Tuesday, 19 November 2024
Trending

Business News

Union Pacific CEO called to DC hearing on ‘disturbing’ use of embargo

Union Pacific CEO called to DC hearing on 'disturbing' use of embargo

A GE AC4400CW diesel-electric locomotive in Union Pacific livery, is seen ahead of a possible strike if there is no deal with the rail worker unions, as a Metrolink commuter train (right) arrives at Union Station in Los Angeles, California, September 15, 2022.

Bing Guan | Reuters

The Surface and Transportation Board is calling Union Pacific management including CEO Lance Fritz to appear at hearings December 13-14 about the freight railroad’s use of embargoes.

The STB, an independent federal agency with oversight of surface transportation, wants to question Fritz and other Union Pacific top executives about UP’s increased use of embargoes that the regulatory body characterizes as “substantial.”

According to STB data, UP’s use of embargoes to control congestion has increased from a total of five in 2017 to more than 1,000 to date in 2022. The agency said it has received numerous reports that the embargoes are hampering shippers’ operations and adding to supply chain problems.

UP carries nearly 27 percent of freight served by rail and nearly 11 percent of all long-distance freight volume. 

“Disruptions in UP’s service levels have a significant detrimental impact on the supply chain and the nation’s economy,” the STB said in a release. “The Board has been closely monitoring UP’s usage of embargoes and has noticed a disturbing upward trend in their usage in recent years.”

UP could not be immediately reached for comment.

STB has been reviewing the service reliability of the railroads, including staffing levels and the use of embargoes to stop the flow of freight as a way to deal with congestion. Government data shows a decrease in rail employee headcount in recent years as the companies adopted a model known as Precision Scheduled Railroading, though the rails have presented data to show they have been more aggressively adding workers in 2022, but overall headcount levels remain close to flat compared to last year.

The attrition of labor from furloughs has been among the sources of anger from railroad unions in the current standoff with rail management over a new labor deal. The risk of a nationwide freight rail strike in December has been rising.

“They’ve cut us to the bone, they’re working us to death. We have quality of life issues,” said Jeremy Ferguson, president of SMART-TD, which on Monday voted to reject the labor deal, with a rail strike now potentially starting as soon as Dec. 9. “We have attendance policy issues, the morale is at an all-time low. It’s…

Click Here to Read the Full Original Article at Top News and Analysis (pro)…