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Over the past few months, much focus has been placed on the new economic development projects in District 42. Each project will bring good paying jobs and economic growth. Growth in the region will increase sales tax revenue and property tax payers, all which should reduce area property tax rates.
Although it is exciting to think about the prospects of new projects, it is equally important we maintain the assets we already have. One prime example is Bailey Yard. This Union Pacific Railroad operation is a huge contributor to the regional economy and has been a long-time provider of quality jobs.
Like any business dealing in goods, our railroads have had to adapt to the peaks and valleys of supply and demand, the expansion of the Internet, new technologies within their industry, and other competition. Changes in the industry and marketplace have shifted the railroads’ employee needs over time. In the past, Union Pacific has responded by implementing a series of furloughs followed by hiring surges. These practices seemed to work in times where workers were plentiful and the wages and benefits were superior; however, we’ve seen a decline in total workers at Bailey Yard since my family moved to North Platte nearly 30 years ago.
Today, railroads face an environment where worker availability has declined and many longtime employees are at or approaching retirement age. Workers at all levels are looking for more work/family balance and have more options than ever before. In a climate where all companies are finding it hard to hire, the railroads must prioritize its greatest asset: its employees.
There are a few key policies that I believe will affect the ongoing economic impact of Bailey Yard, and the first is the internal relationship between Union Pacific and its employees. Railroads and the rail labor organizations have been working to negotiate new employee contracts for railroad employees across the nation. These employees, of course, should be fairly compensated for their work. Conversely, an employee strike could further damage a U.S. economy already facing record inflation and deficient supply chains. I am hopeful that the railroads will enter into agreements that provides employees with the wages, benefits, and flexible schedules they deserve so we can avoid disruptions to the critical transportation services provided by the railroads.
For District 42, while it is important we continue to receive goods and packages, it is imperative that we have a heathy, safe, and happy local workforce. As their State Senator, I support the employees at Bailey Yard and remain available to assist in any way I can to achieve a fair resolution to contract negotiations.
Second, the relationship between the railroad and its communities is also significant. Over the past couple of decades, many of the major railroads have used longer trains to boost productivity, gain more efficiencies, and cut costs. In the past, it was unusual for a train to exceed a mile in length. Now, some have been known to reach up to three miles. Although good for the railroad’s bottom line, longer trains can create risks and logistical challenges for communities when trains are forced to stop and block one or more crossings. Delays in reopening crossings can block access for emergency services, as well as the general public, from accessing roadways. In the case of the first responders, these delays could mean the difference between life and death. It is critical the railroad reengage regarding community crossings, not only for public safety, but to maintain community support of railroads.
Finally, there has been a movement by the railroads to eliminate the two person crews and substitute them with one person or autonomous alternatives. As a lawmaker, how do we balance efficiencies with safety? In many ways, train crews are first responders. Technology is not infallible and we need real people on board in the case of an emergency or mechanical problems, particularly for long trains. Moreover, technology cannot fully account for human error and it is important to have railroad personnel on hand in case of an accident. In addition, it takes two people to cut a train blocking a crossing needed for emergency measures. Two-man crews are essential for worker and community safety and must remain in place.
Union Pacific is a key employer for District 42 and America’s railroads are a critical resource, moving approximately a third of U.S. exports and critical food, agricultural, chemical, and construction materials through the country. As your State Senator, I support the retention and growth of quality jobs at Bailey Yard.
If you’d like to discuss railroad operations or any other issue, please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!
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