Reported by Progressive Railroading
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.
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