Signalmen’s union sees red over proxy battle at Norfolk Southern

By Bill Stephens | February 22, 2024

Activist investor’s plans to oust CEO Alan Shaw will hurt the railroad over the long-term, the union says

FRONT ROYAL, Va. — The Brotherhood of Railroad Signalmen has become the first rail labor union to come out against the activist investor group that’s plotting to oust Norfolk Southern CEO Alan Shaw and gain control of the railroad’s board.

The union today expressed “grave concern” with Ancora Holdings’ proxy battle. The union said Ancora would reduce employment at NS, “a move that poses a direct threat to the safety and well-being of both our workforce and the communities we serve.”

The union urged NS shareholders to consider the long-term ramifications of Ancora’s proposals.

“Under the current leadership, NS has embarked on a forward-looking journey, emphasizing safety, innovation, and long-term sustainability over short-term gains,” the union said. The approach has improved morale at the railroad, while the railroad’s signal safety efforts have fostered “a culture of trust and collaboration” between labor and management, the union said.

“Ancora’s proposed strategy, centered on drastic cost-cutting and prioritizing short-term profits, threatens to undermine these achievements,” the union said.

Ancora on Tuesday unveiled its slate of board candidates and proposed naming former UPS executive Jim Barber Jr. as chief executive and former CSX executive Jamie Boychuk as chief operating officer.

Ancora says management change would improve safety at Norfolk Southern. The railroad’s safety record has been under scrutiny since the Feb. 3, 2023, hazardous chemicals derailment in East Palestine, Ohio.