This leadership is trigger-happy when it comes to layoffs, we all know that. Now with the coronavirus providing the perfect excuse to do whatever they want without consequences - not even a smidgen of bad press - it's not hard to conclude we'll be looking at plenty more cuts before all of this is over. All I can say is, be prepared.
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I've always wondered what exactly will happen when they finally reach an OR of 55. No doubt they will immediately set a new goal of 53 or 52–but someone in the next crop of management revolutionaries will come forward and say something like "We cannot reach an OR of 52% without a massive investment in technology! Expand the IT Department! Start automating every business process that we can automate!" Which is exactly what we were doing, very successfully, prior to PSR...
And let's say we get to a really, really low OR. Say 40% or 35%–at what point will the remaining shippers raise an uproar? A business like UP can't charge confiscatory fees when 65% of those fees are profit. Would the FRA and the FTC allow that? Would there be another push to re-regulate the railroads? How low can the OR go without serious push back and government involvement?
They don’t need an excuse to cut jobs they have been doing this for the past couple of years. The bad press didn’t bother them one bit and there is no regulatory agency that can tell them not to cut. The only protection we have/had was the unions, but they are powerless to stop what is going on with PSR. I am afraid this will continue. If they reach the goal of 55, they will just set a new lower goal and keep downsizing. Unfortunately. this is the trend with all railroads and many other industries also.
Are you not aware of what's been happening for the last two years?
I am in mechanical and we are about at the absolute minimum at our shop. I don't see how they can cut anymore and still function?
20% reduction Managers, Carmen and switchers before the holiday season.