Union Pacific cutting workers, hours
Posted on Sunday, November 16, 2008
OMAHA, Neb. — Union Pacific Corp., the nation’s largest freight railroad, has laid off or reduced hours for 1, 500 engineers and conductors since 2007 because of the struggling economy.
Mark Davis, spokesman for the Omaha, Neb.-based railroad, said Saturday that the systemwide cutbacks started in January 2007.
“The numbers have been varying off and on since then... predominantly because of the economy and fewer shipments,” he said.
Davis said 1, 500 have been affected by the reductions, with 40 percent of those workers being laid off.
The rest are enrolled in a reduced-hour program that allows eight shifts per month, he said. Those workers still receive health-care coverage, and contributions are made to their retirement plans.
Employees are being recalled to full duty as their seniority moves up, which sometimes happens when more experienced workers retire, Davis said.
Union Pacific operates 32, 400 miles of track in 23 states from the Midwest to the West and Gulf coasts. The company’s North Little Rock rail yard complex near the Arkansas River is its second largest terminal. Formerly the hub of the Missouri Pacific Railroad, the trainyard features a large repair shop for locomotives.
Union Pacific said it has 2, 731 employees in Arkansas. Overall, it employs 21, 000 engineers and conductors in its 23-state system.
Last month, Union Pacific reported third-quarter earnings jumped 32 percent to $ 703 million, or $ 1. 38 per share.
The company also said it expects volume to be down 5 percent in the fourth quarter, and 3 percent for the year.
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