I saw this on Train Orders. All I have to say, if this is true, this is not good for CSX at all. 6,200 employees will be gone and 200 engines will be gone as well. The engines don't surprise me as much as the employees.
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I'm with you, Tom . . . it's not good, and not just for those Employees directly affected.
This might be bad for the entire railroad industry. Part of deregulation is that railroads have to serve customers fairly. That was a big concern of shippers when the Staggers Act was passed. A railroad as large as CSX becoming arbitrary with is shippers, its employees and the communities it serves can only cause things to go badly for the entire industry.
We can hope that, with Hunter Harrison no longer leading, that phase of this unpleasant chapter is past, and angers may be soothed by more positive treatment of shippers. The employees governed by union agreements have rights to being recalled, and perhaps their situation is not as bad as it first appeared.
Yeah, EHH really fixed things good! NOT! How in hades did he think he could incorporate his linear-based RR "philosophy" on a more complex system like CSX? What WAS he thinking?
I guess this is the effects of recouping the 84 million they had to pay for EHH estate! Maybe after the system is gutted and R.E. has been sold, the"Borg" will step in and assimilate?
bring back the PRR!
Reading through a stock analyst’s report on CSX; looks like revenue is forecast to be down 3.9% and volume down 5%. The only thing that is forecast to improve is their OR and that is what excites the hedge fund boys these days.
With regard to further reductions in personnel and assets; a shrinking railroad with a smaller customer base logically needs fewer locomotives and people.
Jim Foote did mention in his comments to the analysts as well as in a presentation at a meeting I attended last week that he plans to use the reduced cost structure to go after new business including current truck business. This is consistent with what happened at CN after Hunter left and with what is currently happening at CP.
My jury is still out with regard to what will happen with CSX under Jim but; his comments concerning growth are something you would never have heard from Hunter Harrison.
Curt
Tinplate Art posted:Yeah, EHH really fixed things good! NOT! How in hades did he think he could incorporate his linear-based RR "philosophy" on a more complex system like CSX? What WAS he thinking?
It might have worked if CSX would have downsized to the Iron Triangle first. IC was already downsized before he became CEO. Too much too fast.
"Too much, too fast" sums it up very well!
This slide in particular caught my attention
• Expecting inflation to moderate • Forecast assumes Highway Diesel Fuel price remains steady at $3.00 through 2020 • Forecast does not include any impairments or other charges
Just an amateur stockholder so I could be wrong but those statements are probably going to bite them in the @$$ bigtime.
