Thread regarding Union Pacific Corp. layoffs

Engineering Design Layoffs for Posterity

Bottom line up front: Mr. Fritz gutted UPRR's HQ engineering staff from 200 to about 100 in October, including the layoff of the VP of Engineering Design (over 30 years of experience thrown out the door). UPRR was already seriously understaffed in its project design staff, and at this point, has essentially no ability to design a da** thing in house. High paid consultants are the only ones that really know the nuts and bolts behind designing a train track, bridge or signal system.

To put it into perspective, a state department of transportation would probably have at least 500 to 1000 employees for design work for an enterprise the size of UP.

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I have been reading this page for a while and it is sad to see what is going on with our fellow railroaders at UPRR. Most folks here talk about unionized positions that are being laid off, but I wanted to shed some light on the metaphorical m---acre that occurred in October in a small, but important component of UPRR, engineering design.

Like most Class I railroads, UP lost a great deal of in-house engineering talent in the 60s, 70s, and 80s when the railroads were over-regulated and dying. That being said, in the 90s, UP had a fairly decent ability to design signal systems, tracks, and bridges on its own, without paying a great deal of money to consultants. Design is the quintessence of engineering. At the railroad, we think engineering and it's a guy supervising a track gang, but in reality, that manager adds very little value if he/she has never designed a track and is merely an OMT, fresh college graduate, which many of these folks are.

The idea is that you should have a cadre of engineers who rotate from the office to the field and vice versa, plowing engineering knowledge back into the field, and bringing that knowledge from the field into office designs. It makes for higher quality work, at lower cost, and leads to a better railroad. A virtuous cycle; where hiring that graduate engineer makes sense instead of just being an appendage who is worth less than using an ex-union supervisor.

Today, in the glass palace, on the 9th floor there are around 100 engineers left from the previous 200, which was already a paltry number. They are so undermanned that the only thing that they have time to do is pay off the consultants working for UP and keep track of what's going on. While some of these folks are decent engineers, many, through no fault of their own, know far less than the consultants that they are supervising.

Essentially, the tail is wagging the dog. The outside vendors know far, far more than the railroad about the engineering that goes into track, structures, and signals.

UP also had a very well oiled machine to prioritize new projects, design them, efficiently communicate them to the field, and build them. That machine is completely destroyed; it's just chaos control now.

On a final, absolutely insane note, Mr. Fritz's actions led to the firing of the entire real estate department at UP except maybe two senior managers. Also, ALL Managers of Industry and Public Projects were fired.

MIPPs are the first line of defense between the railroad and any outside entity wanting to build an overpass over our tracks; drill a pipe under; complaints about drainage problems, or even a hospital having issues with emergency services being impaired by our tracks. They fired all off them except a couple of senior managers. The plan is to consult out their work.

Real estate is critical; the department can officially tell anyone that needs to know the details of old agreements, right of way issues, or getting temporary or permanent easements. They're all gone; and the plan is to consult it all out.

Sadly, most of the laid off men and women, simply went to work for UP's vendors. They will be paid less, work more, have less job security, compete with their brother railroaders for sc-aps from UP's table...and best of all, UPRR will pay far more for their services than if they had been kept as UP employees. Outside vendors have high profit margins, charge by the hour, often embellish numbers, and given how little knowledge is left inside UP; are rarely thoroughly checked or challenged.

So yeah, the whole thing is f*. Give it enough time and I guarantee that you will see problems. Especially when we get a year with heavy floods and natural disasters, there will be very few hands on deck to be mobilized for emergencies.

As for UP's engineering department. It's really just a procurement department, with an arm that supervises maintenance gangs.

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Post ID: @OP+Xrvlsiz

6 replies (most recent on top)

Excellent post, thank you for taking the time to explain what happened. Very sad! I was one of the Engineering Design folks that got let go back in October of 2018 and can tell you that the field MIPP's were very valuable and brought in many times their salary with safety and infrastructure upgrade projects like grade crossing surface replacements paid for wholly or in large part by public entities.

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Post ID: @9tcn+Xrvlsiz

I do not want to start an argument, I am just telling you what I saw.

  1. My salary and the salary of an employee I personally know went down. We lost our railroad retirement board benefits. We also lost the job security of working for the company, instead of bidding on projects for the company.

  2. Health insurance and retirement benefits are worse, in our case, than UPRR's.

  3. Now, we will have to account for every single half hour of work. No longer salaried employees, we can make more sometimes with overtime, but the stress is far greater and the pressure to just put something out there higher.

  4. I don't even know how this is legal, but in consulting, you are often told upfront that you will work a minimum of 10 hours overtime before you start getting paid time and half.

The MIPPs, who were not all degreed engineers, may somehow have it better. I don't know any personally, but I can see that. No longer pushed around by the militaristic railroad chain of command, they now get paid by the hour, make overtime, and essentially choose when they work.

Long term though, by outsourcing the little of what was left of its engineering department, UPRR has obliterated any future prospects for having a strong bench of talent in its engineering department. Long term, this will undoubtedly hurt the company, especially when you consider that 100 engineers are only 0.25% of the company's workforce but have an outsize role to play.

Also, long term, the pain will get worse and worse. Right now, and for the next 10 years or so, UP can rely on the people they fired to keep working for them from a vendor. Once those people retire, move on, get hit with a recession, etc... there won't be any more ex-UP MIPPS, there won't be any more ex-UP project managers. Eventually, it will just be a bunch of fresh graduate engineers, working for an outside vendor, that have zero loyalty to, and very little understanding of what makes UP tick. That will lead to ever higher consulting fees and inefficiency.

The cherry on top is that by doing all this, UP has also lost any real power at the American Railroad Engineering and Maintenance of Way Association (AREMA), i.e. the folks who write the design codes for the railroad. Now, when those committees meet to make new rules, do you think they're going to listen to someone from UP who they know doesn't have much of a clue concerning the technical details in the manual? The consultants will have even greater power, so there won't be any incentive to keep things nice and simple; the more complicated they make that manual...the more you have to rely on them.

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Post ID: @4slj+Xrvlsiz

We can't wait because we've been furloughed.

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Post ID: @aww+Xrvlsiz

Think it's bad now, wait until later this year and 2020.

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Post ID: @kjq+Xrvlsiz

Nice post.

One change though.

You said the Engineers were getting paid less as consultants. That's not accurate, all the engineers and MIPPs that I know got raises and have similar benefits.

In fact the remaining UP engineers are trying to leave UP (some already have) even though they were told that they were "safe" from layoffs.

Everything else is accurate though, the remaining engineering design folks aren't really engineers at all they just manage the real engineers at consulting firms.

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Post ID: @tuo+Xrvlsiz

Thanks for explaining what happened to HQ Engineering. IT was cut way back too. Getting any help with LAN routers, ptc, etc,, is so slow now.

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Post ID: @qni+Xrvlsiz

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