Locomotive Engineers and Trainmen President Dennis Pierce meet April 4 at the Transportation Trades Department, AFL-CIO Executive Committee session in Washington, D.C.

At the April 4 Executive Committee meeting of the Transportation Trades Department, AFL-CIO (AFL-CIO TTD), a pair of airline unions pledged to support rail labor in the fight against unfair PSR-related practices such as BNSF’s “Hi-Viz” attendance policy, which requires rail workers to be available to work 29 of 30 days or risk being penalized. Additionally, the AFL-CIO TTD adopted language in its legislative agenda that encourages railroads to work together with rail labor to reconsider overly punitive attendance policies.

Capt. Joe DePete, president of the Air Line Pilots Association (ALPA), and Sara Nelson, president of the Association of Flight Attendants-CWA, pledged to support rail labor in opposing egregious attendance policies. The airline union leaders also vowed to stand by rail labor in the current round of national contract negotiations. Railroad and airline unions are governed by the Railway Labor Act.

Despite record fiscal returns in 2021 and lip service on the part of Class I carriers showing appreciation for the “essential” job that rail workers performed to move goods and services 24/7 during the COVID-19 pandemic, the railroads have chosen to not treat their employees with dignity and fairness during negotiations.

“Supply-chain issues were highlighted in the news at the end of 2021, but the shelves were stocked. It’s not thanks to PSR — that’s resulted in the rail industry doing less with less while making more profit,” SMART-TD President Jeremy Ferguson and Brotherhood of Locomotive Engineers and Trainmen President Dennis Pierce stated. “Employees’ rewards for their work through COVID-19 are that they are being subjected to degrading attendance policies at the expense of their health and family lives.

“These carriers have cut past the bone and are well through the marrow. Now they are scrambling to get people to run their trains,” the presidents said. “What is the incentive for our members who do not have scheduled time off — instead only hours when they cannot be called back into work? What’s the incentive for our members who get punished when life events happen? Thus far our members have been the recipients of nothing but insulting offers at the bargaining table.”

These practices have drawn the attention of media outlets such as Vice Magazine and UK’s The Guardian, as well as transportation labor at large. AFL-CIO TTD’s legislative agenda adopted April 4 states the following:

“Hi-Viz and similar policies serve to do nothing more than increase demands of an already exhausted workforce. For the dignity of these rail workers, their quality of life, and the safety of our nation’s freight railroad network, they must be abandoned and reconsidered.”

The leaders of SMART-TD and BLET will continue to work for intervention on the federal level, including at the Surface Transportation Board, Federal Railroad Administration, the Department of Transportation, the Department of Labor, Congress and in the White House itself, to stop in its tracks the dangerous and reckless nature of the path that the Class I rail carriers have chosen to take.

Also at the April 4 TTD Executive Council meeting, it was announced that five Republication U.S. representatives have contacted the BNSF Railway and encouraged its CEO to reengage with its operating unions to alter the highly-restrictive and punitive Hi-Viz attendance policy.

Read the TTD’s priority statement on rail attendance policies.

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The SMART Transportation Division is comprised of approximately 125,000 active and retired members of the former United Transportation Union, who work in a variety of crafts in the transportation industry.

The Brotherhood of Locomotive Engineers and Trainmen represents nearly 57,000 professional locomotive engineers and trainmen throughout the United States. The BLET is the founding member of the Rail Conference, International Brotherhood of Teamsters.

On Friday, April 1, the SMART Transportation Division sought Surface Transportation Board Administrator Martin Oberman’s intervention in ending the precision scheduled railroading (PSR) onslaught that has caused continual havoc in the United States’ supply chain and gutted the rail workforce.

SMART-TD President Jeremy Ferguson detailed the anti-worker attendance policies implemented by the nation’s largest freight rail carriers while echoing concerns expressed March 24 by the head of the National Grain and Feed Association (NGFA), a group representing more than 8,000 facilities and firms that provide goods and services to the nation’s grain, feed, and processing industries.

“We believe intervention from the STB is critically warranted and necessary to right the ship,” Ferguson wrote. “Simply put, the railroads cannot sustain the same level of production they had to prior to the advent of PSR given the number of drastic cuts they’ve made across their systems.”

Railroads have cut thousands of workers since the onset of PSR in 2017, placed thousands of locomotives in storage and have been running longer and slower trains to drive down their operating ratios (OR). NGFA President Mike Seyfert said this has led to “significant service disruptions,” for its represented companies served by BNSF, Union Pacific and Norfolk Southern, in particular.

“The service issues that our member companies are raising indicate that the problem is a network problem affecting entire regions of the country,” Seyfert said. “NGFA members have done as much as possible to keep animals fed, but the ability to stretch resources is exhausted.”

Rail carriers such as the Warren Buffett-owned BNSF, the Union Pacific and Norfolk Southern enjoyed record profits in 2021, even as rail traffic and carloads fell short of previous high marks. A main source of this revenue has been through tens of thousands of workforce cuts implemented well before and during the COVID-19 pandemic. With the service difficulties reported by NGFA, rail carriers have been doing less with less and reaping higher rewards at the expense of customers and workers.

“Not only has morale dropped to an all-time low, but employees are leaving the industry in unprecedented numbers,” Ferguson wrote to Oberman. “The freight rail network is at a breaking point. It cannot sustain any more reductions. Substantial changes must be made and they must be made quickly.”

According to union-collected data, Ferguson wrote, more than 500 employees have quit the industry since BNSF implemented a points-based policy Feb. 1. The “Hi-Viz” policy requires workers to be available to work 29 out of 30 days a month in order to avoid punitive deductions on their attendance records that eventually would lead to suspension and dismissal.

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The SMART Transportation Division is comprised of approximately 125,000 active and retired members of the former United Transportation Union, who work in a variety of crafts in the transportation industry.

An NBC News report released March 7 detailed a nonprofit’s analysis that looked into how America’s largest railroads profited during last year’s supply chain crisis in conjunction with the continued enactment of their Precision Scheduled Railroading (PSR) scheme.

Nonprofit group Accountable.US delved into the reasons why — namely that the Class Is collected more than $1.1 billion in demurrage fees thanks to supply-chain bottlenecks. The two largest carriers in the western U.S., BNSF and Union Pacific, also reported record profits in 2021 in their end-of-year earnings reports.

“Before the rail industry’s fees set a record during the pandemic, they had already increased by over 30% since 2000, all while railroads’ costs have only increased by 3%,” the Accountable.US report stated. “Railroads have used market power to cut costs — known as lowering their Operating Ratios — spending about $46 billion more on shareholder handouts than on maintenance and equipment since 2010.”

In addition to diving in on the details of the stock buybacks and other components of PSR, the Accountable.US analysis also went into additional details about the extent of the railroads’ lobbying efforts — all told, Class Is spent a combined total of $15.5 million to influence policy on Capitol Hill.

The takeaway from a Washington Examiner article published Nov. 16 regarding recent supply-chain snarls is that rail labor’s desire to maintain the current standard level of personnel — a certified conductor and a certified engineer — aboard the monster freight trains brought by the rail industry’s Precision Scheduled Railroading (PSR) scheme will make things worse and that President Joe Biden is making a mistake by advocating for two-person crews.

The article sadly attempts to use an operational supply-chain disaster caused, in part, by voluntary decisions made by the rail bosses who implemented PSR as an opportunity to continue to attack the people who work for the seven Class I railroads in the U.S. and those who support them in the political arena. The labor of these workers resulted in the regular achievement by the nation’s biggest railroads of combined net earnings in the billions each quarter, even as the operational challenges implemented by profiteering rail executives in the form of PSR and a global pandemic mounted.

Not coincidentally, rail labor leaders are engaged in negotiations on a revised national railroad contract. During this process, we happen to be doing what unions do — protecting people, such as the public and the workers who do the job of keeping the nation and its freight moving, from the worst tendencies of corporate behavior.

The Examiner article is another example of a carrier-friendly perspective being trotted out by people who know no better about what has been going on in the railroad industry since the advent of PSR. Using archaic terms such as “featherbedding”, the piece portrayed unionized workers seeking to maintain the safe operating procedures in the industry as blockades to progress and profitability.

But this current profitable period for executives, hedge funds and shareholders has come at a cost, as we’re learning. Now that the U.S. supply chain is experiencing degradation in the system that has drawn headlines and the attention of Washington policymakers, PSR’s cost to the worker should be examined as many railroaders’ careers have become casualties of the greed-fueled quest for higher returns.

Since the late E. Hunter Harrison brought PSR to CSX in 2017, Surface Transportation Board (STB) rail employment data indicate that overall Class I employment was slashed by nearly 34,000 jobs from 149,323 in March 2017 until the spring of 2021. Train and engine personnel employment has gone down by about 12,000 jobs from 59,191 in March 2017. That’s 12,000 fewer people to keep the trains running because the rail bosses figured that they could just make the trains longer with their PSR scheme, mothball equipment and furlough workers — do more with less.

Operating ratio (a key metric used by shareholders) went down, causing share prices to go up and Wall Street hedge funds to profit. But the workload for workers has increased exponentially.

Railroad Retirement Board (RRB) data cited by AFL-CIO Transportation Trades Department President Greg Regan in his testimony Nov. 17 before the House Transportation and Infrastructure Committee show that approximately 7,200 employees voluntarily quit their jobs during the COVID-19 pandemic even after RRB had adjusted for retirements. Regan also noted that rail workers were moving the same amount of freight earlier this year that was moved in 2019, even though there are fewer people to do the work. Something had to break with carriers’ draconian attendance policies and punitive conduct toward workers. It did for some former railroaders, who instead chose to walk away from pensions and their health coverage and take their lives in a different direction.

Now, with the current backlog of containers at ports, railroads are scrambling to fill the positions and saying that there is a shortage of workers. But it takes time to train new people to work on the railroad. Much institutional knowledge was lost, and railroads consistently are ranked among the worst places to work, making recruitment in a competitive job market even more difficult.

The reality is the “precision” on the part of carriers in implementing PSR is the equivalent of a meat cleaver slamming into a slab of meat on a deli counter. Rail yards and shops closed, locomotives sold and idled and workforce reductions made to the detriment of service. It’s why the STB got involved months after Harrison began converting CSX to PSR and why the board, even during the Trump administration, required the Class I U.S. rail carriers who chose to follow Harrison’s plunge into PSR to report to the board. Railroads have made themselves less capable of adapting to an influx of business and now the supply chain has snarled.

And, to note, the life of someone who works on the railroad labor remains far from “scheduled,” visions of 1800s station agents with big watches on a long chain aside. There are no set shifts — only time periods after a 12-hour-shift where a train crew cannot be called in to work.

And “railroading”? Well, railroads are doing everything in their power to keep those share prices trending upwards for their big investors — running two-, three-, four-mile-long trains that, when a mechanical breakdown happens, bisect communities and don’t fit current infrastructure.

These decisions are not being made by the people who show up day and night to keep America’s trains running. Carrier spokespersons will mention nothing about how PSR has had a role in contributing to the supply-chain crisis. They, like the rail bosses, see workers as tally marks, disposable impediments to profitability — costs to be controlled. They’ll also try to deflect the pursuit of safety into a political attack as in the piece published before the House hearing.

The fact is, cost control, as enticing as it may be from a purely economic perspective, is not the sole driver of productivity. Productivity is not the sole determinant of profitability. The Examiner article’s argument that rail labor and President Biden’s pledge to support the current standard of rail personnel might contribute to the supply-chain problems PSR has fueled is farcical.

At some point, from an industry perspective, rather than cutting through bone to increase billions in quarterly profits, carriers could look at the way they approach service, safety and technology, maintain the extraordinary value they receive through the current dedicated workforce and collaborate with the people who got them through a pandemic on matters of safety. Then together, we can achieve a more precise, on-time vision of rail transport that is safer, more sustainable and more profitable than before.

CLEVELAND, Ohio (Sept. 30, 2021) — The Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET) have joined forces to defeat efforts by Norfolk Southern Railway to supplant the train service crafts of conductors and brakemen by calling locomotive engineers to work their assignments.
SMART-TD President Jeremy Ferguson and BLET National President Dennis Pierce issued the following joint statement regarding their action:
“On October 24, 2018, Norfolk Southern Railway announced plans to implement Precision Scheduled Railroading. PSR is an operational scheme that makes irrational cuts to employment, maintenance and service levels to generate artificially higher profit rates for hedge funds and similar investors.
“Because of PSR, NS has eliminated the jobs of over 35% of its operating crew members since December 2018. NS also has been fighting since the summer of 2019 to cut the size of operating crews by half.
“As part of its plan to simply eliminate the train service crafts of conductor and brakeman, NS has willfully depleted its train service workforce. The shortage of conductors and brakemen is so severe that NS started ordering locomotive engineers — under threat of termination for insubordination — to work conductor positions even though both the BLET Agreement and the SMART-TD Agreement prohibit the use of locomotive engineers in train service positions.
“Today, our unions have initiated legal actions that are intended to compel NS to follow our contracts and obey the laws of our land. NS cannot lawfully lay off roughly 4,000 conductors and brakemen, and then give their work to another craft. Nor can NS lawfully deprive locomotive engineers of the jobs, wages and working conditions to which they are contractually entitled by forcing them to perform the work of other crafts.”

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The SMART Transportation Division is comprised of approximately 125,000 active and retired members of the former United Transportation Union, who work in a variety of crafts in the transportation industry.
The Brotherhood of Locomotive Engineers and Trainmen represents nearly 57,000 professional locomotive engineers and trainmen throughout the United States. The BLET is the founding member of the Rail Conference, International Brotherhood of Teamsters.

U.S. Rep. Peter DeFazio of Oregon, chairman of the House Transportation and Infrastructure Committee, responded to a recent Fortune Magazine column by a pair of economists who defended the rail industry’s Precision Scheduled Railroading (PSR) scheme and accused unions of hampering productivity.

DeFazio

DeFazio, along with New Jersey Rep. Donald Payne Jr., who is chairman of the Subcommittee on Railroads, Pipelines and Hazardous Materials, were two of the main architects of the INVEST in America Act (H.R. 3684), a surface transportation reauthorization bill that encompasses substantial investment in the nation’s infrastructure as well as in the safety of the people who keep the country moving that passed the U.S. House on July 1.
“PSR is not some fancy optimization strategy to increase freight volume or improve operations and reduce emissions; rather, it is a business strategy promoted by Wall Street to boost short-term profits,” DeFazio wrote.
He noted in his column that shippers, communities and the rail workforce all have been negatively affected by PSR.
“Let’s not forget that prior to COVID-19, from 2015 to 2019, the freight railroad industry slashed the average size of its workforce by over 17%,” DeFazio wrote. “It’s little wonder that STB Chairman Martin Oberman has sought information about how such a reduction may be related to or contributed to recent shipper complaints.”
Read DeFazio’s full column.
The INVEST in America Act looks to protect bus and transit workers from assault, improve school bus safety and maintain safe freight rail operations. It contains increased funding for Amtrak passenger rail service and protects the environment, the public and rail workers alike by putting into law the Rule of 2 — that, like a pilot and co-pilot in the air — a certified engineer and a certified conductor remain present in the cab of freight trains when operated through the nation’s communities.
The bill is under consideration by the U.S. Senate, and SMART-TD members are encouraged to send messages to their senators to pass H.R. 3684 for the sake of public and worker safety.

DeFazio
WASHINGTON — The chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-OR) and the chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials Donald M. Payne Jr. (D-NJ) are requesting the U.S. Government Accountability Office (GAO) examine the impacts that the implementation of precision scheduled railroading (PSR) by Class I railroads are having on workers, safety, freight shippers, passenger railroads and long-term management of the nation’s railroads.
“PSR in practice means the bottom line drives the decisions,” said Chair DeFazio. “Longer trains, unhappy shippers and a workforce pushed to do more with less is not a model to chase after – unless you’re on Wall Street. But we can’t let hedge fund managers write the rules of railroading. Last Congress, my Committee heard from various stakeholders concerned for the immediate and long-term impacts of PSR. This study, passed by the House last year in my surface transportation reauthorization bill, the INVEST in America Act, will help us find ways to address the impacts this railroad management strategy has on workers, freight shippers, passenger railroads and rail safety.”
Payne

“Precision scheduled railroading is being used more and more throughout the rail industry,” said Rep. Donald M. Payne Jr. “But I am concerned that this strategy could come at the expense of worker safety and smart, long-term railroad management. We need more information about this practice to determine whether it is beneficial or harmful to our nation’s railroad system.”
Read their letter making the request to the GAO. (PDF)

Members and leaders of the SMART Transportation Division as well as the AFL-CIO Transportation Trades Department, spelled out why U.S. freight railroads’ obsession with Precision Scheduled Railroading (PSR) increases the danger to the public and railroad workers alike.
Journalist Aaron Gordon spoke with TD President Jeremy Ferguson and AFL-CIO TTD President Greg Regan about degradation in the safety culture of freight railroads because of PSR in an in-depth article published on March 22. “It’s going to end up like Boeing,” President Ferguson warned.
Gordon’s article touched upon many topics that our members are unfortunately already well aware of, including: the severe reduction of rail employees which has greatly impacted safe operations, the increase of fatigue associated with the same demanding work but with a reduced work force, the practice of railroads to have inspectors spend less time inspecting cars, the deferral of needed maintenance and potential safety issues being glossed over so that dwell time is not increased. It paints a very realistic and clear picture of how the railroads’ operating ratios and profits have been placed well ahead of safety and all in the name of PSR.
But by questing for those increased returns on Wall Street, the lessons learned from past operational mistakes could conceivably end up costing railroads in the long run, subjects interviewed in the article say.
This article is essential reading, and it can be found on the VICE website.

Amtrak’s financial situation and the freight rail industry’s continued use of Precision Scheduled Railroading (PSR) practices were the focus of a U.S. Senate Commerce Committee hearing Oct. 21.
Amtrak President and CEO William Flynn repeated his plea for almost $5 billion in emergency funding to help the nation’s passenger carrier weather the continued downturn in ridership caused by the COVID-19 pandemic. The carrier has made drastic long-distance service cuts, going from daily to three trips per week on many routes. Furloughs for almost 2,000 Amtrak employees are scheduled to take effect in November.
“Virtually all of the CARES Act money has been spent,” Flynn told the committee. “These workforce adjustments are essential with current financial funding.”
A number of legislative actions, including the HEROES Act and the INVEST in America Act, while passed by the U.S. House of Representatives, have been stalled by Majority Leader Mitch McConnell in the GOP-controlled Senate. The emergency funding provided by such legislation would help the carrier rebound, Flynn said.
“Once the pandemic eases, Amtrak plans to grow,” he said.
A second panel featured a discussion of PSR.
Rudy Gordon, CEO of the National Grain and Feed Association, expressed concerns from a shipper perspective about the redeployment of furloughed railroad workers, saying that he fears delays in service and shipments on the part of rail carriers when the economy rebounds.
PSR has caused “a tipping point” at the expense of customer service, Gordon said, and said that if rail service erodes further at the expense of the carriers obtaining lower operating ratios (ORs) that the Surface Transportation Board should intervene.
Larry Willis, president of the AFL-CIO Transportation Trades Department (TTD), of which the SMART Transportation Division is a member, offered written testimony concerning PSR.
“Across the sector, the pandemic continues to wreak havoc, threatening both the health and livelihoods of employees,” Willis stated. “At the same time, freight railroads, at the insistence of Wall Street investors and hedge fund managers, have pursued operating practices that undermine basic tenets of rail safety, ask frontline workers to do more with less, and threaten the reliable and efficient customer service that should be the hallmark of this industry.”
The lone labor representative invited to testify in person was Dennis Pierce, president of the Teamsters Rail Conference.
Other industry stakeholders appearing were:

  • Paul Tuss, executive director, Bear Paw Developing Corporation and Member, Montana Economic Developers Association
  • Frank Chirumbole, vice president global supply chain, Olin Corporation on behalf of American Chemistry Council
  • Kent Fountain, chairman, National Cotton Council
  • Ian Jefferies, president and chief executive officer, Association of American Railroads

Watch the hearing by following this link.