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Crew Operations

1
Crew Operations
 Crew Dispatching
 Collective Bargaining Agreement
 Customer interactions
 Government regulations

2
Crew Management Services
 Dispatches approximately
18,000 Train, Engine, and
Yardmen (TEY)
 Maintains calling order of
TEY under the guidelines of
the CBA.

 Responsible for hiring
adequate supply of TEY
employees to run
operations.

3
Labor Relations
 Avoid interruption to commerce and carrier operations
 Ensure employee freedom to self-organize and/or join a union
 Ensure prompt and orderly settlement of disputes over rates of pay,
rules and working conditions
 Ensure prompt and orderly settlement of grievances over
interpretation or application of agreements
 To interpret and apply collective bargaining agreement provisions,
and to secure necessary changes thereto, in an accurate manner that
promotes the needs and requirements of customers
 To address disputes with our unions' leadership in a professional,
forthright and effective manner.

http://www.bloomberg.com/news/2011-10-06/rail-strike-threat-blocked-as-obama-said-to-create-emergency-review-board.html

4
Operating Personnel
 TEY employees are the Face of
Union Pacific
 TEY employees pick up customer
loads and drop off empty railcars
 TEY employees interact daily with
the customers that Marketing &
Sales negotiated shipping rates.
 Marketing & Sales may have started
the business relationship with the
customers but its the TEY
employees who perform the
superior service that was promised

5
Government Regulations
 FRA Compliance Reporting
1.

The Federal Railroad administration is under the Department of Transportation

2.

FRA oversees compliance with laws that limit the amount of work a railroad employee can perform and amount of time
off required after performing covered service.

3.

Covered Service is defined as engaged in or connected with the movement of a train, including a hostler (individual that
moves power in a rail yard)

4.

Hours of Service laws first enacted in 1907 limits the length of a work day

https://www.fra.dot.gov/Page/P0541

 2008 Rail Safety Improvement Act (RSIA) (excludes passenger service)
1.

Limits the number of hours TEY employees can work in a month

2.

Provides mandatory rest periods after working

3.

Provides mandatory days off after working 6 or more days in a row

4.

http://www.gpo.gov/fdsys/pkg/PLAW-110publ432/pdf/PLAW-110publ432.pdf

Limits the length of a duty tour for TEY employees

 Oct 15 2011 update to RSIA includes passenger employees
1.

Provides mandatory off days after working 6+ days in a row

2.

Provides minimum 8 off after performing covered service

3.

Allows different restrictions for employees on day shift and night shift

 Feb 29 2012 update to RSIA for freight employeeshttp://www.gpo.gov/fdsys/pkg/FR-2012-02-29/pdf/2012-4732.pdf
1.
2.

6

Clarifies that a deadhead is not covered service.

3.


Changes definition of a days work as a 24 period instead of a calendar day for freight employees
Limits a railroads ability to communicate with an employee during their off time

CMTS is Union Pacific's crew tracking software that had to be updated to handle each change in the law http://www.pstechnology.com/
Government Regulations (some exceptions for passenger service)
Maximum of 276 on duty hours per month. TE&Y employees are limited to 276 total hours
on duty per month. The law interprets all service performed at the behest of the carrier as on-duty time. This includes
training and safety meetings. Less than 1 percent of UP employees exceed the monthly cap (the equivalent of 23, 12hour days.)

Mandatory minimum 10 hours UDR. All TE&Y employees engaged in pool, local, yard or other
service are required to take a minimum of 10 hours of undisturbed rest upon completion of duty tours at home and
away-from-home terminals.

Additional rest if on duty for more than 12 hours. TE&Y employees will receive
additional mandatory undisturbed rest for any on-duty time that exceeds 12 hours on a minute-by-minute basis. For
example, an employee on duty for 13 hours, 10 minutes would receive a total of 11 hours, 10 minutes of undisturbed
rest (10 UDR plus 1 hour, 10 minutes of additional rest).

6 on 2 off. TE&Y employees initiating 6 consecutive on-duty events with out 24 off in-between events will be
required to observe 48 hours off following the on-duty period on the sixth day. If the employee tie-up occurs at an
away-from-home-terminal, the employee may initiate a seventh day/start and work back to the home terminal. The
employee will observe 72 hours off upon tie-up.

Maximum of 30 hours of limbo time per calendar month. The bill defines limbo time
as any on-duty time past the 12-hour mark.

http://www.law.cornell.edu/uscode/text/49/21103

7
Marketing & Sales

8
Marketing and Sales
Interacts with Union Pacifics external customers providing shipment
rates and transit times
Responsible for $19.2 billion in freight revenue in 2012 http://www.sec.gov/cgibin/viewer?action=view&cik=100885&accession_number=0001193125-13-045658&xbrl_type=v#

Uses sales figures to provide operations with estimated car loads that
customers expect to ship.
Number of car loads is transformed into number of trains needed which
is then calculated in number of crews needed to ship the customers
goods.

Accurate accounting and bookkeeping is a must so Union Pacific hires
the correct amount of crews. Too few and the customer is waiting for
their products to ship. Too much and Union Pacific loses money in
hiring and training unneeded employees.

9
Marketing and Sales
Freight Revenue

2012 Business Mix

$19.7B in 2012
Intermodal
20%

9 million Carloads

Agricultural
Products
17%

Autos
9%

Agricultural
Products
Autos
10%
8%

Intermodal
37%

Chemicals 11%

Industrial Products
18%
Coal
20%

Chemicals
16%

Industrial
Products
13%

SEC filing

10

SEC filing

Notes to financial
statements/nature
of operations

Search for revenue
carloads

Coal
21%
2012 Business Mix
$19.7 Billion Freight Revenue
Intermodal
20%

Agricultural
Products
17%

Autos
9%

Industrial
Products
18%

Chemicals
16%
Coal
20%

11
2012 Business Mix
9.0 Million Units
Intermodal
37%

Agricultural Products
10%
Autos
8%

Chemicals
11%

Industrial Products
13%
12

Coal
21%
Marketing and Sales
Union Pacific uses a suite of Data & Software Tools including:
Hoovers
PIERS
Pedimento
Reebie
ArcGIS
Global Insights Monthly U.S. Economic Outlook
The Data and Software suite allows Union Pacific to do:
Import/Export Analysis
Commodity Flows
Market Sizing & Overviews
Custom Mapping
Industry Overviews
Customer Profiling
Commodity Pricing

13
Marketing and Sales
Union Pacific offers 3 tiers of service
1. Boxcar Direct  all rail boxcar transportation requires tracks at the
shippers and receivers docks
2. Boxcar Transload  combination rail and truck service designed for
shippers and receivers that are not rail-served
3. Intermodal  Door to door truck like service products are loaded in
containers and are shipped to intermodal ramps then loaded on
railcars. Product is taken by rail to intermodal ramp near destination
then shipped via truck to the receiver.
Once shipment is underway, national and international customer
service centers provide customers with fast accurate railcar
movement data while simplifying logistics and customs processing
http://www.uprr.com/customers/autos/svcs/auto_parts_network_fl.shtml

14
Questions?

15

More Related Content

Holder integrative research paper union pacific

  • 2. Crew Operations Crew Dispatching Collective Bargaining Agreement Customer interactions Government regulations 2
  • 3. Crew Management Services Dispatches approximately 18,000 Train, Engine, and Yardmen (TEY) Maintains calling order of TEY under the guidelines of the CBA. Responsible for hiring adequate supply of TEY employees to run operations. 3
  • 4. Labor Relations Avoid interruption to commerce and carrier operations Ensure employee freedom to self-organize and/or join a union Ensure prompt and orderly settlement of disputes over rates of pay, rules and working conditions Ensure prompt and orderly settlement of grievances over interpretation or application of agreements To interpret and apply collective bargaining agreement provisions, and to secure necessary changes thereto, in an accurate manner that promotes the needs and requirements of customers To address disputes with our unions' leadership in a professional, forthright and effective manner. http://www.bloomberg.com/news/2011-10-06/rail-strike-threat-blocked-as-obama-said-to-create-emergency-review-board.html 4
  • 5. Operating Personnel TEY employees are the Face of Union Pacific TEY employees pick up customer loads and drop off empty railcars TEY employees interact daily with the customers that Marketing & Sales negotiated shipping rates. Marketing & Sales may have started the business relationship with the customers but its the TEY employees who perform the superior service that was promised 5
  • 6. Government Regulations FRA Compliance Reporting 1. The Federal Railroad administration is under the Department of Transportation 2. FRA oversees compliance with laws that limit the amount of work a railroad employee can perform and amount of time off required after performing covered service. 3. Covered Service is defined as engaged in or connected with the movement of a train, including a hostler (individual that moves power in a rail yard) 4. Hours of Service laws first enacted in 1907 limits the length of a work day https://www.fra.dot.gov/Page/P0541 2008 Rail Safety Improvement Act (RSIA) (excludes passenger service) 1. Limits the number of hours TEY employees can work in a month 2. Provides mandatory rest periods after working 3. Provides mandatory days off after working 6 or more days in a row 4. http://www.gpo.gov/fdsys/pkg/PLAW-110publ432/pdf/PLAW-110publ432.pdf Limits the length of a duty tour for TEY employees Oct 15 2011 update to RSIA includes passenger employees 1. Provides mandatory off days after working 6+ days in a row 2. Provides minimum 8 off after performing covered service 3. Allows different restrictions for employees on day shift and night shift Feb 29 2012 update to RSIA for freight employeeshttp://www.gpo.gov/fdsys/pkg/FR-2012-02-29/pdf/2012-4732.pdf 1. 2. 6 Clarifies that a deadhead is not covered service. 3. Changes definition of a days work as a 24 period instead of a calendar day for freight employees Limits a railroads ability to communicate with an employee during their off time CMTS is Union Pacific's crew tracking software that had to be updated to handle each change in the law http://www.pstechnology.com/
  • 7. Government Regulations (some exceptions for passenger service) Maximum of 276 on duty hours per month. TE&Y employees are limited to 276 total hours on duty per month. The law interprets all service performed at the behest of the carrier as on-duty time. This includes training and safety meetings. Less than 1 percent of UP employees exceed the monthly cap (the equivalent of 23, 12hour days.) Mandatory minimum 10 hours UDR. All TE&Y employees engaged in pool, local, yard or other service are required to take a minimum of 10 hours of undisturbed rest upon completion of duty tours at home and away-from-home terminals. Additional rest if on duty for more than 12 hours. TE&Y employees will receive additional mandatory undisturbed rest for any on-duty time that exceeds 12 hours on a minute-by-minute basis. For example, an employee on duty for 13 hours, 10 minutes would receive a total of 11 hours, 10 minutes of undisturbed rest (10 UDR plus 1 hour, 10 minutes of additional rest). 6 on 2 off. TE&Y employees initiating 6 consecutive on-duty events with out 24 off in-between events will be required to observe 48 hours off following the on-duty period on the sixth day. If the employee tie-up occurs at an away-from-home-terminal, the employee may initiate a seventh day/start and work back to the home terminal. The employee will observe 72 hours off upon tie-up. Maximum of 30 hours of limbo time per calendar month. The bill defines limbo time as any on-duty time past the 12-hour mark. http://www.law.cornell.edu/uscode/text/49/21103 7
  • 9. Marketing and Sales Interacts with Union Pacifics external customers providing shipment rates and transit times Responsible for $19.2 billion in freight revenue in 2012 http://www.sec.gov/cgibin/viewer?action=view&cik=100885&accession_number=0001193125-13-045658&xbrl_type=v# Uses sales figures to provide operations with estimated car loads that customers expect to ship. Number of car loads is transformed into number of trains needed which is then calculated in number of crews needed to ship the customers goods. Accurate accounting and bookkeeping is a must so Union Pacific hires the correct amount of crews. Too few and the customer is waiting for their products to ship. Too much and Union Pacific loses money in hiring and training unneeded employees. 9
  • 10. Marketing and Sales Freight Revenue 2012 Business Mix $19.7B in 2012 Intermodal 20% 9 million Carloads Agricultural Products 17% Autos 9% Agricultural Products Autos 10% 8% Intermodal 37% Chemicals 11% Industrial Products 18% Coal 20% Chemicals 16% Industrial Products 13% SEC filing 10 SEC filing Notes to financial statements/nature of operations Search for revenue carloads Coal 21%
  • 11. 2012 Business Mix $19.7 Billion Freight Revenue Intermodal 20% Agricultural Products 17% Autos 9% Industrial Products 18% Chemicals 16% Coal 20% 11
  • 12. 2012 Business Mix 9.0 Million Units Intermodal 37% Agricultural Products 10% Autos 8% Chemicals 11% Industrial Products 13% 12 Coal 21%
  • 13. Marketing and Sales Union Pacific uses a suite of Data & Software Tools including: Hoovers PIERS Pedimento Reebie ArcGIS Global Insights Monthly U.S. Economic Outlook The Data and Software suite allows Union Pacific to do: Import/Export Analysis Commodity Flows Market Sizing & Overviews Custom Mapping Industry Overviews Customer Profiling Commodity Pricing 13
  • 14. Marketing and Sales Union Pacific offers 3 tiers of service 1. Boxcar Direct all rail boxcar transportation requires tracks at the shippers and receivers docks 2. Boxcar Transload combination rail and truck service designed for shippers and receivers that are not rail-served 3. Intermodal Door to door truck like service products are loaded in containers and are shipped to intermodal ramps then loaded on railcars. Product is taken by rail to intermodal ramp near destination then shipped via truck to the receiver. Once shipment is underway, national and international customer service centers provide customers with fast accurate railcar movement data while simplifying logistics and customs processing http://www.uprr.com/customers/autos/svcs/auto_parts_network_fl.shtml 14