Railroaders place to shoot the shit.

(The following appeared on the Seeking Alpha website on April 17, 2009.)

Can the railroads end the recession? Here is a plan that could help the country get back on its feet. There are a few steps that each railroad needs to take that would create jobs and make our country stronger. This plan call for a little sacrifice on the CEOs and their Executive Officers. Also, this plan requires the senior railroad workers to become true mentors to co-workers. This is the yin and yang plan that would help the entire country to survive a recession.

The railroads are like veins that cover the entire country; however, the railroad executives are hell bent in severing the artery that could send all of us into a great depression. The Class 1 Executives are crying foul on the possibility of re-regulation, but they arent acting responsibly, and it appears as though they are only in it for the money. They have sold out their fellow workers for millions of dollars and they have god-like attitudes. But, is there a light at the end of the tunnel? I offer a plan.

First, each Class 1 President/CEO needs to sacrifice like the rest of us. I still dont know of a single person that deserves $10 million per year. However, we have some CEOs who make upward of $15-20 million per year. As a sign of good will, each President/CEO needs to check their ego at the door, and the days of 20% pay raises during a recession must end. They should reduce their salaries to a respectable $2 million per year and tighten their belt like the rest of us. This goes for their over paid executive officers. Again, I dont know anyone who is worth $15 million per yeardo you?

Second, the remote control locomotive project needs to be scrapped. This has been a financial drain on every railroad that has introduced it, and it needs to end. There are rumors that the Union Pacific (UNP) railroad has planned to re-access the RCL project in every location and scrap up to 90% of the remote control locations. This would be the best idea that came out of Omaha in years. Everyone knows that manned crews can move more cars than remotes it doesnt take a genius to figure it out.

Third, return all furloughed employees to work. If there is a seat on a locomotive, fill it. Put a brakeman or a utility man on every switching job. Every railroader knows that more men can move more cars. If the UP returned every furloughed worker to work, that would create almost 5,000 jobs. Think of what this would do if every Class 1 participated. More jobs means more money into the economy. Its economics 101, and I really hope that every CEO on the railroad took an economics class, or at least an ethics class.

Fourth, the railroad needs to service EVERY customer that they ever turned away. The last couple of decades the railroads have neglected the Mom and Pop businesses in order to run grain and coal. Yes, there is more money in grain and coal, but there is still money in the small businesses. If the railroads decided to return to their roots and service these industries, think of how that would stir the economy. The small business would be able to ship by rail instead of truck; therefore, their shipping costs would be reduced. This would result in more people being hired in those small businesses. Again, more jobs means more money into the economy. This would, in turn, create more industry jobs for the railroad. The railroad would then need to hire more people. Once again, economics 101 at worknot to mention better ethics.

The Class 1 railroads are crying foul because of the possibility of re-regulation, but they have the power to stop it. Its not by threatening to stop capital spending: Its about going back to basics. Try going back to what got you there in the first place. Its your people and your customers. Remember, its all of your customers, even the ones you forgot about. This little plan would create more American jobs and allow the Mom and Pop stores to compete with companies like Wal-Mart (WMT).

Just one more note. The Union Pacific has been threatening the federal government regarding re-regulation. If Jim Young goes through with his threat of eliminating capital spending if the re-regulation bill passes, then you could expect more people to be furloughed. If Mr. Young wanted to eliminate the threat of re-regulation, maybe he needs to change his attitude regarding his workers and his customers. If the UP were to go with my simple 4-step plan, they change their motto to "re-building America." Mr. Young, you may want to ask yourself why you needed a 20% pay raise.

Friday, April 17, 2009