Luckily, I'm only here for a few more days because I got a new offer. What will forever remain a mystery to me is why UP had to become what it is today, that is, from a place where good employees felt valued and appreciated, to a place that I would not recommend to anyone?
5 replies (most recent on top)
The place is just bad
My first hint as to what was to come was before PSR and before they went to all managers. We only had 3 managers at this time and 1 was a very intelligent, likeable, level headed man, I heard he was quitting UP to work for Amazon, so I asked him why he was quitting his response was “ I see where this company is headed and I’m not sticking around!” Smart man to say the least.
After Jim Young left due to cancer, the company started a slow, downhill spiral. The board of directors know nothing about railroads as they are from other industries and railroads cannot be ran in the same way as IBM or Amazon. The companies direction is driven by the board, Wall Street analysts, and Fritz. Profits, especially stock price and dividends, and operating ratio are the only things that matter to them. Customers, shippers, and employees are undervalued or not valued at all. The company makes a lot of money, but has taken an almost evil turn toward its employees, especially with the manner the downsizing was handled in the past few years. The other class one railroads have done the same things, making the entire railroad industry toxic. Many good employees have left, either through being downsized or voluntarily. Employees that have other options should strongly consider these facts when deciding whether to stay or go.
I agree with the first commenter. I think the initial downturn started right after Young left the CEO position to Koraleski. Koraleski then solidified the downturn during his tenure. Koraleski retires and for some very brain dead reason, decides to nominate Fritz as the successor for the CEO spot. The death spiral started literally the same month in 2015, when he was elected to the CEO spot. That was when I first noticed layoffs gaining momentum. I'm sure some people will argue those points, but the company has only gotten worse under him. Remember, Fritz is the Wall Street darling. PSR was and always will be about maximizing profits and nothing else. I find it interesting that not a single executive from any class 1 is preaching about PSR anymore. Some of the so-called "pioneers of PSR" aren't even in the industry anymore. The UP turned out this way because of a well-known fact that has already been mentioned time and time again over the years. The greed of the executive class put profits as their main priority. The executives don't give two sh1ts about the actual business. Anyone of them make enough money to pick up and go somewhere else when situations start going south. The UP executives are a very special kind stupid though. It's so bad at the UP, but they keep telling themselves that's its not as bad as it seems. Yes it is that bad!
It’s no mystery. Here’s your answer: PSR and Fritz becoming CEO.