OMAHA, Neb. (KMTV) — Union Pacific announced four months of executive pay cuts and furloughs on Tuesday due to an "unprecedented drop in volume due to COVID-19."
Executives, including the board of directors, will take a 25% salary cut from May through August, according to an e-mail from a Union Pacific spokeswoman.
Additionally, non-agreement employees will have to take an unpaid leave of absence for one week each of the four months.
“I recognize this is a significant adjustment,” said Chairman Lance Fritz. “I considered many possible scenarios, including furloughs or permanent workforce reductions, but ultimately decided that RULA (Required Unpaid Leave of Absence) would address our short-term needs.”
See their full statement below.
"With the unprecedented drop in volume due to COVID-19, Union Pacific has taken several actions to protect the company from the economic impacts of the virus.
UP has enacted several cost-saving measures, but they are not sufficient to offset the significant decline in volume. Accordingly, the railroad also is implementing changes that will impact our workforce. Executives, including the board of directors, will take a 25% salary cut from May through August. Additionally, nonagreement employees will be required to take an unpaid leave of absence for one week each month from May through August."