UP CEO letter to STB re: service improvement

[Wayside]

Very interesting letter from Lance Fritz to STB describing the UP plan for getting service metrics back in line. An inside source has told me that it is widely understood within the management team that the reorganization from last year has severely impacted morale and "team spirit." Substantial incentives for newhires continue in many key locations as the network speed degradation creates a critical need for many more locomotives and operating and maintenance personnel. All high-hp units are out of storage and all furloughed people recalled.

https://www.railwayage.com/regulatory/u ... annel=news

“At the network level, we are focused on train-plan discipline. Running trains as scheduled helps ensure locomotive and crew balance, which allows us to more-efficiently use available resources. We are engaging and communicating proactively with our customers to ensure they know we take their concerns very seriously and are committed to improving service. Our number one priority is to stabilize service and reverse the downward trend.

“We cannot predict how soon our ongoing efforts will take hold and may face unexpected challenges in the coming months. However, we are fully committed to deploying the resources necessary to restore network fluidity and velocity, and to safely and efficiently serve our customers.”

[Wayside]

PS: The reorganization referenced in the above post was an across-the-board push to reduce the number of non-agreement personnel while flattening/leveling the organization dramatically. Buy-outs/early retirements were offered to a select number, while many more were just let go with a severence package. Most who applied for the buy-out didn't know until the very last day which way things would fall for them, as many were simply walked out the door by special agents (railroad police). Many of those who remained had their titles adjusted downward, with general directors becoming managers and so on. Most feel that this action sent a pall across the company that may not be reversible in the near future. Now it's starting to show up in the financial results and in operational difficulties that could take years to recover from.