Eliminating Assets Requires Precision Maintenance. The federal deadline for employees to be fully vaccinated is December 8. The volume decline is similar to what occurred at the end of 2015, although the job losses are worse. The Corporation has based these forward-looking statements on management's current expectations, assumptions, estimates, beliefs, and projections. Some routes are now gone or downsized. The railroad will also have to reimburse the Environmental Protection Agency for its oversight of the cleanup. We have based these forward- looking statements on our current expectations, assumptions, estimates, beliefs, and projections. Norfolk Southern Corporation (NYSE: NSC) announced Wednesday its first quarter 2023 financial results. I was told this furlough was indefinite. Now retired, he says although carrying more cargo per train may increase the companys profits, there is a drawback. And also more susceptible to risk than ever. UP and its unions are suing each other over that requirement. Ive never seen conditions like this in my 45-year career, said Jim Blaze, a railroad economist. A centerpiece is the railroad's TOP21 operating plan, which has transformed how it operates trains on the network and contributed to record levels of train performance and service. By leveraging the unique backgrounds and viewpoints of our employees, we can create a culture of innovation, respect, and inclusion. 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. Now the situation has changed. Rail workers rarely speak to the media out of fear of losing their jobs, but more than a dozen spoke with The Washington Post, mainly because of concerns over how PSR is changing the industry in ways they say causes unnecessary job losses and creates an unsafe environment. When you go to work now, its like going into a funeral home, Hollandsworth said. Yetthose who livenear the derailment site close to the Ohio-Pennsylvania border are fearful ofpossible long term health impactseven though officials say that repeated testing hasnt shown harmful levels of chemicals in the air or drinking water. 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. Workers often embraced this as regular business and saved money for the time away, knowing that once volume increased, theyd be called back to work in most cases. 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. Wall Street has applauded the changes, signaling this could be a model for other industries that encounter rough times. Learn more by visiting www.NorfolkSouthern.com. Fantastic help. 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. Rail Group News offers news and analysis from Railway Age, IRJ and RT&S by email. From the beginning, we have been guided by one principle: We are going to do whatever it takes to make it right for East Palestine and the surrounding areas, said Norfolk Southern President and Chief Executive Officer Alan H. Shaw. 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. Providing global relocations solutions, storage and warehousing platforms and destruction plans. Shaw pledged to continue working to improve that record as the railroad applies the lessons from East Palestine. 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. Workers say they are concerned that radio signals sometimes go down between the front and back of long trains and that Americans dont like waiting for long trains to pass. Unlike in the past, his colleagues probably wont be coming back. Workers in this longtime railroad hub are on edge, saying this feels different from past rail downturns. Our people rose to the challenge. As railroads move to increasingly autonomous operations, requiring fewer personnel onboard, having in-depth and interactive training materials on-hand at all times both for review and practice will be critical. People always thought it was the coolest thing when you told them you worked on a locomotive, he said, but now hes job hunting. 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 (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. The unionsthe Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET)reported on Oct. 29 that they have filed counterclaims challenging NS actions in implementing the vaccine policy without the bargaining mandated by the Railway Labor Act. "As a result of our transformation, we've set records for metrics such as train speed, terminal dwell, and shipment consistency," Squires said. The effort required innovation and collaboration, he noted, and ranged from equipping departments to work remotely, including most of Customer Service, to purchasing hand sanitizer from local distilleries in the midst of a nationwide shortage. Staffing Efficiencies Closely Tied to Safety and Resiliency. Historically, railroads have carried headcount that can be quickly shed on a seasonal basis to correspond with traffic declines, offering steady employment nine months out of the year. Diluted earnings per share were $2.04 in the first quarter 2023, a decline of 30% compared to first quarter 2022. 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. In official business, based on preliminary results, shareholders elected 13 directors for terms expiring in 2021: In other preliminary results, shareholders approved three proposed amendments to the corporation's amended and restated articles of incorporation; ratified appointment of KPMG LLP as independent auditors for 2020; approved an advisory resolution on the compensation of executive officers; and rejected a proposal regarding shareholders' right to act by written consent. Join OAR in bridging connections with first responders. Its always been do more with less, but now its do more with less to the absolute extreme, said a conductor in Eastern Kentucky who spoke on the condition of anonymity for fear of retribution by CSX. Thats better than the three previous years but still worse than a decade earlier when it reported 11.4 total accidents per million miles. All rights reserved. PSR is aided by new technology such as drones and artificial intelligence to monitor tracks and send customers alerts about train locations. Staffing Efficiencies Closely Tied to Safety and Resiliency. Regulatorsandmembers of Congresshave proposed reforms like capping freight trains lengths and setting standards for the trackside detectors used to spot problems. And by practicing challenging or emergency scenarios regularly, overall safety and productivity correspondingly increase. To find a location offering vaccination in your community, weve created a resource page with links to search by zip code. Fact-checking Trumps reaction to Bidens reelection announcement. Lori Baker - via Google. Today, it operates a customer-centric and operations-driven freight transportation network. Workers will require more than a basic understanding of adjacent crafts, and that expertise should be immediately accessible for reference regardless. And connecting back to the first item, precision scheduling also means railroads are left with precision maintenance. Leaders of the SMART-TD union and the Brotherhood of Locomotive Engineers and Trainmen have said they generally support workers getting vaccinated, but they don't think the railroads should require it without negotiating first. Our approach has worked. Today, it operates a customer-centric and operations-driven freight transportation network. 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 gallons of tainted water. Weve encouraged employees to follow guidance from public health experts regarding vaccination, but we havent mandated vaccination as some companies have done. 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. About Norfolk Southern The income tax effects of this non-GAAP adjustment were calculated based on the applicable tax rates to which the non-GAAP adjustment related. When typing in this field, a list of search results will appear and be automatically updated as you type. Prompt and friendly service as well! ", Squires' full remarks are posted on the "Invest in NS" section of the Norfolk Southern website under "Presentations.". 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. The average train length has increased 25percent since 2008 to about 1.4 miles, according to a Government Accountability Office report published in May. 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. The income tax effects of this non-GAAP adjustment were calculated based on the applicable tax rates to which the non-GAAP adjustment related. But, as mentioned, when detailing how to lessen the spread of disease with technologysustainability efforts would benefit as well. 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. Workers across the country report an increase in hitching two trains together on their routes. Workers say the peak never came in 2019. We are making progress every day and Im proud of our people. Our success enabled us to dispose of 703 locomotives that are no longer needed because our network is more efficient a strong sign that our strategic plan is working.". Its hard to predict if well slide into an overall economic recession.. Your efforts to keep the trains rolling through this pandemic have been nothing short of heroic. 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. "Norfolk Southern has a history of successfully managing through business cycles and challenging economic environments," Squires said. Everyone took really good care of our things. Its Norfolk Southern Railway Company subsidiary operates approximately 19,500 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. All employees need to provide their status by November 8, regardless of whether they are vaccinated, and even if they shared their status previously. Norfolk Southern (NS) on Oct. 20 notified all employees that it will require them to receive the COVID-19 vaccination by Dec. 8; on Oct. 22, the railroad filed suit The Company uses these non-GAAP financial measures internally and believes this information provides useful supplemental information to investors to facilitate making period-to-period comparisons by excluding the effects of the Incident. 5. The Biden Administration has issued an executive order and associated guidance mandating that federal contractors require vaccinations for all employees. If youre trying to save money, you cut people like crazy.. Apply for this job Here are five takeaways from this past year, around what to expect and potential ways to alleviate the impact of each. Learn more by visiting www.NorfolkSouthern.com. We fundamentally changed the way we operate over the last 2 years, said Bryan Tucker, vice president of communications at CSX. Canadian railroads embraced PSR over a decade ago. BNSF filed a Norfolk Southern also has the most extensive intermodal network in the eastern U.S., serving a majority of the countrys population and manufacturing base, with connections to every major container port on the Atlantic coast as well as the Gulf of Mexico and Great Lakes. 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 Earick lost that job in April but opted to take a pay cut to continue working as a rail yard laborer. 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 gallons of tainted water. November marked the 10th straight month that rail freight deteriorated from the last years stellar traffic levels. As a result, actual outcomes and results may differ materially from those expressed in forward-looking statements. 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. Also, many railroad terminals have several structures that exist for this purpose alone to house operations that could be managed remotely. Norfolk Southerns history spans nearly two centuries to the earliest days of American railroading. 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. 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. Reconciliation of Non-GAAP Financial Measures While the Corporation believes these expectations, assumptions, estimates, and projections are reasonable, forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Corporation's control, including but not limited to: general North American and global economic conditions; changes in energy prices and fuel markets; uncertainty surrounding timing and volumes of commodities being shipped; changes in laws and regulations; uncertainties of claims and lawsuits; labor disputes; transportation of dangerous goods; effects of changes in capital market conditions; and severe weather. 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. Rail executives say these changes are delivering more reliable service that can better compete against trucks. Multiple rail executives took the stage at the Stephens Nashville Investment Conference that month to stress that while rail volumes were down, employee head count and other costs were down even more, ensuring the companies remained highly profitable. Review Norfolk Southerns operating reports and the terms used to report performance in one convenient location. Digitizing these processes eliminates maintenance costs and frees real estate for other purposes. The city laid off 470 part-time employees this year for the same That derailment, andotherssince then, sparked anationwide focuson railroad safety. We have based these forward- looking statements on our current expectations, assumptions, estimates, beliefs, and projections. Our employees have diverse and often deeply held views on this topic, and we respect those differences. click here. BNSF and Union Pacific are putting their vaccine mandates on hold following a federal court decision on Tuesday. Thats better than the three previous years but still worse than a decade earlier when it reported 11.4 total accidents per million miles. There have also been periods such as 2015-16 when manufacturing, trucking and rail suffer, but the rest of the economy keeps growing. (Photo: Jim Allen/FreightWaves) Updated with Norfolk Southern and other major freight railroads have announced new safety measures, including more than 1,000 more trackside detectors. About Norfolk SouthernNorfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies. Its dedicated team members deliver more than 7 million carloads annually, from agriculture to consumer goods, and is the largest rail shipper of auto products and metals in North America. The non-negotiated bonuses and unilateral decision to discipline employees who are not vaccinated functioned to undermine the collectedly-bargained agreements and reduce Norfolk Southerns obligations under those agreements, the Sheet Metal, Air, Rail and Transportation Workers Transportation Division, or SMART-TD, union said in its response to Norfolk Southern. You can apply at the same place you share your vaccination status by choosing Personal Information on SuccessFactors. Thats down from $703 million, or $2.93 per share, a year ago. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "project," "consider," "predict," "potential," "feel," or other comparable terminology. It was enormous and only had two people working it. That means we are obligated by law to require vaccinations for our employees. Hundreds of black locomotives bearing the Norfolk Southern logo are parked back-to-back on the tracks that run through the heart of Roanoke. Norfolk Southern (@nscorp) February 17, 2022 Starting pay for employees begins at $52,000, which increases over four years to a minimum of around $63,500. The Coronation whisky accidentally created in the Cotswolds. This is critical for us to meet the compliance deadline and plan for potential impacts. 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. The process was smooth and easy. Creating a workforce with longevity should be the goal. 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. Norfolk Commonwealth's Attorney's Office Plea Philosophy Policies and Procedures 03-21-2022. When workers are continuously learning and increasing their value in their craft as an industry expert, they both appreciate their work and feelappreciatedby the railroad. Weve kept the trains moving and our business strong, while limiting workplace spread. It joins Norfolk Southern and Union Pacific, which both filed similar lawsuits against the unions last month. 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. 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. Spokeswomen for two other major major U.S. railroads, CSX and Kansas City Southern, said officials at those railroads are still considering whether to impose vaccine mandates in response to the executive order, but both railroads are encouraging employees to get the shots. 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. But even if Trumps trade war ebbs, many of the $70,000-a-year conductor and maintenance jobs are unlikely to return. What are the five most expensive homes that sold in Tahoe West Shore in the past two weeks? NS has now sued the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART) and two other unions that represent its employees, according to Reuters. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, the occurrence of certain events, or otherwise, unless otherwise required by applicable securities law. 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. Norfolk Southern also has the most extensive intermodal network in the eastern U.S., serving a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as the Gulf of Mexico and Great Lakes. He was a locomotive engineer for Norfolk Southern for 20 years. 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 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). At its worst, each crew member gets a paper copy (often several pages) of the train consist and other instructions. Every economic downturn since World War II has been precipitated by nose-diving freight traffic. The strategy has taken hold among major U.S. freight railroads since 2017, as executives hunted for a way to increase profits to make up for shrinking coal traffic and the recent downturn in the industrial economy. 1. Federal Railroad Administration data shows that Norfolk Southern reported 12.95 train accidents per every million miles last year. laura lehn - via Google, I highly recommend Mayflower. Committed to furthering sustainability, Norfolk Southern helps its customers avoid 15 million tons of yearly carbon emissions by shipping via rail. They have lots of options for moving. 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. "As they always do in a crisis, our employees responded heroically," Squires said. 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. None, the locomotive is very small environment and no changes were made to BNSF has a long-standing and well-settled past practice of unilaterally changing its rules and policies governing position requirements, medical standards, and safety in response to lawful federal government directives, the railroad said in its lawsuit. "We are making progress every day and I'm proud of our people. Federal Railroad Administration data shows that Norfolk Southern reported 12.95 train accidents per every million miles last year. Dan Bostek,Director of Operations Practices and Special Projects at Norfolk Southern, says, The use of remote simulation monitoring and training was a novel idea to many in the rail industry in 2020. You can do this by updating your Personal Information on SuccessFactors. A worker safety advocacy group, the National Council on Occupational Safety and Health, issued a report Wednesday labeling Norfolk Southern and the other major freight railroads as some of the most dangerous employers in the nation because of those labor concerns about the impact of the cost cutting. Another key part of the efficiency push is running longer trains. The railroads are not alone in facing resistance to vaccine mandates. 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. This greatly decreases chances for infection. Income from railway operations in the first quarter 2023 was $711 million including a $387 million charge associated with the Eastern Ohio Incident, a 34% decline compared to $1.1 billion in the first quarter of 2022. Squires addressed shareholders during the company's first virtual-only annual meeting, a board decision made in light of public health concerns and social distancing guidance arising from the COVID-19 pandemic. Learn more about the NS Green Financing Framework. Policies. Its a huge issue. But the details of how much insurance will actually cover will be worked out over time. He pointed to dramatic improvement in on-time delivery to about 90percent, up from around 50percent before PSR. To learn how to enable JavaScript in your browser, Can Floridas gay teachers show photos? NS follows Union Pacific (UP) in taking action. 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). Norfolk Southern and other major freight railroads have announced new safety measures, including installing more than 1,000 more trackside detectors.
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