TTD, SMART-TD leaders laud NS board election results

Two rail labor unions that supported Norfolk Southern Corp. management in the Class I’s proxy fight with activist investor Ancora Holdings Group LLC issued comments on yesterday’s board election results.

Shareholders voted for 10 of NS’s 13 board nominees — resulting in three members being voted off — and three of Ancora’s nominees. A major NS shareholder, Ancora had proposed an overhaul of the board and replacing top NS management, including President and CEO Alan Shaw. But shareholders reelected Shaw to the board.

Rail labor unions were split in their endorsements of future NS leadership. Two that supported current NS management were the Transportation Trades Department (TTD) of the AFL-CIO and SMART-Transportation Division. The unions’ opposition to Ancora’s nominees and proposed executive leadership team was rooted in Ancora's emphasis on increasing the use of precision scheduled railroading (PSR) operational measures to improve safety and profitability at NS. Ancora's demand for change was spurred in part by the February 2023 derailment of an NS train in East Palestine, Ohio.

TTD President Greg Regan issued the following statement after the election results were announced yesterday: "Shareholders stood with rail labor by voting to retain Mr. Shaw. While we certainly do not agree with Mr. Shaw on everything, we asked for him to remain because we believe he has made meaningful safety improvements since the train derailment in East Palestine, Ohio last year. We also believe his leadership would better serve rail customers, workers and shareholders in the long run."

Shareholders’ election of the three Ancora nominees indicated a desire for change, Regan said.

"While we support the safety reforms that are currently being implemented [at NS], we have made it clear that additional changes are still needed. We firmly believe that progress cannot be made by relying on old tactics such as precision scheduled railroading and strongly caution the railroad against embracing any version of PSR,”  he added.

Meanwhile, SMART-TD President Jeremy Ferguson said a balanced approach that emphasizes safety will do more than PSR to improve the railroad’s operations.

"SMART-TD looks forward to continuing the progress we have made with CEO Alan Shaw and his team. They have been establishing a resilient approach to railroading and an improved workplace culture," he said. "NS has decided to place the safety of our members and the communities they run through at the forefront, and we are excited to see that this will continue."