Notwithstanding severe winter weather that caused rival Canadian Pacific’s profit to plunge 67 percent, Canadian National reported a 31 percent increase in first quarter 2011 profit versus first quarter 2010. This comes following a 19 percent increase in CN profit for calendar year 2010.
CN’s operating ratio for the first quarter 2011 was 69 percent, slightly better than the 69.3 percent reported for first quarter 2010. The railroad’s fourth-quarter 2010 operating ratio was 63.6.
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the higher is profit.
CN CEO Claude Mongeau, president and chief executive officer credited “a well-executed winter operating plan” for the profit improvement.
CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.
Due to changes in the financial services markets, the UTU is no longer able to offer a UTU-branded credit card.
Over the years, these UTU-branded cards generated much-needed funding for the union’s education and training fund.
Servicing of former UTU credit card accounts will now be handled by PNC. Previously, accounts were serviced by National City Bank.
PNC will shortly be replacing all UTU-branded credit cards with PNC credit cards. Terms and conditions on the PNC credit cards will be determined by PNC.
No UTU credit card accounts will be cancelled as a result of the change.
For more information call the telephone number on the back of the UTU credit card, or call PNC at (888) PNC-BANK.
China’s effort to lead the world in high-speed rail development appears to be moving forward at the expense of safety, reports The Washington Post.
The Chinese government, reports the newspaper, has ordered all high-speed trains to reduce their top speed from some 220 mph to 186 mph, calling safety concerns of those trains “severe.”
Reportedly, inferior materials have been used, creating safety concerns. Separately, the Congressional Budget Office said China has imposed lower crashworthiness standards for its passenger trains than are imposed in the United States.
Last year, it was reported by the Progressive Policy Institute that China had embarked on a goal of a north-south and east-west nationwide grid of 220-mph long distance trains — all to be in operation by 2020.
Says The Washington Post, “With the latest revelations, the shining new emblem of China’s modernization now looks more like an example of many of the interlinking problems plaguing the country: top-level corruption, concerns about construction quality and a lack of public input into the planning of large-scale projects.”
In the United States, the Obama administration envisions a high-speed rail passenger network over dedicated electrified lines with trains operating at speeds of 125-220-mph linking major population centers 200-600 miles apart.
But federal budget cutting has imperiled that plan.
Amtrak President Joseph Boardman has his own vision — a 30-year, $117 billion Northeast Corridor improvement project that would link Washington, D.C., Baltimore, Philadelphia, New York and Boston with 220-mph passenger trains cutting trip times to 84 minutes between New York and Boston and 96 minutes between New York and Washington.
Boardman told Railway Age magazine that Amtrak envisions operating other high-speed rail corridors as they move toward development.
In early April testimony before the House Rail Subcommittee, Amtrak’s vice president for government affairs, Joe McHugh, urged Congress to provide dedicate, multi-year funding for intercity and high-speed rail; establish a national investment strategy; create a clear and leading role for Amtrak; ensure coordinated corridor planning and project execution; and address liability and insurance issues.
We know all too well that alcohol consumption and drug use can imperil our jobs.
But how about off the job; and how about family members?
The U.S. Department of Health and Human Services reports more than 600,000 emergency room visits annually due to alcohol or drug problems; and that count represents but one-third of all misuse of alcohol or drugs.
In the long term, alcohol abuse can lead to:
Liver, heart and brain damage; and severe over indulgence of alcohol can induce dementia or other mental illness.
Bad judgment, poor coordination, blackouts, loss of memory, nausea, hangovers, headaches, coma and suicide.
Birth defects, including learning disabilities. That is why pregnant women are warned not to consume alcohol during pregnancies.
Be aware that 40 percent of alcoholism is related to genetics and is inherited.
Note the warning signs and symptoms of alcohol abuse:
Craving alcohol
Drinking alone
Inability to reduce or stop drinking
Hiding alcohol in secret places
Violent episodes or becoming angry when confronted about drinking habits
Sleeping for long periods of time
Feeling anxious in social situations and experiencing feelings of guilt
Poor eating habits
You and/or your family members can get help in treating alcohol and drug abuse.
United Behavioral Health offers 24-hour confidential telephone counseling at (866) 850-6212, and the website www.liveandworkwell.com can provide you with more information on alcohol and drug abuse.
And keep in mind that those in safety sensitive transportation jobs face a good likelihood of being randomly tested for alcohol and drug use:
The U.S. Department of Transportation set the following test rates for 2011:
For bus drivers, the random drug testing rate is 50 percent; and the random alcohol testing rate is 10 percent.
For airline workers, the random drug testing rate is 25 percent; and the random alcohol testing rate is 10 percent.
For rail workers, the random drug testing rate is 25 percent; and the random alcohol testing rate is 10 percent.
For transit workers, the random drug testing rate is 25 percent; and the random alcohol testing rate is 10 percent.
In a horrendous March accident in Kelso, Wash., a conductor trainee and a locomotive engineer were killed when the carrier-provided shuttle van in which they were riding was struck by a moving train at a private highway-rail grade crossing. A second conductor was critically injured and the van driver also was killed.
An investigation will determine the cause of this tragedy.
The UTU has long fought for better shuttle-van safety, and we have been successful in only a few states in gaining passage of legislation to improve shuttle-van safety.
As tragic as this accident was, it may be the spark to convince more state legislatures of the need to regulate shuttle-van service.
As our state legislative directors have documented time and again, shuttle-van drivers are almost always non-union and required to work long hours under horrendous working conditions. Understandably, driver turnover is substantial, which has frustrated previous efforts to organize these drivers.
We have documented far too many shocking incidents of shuttle vans with bald tires, van drivers so tired they fell asleep at the wheel or appeared to be under the influence of alcohol or other drugs.
In states where we have gained laws regulating shuttle vans, minimum driver-hiring qualifications and disqualification standards have been imposed, along with maximum hours-of-service limitations, driver drug-testing requirements, annual state DOT inspections of the vans, and state DOT certification of vehicle maintenance inspections and repair records.
We have also been successful in gaining requirements for fully functioning heat and air-conditioning, secure locations for baggage and fully operational seat belts.
Our national legislative office will continue lobbying for federal regulation of shuttle-vans, as vans carrying eight or fewer passengers are exempt from laws and regulations applying to larger passenger vehicles.
I am asking state legislative directors to advise local officers and general chairpersons whether their state has legislation regulating shuttle-van service, and to include details to assist our operating crews in making appropriate reports of safety violations that can be pursued with state authorities.
Even in states without shuttle-van safety regulations, reports of unsafe conditions and driver actions should be reported to state legislative directors to assist them in convincing lawmakers for the need to pass appropriate safety legislation.
If accidents or injuries do occur while a passenger in a carrier-supplied shuttle van, contact a UTU designated legal counsel for advice. The names and contact information for UTU designated legal counsel can be obtained at www.utu.org, or from local officers, general chairpersons, or state legislative directors.
Kansas City Southern’s first-quarter 2011 profit was almost double that of the first quarter 2010, the railroad reported April 22. This followed an 82 percent increase in profit for calendar-year 2010.
The employee headcount remains constant at 6,080. The railroad did not indicate whether it would be increasing its headcount in 2011.
The KCS first quarter operating ratio declined significantly, from 75.2 percent the first quarter 2010 to 73.8 for the first quarter 2011. The railroad’s fourth-quarter 2010 operating ratio was 73.2.
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the higher is profit.
“We are especially pleased with the expansive growth in our intermodal (trailers and containers atop flat cars) business,” said CEO David Starling, who reported that cross-border intermodal traffic had increased by 70 percent during the first quarter 2011 compared with first quarter 2010. He said almost half of KCS freight revenue comes from cross-border traffic.
KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.
Canadian Pacific Railway reported a sharp drop in profit for the first quarter 2011 compared with first quarter 2010, citing severe winter weather.
CP said its 15,143 employee count increased by 613 during the quarter, but gave no indication of whether it would add employees the remainder of 2011.
First quarter 2011 train speeds fell by almost 14 percent and the number of train accidents soared by 57 percent — both attributed to a dramatic increase in the number of avalanches in the Canadian Rockies and winter-long blowing snow throughout CP’s North American rail network.
CP’s calendar-year 2010 profit increased by 39 percent.
The railroad’s first quarter 2011 operating ratio soared to 90.6 compared with 82.3 in the first quarter 2010. CP’s fourth quarter 2010 operating ratio was 77.6.
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the higher is profit.
Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.
By FRA Associate Administrator for Safety Jo Strang
The Federal Railroad Administration’s Risk Reduction Program is a voluntary industry-wide initiative to reduce accidents and injuries and build a strong safety culture by expanding the toolkit to analyze and manage risk.
Eventually, these assessments will complement other programs such as safety inspections of railcars and injury reporting.
We are currently drafting a regulation requiring railroads to develop comprehensive risk reduction programs.
The FRA Risk Reduction Program affects every railroader through timely reporting of employee injuries and illnesses.
Additionally, an FRA team is collecting data on current practices and is seeking ways to prevent harassment and intimidation of injured railroad employees.
The data is collected from FRA complaint and enforcement records and directly from rail labor organizations.
The FRA also is working with outside sources, including the Occupational Safety and Health Administration (OSHA), to gain a clearer understanding of that agency’s whistle-blower regulation for railroad employees, and other factors that can contribute to solving harassment problems.
Using what they have learned, our Risk Reduction Program team conducted numerous presentations for UTU members on their rights regarding work-related injuries. The team learned a tremendous amount about current conditions railroad employees face daily.
The FRA also is strongly encouraging railroads to take actions that remove the punitive policies and practices that invite or induce retaliatory harassment and intimidation.
Amtrak is one railroad that has taken strides in this direction.
In implementing its Safe 2 Safer program, Amtrak has taken positive steps to improve its safety culture. The FRA Risk Reduction Program team noted that, as a result, the number of injuries reported by Amtrak employees has risen as expected, and the number of OSHA whistle-blower cases reported by employees has decreased.
The FRA hopes this indicates that injured Amtrak employees are now seeking and receiving appropriate care; and that other railroads will learn from Amtrak’s success and implement similar programs.
The FRA appreciates the UTU’s assistance in providing this invaluable data and input to the investigation team. When and where the team is successful in mitigating risks and hazards identified, safety is improved for railroad employees and the public.
An Advanced Notice of Proposed Rulemaking was published in the Federal Register in December, and we are currently reviewing the comments received. However, in order to obtain as much stakeholder input as possible, we plan to conduct a public hearing.
In the meantime, we would appreciate receiving comments and suggestions from UTU members, which should be sent to the UTU National Legislative Office in Washington, D.C., which will collect and forward them to the FRA’S Risk Reduction Program team.
Thank you for your involvement in building a strong rail safety culture.
Union Pacific profit rose 24 percent in first quarter 2011 compared with first quarter 2010, the railroad reported April 20. This follows a 47 percent jump in Union Pacific profit for calendar-year 2010.
UP Chairman Jim Young said the railroad would increase its 43,000 employee headcount by about 4,500 in 2011.
The railroad reported a best-ever first quarter operating ratio of 74.7 percent — one of the more difficult for railroads because of winter weather. The fourth quarter 2010 UP operating ratio was 73.2.
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the higher is profit.
Looking forward, UP Chairman Jim Young predicted significant volume growth in the second half of 2011. UP is “pretty confident right now we’re going to see a peak” that exceeds traffic volumes the second half of 2010, Young said. “We’ve started off strong in 2011 by achieving record results in the first quarter.”
Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.
Arbitrator Michael H. Gottesman will hear presentations by the UTU and the Sheet Metal Workers International Association during five days of arbitration in June to determine whether the merger agreement between the UTU and the SMIWA is an enforceable agreement.
Gottesman, a law professor at Georgetown University in Washington, D.C., was named to arbitrate the dispute by AFL-CIO President Rich Trumka following a March 4 ruling of Federal District Court Judge John Bates.
The choice of Gottesman was jointly approved by UTU International President Mike Futhey and SMWIA National President Mike Sullivan.
Judge Bates, in his March 4 ruling, said a separate action brought by several UTU members challenging the validity of the merger — alleging violations of Titles I and V or the Labor Management Reporting and Disclosure Act — is not within the arbitrator’s jurisdiction and that he would delay a ruling on that complaint pending the outcome of the arbitration.
Gottesman will hear evidence from each organization June 7-9 and June 14-15. There is no deadline on his issuing a ruling.
Eventually, these assessments will complement other programs such as safety inspections of railcars and injury reporting.