Canadian Pacific Railway to cut up to 1,000 jobs as rail volume slumps

[Anonymous]

CP is one of Calgary's bigger employers..



Disappointing, but not surprising news.



http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696">http://www.cbc.ca/news/business/cp-rail ... -1.3413696">http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696

Canadian Pacific Railway plans to cut 1,000 positions this year as it adjusts to lower shipment volumes and profits.



The Calgary-based rail company says most of the cuts to unionized and management positions will result from attrition and kick in by the middle of 2016.



Since 2012, the railway has cut 6,000 to 7,000 positions, including 1,200 last year alone.



CP made the announcement on a conference call Thursday after releasing its fourth-quarter and year-end results.



"There's probably 1,000 additional heads to come out potentially in 2016," is how CEO Hunter Harrison replied to an analyst's question on the company's head count. "So there's still room there."



The company's numbers show profits slipped 29 per cent to $319 million, or $2.08 per share, in the three months before Dec.31. Those numbers are down from $451 million, or $2.63 per share, a year earlier.



For the year as a whole, however, CP saw revenue of $6.71 billion and $1.35 billion in profit — both record highs, but both less than what analysts had been expecting.



The company is seeing reduced demand for its services, as the North American economy shows signs of a slowdown. Once the impact of currencies are stripped out, revenues from crude oil shipments were down 19 per cent this year, metals shipments were down 10 per cent and auto parts were down two per cent, according to an investor presentation released Thursday.



That could be poised to get worse. "The numbers were OK, but it was the guidance going forward that kind of freaked everybody out," said Barry Schwartz, the chief investment officer of Baskin Wealth Management in Toronto.



"This is a boom-bust business, the railroad business," he said, adding that CP's rival CSX said the economy is in a "freight recession" earlier this week.



The job cuts are not surprising considering the reduced demand to ship commodities. "What's it going to look like if Canada goes into a recession," Schwartz said. "Are we still going to be shipping a lot of oil and resources and grains?"



CP is in the midst of trying to merge with U.S. railway Norfolk Southern, a deal that would create the largest rail company in North American but one that has thus far been rebuffed by the target company's board.

[J0E]

I work(ed) with a guy who use to work for the railway companies as a lineman, Fash.

He was with us until Christmas.

But last I heard, he just had triple bypass surgery.

It must be a job that's hàrd on the body.

Anyways, he's not comin' back anytime soon.



I think if they had a buyout package and I was working for them, I'd take it.

Might even live longer.

[Anonymous]

I work(ed) with a guy who use to work for the railway companies as a lineman, Fash.

He was with us until Christmas.

But last I heard, he just had triple bypass surgery.

It must be a job that's hàrd on the body.

Anyways, he's not comin' back anytime soon.



I think if they had a buyout package and I was working for them, I'd take it.

Might even live longer.

There's no such job in railways engineering services. There is signals and communications maintainer.

[Anonymous]

CP is one of Calgary's bigger employers..



Disappointing, but not surprising news.



http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696">http://www.cbc.ca/news/business/cp-rail ... -1.3413696">http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696

Canadian Pacific Railway plans to cut 1,000 positions this year as it adjusts to lower shipment volumes and profits.



The Calgary-based rail company says most of the cuts to unionized and management positions will result from attrition and kick in by the middle of 2016.



Since 2012, the railway has cut 6,000 to 7,000 positions, including 1,200 last year alone.



CP made the announcement on a conference call Thursday after releasing its fourth-quarter and year-end results.



"There's probably 1,000 additional heads to come out potentially in 2016," is how CEO Hunter Harrison replied to an analyst's question on the company's head count. "So there's still room there."



The company's numbers show profits slipped 29 per cent to $319 million, or $2.08 per share, in the three months before Dec.31. Those numbers are down from $451 million, or $2.63 per share, a year earlier.



For the year as a whole, however, CP saw revenue of $6.71 billion and $1.35 billion in profit — both record highs, but both less than what analysts had been expecting.



The company is seeing reduced demand for its services, as the North American economy shows signs of a slowdown. Once the impact of currencies are stripped out, revenues from crude oil shipments were down 19 per cent this year, metals shipments were down 10 per cent and auto parts were down two per cent, according to an investor presentation released Thursday.



That could be poised to get worse. "The numbers were OK, but it was the guidance going forward that kind of freaked everybody out," said Barry Schwartz, the chief investment officer of Baskin Wealth Management in Toronto.



"This is a boom-bust business, the railroad business," he said, adding that CP's rival CSX said the economy is in a "freight recession" earlier this week.



The job cuts are not surprising considering the reduced demand to ship commodities. "What's it going to look like if Canada goes into a recession," Schwartz said. "Are we still going to be shipping a lot of oil and resources and grains?"



CP is in the midst of trying to merge with U.S. railway Norfolk Southern, a deal that would create the largest rail company in North American but one that has thus far been rebuffed by the target company's board.

Actually most jobs that will be lost will be contractors. It will affect mostly engineering service contractors like A&B and PNR crews. CP's own unionized gangs will be carrying out more of their own work this year. Most section elimination has already taken place. Even in running trades, only a few jobs will be lost because of changes in routing and the increase in train lengths that have already happened when Harrison/Creel took control.



There will be a hiring freeze for now on most unionized positions. The gangs can expect little if any O/T this year unless they haven't got the track buttoned up yet within their block. O/T for engineering and mechanical will be on emergency only and yard switchers rarely got O/T anyway.

[Anonymous]

CP is one of Calgary's bigger employers..



Disappointing, but not surprising news.



http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696">http://www.cbc.ca/news/business/cp-rail ... -1.3413696">http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696

Canadian Pacific Railway plans to cut 1,000 positions this year as it adjusts to lower shipment volumes and profits.



The Calgary-based rail company says most of the cuts to unionized and management positions will result from attrition and kick in by the middle of 2016.



Since 2012, the railway has cut 6,000 to 7,000 positions, including 1,200 last year alone.



CP made the announcement on a conference call Thursday after releasing its fourth-quarter and year-end results.



"There's probably 1,000 additional heads to come out potentially in 2016," is how CEO Hunter Harrison replied to an analyst's question on the company's head count. "So there's still room there."



The company's numbers show profits slipped 29 per cent to $319 million, or $2.08 per share, in the three months before Dec.31. Those numbers are down from $451 million, or $2.63 per share, a year earlier.



For the year as a whole, however, CP saw revenue of $6.71 billion and $1.35 billion in profit — both record highs, but both less than what analysts had been expecting.



The company is seeing reduced demand for its services, as the North American economy shows signs of a slowdown. Once the impact of currencies are stripped out, revenues from crude oil shipments were down 19 per cent this year, metals shipments were down 10 per cent and auto parts were down two per cent, according to an investor presentation released Thursday.



That could be poised to get worse. "The numbers were OK, but it was the guidance going forward that kind of freaked everybody out," said Barry Schwartz, the chief investment officer of Baskin Wealth Management in Toronto.



"This is a boom-bust business, the railroad business," he said, adding that CP's rival CSX said the economy is in a "freight recession" earlier this week.



The job cuts are not surprising considering the reduced demand to ship commodities. "What's it going to look like if Canada goes into a recession," Schwartz said. "Are we still going to be shipping a lot of oil and resources and grains?"



CP is in the midst of trying to merge with U.S. railway Norfolk Southern, a deal that would create the largest rail company in North American but one that has thus far been rebuffed by the target company's board.

Actually most jobs that will be lost will be contractors. It will affect mostly engineering service contractors like A&B and PNR crews. CP's own unionized gangs will be carrying out more of their own work this year. Most section elimination has already taken place. Even in running trades, only a few jobs will be lost because of changes in routing and the increase in train lengths that have already happened when Harrison/Creel took control.



There will be a hiring freeze for now on most unionized positions. The gangs can expect little if any O/T this year unless they haven't got the track buttoned up yet within their block. O/T for engineering and mechanical will be on emergency only and yard switchers rarely got O/T anyway.

That is a relief.

[Anonymous]

CP is one of Calgary's bigger employers..



Disappointing, but not surprising news.



http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696">http://www.cbc.ca/news/business/cp-rail ... -1.3413696">http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696

Canadian Pacific Railway plans to cut 1,000 positions this year as it adjusts to lower shipment volumes and profits.



The Calgary-based rail company says most of the cuts to unionized and management positions will result from attrition and kick in by the middle of 2016.



Since 2012, the railway has cut 6,000 to 7,000 positions, including 1,200 last year alone.



CP made the announcement on a conference call Thursday after releasing its fourth-quarter and year-end results.



"There's probably 1,000 additional heads to come out potentially in 2016," is how CEO Hunter Harrison replied to an analyst's question on the company's head count. "So there's still room there."



The company's numbers show profits slipped 29 per cent to $319 million, or $2.08 per share, in the three months before Dec.31. Those numbers are down from $451 million, or $2.63 per share, a year earlier.



For the year as a whole, however, CP saw revenue of $6.71 billion and $1.35 billion in profit — both record highs, but both less than what analysts had been expecting.



The company is seeing reduced demand for its services, as the North American economy shows signs of a slowdown. Once the impact of currencies are stripped out, revenues from crude oil shipments were down 19 per cent this year, metals shipments were down 10 per cent and auto parts were down two per cent, according to an investor presentation released Thursday.



That could be poised to get worse. "The numbers were OK, but it was the guidance going forward that kind of freaked everybody out," said Barry Schwartz, the chief investment officer of Baskin Wealth Management in Toronto.



"This is a boom-bust business, the railroad business," he said, adding that CP's rival CSX said the economy is in a "freight recession" earlier this week.



The job cuts are not surprising considering the reduced demand to ship commodities. "What's it going to look like if Canada goes into a recession," Schwartz said. "Are we still going to be shipping a lot of oil and resources and grains?"



CP is in the midst of trying to merge with U.S. railway Norfolk Southern, a deal that would create the largest rail company in North American but one that has thus far been rebuffed by the target company's board.

Actually most jobs that will be lost will be contractors. It will affect mostly engineering service contractors like A&B and PNR crews. CP's own unionized gangs will be carrying out more of their own work this year. Most section elimination has already taken place. Even in running trades, only a few jobs will be lost because of changes in routing and the increase in train lengths that have already happened when Harrison/Creel took control.



There will be a hiring freeze for now on most unionized positions. The gangs can expect little if any O/T this year unless they haven't got the track buttoned up yet within their block. O/T for engineering and mechanical will be on emergency only and yard switchers rarely got O/T anyway.

CP's share price is down about $100 from it's all time high about a year or so ago.  ac_umm

[Anonymous]

CP is one of Calgary's bigger employers..



Disappointing, but not surprising news.



http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696">http://www.cbc.ca/news/business/cp-rail ... -1.3413696">http://www.cbc.ca/news/business/cp-rail-jobs-profits-1.3413696

Canadian Pacific Railway plans to cut 1,000 positions this year as it adjusts to lower shipment volumes and profits.



The Calgary-based rail company says most of the cuts to unionized and management positions will result from attrition and kick in by the middle of 2016.



Since 2012, the railway has cut 6,000 to 7,000 positions, including 1,200 last year alone.



CP made the announcement on a conference call Thursday after releasing its fourth-quarter and year-end results.



"There's probably 1,000 additional heads to come out potentially in 2016," is how CEO Hunter Harrison replied to an analyst's question on the company's head count. "So there's still room there."



The company's numbers show profits slipped 29 per cent to $319 million, or $2.08 per share, in the three months before Dec.31. Those numbers are down from $451 million, or $2.63 per share, a year earlier.



For the year as a whole, however, CP saw revenue of $6.71 billion and $1.35 billion in profit — both record highs, but both less than what analysts had been expecting.



The company is seeing reduced demand for its services, as the North American economy shows signs of a slowdown. Once the impact of currencies are stripped out, revenues from crude oil shipments were down 19 per cent this year, metals shipments were down 10 per cent and auto parts were down two per cent, according to an investor presentation released Thursday.



That could be poised to get worse. "The numbers were OK, but it was the guidance going forward that kind of freaked everybody out," said Barry Schwartz, the chief investment officer of Baskin Wealth Management in Toronto.



"This is a boom-bust business, the railroad business," he said, adding that CP's rival CSX said the economy is in a "freight recession" earlier this week.



The job cuts are not surprising considering the reduced demand to ship commodities. "What's it going to look like if Canada goes into a recession," Schwartz said. "Are we still going to be shipping a lot of oil and resources and grains?"



CP is in the midst of trying to merge with U.S. railway Norfolk Southern, a deal that would create the largest rail company in North American but one that has thus far been rebuffed by the target company's board.

If any services get cut it will be canola and that is so frickin bad for me.

[Anonymous]

If any services get cut it will be canola and that is so frickin bad for me.

The reason grain shipments were a pain for CN and CP is because so much of their hauling volume was devoted to crude because we only have one pipeline to tidewater. Now that producing companies are stockpiling instead of shipping that frees up trains to haul less lucrative items like grain.

[J0E]

There's no such job in railways engineering services. There is signals and communications maintainer.

...well, even if there isn't, the word 'lineman' sure made for some nice, pretty music...

[easter bunny]

Well it's understandable, I guess. After all, they did post l̶o̶w̶e̶r  record profits for the year.   :001_rolleyes:

[Anonymous]

Well it's understandable, I guess. After all, they did post l̶o̶w̶e̶r  record profits for the year.   :001_rolleyes:

I knew you would say that. Simplistic thinking. They sold a lot of equipment this year. Earnings fell short of projections. Fewer trains are moving which means less capital infrastructure spending is required.  Why should they keep contracting crews for capital programs that their own unionized crews can do? Explain that one to me.

[Anonymous]

Well it's understandable, I guess. After all, they did post l̶o̶w̶e̶r  record profits for the year.   :001_rolleyes:

I knew you would say that. Simplistic thinking. They sold a lot of equipment this year. Earnings fell short of projections. Fewer trains are moving which means less capital infrastructure spending is required.  Why should they keep contracting crews for capital programs that their own unionized crews can do? Explain that one to me.

Most of the layoffs in heavy oil have not been company employees either. Contracting employees have been let go.

[easter bunny]

Well it's understandable, I guess. After all, they did post l̶o̶w̶e̶r  record profits for the year.   :001_rolleyes:

I knew you would say that.

Oh yeah. As if!  

Simplistic thinking. They sold a lot of equipment this year. Earnings fell short of projections. Fewer trains are moving which means less capital infrastructure spending is required.  Why should they keep contracting crews for capital programs that their own unionized crews can do? Explain that one to me.

Why should they keep hiring people to sit on trains doing nothing when they can just use cameras and monitor everything in real time using computers? Pretty soon 'the machine' will have no use for anyone anymore.

[easter bunny]

Well it's understandable, I guess. After all, they did post l̶o̶w̶e̶r  record profits for the year.   :001_rolleyes:

I knew you would say that. Simplistic thinking. They sold a lot of equipment this year. Earnings fell short of projections. Fewer trains are moving which means less capital infrastructure spending is required.  Why should they keep contracting crews for capital programs that their own unionized crews can do? Explain that one to me.

Most of the layoffs in heavy oil have not been company employees either. Contracting employees have been let go.

I'm just yanking Shen's chain. =)))

[Anonymous]

Why should they keep hiring people to sit on trains doing nothing when they can just use cameras and monitor everything in real time using computers? Pretty soon 'the machine' will have no use for anyone anymore.

Can computers apply handbrakes? Can a computer follow the special instructions in each timetable? Can a computer cut in/cut out air? Can a computer count cars to a joint? Can a computer report a broken rail/busted joint bar? Can a computer know to slow down for a broken frog? Can a computer take a clearance and clarify it with engineering crews and RTC? Can a computer change out a broken knuckle? Can a computer follow inspections rules for passing trains and for trains sitting in a siding?



Never mind the fact that class 1 railways are REQUIRED by Transport Canada to have both a hogger and a conductor, it is physically impossible for computer to run freight trains. Dude, I'd like to take you over to Walker Yard and show you what the job actually involves.



Running Trades is a physical labour job.