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    Activist Ancora Wins Three Norfolk Southern Board Seats but Will Not Oust CEO

    An activist investment firm failed to replace the railroad’s top executive and all its directors, but did win three seats on its board.Shareholders of Norfolk Southern, the beleaguered freight railroad, on Thursday voted down an attempt by an activist investment firm to remove the company’s chief executive and take control of its board.But the activist, Ancora, a Cleveland firm, managed to secure a foothold at the company, after shareholders voted to place three of its directors onto Norfolk Southern’s 13-member board. Ancora had hoped to take control of the company’s leadership with an aim to cut costs and increase Norfolk Southern’s profits and stock price.The result is a partial victory for Norfolk Southern’s executives, who had to defend themselves against criticisms of the company’s safety record and its lackluster financial performance. A company train carrying hazardous chemicals derailed last year in East Palestine, Ohio, forcing residents to evacuate.The results of the shareholder vote, which are preliminary, were announced Thursday morning at a virtual company annual meeting.During the meeting, Alan Shaw, Norfolk Southern’s chief executive, said he looked forward to working with the new directors.“Norfolk Southern persevered through several challenges over the last year,” he said, “We have met every challenge and never lost sight of where we are taking our powerful franchise.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Norfolk Southern Agrees to Try Out Federal Safety Reporting Program

    The company, which operated the train that derailed in East Palestine, Ohio, is the first major freight railroad to join a federal program that allows workers to report safety issues.Norfolk Southern, the operator of the freight train carrying toxic chemicals that derailed in East Palestine, Ohio, nearly a year ago, has agreed to participate in a federal program that allows employees to report safety issues confidentially, the company and federal officials announced on Monday.In the aftermath of the derailment, Transportation Secretary Pete Buttigieg called on Norfolk Southern and the nation’s other major freight railroads to join the program, one of a series of steps he urged them to take to improve safety.The railroads committed in March to participating, but in the months that followed, they pushed for changes to the program to address concerns about how it functions. None of the largest freight rail companies, known as Class I railroads, had officially agreed to join until the announcement on Monday.Norfolk Southern’s participation in the program, known as the Confidential Close Call Reporting System, or C3RS, will be limited in scope. The railroad will carry out a one-year pilot program that will apply to about 1,000 employees in Atlanta; Elkhart, Ind.; and Roanoke, Va., who are members of two unions, a small fraction of the company’s work force of roughly 20,000 people.“Norfolk Southern has taken a good first step, and it’s time for the other Class I railroads to back up their talk with action and make good on their promises to join this close call reporting system and keep America’s rail network safe,” Mr. Buttigieg said in a statement.Alan H. Shaw, the chief executive of Norfolk Southern, said in a statement that the company was “committed to setting the gold standard for rail safety, and we are proud to be the first Class I railroad to deliver on our promise to co-develop and launch a C3RS program.”The federal program, which is modeled after a similar one for pilots and other aviation personnel, allows railroad employees to report safety issues without worrying about potential discipline. But the freight rail companies raised concerns that workers might be able to take advantage of the program as a way to shield themselves from punishment after making dangerous mistakes.The Association of American Railroads, an industry group, said on Monday that the other major freight rail companies were still committed to joining the program.“This commitment remains unchanged,” said Jessica Kahanek, a spokeswoman for the group. She added, “A.A.R. and its member railroads collectively and individually have engaged in good-faith conversations with the administration and rail labor about strengthening the program.” More