The rail industry, which once employed more than a million Americans, fell below 200,000 employees in 2019, the first time that has happened since the Labor Department started keeping track of railroad employment in the 1940s. Precision Scheduled Railroading (PSR)s aggressive approach to staff reduction often focused on groups or crafts with limited innovation. "As a result of our transformation, we've set records for metrics such as train speed, terminal dwell, and shipment consistency," Squires said. They have lots of options for moving. What they [customers] are getting in terms of service quality today is off the chart, James M. Foote, president of CSX told investors at a November investment conference in Tennessee. Can Floridas gay teachers show photos? 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. To learn how to enable JavaScript in your browser, Hard working, fast, and worth every penny! 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. 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. And connecting back to the first item, precision scheduling also means railroads are left with precision maintenance. As Hollandsworth cut the locks and removed his former co-workers coats, hats, power tools and hefty company rule books, he couldnt shake the feeling that the layoffs were different this time. This accelerated acceptance and proved the value of this technology.. Will your logo be here as well?. The railroad does have insurance coverage that will kick in after the first $75 million spent on damage to peoples property and after the first $75 million of damage on its own. And by practicing challenging or emergency scenarios regularly, overall safety and productivity correspondingly increase. Casey Moving Systems is family owned and has been servicing Northern California for over 25 years. GAAP financial results are adjusted to exclude the effects of a February 3, 2023 train derailment in East Palestine, Ohio that included 11 non-Company-owned tank cars carrying hazardous materials, fires associated with the derailment that threatened certain of the tank cars, and a controlled vent and burn procedure conducted on February 6, 2023 on the five derailed tank cars containing vinyl chloride (the Incident). But theyre not likely to totally abandon the lean operating model adopted over the past six years that labor unions say has made the industry riskier because so many jobs have been cut, forcing inspections to be rushed and leaving train crews on call 24-7. Our employees have diverse and often deeply held views on this topic, and we respect those differences. For helpful informationvisit our FAQ page. (AP) Norfolk Southern expects Februarysfiery Ohio derailmentto cost it $387 million, but that total will likely increase over time and that doesnt reflect how much the railroads insurance companies will eventually cover. The railroad provided a detailed estimate of the cost of Feb. 3 derailment outside East Palestine, Ohio, Wednesday along with first-quarter earnings. NORFOLK SOUTHERN COVID-19 UPDATE: Based on the social distancing guidance from the Centers for Disease Control and Prevention and as a prudent precaution, Norfolk Southern is transitioning to remote working arrangements for employees whose job functions permit. The railroads have said that employees will be disciplined if they fail to comply with the vaccine mandate. Hundreds of black locomotives bearing the Norfolk Southern logo are parked back-to-back on the tracks that run through the heart of Roanoke. The railroad will also have to reimburse the Environmental Protection Agency for its oversight of the cleanup. The railroads that have imposed vaccine mandates say they are complying with President Joe Biden's executive order requiring all federal contractors to have their employees vaccinated. Hello, you need to have JavaScript enabled to view this website. Thats down from $703 million, or $2.93 per share, a year ago. Without the derailment costs, the railroad estimated that it would have made $1.1 billion, or $3.32 per share, exceeding the $3.15 Wall Street expected, according to a survey by Zacks Investment Research. For the Forward-looking statements are not, and should not be relied upon as, a guarantee of future events or performance, nor will they necessarily prove to be accurate indications of the times at or by which any such events or performance will be achieved. They have a great system for tracking your belongings and a system for checking to make sure you got all of your belongings once you arrive at your destination. Review Norfolk Southerns operating reports and the terms used to report performance in one convenient location. 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 lockers. For helpful informationvisit our FAQ page. Railroads must quickly get up to speed with available technologies and they need to stay ahead of the curve moving forward. Rail Group News offers news and analysis from Railway Age, IRJ and RT&S by email. Learn more about the NS Green Financing Framework. Media Inquiries: But, as mentioned, when detailing how to lessen the spread of disease with technologysustainability efforts would benefit as well. click here. The federal deadline for employees to be fully vaccinated is December 8. All rights reserved. But theyre not likely to totally abandon the lean operating model adopted over the past six years that labor unions say has made the industry riskier because so many jobs have been cut, forcing inspections to be rushed and leaving train crews on call 24-7. Copyright 2023 The Associated Press. The income tax effects of this non-GAAP adjustment were calculated based on the applicable tax rates to which the non-GAAP adjustment related. Rail Group News offers news and analysis from Railway Age, IRJ and RT&S by email. 1. 650 W. Peachtree Street NW, Atlanta, Georgia 30308, Establishing Rail Service on Privately Owned Track, Establishing Rail Service on NS Owned Track, Dual Mission Reward Program: Memphis-Rossville, Announcement for Public Tariff NSRQ 70220 & NSRQ 66326, Effective 9-1-2022, Sharonville Primary Gate Temporary Closure - Update, Board of Directors & Committee Membership, Norfolk Southern Declares Quarterly Dividend, Norfolk Southern reports second quarter 2022 results, Norfolk Southern increases conductor trainee pay to $25 an hour; adds biweekly $300 incentive, Norfolk Southern announces Board of Directors changes, Income from railway operations in the first quarter 2023 was, Adjusting for the Eastern Ohio Incident, income from railway operations was, Adjusting for the Eastern Ohio Incident, diluted earnings per share were. Fully automated freight trains began running in Australia about a year ago, a possible precursor of whats to come. 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. 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. 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. Our training requirements could not be sustained due to COVID restrictions, says Michael Urena, Manager, Transportation Training, Training and Development, CN. You can apply at the same place you share your vaccination status by choosing Personal Information on SuccessFactors. Its a different way of running a railroad.. The goal now is to minimize stoppage and use the same locomotive and crew as much as possible, akin to the way the same airplane shuttles constantly between the Washington area and New York City. Not only is NS in violation of the law, it has explicitly spurned our demands that these matters be bargained. All rights reserved. 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. Diluted earnings per share were $2.04 in the first quarter 2023, a decline of 30% compared to first quarter 2022. 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. To find a Port of Entry in your state or territory, select it in the map below or use the form in the right column. BNSF railroad filed a lawsuit Sunday against its major unions over its mandate. But the details of how much insurance will actually cover will be worked out over time. Reconciliation of Non-GAAP Financial MeasuresInformation 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). If youve been vaccinated, please share your status through the confidential process. But even if Trumps trade war ebbs, many of the $70,000-a-year conductor and maintenance jobs are unlikely to return. But now, rail industry leaders are cautiously optimistic. None, the locomotive is very small environment and no changes were made to This change resulted in a hiring process that has become wasteful and unsustainable. 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. . What three people used to do, one person is doing now.. We're keeping the steel wheels moving as we play our part to keep the shelves stocked and the lights on.". Thats down from $703 million, or $2.93 per share, a year ago. Wall Street has applauded the changes, signaling this could be a model for other industries that encounter rough times. Staffing Efficiencies Closely Tied to Safety and Resiliency. Norfolk Southern reports first quarter 2023 results. Were seeing trains that are 2 miles long on a daily basis, said Jeremy Ferguson, president of the SMART TD Union (short for International Association of Sheet Metal, Air, Rail and Transportation Workers, Transportation Division). They found they can hook two trains together and cut a crew, said a Union Pacific engineer based in Cheyenne, Wyo., who spoke on the condition of anonymity out of fear for his job. Staffing efficiencies quickly became more than a cost initiative, as staffing ties directly into safety. 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 All photographs taken prior to onset of the COVID-19 pandemic. Providing global relocations solutions, storage and warehousing platforms and destruction plans. We have based these forward- looking statements on our current expectations, assumptions, estimates, beliefs, and projections. Now I go in every day wondering if this is it., Comparisons of claims against the evidence, Railroads are slashing workers, cheered on by Wall Street to stay profitable amid Trumps trade war, Bidens misleading deficit claim earns him a Bottomless Pinocchio. Norfolk Southern Corporation (NYSE: NSC) announced Wednesday its first quarter 2023 financial results. The income tax effects of this non-GAAP adjustment were calculated based on the applicable tax rates to which the non-GAAP adjustment related. Theyve gone from a mile, mile and a quarter, to two to three miles long, said Scott Wilcox. Luke Nichols, 470-867-4807. As a result, actual outcomes and results may differ materially from those expressed in forward-looking statements. President Trumps trade war has hit agriculture and manufacturing hard, causing lower demand for companies that move freight. Im calling this a freight recession for the railroads and trucking companies, but theres this uncertainty from trade. Citi analyst Christian Wetherbee said the railroads core results were weaker than he expected and shares were down more than 3% Wednesday afternoon at $200.58. 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. ATLANTA, April 26, 2023 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) announced Wednesday its first quarter 2023 financial results. Volume was flat overall. 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. 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. (Photo: Jim Allen/FreightWaves) Updated with Today, it operates a customer-centric and operations-driven freight transportation network. 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. Management employees will be paid for After reviewing the order carefully to be certain, we determined that we are covered under the mandate. (See full memo below.). Regulatorsandmembers of Congresshave proposed reforms like capping freight trains lengths and setting standards for the trackside detectors used to spot problems. 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. About Norfolk SouthernNorfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies. PSR is aided by new technology such as drones and artificial intelligence to monitor tracks and send customers alerts about train locations. Thats better than the three previous years but still worse than a decade earlier when it reported 11.4 total accidents per million miles. Prior to Covid, Citi analyst Christian Wetherbee said the railroads core results were weaker than he expected and shares were down more than 3% Wednesday afternoon at $200.58. "None of us can predict the severity or duration of this economic downturn, so we are focused on the factors within our control. 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. That work is expected to wrap up in early June, which will boost traffic in the area. WebCOVID-19 Masking Policy at Norfolk Department of Public Health Visitors can now enter non-clinical spaces in the Norfolk Department of Public Health facilities without using a 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. PSR touts itself on reducing assets such as track, cars and locomotives, but little is discussed about maintaining the assets that remain. Moving forward, Norfolk southern will be known for safe operations, Shaw said. Earick lost that job in April but opted to take a pay cut to continue working as a rail yard laborer. That derailment, andotherssince then, sparked anationwide focuson railroad safety. It was enormous and only had two people working it. Norfolk Norfolk has access to roughly $26 million in federal money to help the city government respond to the coronavirus pandemic. Servicing Stanislaus, San Joaquin and Merced Counties, 2209 Fairview Drive Suite A Ceres, CA 95307. Workers in this longtime railroad hub are on edge, saying this feels different from past rail downturns. For some, this news will require a difficult individual choice. Our response reflects our strategy of focusing on long-term priorities and value.. Its very difficult for the operating crews and the towns and cities we operate through. Now the situation has changed. If you suffered losses exceeding $100,000 investing in Norfolk Southern stock or options between October 28, 2020 and March 3, 2023, both dates inclusive (the The unions, which have filed some of their own lawsuits in response, argue that the railroads should have negotiated with them before imposing their mandates. But PSR is also causing railroads to turn away some business that isnt profitable enough, says Peter Swan, associate professor of logistics at Pennsylvania State University at Harrisburg. ", Squires' full remarks are posted on the "Invest in NS" section of the Norfolk Southern website under "Presentations.". You can find more information by visiting a new COVID-19 resource page. Workers say the peak never came in 2019. 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. Customers and dray carriers can also utilize AccessNS and ExpressNS+TM for information concerning their While layoffs have occurred in nearly all facets of the railroad business, the biggest cuts have been from the conductor and maintenance ranks, according to detailed monthly data the seven major freight railroads provide the Surface Transportation Board. Now, after PSR, railroads are running more trains with mixed goods and on a set schedule that leaves no matter what. If you have a medical condition or sincerely held religious belief that prevents you from receiving the COVID-19 vaccine, you should apply for an accommodation by November 8. The unions didn't immediately respond in court to BNSF's lawsuit Monday, but in the other lawsuits they have argued the railroads were violating the terms of their contract by requiring vaccines and by offering bonuses to workers if they do get vaccinated. Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. 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. The Department of Justice today announced criminal charges against 18 defendants in nine federal districts across the United States for their alleged participation in various fraud schemes involving health care services that exploited the COVID-19 pandemic and allegedly resulted in over $490 million in COVID-19 related false billings to federal Our response reflects our strategy of focusing on long-term priorities and value.". The Coronation whisky accidentally created in the Cotswolds. The Corporation has based these forward-looking statements on management's current expectations, assumptions, estimates, beliefs, and projections. 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. Please refer to these SEC filings for a full discussion of those risks and uncertainties we view as most important. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Norfolk Southern and SMART-TD reach comprehensive tentative agreement on quality-of-life benefits, Norfolk Southern reports first quarter 2023 results. Staffing Efficiencies Closely Tied to Safety and Resiliency. 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. Hiring and Furloughing Practices Require Rethinking. Reconciliation of Non-GAAP Financial Measures Workers across the country report an increase in hitching two trains together on their routes. BNSF, Norfolk Southern and Union Pacific are three of the largest U.S. railroads. The railroads are not alone in facing resistance to vaccine mandates. We haul tanks, Humvees, and jet fuel for the U.S. Department of Defense and deliver coal to the federally run Tennessee Valley Authority. 650 W. Peachtree Street NW, Atlanta, Georgia 30308, Establishing Rail Service on Privately Owned Track, Establishing Rail Service on NS Owned Track, Rossville International Intermodal Optimized Stack Operations and Appointment System, Adjusted Intermodal Container Handling Fees, Public Tariff Announcement NSQ 72824 - effective May 1, 2023, Chicago 63rd St. Outgate Portal Temporary Closure, Board of Directors & Committee Membership, Norfolk Southern reports first quarter 2023 results, Norfolk Southern to announce Q4 2022 earnings, Norfolk Southern Reports Q4 and Full-year 2022 Results, Norfolk Southern reports third quarter 2022 financial results. And also more susceptible to risk than ever. Eliminating Assets Requires Precision Maintenance. 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. With the financial collapse of 2008 and a change in generations, rail workers stopped relying on the work and returned in smaller numbers. ATLANTA, April 26, 2023 / PRNewswire / -- Norfolk Southern Corporation (NYSE: NSC) announced Wednesday its first quarter 2023 financial results. Shaw pledged to continue working to improve that record as the railroad applies the lessons from East Palestine. He was a locomotive engineer for Norfolk Southern for 20 years. Creating a workforce with longevity should be the goal. 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. WebA: We do not want anyone to leave Norfolk Southern over the mandate and will work with employees who are legally entitled to an accommodation. By digitizing our training programs through remote learning, we were able to fulfill our training requirements and provide our employees with safety instruction they need.. Forward-looking statements The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Squires said the economic downturn triggered by COVID-19 will impact the railroad's business, noting that traffic volumes decreased by 11% in the first quarter of 2020 and continue to trend downward. CFR 49 Part 243 Virtual Training, with the Federal Railroad Administration and Heartwood: RAIL GROUP ON AIR, 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, CARB Passes New In-Use Locomotive Regulation, FRA Safety Advisory: Train Length a Critical Factor, CN, UP, GMXT Launching Falcon Premium (Updated April 26 with UP STB Service Metrics), Class I Briefs: BNSF, CN, CPKC, CSX, CPKC/NS/UP. Federal Railroad Administration data shows that Norfolk Southern reported 12.95 train accidents per every million miles last year. This system is for the use of authorized users only. Federal judges have yet to rule on any of these lawsuits related to the railroads' vaccine requirements. (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. Norfolk Southern Railway Co has filed a lawsuit seeking to block its employees' unions from suing over a COVID-19 vaccine mandate and to prevent its We fundamentally changed the way we operate over the last 2 years, said Bryan Tucker, vice president of communications at CSX. 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. Review Norfolk Southerns operating reports and the terms used to report performance in one convenient location. People always thought it was the coolest thing when you told them you worked on a locomotive, he said, but now hes job hunting. November marked the 10th straight month that rail freight deteriorated from the last years stellar traffic levels. Forward-looking statementsCertain statements in this news release may be forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Rail executives say these changes are delivering more reliable service that can better compete against trucks. We haul tanks, Humvees, and jet fuel for the U.S. Department of Defense and deliver coal to the federally run Tennessee Valley Authority, NS wrote in an internal memo to employees, obtained by Railway Age. Join OAR in bridging connections with first responders. WebHealth Questionnaire for employee returning to work from non-medical absence of six months or longer Return to Work Form Medical Condition and Medication Guidance: When paired with operational efficiencies and industry-leading personnel, the company is positioned for future growth opportunities that will create long-term shareholder value, he said. Media Relations, 404-420-4444, Investor Inquiries: A Union Pacific spokeswoman said the average train length is about 1.5miles. Earick said he used to love his job. Norfolk Southern and other major freight railroads have announced new safety measures, including installing more than 1,000 more trackside detectors. 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. These statements relate to future events or future performance of Norfolk Southern Corporation's (NYSE:NSC) ("Norfolk Southern," "NS" or the "Corporation"). 5. That estimate doesnt include money Norfolk Southern, based in Atlanta, will put into funds to help cover any long-term health issues, protect drinking water and compensate residents for the loss in their property values because the details are still being worked out with Ohios attorney general. ATLANTA, May 15, 2020 /PRNewswire/ --Despite economic challenges posed by the COVID-19 pandemic, Norfolk Southern is well-positioned to safely and successfully weather the unprecedented situation, CEO James A. Squires said Thursday at the company's annual meeting of shareholders. Federal Railroad Administration data shows that Norfolk Southern reported 12.95 train accidents per every million miles last year. He pointed to dramatic improvement in on-time delivery to about 90percent, up from around 50percent before PSR. 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. 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.

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