We did not get to attend ours but read what was said from SCX one:
As many of you are aware, Norfolk Southern had a Town Hall meeting yesterday in Roanoke, VA. This was Norfolk Southern’s tenth out of eighteen scheduled Town Hall meetings and was the largest meeting to date. These meetings were designed to address their customers as well as employees of the new TOP 21 operating plan to begin on July 1, 2019. I attended this meeting along with many of our IBEW members.
The agenda for this Town Hall meeting was broken down into five segments; 1) Clean Sheeting, 2) TOP 21, 3) Plan Execution, 4)” What should customers expect?”, 5) Local Changes, and a Q 1) Serve Customers, 2) Manage Assets, 3) Control Costs, 4) Safety, and 5) Develop People. During this discussion SVP Farrell explained that Clean Sheeting is basically a way to speed up the railroad and make it less congested. Farrell said that Norfolk Southern is a transportation company and therefore their goal is to move freight quicker and more efficiently. Since SVP Farrell’s tenure Norfolk Southern has increased overall speed of freight from an average of 18mph to close to 23 mph.
This is a 5 mph increase in overall train speed which results in a removal of 500 locomotives plus an additional 100 or more locomotives that were removed to start the Clean Sheeting process. According to SVP Farrell, for every 1 mph faster the average speed increases 100 locomotives will not be needed. Additionally, for every 100 locomotives lost there will be 50 less mechanical employees needed. These are staggering numbers considering that we were all told that attrition should account for the decrease in manpower.
Attrition is currently responsible for 150-200 employees a month. According to SVP Farrell, attrition has not been sufficient to achieve the manpower numbers that NS wants. Further, SVP Farrell stated that Norfolk Southern has been extremely lenient on their furloughs because they have cut at a ratio of 1 person per 6 locomotives removed from service instead of the 1 person per 2 locomotives that was originally wanted. Senior Vice President Farrell went on to say how dwell time has dropped 36% and has dropped consistently for 10 weeks in a row with an all-time record ending the week of 5/17/19.
This coupled with shipment consistency improving 62% in the same time period, which set an all-time record last week at 91.4%. Norfolk Southern is currently leading all Class 1 Railroads in these categories. Additionally, Cars online have dropped 18% and Volume served (6 plus days) has decreased 67% with a total of 88%. This means that 88% of NS customers receive their shipment in under 6 days. Further, 30% of the customers are getting shipments a day early.
SVP Farrell continued to dissect Clean Sheeting with 4 Key Disciplines; 1) Run trains on time, 2) Switch cars in 6 hours, 3) Keep static, right train in right block, and 4) Do it all safely. The key is less car handling and to keep freight moving in the right direction. Theoretically, based on these “triggers” management should be able to evaluate how the shift is going and make necessary changes or “escalations” that will save the rest of the day. The end result is that service is restored. Executive Brandon Smith delivered the Thoroughbred Operating Plan 21 or TOP 21 for short. This new operating plan is scheduled to launch July 1, 2019.
The key points are; 1) Reset the network (achieved through less car handling), 2) Reduce circuity (achieved through less mileage), 3) Minimize handlings (less block swapping, etc.), 4) Increase train size (more tonnage as opposed to length), 5) Run a blended network (train speed up to 60 mph). Senior Vice President Farrell ended the presentation with Execution. Farrell posed the question, “Was this executable?” Of course his answer was “Yes” and this is how he proposed to do it. Execution was divided into four major points; 1) Ensure simplicity, 2) Communicate plan changes, 3) Phased implementation, and 4) Deploy surge resources. Marketing Executive Jay Trail delivered a segment on,” What should customers expect?”
Trail broke this down into 4 major points; 1) Consistent and predictable service product for our customers, 2) NS is committed to a growth strategy, 3) Right sizing operations and growth are not mutually exclusive, and 4) NS is committed to transforming our operation plan WITH our customers and not TO our customers. Trail continued to report that NS currently has allocated around 18% for capital in track maintenance, car repair, locomotive repair, etc. and this figure should remain consistent through our Precision Scheduled Railroading Plan. Trail stated that other PSR railroads generally take that number to around 13%, but NS is committed to keeping those numbers higher to sustain growth potentials in the future.General Manager Todd Reynolds finished the regular session with “Local Changes” to Roanoke. Transportation will be adding 2 additional trains in Roanoke.
This will make 3 originating trains and 3 terminating trains here in the Valley. Additionally, there will be an increase of 150 cars for switching added to our yard and 3 additional blocks to be maintained here in Roanoke. “These changes will help play a significant role in the reduction of circuitous movement on the network.”, said Reynolds. During the Q&A session I gleaned several key points from the open discussion.
One major point stated by SVP Farrell was that he wanted to take the people to the work and not to bring the work to the people. Farrell affirmed that he wanted to shift jobs around the system to strengthen the “network”, thus making the railroad more efficient. He asserted that furloughed employees will be offered jobs in other locations. Additionally, it was said that due to Enola, Elkhart, Chattanooga, and Birmingham receiving more Distributive Power (DP) trains, those areas will receive extra DP units to have for replacement power.
Elkhart will receive 200 more cars and Chattanooga will receive 600 more cars in their yard. SVP Farrell averred that NS was still trying to evaluate where they want locomotive maintenance to be done and which shops will play that role. However, those shops out of “network” like Bellevue and Shaffer’s Crossing would have a harder time getting locomotives. In summary, Norfolk Southern is changing hard and fast.
The next few years will be rough on all of our brother and sisters. Please continue to be your brother’s keeper during these hard times. Be cautioned that on other PSR driven railroads injuries and disciplinary handlings increase. Keep in mind safety is no longer the number one priority of NS - it is now number four. Please be safe. Thank you. In Your Service, Shannon Spotswood Vice Chairman SC 6