The freight railroad industry is kicking its recruitment efforts into high gear to counter an anticipated surge in retirements over the next decade, as well as a stodgy image that executives say hinders their ability to attract young people.
The hiring and marketing push - including local and national advertising, listings on online job services and working with schools - also comes at a time when business is improving and railroads face costly congestion on their tracks.
"When I look forward five years out or eight years out, I think our biggest challenge is going to be recruiting and retaining employees," said Matthew K. Rose, chairman and chief executive of Burlington Northern Santa Fe Corp.
Rose said rivals are considering collaborating on an ad campaign to "drive up the professional image of our industry." He said the industry needs to do a better job emphasizing the importance of logistics and technology to modern operations, though he acknowledged that much of the demand is for physical laborers willing to work outdoors, regardless of the weather.
At the end of last year, about 220,000 workers were employed by the rail industry nationwide. About 40 percent of that labor force is eligible to retire by 2014, according to the Association of American Railroads.
The Washington-based trade group estimates that 80,000 new workers will be hired by the end of the decade and an additional 60,000 employees will be added by 2014.
In recent years, the nationwide hiring slump made it easier for railroads to replace retirees when necessary. The recruiting challenges were masked by the economic downturn, which sapped strength from the manufacturing sector and allowed the industry to operate while letting its labor force shrink from attrition.
Now, with shipments of coal, grain and consumer goods on the rise, executives are faced not only with replacing retirees, but with having to add to the work force.
Burlington Northern, for example, expects to hire 1,800 employees in 2004 - adding 600 to 800 new jobs.
Union Pacific Corp., the nation's largest railroad, already has hired 2,400 workers this year and plans to bring 1,800 more aboard by the end of 2004 - mostly in Texas and California, according to Barbara Schaefer, senior vice president of human resources.
Entry-level brakemen, the people who put together and take apart trains in rail yards, earn $40,000-$50,000 a year, plus benefits, Schaefer said, and their salaries can climb to more than $70,000 in just a few years. Another selling point Schaefer makes is that railroads aren't outsourcing or offshoring jobs.
"We move stuff even if it's made in China," she said.
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