CLEVELAND – The union representing Norfolk Southern’s maintenance of way employees has thrown its support behind activist investor Ancora Holdings.
The Brotherhood of Maintenance of Way Employes Division of the International Brotherhood of Teamsters said today that a change in leadership is necessary at NS. The union is backing Ancora’s full slate of director candidates as well as its proposed management team, which includes former UPS executive Jim Barber as CEO and former CSX operations boss Jamie Boychuk as chief operating officer.
“The BMWED-IBT, after more than a year of non-committal hedging on reasonable, needed changes and untenable shakiness in management at Norfolk Southern, has determined that a change in leadership is needed for the freight rail carrier and its employees,” union President Tony Cardwell said in a statement. “Following yesterday’s earnings call and a reasonably constructive meeting with a potential new leadership team, our Brotherhood has determined that a change at the top would be the best course of action for BMWED-IBT members.”
The union has not been able to get assurances from NS management regarding policy and procedural changes it says are necessary in the wake of the Feb. 3, 2023, hazardous materials derailment in East Palestine, Ohio.
“At this juncture, seeing no path forward, we see no reason to support the current administration at Norfolk Southern,” Cardwell said.
Ancora, which has faced opposition from other unions that represent NS employees, welcomed the BMWED’s endorsement.
“It’s a tremendous vote of confidence to gain the support of the BMWED Teamsters – they are going to be a critical partner as we work to build a more efficient, safer and sustainable railroad,” Barber said in a statement. “With all that the BMWED Teamsters’ members have riding on a successful turnaround of Norfolk Southern, I’m glad that we were able to meet, speak and align on fundamental principles about how we’re going to move Norfolk Southern forward.”
Boychuk added: “Both Jim Barber and I are former union members. We started our careers with union membership – Jim at UPS and me at Canadian National Railway. We’re excited about the opportunity to collaborate with the BMWED Teamsters, and all Norfolk Southern employees, to deliver sustainable, long-term value creation for our shareholders and stakeholders.”
Backing Ancora is a turnabout for the BMWED. In a Feb. 22 post on its website, the union had this to say: “Now, Ancora Holdings is actively targeting Norfolk Southern, preying on what they view as a ripe opportunity to pin shortcomings on CEO Alan Shaw to deepen their own pockets. A group which includes some very heavy hitters, including former Presidential candidate and Ohio Governor John Kasich, is attempting to utilize vulnerabilities to enrich themselves at the expense of employees, shippers, and the general public. Today we will spotlight the rampant, rotting greed of these predatory venture capitalists, which are clearly prioritizing financial efficiency and short-term investment strategies at the neglect of maintaining a robust workforce and reliable infrastructure. The actions of Wall-Street investors are truly ruinous to the health and culture of the industry. We must expose this devastating trend and mandate a reversal of this troubling course before it is too late.”
Norfolk Southern notes that current management enjoys overwhelming support from the railroad’s employees.
“Together with our unions, we have made significant progress to create a safer, more productive railroad. In fact, unions representing 81% of our craft workers have publicly supported our strategy and raised concerns about the dangers of Ancora’s plan,” spokesman Tom Crosson says. “We remain focused on responsibly improving our operational performance, employees’ quality of life and working environment. In contrast, Ancora is misleading shareholders and employees with false promises that will destroy shareholder value, and where the mathematical reality proves it would require thousands of furloughs and cause irreparable damage to safety and service at Norfolk Southern.”
The AFL-CIO, Transportation Trades Department, Brotherhood of Locomotive Engineers and Trainmen, and the Brotherhood of Railroad Signalmen have all backed current NS management.
NS shareholders will determine the outcome of the proxy contest at the railroad’s annual meeting on May 9.
Note: Updated at 10:45 a.m. Central with comment from Norfolk Southern. Updated at 11:55 a.m. with February comments from BMWED.
“The union has not been able to get assurances from NS management regarding policy and procedural changes it says are necessary in the wake of the Feb. 3, 2023, hazardous materials derailment in East Palestine, Ohio.”
Would be interested in knowing just how many discussions they actually held with NS management on policy & procedures. I am assuming any change in policy has to be negotiated as part of a labor agreement, something that isn’t up for renewal yet.
How much was leadership paid for this endorsement? It’s really the only explanation.
Gary Trudeau said it long ago – “Of course, union leadership is sensitive to the plight of the working class. That’s how they avoid being part of it.” Ancora must have offered one whopper of a deal to the BMWED leaders. Otherwise, they might actually put up a fight instead of selling the membership down the river. No one over the age of 3 would believe whatever BS Ancora came up with to show how this deal would be good for the craft employees. It’s time for the rank and file to reintroduce the time-honored tradition of tarring and feathering said leaders. They deserve nothing less.
Yeah they have it rough. Fourteen people in the picture at the head of this story with three actually working and the rest standing around thinking about working…
These union members must want to work for a different railroad or more likely, no railroad at all because if Ancora Holdings takes over, they will all be out of jobs once the railroad goes bankrupt and is split up among the survivors, ie, CSX, BNSF and UP.
In actuality, this move has nothing to do with whats right for the employees and the health of NS. It has to do with how one union reneged on its support of its other union brothers and employer to do just what Ancora is proposing; exploit the vote for fast cash and then bale, leaving someone else to clean up the mess…
The railroads have been trying to give this work to contractors. That’s what Ancora will do. You are much better off with the current management.
The MOW Union my find out they where better off with the Devil they knew. Only time will tell.
This makes no sense. If I were the union membership I’d want to know exactly why my leadership is doing this because it flies against past experiences when hedge funds take control. Of course, if the union’s members follow like sheep they shouldn’t be surprised if they end up getting fleeced.
Well said…
Pathetic move from this union, all these activist investors can do is harm the worker. They ought to be ashamed. Scab-adjacent behavior….
That was my initial reaction, too. Given their plans to cut workers, it is hard to see how this endorsement, should it lead to a victory by Ancora, will not hurt MOW workers. They may well be frustrated with current management, but it appears they are jumping into the fire form the frying pan.
Maybe BMWE has a deal with Ancora for union employees to rip out track, yards and demolish buildings?
“YES” to the posts above. Matthew. Laurence. Gregg. Whatever problems hard-working employees may see with current NS management, Ancora is sure to make it worse.
Scab-adjacent behavior, SAB? I was thing more along the lines of SOB’s…