Written by: Carolina Worrell, Managing Editor Union Pacific President and CEO Lance Fritz issued a statement to non-agreement employees on August 12, 2015 announcing a “workforce reduction initiative” as “the railroad takes the necessary steps to align resources with current business requirements.” Fritz added that the company plans to reduce its management workforce in Omaha and other locations by several hundred people in the coming months through a combination of anticipated attrition and terminations. News of the mass firings follows a flat 2015 second-quarter for UP, as the railroad reported net income of $1.2 billion, compared with 2014 net income of $1.3 billion, an operating revenue decrease of 10%, and operating income down 11%. “As with the furlough of more than 1,000 craft professionals in recent months, this is an extremely difficult decision to make because of the impact it will have on all our employees,” Fritz said. “However, for our company’s long-term success, we must take these painful actions to balance workforce levels with today’s business demands.” “While UP does not expect workforce reductions to reach federal Worker Adjustment and Retraining Notification Act (WARN) thresholds, we have communicated with appropriate government entities in accordance with WARN guidelines to be transparent with our communities about our intentions,” Fritz added. Fritz says the company will offer severance packages to employees who will be part of the non-agreement, involuntary workforce reduction. Communication to impacted employees will occur over the next few months. No buyout options will be available for employees who retire or voluntarily leave the railroad. Continue reading...
