Rail & Labor News from RWU
Number 43 - October 27, 2020
The Staggers Act 40th anniversary - Consider the collateral damage to the rail industry
Over the last several years, railroad industry stakeholders have become increasingly troubled by the effects of the new business model adopted by the Class I railroads. This so-called "precision scheduled railroading" focuses extensively on cost-cutting as a primary objective.

Rail shippers complain of a deterioration of service and "de-marketing" of rail service (where reduced service and increased rates disincentivize use of rail transportation, and where the railroads seek to serve only the highest profit margin customers on the main lines).

Rail employment was cut by about 20% between 2015 and 2019, which has necessarily impacted both rail safety and the quality of service. And rail communities worry about the consequences of reduced service and reduced employment.   
Private investors propose
Mexico-U.S.-Canada rail link
Mexican conglomerate Caxxor Group is proposing a private-sector initiative to begin construction of a North American rail corridor that would link the Sinaloa state in Mexico with Winnipeg, Manitoba, in Canada via the United States.



DOT Awards $220 Million for Port Infrastructure

The latest round of grants represents 18 projects in 15 states and territories.
One of the largest individual awards, totaling $20.1 million, was granted to Norfolk International Terminals at the Port of Virginia. The funding will support expansion of the facility’s Central Rail Yard, which will involve the construction of eight tracks. 

Despite falling profits, CSX announces $5B buyback
The freight railroad said revenue fell 11% to $2.65 billion in the quarter, which was below the $2.7 billion that analysts expected. CSX also announced plans to spend $5 billion repurchasing its own shares. Its stock rose 4% in after-hours trading.
Canadian Pacific breached labour law in derailment that killed three workers: Ottawa
Conductor Dylan Paradis, left, engineer Andrew Dockrell, centre, and trainee Daniel Waldenberger-Bulmer, right, were killed in the derailment last year. (Facebook/Niki Atherton/Instagram)
Canadian Pacific Railway violated labour law by neglecting to identify hazards that led to a 2019 derailment that killed three crew members near Field, B.C., says Ottawa.
On Friday, the railway confirmed the allegation that included a direction from Employment and Social Development Canada that it must address problems the ministry says led to the crash on Feb. 4, 2019 by Friday.
Senate Commerce Gets An Earful of Rail
The U.S. Senate Committee on Commerce, Science, and Transportation on Oct. 21 convened a hearing on the state of the U.S. passenger and freight rail network. Railroad, shipping and union representatives provided testimony, which included the impacts of COVID-19, legislative considerations for surface transportation reauthorization, and Amtrak’s ongoing struggles.
Rail & Labor Shorts