Norfolk Southern Reaches Labor Accord with Engineers

Norfolk Southern (NS) says that the engineers will be able to collect bonuses based on the same criteria used for those of management. The Union has been a participant in the NS bonus program since 1996. Throughout the US, negotiations between railroads and their unions have been underway for more than two years.

Other matters resolved in the new agreements include a general wage boost, more incentive pay for work on weekends and holidays, a larger 401(k) match and better vacation arrangements.

NS operating revenues for the second quarter of 2007 were $2.38 billion, which was down by 1% year over year. For the entire first six months of 2007, operating revenues were $4.63 billion, which was down 1%. Automotives and housing were the verticals that impacted the railroad with an overall 4% reduction in volumes for the first half of 2007.

The only business segment showing growth for the second quarter was general merchandise, up 1% at $1.32 billion. However, for the first half of the year, it was down 2%, with revenues of $2.55 billion. Also down for the first half was coal, off 1% at $1.14 billion and Intermodal that was down 2% for the first half at $941 million.