Makes sense in a way to get rid of certain employees that never leave a chair when they can double up and cover it all. Hate mail is on the way, just looking at it from an investors point of view.
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PSR was never meant to be long term. PSR was crafted to be a turn around plan to run trains using specific equipment, getting rid of unused or infrequently used equipment, selling off space, closing locations and reducing workforce. Yet no information was given about how PSR would manage business fluctuations. The CP and the CN did it, and failed miserably. I know, because I was there. CSX is doing it and failing as well. The NS is doing it now as well. Communities and unions are starting to fight back against these layoffs. The CP and CN have reversed their PSR efforts to an extent and rehired the folks that were let go. Ever heard of the apology tour? Doing more with less can be a good thing. Sending a 16,000 foot train weighing more than 10,000 tons with only two motors is just getting reckless. I have to laugh everytime I see the UP in the news about a derailment. The UP derailments are way up because of this PSR. The cost saved by the reductions were eliminated by the derailment cleanup costs. Not to mention the increasing number of lawsuits, which anyone can look up. The UP has actually lost over a hundred million dollars in lawsuits and settlements in the past ten years. Again, anyone can look that up. So the point here is that PSR isn't saving any money. Its costing railroads more long-term vs. short-term by doing PSR.
The company can save 14 million in one move by firing Lance Fritz. How many paychecks would that cover from the people that were let go. Hell let's do the entire executive team. Tens of millions of dollars would be saved by doing that alone
Should have said stock traders, not investors. A true investor is in it for the long term. We are not headed down the best path for long term.
From an investors point of view, there are better ways to modernize the railroad. PSR also fails to address the source of many inefficiencies while treating only some of the symptoms.
High short-term returns and long-term sustainability are not mutually exclusive.
I definitely understand the concept behind it! That being said UP has taken it to ridiculous levels. Yes it makes sense if you have 4 foreman who all work day's and the work can be done by 2 that makes economical sense, 5 or 6 managers to run one yard two can do the job, that makes sense, the part that doesn’t is cutting the forces who maintain and move all the rolling stock and equipment. The we are not going to make repairs on anything, that makes no sense. There are much better ways to save money than what they are doing.