As members of SMART-TD, the largest rail union in the United States, it is disheartening to observe the media coverage surrounding the departure of Alan Shaw, as president and CEO of Norfolk Southern. The Wall Street Journal, CNBC and others focused on the implications for the stock price and the catalyst for his resignation. Glaringly absent, and far more important, is the discussion of how Shaw’s departure will impact Norfolk Southern’s safety improvements, quality of life for their employees, and the railroad’s shaky relationship with the communities affected by the company’s operations.
SMART-TD would like to underline three points for the new administration:
1. The Future of Safety Improvements: Under Shaw’s leadership, Norfolk Southern made notable strides in improving its safety culture. However, there has been no coverage of what will become of these safety initiatives. It is essential for the industry and the public to know whether the development of robust safety protocols and their enforcement will continue or falter under new leadership.
2. Job Security for Rail Workers: Shaw had pledged to refrain from laying off the workforce of NS during economic downturns. Our interests align: This assurance meant stability for many rail workers, and an accelerated return to capacity for NS when business accelerates. A failure to address whether this promise will be upheld is concerning. Rail workers and NS customers deserve to know if those commitments made by Shaw will still be honored.
3. Involvement of Rail Labor Organizations: Shaw committed to involve labor while revitalizing Norfolk Southern’s safety and training programs. This collaborative approach improves working conditions and safety standards. Rail workers have a vested interest in developing safety training, as our lives and limbs are easily lost if safety is neglected. There has been no mention of how this leadership change will affect this commitment to these or to the groundbreaking C3RS pilot program.
Preoccupation with stock prices and financial impacts and a neglect of the broader human and community elements in the discussion of the leadership change underscore a troubling trend. Shareholder interests should be balanced with — not prioritized at the expense of — worker safety and community well-being.
Railroad companies with records dating back to the 1800s should realize that safety plus good employee relations equals improved customer service. Providing superior service is how to grow a business. Shaw’s commitments benefited all involved and the company’s rebound indicated this.
With the announcement of current CFO Mark George taking over as president and CEO of Norfolk Southern, SMART-TD is optimistic that the positive momentum established under Shaw will continue.
George is no stranger to the realities of the industry, or the improvements NS has realized by distancing itself from Precision Scheduled Railroading. It is our hope that we can work together to continue bettering the safety and quality of life for the men and women of Norfolk Southern.
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