september 21, 2010 railroad human resource issues standing committee on rail transportation of the...
TRANSCRIPT
![Page 1: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/1.jpg)
September 21, 2010
Railroad Human Resource Issues
Standing Committee on Rail Transportationof the
American Association of State Highway and Transportation Officials
Jacksonville, FloridaSeptember 21, 2010
![Page 2: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/2.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 2
America’s Freight Railroads
Type of MilesRailroad
Class I 7 94,082 164,439 $59.4
Non-Class I 558 45,244 19,640 4.0 Regional 33 16,690 8,044 1.9 Local Linehaul 326 22,058 5,423 1.3 S&T 199 6,496 6,173 0.8
Canadian** 2 561 n/a n/a
Total 567 139,887 184,079 $63.4
*Excludes trackage rights. **Includes CN and CP operations that are not part of a CN- or CP-owned Class I carrier. Source: AAR
The U.S. Freight Railroad Industry: 2008
Number Employees
FreightRevenue
($ billions)Operated*
![Page 3: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/3.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 3
The Rail Industry as of July 2010
Jan-July 2010 carloads 7.3% from 2009, 13.1% from 2008.
Jan-July 2010 intermodal 13.5% from 2009, 6.0% from 2008.
~359,000 freight cars (~23% of total) in storage.
17,000 employees (~10%) since Nov. 2006 peak.
Signs seem to be pointing toward a slow recovery
![Page 4: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/4.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 4
U.S. Freight Railroads and Labor
~184,000 freight rail employees; vast majority are unionized
~$18 billion in annual wages and benefits.
Among nation’s most highly-compensated workers. Average Class I employee in 2008:
Wages: $71,300Benefits: $27,200Total Compensation: $98,500
~$10 billion in retirement benefits to ~600,000 retired railroad workers and family members.
![Page 5: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/5.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 5
$0
$15,000
$30,000
$45,000
$60,000
$75,000
$90,000
$105,000
RRs U.S. Avg.
Benefits
Wages
Freight RR Compensation Is Far Higher Than Average
(U.S. Freight RR Avg. vs. Avg. All U.S. Workers)
Data are 2008. Sources: AAR, Bureau of Economic Analysis
![Page 6: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/6.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 6
050,000
100,000150,000200,000250,000300,000350,000400,000450,000500,000
'80 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09
Class I Railroad Employment
Source: AAR
![Page 7: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/7.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 7
140,000
145,000
150,000
155,000
160,000
165,000
170,000Class I RR Employment: Jan. 2003 - June 2010
Effects of Recession: Lower Rail Employment
Source: Surface Transportation Board
2005 2007 2009 20102003 2004 2006 2008
17,055 (10%)
SLIDE 7
![Page 8: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/8.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 8
Train Crews & Maintenance= 81% of RR Workforce
6,845
58,164
29,071
34,699
13,508
9,619
Other Transportation
Train & Engine (mainlyengineers & conductors)
Maintenance ofEquipment
Maintenance of Way
Professional &Administrative
Executives andManagers
Data are for Class I railroads in 2009. Source: AAR
![Page 9: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/9.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 9
Recruitment and RetentionWill Be a Serious Challenge
0%
10%
20%
30%
40%
50%
<24 25-34 35-44 45-54 55-64 > 65
RR Workers
All Civilian Workers
Age Distribution: RRs vs. All Civilian Employees
Data are for 2007. Source: Railroad Retirement Board, U.S. Census Bureau
At or near retirement age
![Page 10: September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation](https://reader035.vdocuments.us/reader035/viewer/2022062519/56649ec45503460f94bcef9a/html5/thumbnails/10.jpg)
September 21, 2010 ASSOCIATION OF AMERICAN RAILROADSSLIDE 10
Association of American Railroads www.aar.org