After Slashing 33% of Workers in 6 Years, Railroads Complain about Labor Shortages, amid Uproar over Slow Shipments | Wolf Street

“It’s an enormous challenge for us to go out and find people that want to be conductors on the railroad, just like it’s hard to find people that want to be baristas or anything else, it’s very, very difficult,” he said.

….railroads had spent six years shedding employees in order to tickle Wall Street analysts and pump up stock prices. The North American Class 1 freight railroads combined – BNSF, Union Pacific, Norfolk Southern, CSX, Canadian National, Kansas City Southern, and Canadian Pacific – have tried to streamline their operations, using fewer but longer trains and making other changes, including under the strategy of “precision scheduled railroading,” implemented first by Canadian National, then by CSX.

The resulting deterioration in service triggered numerous complaints from shippers. But one of the big benefits was that the workforce could be slashed, which fattened the profit margins at the railroads. Wall Street analysts loved it, and it was good for railroad stocks. By now, precision scheduled railroading has become the new religion at all Class 1 railroads except at BNSF, which has not officially adopted it, at least not completely.

After Slashing 33% of Workers in 6 Years, Railroads Complain about Labor Shortages, amid Uproar over Slow Shipments | Wolf Street