I would use them again if needed. Rail freight carloads were down 7.4percent this November versus the prior year, according to closely watched data from the Association of American Railroads. A Union Pacific spokeswoman said the average train length is about 1.5miles. I was told this furlough was indefinite. Our response reflects our strategy of focusing on long-term priorities and value.". As a result, actual outcomes and results may differ materially from those expressed in forward-looking statements. Freight declines have typically foreshadowed trouble for the broader economy because theyre a barometer of how much stuff is heading to market. David Earick had eight years of seniority with Norfolk Southern in Roanoke as a pipe fitter, a job similar to a diesel mechanic. The non-negotiated bonuses and unilateral decision to discipline employees who are not vaccinated functioned to undermine the collectedly-bargained agreements and reduce Norfolk Southerns obligations under those agreements, the Sheet Metal, Air, Rail and Transportation Workers Transportation Division, or SMART-TD, union said in its response to Norfolk Southern. These and other important factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (the SEC), as supplemented in Part II, Item 1A of our Form 10-Q to be filed with the SEC on the same date as this press release, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward- looking statements. Apply for this job Norfolk Southern The Company recognized $387 million of expenses during the first quarter related to the Incident. For the quarter, income from railway operations was $711 million, and diluted earnings per share were $2.04 down by 34% and 30%, respectively, compared to the first quarter 2022. We are proud to provide our customers with these services and value by trained professionals. Expenses jumped 32% to $2.4 billion, along with labor expenses tied to significant hiring over the past year and a new contract for employees. To learn how to enable JavaScript in your browser, Heres how the new requirement affects us: Whether you support the mandate or have concerns about vaccination, lets rise to the challenge by showing each other the mutual respect that is such an important value in our culture. Norfolk Southern and other major freight railroads have announced new safety measures, including installing more than 1,000 more trackside detectors. Earick said he used to love his job. In some cases, forward-looking statements may be identified by the use of words like "will," "believe," "expect," "targets," "anticipate," "estimate," "plan," "consider," "project," and similar references to the future. Labor shortages in dray, warehousing hit Norfolk Southerns Its a huge issue. Railroads fight with unions in court over vaccine These efficiency gains helped the railroad achieve an adjusted operating ratio of 63.7% in the first quarter of 2020, when excluding the charge related to the disposition of locomotives. Eliminating Assets Requires Precision Maintenance. Its dedicated team members deliver more than 7 million carloads annually, from agriculture to consumer goods, and is the largest rail shipper of auto products and metals in North America. UPDATED FAQs for Employees: COVID-19 Adjusting for the effects of the incident charge, first quarter results includedadjusted income from railway operations of$1.1 billion and adjusted diluted earnings per share of $3.32 improvements of 1% and 13%, respectively, compared to first quarter 2022. And creating ways to keep them engaged and always learning is the conduit for this commitment. This results in a hiring and training of new personnel with every shift in volume and traffic. That derailment, andotherssince then, sparked anationwide focuson railroad safety. Norfolk Southern saw a 6percent volume decline, but crew costs were down by 13percent, said Alan Shaw, the companys chief marketing officer. But even if Trumps trade war ebbs, many of the $70,000-a-year conductor and maintenance jobs are unlikely to return. "We are making progress every day and I'm proud of our people. BNSF, Norfolk Southern and Union Pacific are three of the largest U.S. railroads. Workers will require more than a basic understanding of adjacent crafts, and that expertise should be immediately accessible for reference regardless. CEO Alan Shawtold Congressthat he backs some proposals like enhanced standards for tank cars, but insists the data doesnt support other ideas like minimum two-person crews. In some cases, forward-looking statements may be identified by the use of words like may, will, could, would, should, expect, plan, anticipate, intend, believe, estimate, project, consider, predict, potential, feel, or other comparable terminology. The $387 million estimate includes the $30.9 million the railroad pledged to help residents and the community around East Palestine recover from the derailment. In addition, the railroad operates the most extensive intermodal network in the East and is a principal carrier of coal, automobiles, and automotive parts. A prediction of disaster: Experts say its when, not if for a They Refused to Fight for Russia. Adjusting for the Eastern Ohio Incident, diluted earnings per share were $3.32, up 13%, or $0.39 compared to the first quarter 2022. Freight railroads used to run trains carrying just one type of good, and the trains could sit in yards for hours or days until they had enough of a load to justify departing. If you need an accommodation, please seek one. BNSF railroad filed a lawsuit Sunday against its major unions over its mandate. "None of us can predict the severity or duration of this economic downturn, so we are focused on the factors within our control. Norfolk Southerns history spans nearly two centuries to the earliest days of American railroading. While the Company believes that these non-GAAP financial measures are useful in evaluating the Companys business, this information should be considered as supplemental in nature and is not meant to be considered in isolation from, or as a substitute for, the related financial information prepared in accordance with GAAP. "We will get through the challenges ahead and emerge as an even stronger company," Squires said. For further information: Media Inquiries: Media Relations, Click here to open the mobile navigation dropdown. Also, many railroad terminals have several structures that exist for this purpose alone to house operations that could be managed remotely. Workers say the peak never came in 2019. According the NS petition, Reuters reported, the unions contend that imposition of a mandate constitutes a unilateral change to bargaining agreements in violation of the federal Railway Labor Act. For some, this news will require a difficult individual choice. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies. The derailment cleanup has slowed traffic on a busy east-west corridor for the railroad because it has only had one of its two tracks in service since March while it is digging up contaminated soil. UP, BNSF and NS suspend COVID-19 vaccine mandates Information included within this filing includes non-GAAP financial measures, as defined by SEC Regulation G. Non-GAAP financial measures should be considered in addition to, not as a substitute for, the financial measures reported in accordance with U.S. generally accepted accounting principles (GAAP). Precision Scheduled Railroading (PSR)s aggressive approach to staff reduction often focused on groups or crafts with limited innovation. As Bostek mentions above,digital, virtual simulationscan make this practice possible anytime, anywhere and at a pace that meets each worker where they are. Hello, you need to have JavaScript enabled to view this website. They point to a safety record that shows the industry is far safer today than it was two decades ago, although there have been several major derailments in recent weeks. Leaders of the SMART-TD union and the Brotherhood of Locomotive Engineers and Trainmen have said they generally support workers getting vaccinated, but they don't think the railroads should require it without negotiating first. NS, SMART-TD Reach Tentative Agreement on Workplace Enhancements, UP Embargo Update: Were Making Significant Progress, NARS 2023 Annual Meeting: A New Era in Railroading, MxV Rail Speeds PuebloPlex Track Construction Projects, Canadian Regulator Announces VRCPIs for Crop Year 2023-24, Class I Briefs: BNSF, CN, CPKC, CSX, CPKC/NS/UP, FRA Safety Advisory: Train Length a Critical Factor, CARB Passes New In-Use Locomotive Regulation, CN, UP, GMXT Launching Falcon Premium (Updated April 26 with UP STB Service Metrics). BNSF said the unions don't dispute when it changes drug testing rules, and they didn't fight it earlier this year when the railroad imposed a mask mandate after the Federal Railroad Administration ordered it. Staffing Efficiencies Closely Tied to Safety and Resiliency. When it comes to the paper trail that railroads create, theyre lagging far behind other industries. For example, eliminating inefficient train miles by eliminating stops, closing terminals and other actions has helped reduce headcount significantly, but this means our lean, mean train and engine workforce team are more valuable than ever. After reviewing the order carefully to be certain, we determined that we are covered under the mandate. Norfolk Southern Corporation (NYSE: NSC) announced Wednesday its first quarter 2023 financial results. Policies. Norfolk Southern said it has already spent about $55 million to dig up and remove nearly 34,000 tons of contaminated soil and trucked away another 13.2 million gallons of tainted water. Norfolk Southern Shareholder Action Reminder Hiring and Furloughing Practices Require Rethinking. Fantastic help. Customers and dray carriers can also utilize AccessNS and ExpressNS+TM for information concerning their You can do this by updating your Personal Information on SuccessFactors. To find a location offering vaccination in your community, weve created a resource page with links to search by zip code. Railroads must quickly get up to speed with available technologies and they need to stay ahead of the curve moving forward. Regulatorsandmembers of Congresshave proposed reforms like capping freight trains lengths and setting standards for the trackside detectors used to spot problems. Norfolk Southern is a major transporter of industrial products, including chemicals, agriculture, and metals and construction materials. This isnt a bad thing, but its a necessary consideration. After reviewing the order carefully to be certain, we determined that we are covered under the mandate. (See full memo below.). For the quarter, income from railway operations was $711 million, and diluted earnings per share were $2.04 down by 34% and 30%, respectively, compared to the first quarter 2022. Norfolk Southern also has the most extensive intermodal network in the eastern U.S., serving a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as the Gulf of Mexico and Great Lakes. "Norfolk Southern has a history of successfully managing through business cycles and challenging economic environments," Squires said. coronavirus The railroads defend their record as the safest way to transport hazardous chemicals over land and say recent changes to eliminate nearly one-third of all rail jobs and rely more on fewer, longer trains havent compromised safety. 4. UP on Oct. 13 announced on its website that it is complying with the executive order requiring employees of federal contractors be fully vaccinated by Dec. 8. UP and its unions are suing each other over that requirement. The railroad will also have to reimburse the Environmental Protection Agency for its oversight of the cleanup. But railroad stocks soared in 2019 after rail executives embraced automation and cost-cutting to remain profitable, doubling down on the idea that rails future entails longer, faster trains and fewer workers. What three people used to do, one person is doing now.. Ive been one of the fortunate few who have never been laid off, Hollandsworth said. WebAt Norfolk Southern, we believe in celebrating our individuality. Learn more about the NS Green Financing Framework. Spokeswomen for two other major major U.S. railroads, CSX and Kansas City Southern, said officials at those railroads are still considering whether to impose vaccine mandates in response to the executive order, but both railroads are encouraging employees to get the shots. Todays rail slump is partly a fallout from the trade war and partly the result of long-term trends like the United States becoming less reliant on coal, experts say. John Victor - via Google, Very nice owner, extremely helpful and understanding Due to the executive order, NS said it reserves the right under its agreements with the unions to impose a mandate in order to comply.. PSR is aided by new technology such as drones and artificial intelligence to monitor tracks and send customers alerts about train locations. Norfolk Southern estimates Ohio derailment will cost $387M By continuing to execute our strategic plan and provide superior service to our customers, we will move through this period successfully and be ready to capture opportunities as the economy recovers. These results include an initial $387 million charge Yetthose who livenear the derailment site close to the Ohio-Pennsylvania border are fearful ofpossible long term health impactseven though officials say that repeated testing hasnt shown harmful levels of chemicals in the air or drinking water. We're keeping the steel wheels moving as we play our part to keep the shelves stocked and the lights on.". Income from railway operations in the first quarter 2023 was $711 million including a $387 million charge associated with the Eastern Ohio Incident, a 34% decline compared to $1.1 billion in the first quarter of 2022. ATLANTA, April 26, 2023 / PRNewswire / -- Norfolk Southern Corporation (NYSE: NSC) announced Wednesday its first quarter 2023 financial results. The process was smooth and easy. Forward-looking statementsCertain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. "As they always do in a crisis, our employees responded heroically," Squires said. From the start of the pandemic, weve put a priority on maintaining safe and healthy workplaces as we pull together to keep our economy moving. Its Norfolk Southern Railway Company subsidiary operates approximately 19,500 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. As a covered federal contractor, Norfolk Southern must adhere to these legal requirements.If you are made a conditional job offer, you will be required to provide proof of full vaccination, or apply and be approved for a health or religious accommodation prior to your start date. Shareholders at railroads are looking at the financial success of PSR and now every single big railroad is trying to adopt some form of this, Swan said. UP and its unions are suing each other over that requirement. They craved stability, and they realized they have options. This cloud. New covid variant: A new coronavirus subvariant, XBB. We fundamentally changed the way we operate over the last 2 years, said Bryan Tucker, vice president of communications at CSX. "We've decongested our yards and road network, allowing cars to turn quicker in the terminals and trains to move faster on the network. Today, it operates a customer-centric and operations-driven freight transportation network. We dont want anyone to leave the company because of this new mandate. Thank you for all you do to serve our customers and communities.. He pointed to dramatic improvement in on-time delivery to about 90percent, up from around 50percent before PSR. These and other important factors, including the risks and uncertainties related to the COVID-19 pandemic and those discussed under "Risk Factors" in the Corporation's Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission ("SEC"), as well as the Corporation's other public filings with the SEC, may cause actual results, benefits, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. Hard working, fast, and worth every penny! Thats down from $703 million, or $2.93 per share, a year ago. Shaw pledged to continue working to improve that record as the railroad applies the lessons from East Palestine. ROANOKE Jeff Hollandsworth was told to do something recently that he had never done before in his many years working for Norfolk Southern Railway: Empty Our people rose to the challenge. Norfolk Southern Digitization needs to happen very soon, and on a large scale or railroads will find themselves up against hard deadlines that leave them few choices to consider. OUR MISSION. The Company uses these non-GAAP financial measures internally and believes this information provides useful supplemental information to investors to facilitate making period-to-period comparisons by excluding the effects of the Incident. Railway operating revenues of $3.1 billion, up 7%, or $217 million, compared to first quarter 2022. For the quarter, income from railway operations was $711 million, and diluted earnings per share were $2 .04 down by 34% and 30%, respectively, compared to the first quarter 2022. As freight volume picks up in the second half of 2021 and beyond,concerns about meeting demand are rising,and training new or re-hires in a timely, efficient and safe manner will be critical. Norfolk Southern More than 20,000 rail workers have lost their jobs in the past year, the biggest layoffs in rail since the Great Recession and a nearly 10percent decline in rail employment, according to Labor Department data through November. Thats down from $703 million, or $2.93 per share, a year ago. Norfolk Southern (NS) on Oct. 20 notified all employees that it will require them to receive the COVID-19 vaccination by Dec. 8; on Oct. 22, the railroad filed suit to block its unions from suing and its employees from striking over the mandate; now, the unions have countersued. 1. OMAHA, Neb. OMAHA, Neb. Adding to the potential for infection, the same train crews detailed above often have to report to a physical building with others to get required paperwork, and instructions from operational personnel to complete their duties. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or our achievements or those of our industry to be materially different from those expressed or implied by any forward-looking statements. Electrical Software Engineer Career Development Center Fully automated freight trains began running in Australia about a year ago, a possible precursor of whats to come. COVID-19 Masking Policy at Norfolk Department of The effort required innovation and collaboration, he noted, and ranged from equipping departments to work remotely, including most of Customer Service, to purchasing hand sanitizer from local distilleries in the midst of a nationwide shortage. Norfolk Southern and other major freight railroads have announced new safety measures, including more than 1,000 more trackside detectors. Safety inspector or maintenance engineer checking rail tracks at station. But Norfolk Southern said that because its bargaining agreements allow it to make changes in order to comply with new laws, including Bidens executive order, it has not violated the RLA. Norfolk Southern reports first quarter 2023 results. Now the situation has changed. NS follows Union Pacific (UP) in taking action. About Norfolk SouthernNorfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies. Volume was flat overall. In official business, based on preliminary results, shareholders elected 13 directors for terms expiring in 2021: In other preliminary results, shareholders approved three proposed amendments to the corporation's amended and restated articles of incorporation; ratified appointment of KPMG LLP as independent auditors for 2020; approved an advisory resolution on the compensation of executive officers; and rejected a proposal regarding shareholders' right to act by written consent. Norfolk Southern Corporation (NYSE: NSC) announced Wednesday its first quarter 2023 financial results. (AP) Another major railroad has gone to court to determine whether it has the authority to require all its employees to get vaccinated against the coronavirus. WebNorfolk Southern honors the basic leave entitlements of the Family and Medical Leave Act, entitling employees to up to 12 weeks of unpaid job-protected leave for several reasons. Service Alert : Service Update : Read More. Norfolk Southern Norfolk Southerns third-quarter earnings call Wednesday touched on two themes that have been prevalent among the rails this earnings season: the need to attract and retain employees and the impact of labor shortages in warehousing and drayage on NS intermodal service. Its at least a 50 page per trip process to get from point A to point B, and that is entirely unacceptable. Rossville International Intermodal Optimized Stack Operations The Company recognized $387 million of expenses during the first quarter related to the Incident. Learn more by visiting www.NorfolkSouthern.com. Prior to Covid, railroads sought to shed assets and reduce workforce size to increase shareholder return and decrease operating ratios. The Class I railroad filed a petition in Chicago federal court on Thursday [Oct. 21] claiming the unions objections to the mandate must be brought in arbitration and not in court because they involve the interpretation of an existing bargaining agreement rather than changes to one, the multi-media news service explained. Norfolk Southerns history spans nearly two centuries to the earliest days of American railroading. And in light of COVID, safety has expanded to include a focus on resiliency, as a tighter headcount requires a more proactive approach to keep trains running on schedule. In his remarks, Squires expressed confidence in the Norfolk Southern team, saying the company's agile response to the coronavirus pandemic demonstrates the railroad's resilience and unwavering commitment to customers and the communities it serves. 2 killed, 4 wounded in Mississippi shooting; man arrested, 150 years later, Dixon bridge tragedy among nation's worst, Presidential candidate Vivek Ramaswamy says he wants to 'shut down the FBI' and replace it with something that sounds a lot like the FBI, Sanders: Biden could win in a landslide, Sacred Mysteries: A vaulted cavern of gold mosaic off Goodge Street. Beyond not being sustainable, its not the best for safety either. Weve encouraged employees to follow guidance from public health experts regarding vaccination, but we havent mandated vaccination as some companies have done. Norfolk Southern said it has already spent about $55 million to dig up and remove nearly 34,000 tons of contaminated soil and trucked away another 13.2 million Its hard to predict if well slide into an overall economic recession.. From the beginning, we have been guided by one principle: We are going to do whatever it takes to make it right for East Palestine and the surrounding areas, said Norfolk Southern President and Chief Executive Officer Alan H. Shaw. The income tax effects of this non-GAAP adjustment were calculated based on the applicable tax rates to which the non-GAAP adjustment related. Norfolk Southern also has the most extensive intermodal network in the eastern U.S., serving a majority of the countrys population and manufacturing base, with connections to every major container port on the Atlantic coast as well as the Gulf of Mexico and Great Lakes. Not only is NS in violation of the law, it has explicitly spurned our demands that these matters be bargained. Norfolk Southern adapts to COVID-19 challenges, forges