September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation.

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Presentation transcript:

September 21, 2010 Railroad Human Resource Issues Standing Committee on Rail Transportation of the American Association of State Highway and Transportation Officials Jacksonville, Florida September 21, 2010

ASSOCIATION OF AMERICAN RAILROADS SLIDE 2 America’s Freight Railroads

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 3 The Rail Industry as of July 2010  Jan-July 2010 carloads  7.3% from 2009,  13.1% from  Jan-July 2010 intermodal  13.5% from 2009,  6.0% from  ~359,000 freight cars (~23% of total) in storage.  17,000 employees (~10%) since Nov peak.  Signs seem to be pointing toward a slow recovery

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 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:$71,300 Benefits:$27,200 Total Compensation: $98,500  ~$10 billion in retirement benefits to ~600,000 retired railroad workers and family members.

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 5 Freight RR Compensation Is Far Higher Than Average (U.S. Freight RR Avg. vs. Avg. All U.S. Workers) Data are Sources: AAR, Bureau of Economic Analysis

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 6 Class I Railroad Employment Source: AAR

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 7 Class I RR Employment: Jan June 2010 Effects of Recession: Lower Rail Employment Source: Surface Transportation Board  17,055 (10%) SLIDE 7

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 8 Train Crews & Maintenance = 81% of RR Workforce Data are for Class I railroads in Source: AAR

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 9 Recruitment and Retention Will Be a Serious Challenge Age Distribution: RRs vs. All Civilian Employees Data are for Source: Railroad Retirement Board, U.S. Census Bureau At or near retirement age

September 21, 2010 ASSOCIATION OF AMERICAN RAILROADS SLIDE 10 Association of American Railroads