By M.T. Burkhart and Justin Franz 

Union Pacific wants to hand off local switching services around Eugene, Ore., to Genesee & Wyoming subsidiary Central Oregon & Pacific Railroad. However, the plan is receiving pushback from unions.

The railroads have said the proposed change — which still needs approval by the U.S. Surface Transportation Board — would reduce the number of times a railcar is handled and create greater efficiencies for both operations. 

“G&W has a proven track record in operational flexibility and providing excellent customer service,” Eric Gehringer, Union Pacific Executive Vice President of Operations, said in a release. “Those strengths, combined with Union Pacific’s unmatched franchise and access to critical markets nationwide, position us to provide customers with the service we sold them and grow together.”

UP and G&W are working with customers to ensure a smooth transition. The Class I has been in contact with employees who will be impacted by the change about potential openings at CORP or other G&W railroads.

But the unions that represent UP employees in Eugene have blasted the plan as simply an effort to cut jobs. SMART-TD President Jeremy Ferguson said that 15 CORP railroaders will replace 30 UP employees if the STB approves the plan. The union president alleged that the short line employees would have less experience than the Class I workers. 

“This lease UP is trying to finalize with CORP is a blatant example of hedge fund-driven railroading, where the financial interests of Wall Street investors outweigh the safety and well-being of workers and communities,” Ferguson said. “The unionized, highly-trained workforce that Union Pacific is discarding has the qualifications necessary to operate these trains safely. By replacing them with a less-experienced and less-qualified workforce, UP is not only jeopardizing rail safety but also diminishing the ability to ensure smooth and reliable service for the businesses and industries that depend on this vital transportation network.”