Railroad hiring projected to rise in next six years

by Eric Olson

SBJ Reporter

eolson@sbj.net

Much like the freight they move, a large number of railroad workers are on the go. Their destination: retirement.

A sizable, and aging, baby boomer work force is leading railroad executives to look around the bend. What they see coming is more than 80,000 new hires in the next six years, according to the Association of American Railroads.

The hiring boom is already under way, the association said. For example, Fort Worth, Texas-based Burlington Northern Santa Fe, which employs more than 800 in Springfield, plans to hire 2,000 new workers this year and 1,500 each year through 2009.

Springfield's BNSF rail hub, however, is not among those where employment is expected to substantially increase. Though the company has added 60 employees in the past year, in part to handle a new contract with Georgia Power, employment holds steady between 800 and 900, said Steve Forsberg, spokesperson for BNSF.

"We would expect it to remain in that range for the foreseeable future," Forsberg said.

Springfield's BNSF hub, the second largest in the state next to Kansas City's 2,300 workers, is not on the list of those planning 25 new hires or more this year, Forsberg added. Additional employment in Springfield, as in any market, is determined by demographics, meaning openings created by retirees.

While the national outlook says about 40 percent of all railroad workers will be eligible for retirement in the next six to 10 years, Forsberg didn't know how hiring in Springfield would shape up annually.

"Just because somebody is eligible to retire, doesn't mean they are going to," Forsberg said. "We don't know beyond the current year that we're in what is exactly going to happen in each hiring location around the country."

Forsberg said the bulk of the industry's new hires are train conductors because most engineers are promoted from conductor ranks. The railroads are interested in workers in it for the long haul.

"Unlike a lot of companies, which tend to thrive on a certain amount of employee turnover, this industry is fairly stable," Forsberg said. "We are looking for people who would like to spend a career with one company."

Conflicting reports

But the Association of American Railroads' job projections, which also cited a stronger economy and a recent rise in rail business, contradicts a rail industry outlook released by the U.S. Department of Labor. The Bureau of Labor Statistics Occupational Outlook Handbook, 2004-2005 Edition, predicts declining employment in railroad transportation jobs through 2012, largely due to consolidation and technology.

"Employment in most rail occupations will continue to decline as both railroads and job duties are consolidated," the handbook said. "Locomotive engineers and conductors will increasingly take on the job duties of other workers as railroads control labor costs to remain competitive with other modes of transportation."

Innovation, such as larger, faster and more fuel-efficient trains, and computerization that reduces crew sizes were cited. For example, remote control technology, which Springfield's BNSF yard has used for more than a year, replaces engineers inside switch engines.

The handbook said there were 101,000 railroad transportation jobs nationwide in 2002, and the main source for job openings would be replacing retired or transferred employees.