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Home / News & Reviews / News Wire / UP CEO expects Congress to intervene if
railroads experience work stoppage
UP CEO EXPECTS CONGRESS TO INTERVENE IF RAILROADS EXPERIENCE WORK STOPPAGE
By David Lassen | August 29, 2022
Fritz tells AREMA conference he believes arbitration, imposition of PEB
recommendations are most likely outcomes if dispute requires congressional
involvement
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Union Pacific CEO Lance Fritz addresses the AREMA conference in Denver on Aug.
29, 2022. (David Lassen)
--------------------------------------------------------------------------------
DENVER — Union Pacific CEO Lance Fritz said Monday he believes railroads and
unions will begin to reach agreements on new labor contracts, but that he is
also “confident” that Congress will intervene if the ongoing labor dispute
reaches the point of a strike or a lockout.
Fritz, in a brief address to the American Railway Engineering and
Maintenance-of-Way Association Annual Conference, noted that the two sides are
10 days into the 30-day cooling-off period triggered when the Presidential
Emergency Board released its recommendations for settling the long-running
negotiations [see “Presidential Emergency Board issues rail contract
recommendations …,” Trains News Wire, Aug. 16, 2022].
“If we get to the very tail end, there is a chance that anyone who hasn’t signed
an agreement that isn’t going out for ratification can strike or we can lock
out. I would prefer that not to happen,” Fritz said. “If that were to happen,
I’m confident that Congress would step in.”
Congressional intervention, he said, could take four forms. “They could extend
the cooling-off period and force us back to negotiation; they could impose the
recommended settlement by the PEB, or they could create their own [settlement].
Or they could send us into binding arbitration.
“So they can do anything they want to get a deal. I’m confident that if we don’t
reach agreement with every union, Congress will step in quickly and will
probably impose either binding arbitration or the recommendations of the PEB.”
Those comments came at the end of an address in which Fritz provided an overview
of the railroad’s current operations, its capital spending plans, and its
environmental, social, and governance efforts.
“From the middle of April until now, we’ve been in recovery mode,” Fritz said of
the operations issues, which have widespread among the largest Class I
railroads. He offered a few statistics to show the state of that recovery:
freight car miles per day has risen from 178 to 193 (“it needs to be about
205-plus,” he said); and car inventory dropped from 202,000 to 183,000 prior to
July 4 holiday; it’s now at 195,000.
Bulk-commodity issues are also improving, he said.
“We got into a little trouble with our grain shuttles; we weren’t satisfying
demand in coal. We still aren’t, in a pure sense,” he said. “But our shuttle
times are improving and we’re adding more equipment into the network as the
month has gone by, so that’s improving pretty dramatically.”
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Comments+
5 THOUGHTS ON “UP CEO EXPECTS CONGRESS TO INTERVENE IF RAILROADS EXPERIENCE WORK
STOPPAGE”
1. Gregg Spindler says:
August 29, 2022 at 11:46 am
The millions spent in lobbying and campaign contributions (i.e., “free
speech” for corporate “persons”) pays back far greater than share buybacks
and dividends.
Reply
2. Brian Rose says:
August 29, 2022 at 12:31 pm
its to bad he has figured out that its PSR and the worship of Wall st and
his own greed that have caused most of the problems
Reply
3. Walter Fegely says:
August 29, 2022 at 1:29 pm
Hey we have to keeping stalling! We have paid good money to these
politicians to get a contract in our favor. Maybe not even a contract just
tell them they can’t strike!
Reply
4. Braden Kayganich says:
August 29, 2022 at 9:43 pm
Congress can’t intervene in resignations though….
Reply
5. Maynard Stowe says:
August 30, 2022 at 7:23 am
So once again we see the failure of our current Wall Street driven late
stage “Capitalism”. A government mandated solution–used to be thought of as
a version of socialism.
Reply
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