Category: U.P. Company

U.P. comes out with an attendance policy revision

5/23/2017

The following is an online version of the companies attendance policy revision from May 15, 2017 followed by an FAQ section.

If you would like your very own copy of the attendance policy revision...click below.

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Attendance Policy Revision
Transition to 24 month retention for signed waiver effective May 15, 2017

The retention period for signing a waiver of hearing, accepting responsibility for an Attendance
Policy violation, will be reduced from thirty (30) months to twenty-four (24) months effective May
15,2Oi7. Attendance cases in which 1st Offense, 2nd Offense, or Dismissal charges were upheld
at formal investigation and hearing are not impacted by this change.

Retention periods for attendance cases that meet the following criteria will be adjusted as noted
below provided that:

The employee signed a waiver accepting the attendance charge,
The agreed upon 3O-month retention period has not expired, and
No subsequent attendance charges are pending assessment as of May 15,2O17.

This does not impact the terms and conditional reinstatement/leniency agreements.

UNION PACIFIC RAILROAD OPERATING, SUPPLY, AND EXECUTIVE DEPARTMENT ATTENDANCE POLICY
Effective January 1,2011 for TE&Y,

Effective September 15, 2015, updated to also include Engineering, Mechanical Safety and TCU
agreement professionals,

Policy revisions implemented May 15, 2017.

As a Union Pacific employee, you were hired for and are expected to protect your job assignment on a fulltime basis. "Full-time" means being available to work as required by your assignment.

Unanticipated absence from work, particularly a missed call, refused call, no show or tardiness, can negatively impact operations, commitments to our shippers, and your co-workers' ability to plan on and off-duty activities. ln addition, absences that are conditional, pending Family Medical Leave Act (FMLA) certification, can revert to unexcused absences. Such absences are taken into account for purposes of managing attendance.

It is your responsibility to notify your manager in advance of layoffs and to retain documentation related to your absence from work. However, notification and documentation alone do not excuse your responsibility to protect your job. You may be considered in violation of this policy regardless of the explanation offered if you are unable to work full time and protect all employment obligations.

In cases where an employee does not work full-time, the following process applies:

Employees who do not work fulltime, will be identified using one or more of the following criteria:
1. Missed calls, no show, tardy, or refusal
2. Frequent or pattern of weekend layoffs.
3. Frequent or pattern of holiday layoffs. Note: For the purposes of this policy, the following holidays are included: New Year’s Day, Presidents Day, Good Friday, Mother's Day, Memorial Day, Fathers Day, Independence Day, Labor Day, Halloween, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, Christmas Day and New Year’s Eve.
4. Frequent personal layoffs.
5. Frequent sick/sickness in family layoffs without authorized leave.
6. Lower availability days when compared to peers.
An employee's fulltime work opportunities compared with the employee's opportunities for time off are taken into account in attendance evaluations. Opportunities for time off include, but are not limited to, assigned rest days, layover days, vacation, time off between duty periods, as well as authorized personal layoffs that may be granted by management as the needs of service permit. If the employees attendance record warrants, an investigation will be held; and, if appropriate, discipline will be issued based on the investigation results.

Operations, Supply, and Executive Departments Attendance Policy
Frequently asked questions

1.   Who is governed by this Attendance Policy?
This Attendance Policy applies to all agreement professionals who are in the following departments: Engineering, Transportation, Mechanical (car and locomotive), Safety, Operating Services, Supply and Executive.

2.   Why did the Attendance Policy change?
Effective September 15,2015, the policy was updated to include all Engineering, Mechanical, Transportation, Safety, Operating Services, Supply and Executive department agreement professionals to improve consistency in attendance management throughout the Operating Department. This policy replaces all previous attendance policies for Operating Department agreement professionals.

An important change for employees to consider is that violations of the Attendance Policy progress independently from MAPS. Previous attendance policy violations for agreement professionals other than TE&Y were combined with progression of rules violations under prior discipline policies. Now, violations of the Attendance Policy do not impact an employee's MAPS status.

3.   Why is the Attendance Policy separate from MAPS?
The Attendance Policy is a progressive system like MAPS; however, MAPS is oriented toward engaging employees to modify their behavior at work. The objective of the Attendance Policy is to set expectations regarding fulltime employment.

4.   Was the Attendance Policy negotiated with the Unions?
No. Company Attendance Policies are a managerial right and are not negotiated

5.   How are "frequent absences from work” defined?
Frequency depends on the employee's work opportunities compared to absences from work. A review of the employee's availability compared to similarly assigned employees may be the subject of an attendance investigation. Employee attendance records are reviewed to determine if an employee reports to work as assigned or when called to duty. Failure to meet fulltime employment expectation may require fellow employees to work additional hours or to be called to work sooner than expected, thus potentially affecting other employees' ability to plan rest and/or may negatively impacting peers' quality of lfie due to unanticipated changes to their off-duty schedules.

6.   What is the purpose of the Attendance Alert Letter?
An Alert Letter is a reminder to employees of their obligation to report for work on time, protect their employment on a full-time basis, and to inform them of the various resources available to them should they need assistance. Notices of investigation (NOl) are not issued under these circumstances.

7.   Are personal leave or single vacation day(s) subject to review under the Attendance Policy?
Personal leave and/or single vacation days may be subject to review if the use of these days indicates a frequency or pattern of avoiding work and failing to protect one's employment on a full-time basis

8.   How does an employee request an authorized medical leave of absence from work?
If an employee requires a regular or extended absence due to his/her medical issues or that of a family member, he/she may be eligible for FMLA or MLOA leaves. Employees must submit honest, complete, and accurate documentation in advance if possible or as soon as possible prior to the expiration of an authorized leave. Additional resources on the processes for requesting an authorized leave can be found on the Wellness and Medical Leave/Return website, through instructions located in the eHealthSafe portal, or by contacting your local Occupational Health Nurse.

Keep in mind that employees who are permitted to be absent for FMLA, MLOA, or other authorized purposes must use that time off for its intended purpose.

Specific and limited absences may be authorized when documentation is provided in advance to management. Examples include bereavement leave, jury duty, and other authorized absences as provided for in the applicable collective bargaining agreement.

Documentation may be requested by management to substantiate an absence in circumstances other than those described above. Managers are not required to ask for documentation or to retain such documentation unless an employee is providing the documentation as evidence for an investigative hearing. As stated in the policy, employees should retain documentation for absences and may provide such documentation as evidence in the event of a potential charge for an Attendance Policy violation.

Note that the Policy provides: "However, notification and documentation alone do not excuse your
responsibility to protect your job. You may be considered in violation of this policy regardless of the explanation offered if you are unable to work full time and protect all employment obligations."

9.   How long will an absence be considered when evaluating an employee's attendance record?
An employee's record may be reviewed following a single absence or may be reviewed over an extended period of time, depending on case circumstances. Holiday absences, for example, are typically reviewed over a one year period. There is no fixed time an absence will be considered "under review”.

10.   How does the time limit for issuing charges apply in attendance cases?
if there is a time limit requirement in the collectively bargained agreement(s) regarding the issuance of a Notice of Investigation (NOl) it is measured from the last day in the review period.

11.   Will 1.13 or 1.15 charges be issued for attendance violations?
No. The Attendance Policy conditions control and the operating rules are no longer cited as attendance violations. However, some absences can rise to the level of insubordination and be subject to a 1.6 charge.

12.   Are new hires covered by the Attendance Policy?
Yes. Each department/service unit will monitor new hire employees to determine whether applications for employment are to be disapproved based on unacceptable attendance.

13.   When does the retention period for a First Offense or Second Offense begin?
The retention period begins with the date of the Notice of Discipline assessed (NODA) letter. lf the First or Second Offense is waived, the retention date will begin with the date the waiver is signed by the employee.

14.   If an employee is dismissed for an Attendance Policy violation and later reinstated to service by an Arbitration Board what attendance level does an employee return to service at and what is the retention period?
lf a dismissed employee is returned to service as a result of a court decision or an arbitration decision or award, the conditions of the decision or award will be controlling for the purposes of adjusting the employee's record. lf a decision or award is silent with regard to the employee's record, the employee's record will revert to the status of a "second offense" with a thirty-six (36) month retention period. The time spent in dismissed status will not apply to the retention period of a prior violation.

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Brakesticks

12/2/2016

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I thought this might be a good place to reiterate this information.

Currently installed brake sticks and brake stick holders at these locations:

Herington Sub:

Canton Grain Facility.
E/W end of Galva on the 400' signs.
West end of Preston and Janet, East end of Whiteside on the 400' sign.
Both ends of Slade will have them.
West and East end of Morton yard. (Designated with yellow tape on the poles)

Topeka Sub:

Latimer by the derail sign in the house track.
West end of White City, East end of White City on the 1/2 mile marker by the derail in the house track.
West end of Dwight (hung on the Whistle Board sign) and another at the 250' mark at the crossing, 1200 Avenue east of Dwight.
At Alta Vista on the pole marked with Orange Tape across from the derail in the house track.

Thanks,

Terry Hanken

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For UP, a challenging second quarter

7/25/2016

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UP Chairman, President and CEO Lance Fritz

Written by William C. Vantuono, Editor-in-Chief, RailwayAge Magazine

"Revenue declines in six traffic groups were a key contributing factor in Union Pacific’s second-quarter financials, for which the railroad reported diluted earnings per share of $1.17, a 15% decline from the prior-year quarter; operating income of $1.66 billion, down 15%; and an operating ratio of 65.2%, up 1.1 points.

Operating revenue of $4.77 billion was down 12% in second-quarter 2016 compared to 2015. Business volumes, as measured by total revenue carloads, declined 11%. Volume declines in coal, intermodal, industrial products, chemicals, and automotive more than offset growth in agricultural products. Revenue per carload was down 2%, as a 4% decline in fuel surcharges more than offset a 2% core price increase.

Quarterly freight revenue decreased 13% compared to 2015, as volume declines and lower fuel surcharge revenue more than offset core pricing gains. Agricultural Products dipped 3%; chemicals dropped 5%; Automotive fell 13%; Industrial Products fell 14%; Intermodal dropped 16%; and Coal nosedived 27%.

On the cost side, UP’s $1.45 per gallon average quarterly diesel fuel price in second-quarter 2016 was 27% lower than second-quarter 2015. In addition, quarterly train speed, as reported to the Association of American Railroads, was 26.6 mph, 8% faster than 2015, though the velocity increase is almost entirely attributable to fewer trains in operation and, hence, more capacity and improved network fluidity. UP also repurchased 7 million shares in the quarter 2016 at an aggregate cost of $602 million.

“While the second quarter was again challenging from a volume perspective, we continued focusing on initiatives that are squarely in our control, such as being productive with our resources, providing our customers with excellent service, and improving our safety performance,” said UP Chairman, President and CEO Lance Fritz.

Looking ahead, Fritz said that “a soft global economy, the negative impact of the strong U.S. dollar on exports, and relatively weak demand for consumer goods will continue to pressure volumes through the second half of the year. However, we see potential bright spots in certain segments of our business if key economic drivers continue to strengthen as they have in recent weeks. Beyond the impact of the current macro environment, we are implementing a strategy that will make us a stronger company for the future. In the months and years ahead we will continue to create competitive advantages for our customers, enhanced safety and satisfaction for our employees, strength in our communities, and solid returns for our shareholders.”

Wall Street responded to UP’s financial report with a “mildly negative reaction to the results,” said Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl. “We view this as a unique buying opportunity, as it appears largely attributable to further moderation in price, which we believe will begin to improve in 2H16. Potential near-term drivers include agricultural products, coal, construction products, and domestic intermodal. Longer term, free cash flow should begin to increase as UP’s capex needs moderate.”

UP’s results were largely in line with Cowen and Wall Street consensus estimated. The 2Q16 EPS of $1.17 topped Cowen’s $1.15 expectation and met the consensus of $1.17. The 15% operating income decline was fairly close to Cowen’s and street expectations of $1.67 billion and $1.70 billion, respectively. UP’s 12% revenue drop, to $4.77 billion, was largely in line with Cowen’s and consensus estimates. The OR’s deterioration by 110 basis points year-over-year to 65.2% was 50 bps worse than Copen’s assumption and 80 bps worse than the implied consensus OR.

“UP’s 2% core pricing result represented a deterioration from 2.5% in 1Q16, which in turn was below the 3.5% achieved in 4Q15, which had a half percentage point of legacy business,” Seidl noted. “We believe the pricing pressure is attributable to three main factors: 1) Ample capacity across freight modes. 2) Ocean shippers taking advantage of low rates to take freight further on water, with more East Coast-bound freight going directly to Eastern ports. 3) Aggressive pricing by BNSF.

“We believe the price moderation was the key culprit behind the mildly negative reaction to the results. We view the stock weakness as a unique buying opportunity for long-term investors as we believe pricing will begin to rebound in 2H16. Indeed, UP noted recent tightening in freight capacity, which is consistent with the takeaways from our private trucking call, in which participants noted improved volumes in June and July and a rise in spot truckload rates.

“Other potential bright spots include agricultural products, coal, construction products, and domestic intermodal. On the Ag front, a combination of high levels of grain in storage, a strong expected crop in the U.S. this season, and weak crops in South America could drive the shipment of domestic and export grain. On the coal front, we are modeling for a material sequential rise in traffic, as coal burn in June was outsized vs. May, and much of the coal produced in UP-served regions is now in the money at current natural gas prices. Construction products, according to our channel checks, remain strong and should continue to drive demand for the shipment of lumber and aggregates. Finally, domestic intermodal should benefit from what appears to be a gradual recovery in truckload rates.”

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Letter Addressing Oak Tree Inn

7/23/2016

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As always, I would like the members to keep me informed of anything that you turn into Coleman. Things that are said to him seem to just disappear and don't always get addressed so it is very important that I, as the local chairman, receive this information as well. I hear a lot of guys talk but no one ever will put anything in writing and turn it in. This is imperative to resolve our situation. The State legislative director has also been very involved with Coleman in trying to resolve our issues.

Chad Henton
Local Chairmain & Legislative Rep.
SMART-TD Local 506
Herington,KS 67449
785-366-1119

Letter PDF

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Lance Fritz issued a statement to non-agreement employees on August 12, 2015.

8/14/2015

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Written by Carolina Worrell, Managing Editor of Railway Age

Union Pacific President and CEO Lance Fritz issued a statement to non-agreement employees on August 12, 2015 announcing a “workforce reduction initiative” as “the railroad takes the necessary steps to align resources with current business requirements.” Fritz added that the company plans to reduce its management workforce in Omaha and other locations by several hundred people in the coming months through a combination of anticipated attrition and terminations.

News of the mass firings follows a flat 2015 second-quarter for UP, as the railroad reported net income of $1.2 billion, compared with 2014 net income of $1.3 billion, an operating revenue decrease of 10%, and operating income down 11%.

“As with the furlough of more than 1,000 craft professionals in recent months, this is an extremely difficult decision to make because of the impact it will have on all our employees,” Fritz said. “However, for our company’s long-term success, we must take these painful actions to balance workforce levels with today’s business demands.”

“While UP does not expect workforce reductions to reach federal Worker Adjustment and Retraining Notification Act (WARN) thresholds, we have communicated with appropriate government entities in accordance with WARN guidelines to be transparent with our communities about our intentions,” Fritz added.

Fritz says the company will offer severance packages to employees who will be part of the non-agreement, involuntary workforce reduction. Communication to impacted employees will occur over the next few months. No buyout options will be available for employees who retire or voluntarily leave the railroad.

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U.P. Takes a Hit in its 2nd Quarter Report.

7/23/2015

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Well brothers and sisters, the numbers are in. It appears that U.P. made a profit...BUT, according to Russell Hubbard / World-Herald staff writer "The company already this year has furloughed — or temporarily laid off — about 900 employees. Union Pacific has said decreased demand for its services made the cutbacks necessary. Analysts say additional cuts are likely." Then Mr. Hubbard goes on to say "Union Pacific hasn’t disclosed where the furloughs have happened or in what job categories. The company not only operates freight trains, but also terminals, yards, workshops, offices and myriad other installations." Here are the true numbers of the furloughs just in OUR hub. Keep in mind these aren't just numbers. Each number represents a person, a family, an employee cut off to preserve the proverbial "bottom line".

Herington: 68
Salina: 15
Wichita: 25

Of the 900 employees reportedly furloughed, TE&Y represents 749 employees. That's 83.2% of the "non-disclosed" job categories. The following is a list, by region, of the current TE&Y cut off employees.

Northern Region: 318
Southern Region: 98
Western Region: 333

So, of the 900 employees reportedly furloughed...our hub alone represents 108 employees of that statistic! That's 12% of the total layoffs for the company. I understand that each of us has dealt with our fair share of being cut off, but the company must shoulder the responsibility of over hiring.

By Daniel Niepow, Associate Editor of

A decrease in demand and overall volumes in several sectors, including a sharp decline in coal traffic, offset the positive impact of core pricing gains in the second quarter, Union Pacific Railroad reported this morning.

The railroad's net income for the quarter fell 3 percent to $1.2 billion versus $1.3 billion in the same quarter last year. Earnings per diluted share decreased to $1.38 from $1.43 in the year-ago period.

Volume fell 6 percent to 2.3 million units as coal traffic plunged 26 percent to 309,000 units, industrial products carloads tumbled 13 percent to 306,000 units and agricultural products volume declined 7 percent to 225,000 units.

Despite several headwinds, the railroad "made meaningful progress by right sizing our resources to current volumes, and I am encouraged to report that we made these improvements while posting strong safety performance," UP President and Chief Executive Officer Lance Fritz said in a statement.

The railroad's operating ratio of 64.1 rose 0.6 points while operating revenue decreased 10 percent to $5.4 billion. By commodity group, coal revenue plummeted 31 percent to $679 million, industrial products revenue fell 14 percent to $970 million, ag products revenue declined 7 percent to $867 million, intermodal revenue decreased 5 percent to $1 billion, chemicals revenue slipped 1 percent to $905 million and automotive revenue inched up 1 percent to $560 million.

Both operating expenses and income fell during the quarter: the latter decreased 11 percent to $1.95 billion, while the former decreased 9 percent to $3.48 billion.

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Union Pacific to put $51.5 million in Wyoming infrastructure

5/11/2015

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Union Pacific's week of infrastructure reveals continues with plans to perform $51.5 million in work on the railroad's Wyoming infrastructure.

In the past week, Union Pacific has revealed $449 million worth of work to take place in Iowa, Illinois, Colorado, Missouri, Nebraska and Wyoming.

Union Pacific says these private investments will enhance employee, community and customer safety and increase rail operating efficiency.

Union Pacific's planned Wyoming investment covers a range of initiatives: nearly $48 million to maintain railroad track, more than $3 million to enhance signal systems and nearly $700,000 to maintain or replace bridges in the state. Key projects planned this year include:

$9.7 million investment in the rail line between Laramie and Walcott to replace 74,000 railroad ties and install 23,000 tons of ballast. In addition, crews will repair the surfaces at 21 road crossings.
$6.9 million investment in the rail line between Cheyenne and Egbert to replace 45,200 railroad ties and install 19,500 tons of ballast. In addition, crews will repair the surfaces at 12 road crossings.
$5.2 million investment in the rail line between Cokeville and Kemmerer to replace 37,300 railroad ties and install 40,500 tons of ballast.

This year's planned $51.5 million capital expenditure in Wyoming is part of an ongoing investment strategy. From 2010 to 2014 Union Pacific invested $430 million strengthening Wyoming's transportation infrastructure.

"We constantly evaluate our customers' needs to make targeted investments that enhance our efficiency and deliver the goods American businesses and families use daily," said Donna Kush, Union Pacific vice president - Public Affairs, Northern Region. "Continuing to aggressively invest in our infrastructure is an important element in Union Pacific's unwavering safety commitment."

Union Pacific plans to spend $4.2 billion across its network this year, following investments totaling more than $31 billion from 2005-2014. These investments contributed to a 38 percent decrease in derailments over the last 10 years.

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Union Pacific aims to be first railroad to haul liquefied natural gas.

3/19/2015

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By Russell Hubbard / World-Herald staff writer

Union Pacific Railroad has applied for permission to haul liquefied natural gas, which would add another combustible cargo to a U.S. rail network already being criticized for transporting ethanol and crude oil through populated areas.

The Omaha-based railroad said the application for a permit from the Federal Railroad Administration is in response to a request for liquefied natural gas transportation from an existing customer. Union Pacific operates 32,000 miles of track in the western United States, which is home to many natural gas production and storage installations.

If Union Pacific is granted the permit, it would be a first. The Association of American Railroads said none of the six other Class I freight railroads are hauling liquefied natural gas.

The permit application coincides with a major bump in railway ethanol and crude oil cargo, which has attracted heavy opposition after a fatal oil train explosion in Canada in 2013 and three oil train fires so far this year in the United States and one in Canada.

“The timing for U.P. is awkward given recent accidents and mounting public apprehension,” said Joseph Schwieterman, a transportation sciences professor at Chicago’s DePaul University. “I am sure there will be pressure for a go-slow approach on it, but the fact is that railroads are the best bet to get significant amounts of natural gas to market given the decades it takes to permit and construct pipelines.”

Details about the application are secret. A Federal Railroad Administration spokesman said application and supporting materials are not available for public inspection during the review process. “Federal law limits our disclosure” of which customer is requesting transport of liquefied natural gas, Union Pacific spokesman Aaron Hunt said.

Liquefied natural gas, or LNG, however, is a well-known commodity. Liquefying the fuel — which most often moves via pipeline, truck and ship — compacts it enormously. That makes it attractive to shippers and those who want to store large quantities. Liquefied gas takes up 1/600th the space of the gaseous form. The liquid gas can then be converted back into its gaseous state for use or further shipment in pipelines.

Union Pacific’s permit request comes as U.S. natural gas production is climbing, up 37 percent since 2000. Part of the boom is the conversion of coal-burning electric plants to natural gas. There also are 128,000 vehicles in the United States running on compressed natural gas, up 12 percent since 2010.

“It has only been a matter of time for the railroads to get in on the natural gas boom,” Schwieterman said. “It is a fast-growing industry with fast-growing logistical needs.”

But some people are holding back. Eddie Scher, an officer with ForestEthics, a California-based lobbying group that advocates the gradual elimination of fossil fuels, said that transporting another flammable cargo on the rail network is a very poor idea.

“The rail system in America was built to connect population centers, with trains going through every downtown in the country,” Scher said. “It was never designed to haul hazardous materials, and in fact, you could say that if you were to design a rail system for hazardous materials, the one we have is the opposite of the one you would design.”

Scher said federal safety rules are already out of date for oil trains and their tank cars, with millions of gallons of oil a day riding the rails, up from nearly zero only five years ago, courtesy of skyrocketing production from new fields in Montana and North Dakota.

“To entertain the idea of new and potentially more dangerous cargo makes no sense at all,” Scher said.

Hauling dangerous cargo is nothing new for Union Pacific and other railroads, which haul chlorine, explosives and sulfur.

Safety is a main point of emphasis for every cargo, said Hunt, the Union Pacific spokesman. The national train accident rate has fallen 42 percent since 2000 and 79 percent since 1980, according to the railroad association. At Union Pacific, derailments have fallen about 7 percent since 2010, to three for every million miles of train travel.

“We have the same goal as everyone else, and it’s in the best interest of our customers, shareholders and the communities where our employees and their families live, work and play to operate as safely as possible,” Hunt said.

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U.P. comes out with an attendance policy revision

Attendance Policy Revision
Transition to 24 month retention for signed waiver effective May 15, 2017

Brakesticks

For UP, a challenging second quarter

Letter Addressing Oak Tree Inn

Lance Fritz issued a statement to non-agreement employees on August 12, 2015.

U.P. Takes a Hit in its 2nd Quarter Report.

Union Pacific to put $51.5 million in Wyoming infrastructure

Union Pacific aims to be first railroad to haul liquefied natural gas.

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​Attendance Policy Revision Transition to 24 month retention for signed waiver effective May 15, 2017

Local 506

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Attendance Policy Revision
Transition to 24 month retention for signed waiver effective May 15, 2017