Union Pacific 2001 Annual Report Download - page 31

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into any collective bargaining agreements with the Teamsters, who began a job action on October 24, 1999, that has
continued into 2002. As of January 19, 2002, 19 Overnite service centers had approximately 369 employees, less than 3%
of Overnite’s work force, who did not report to work. Despite the work stoppage, Overnite has managed to improve its
revenue and profitability on a year-over-year basis. Employees at two Motor Cargo service centers located in North Salt
Lake, Utah and Reno, Nevada, representing approximately 11% of Motor Cargo's total work force at 30 service centers,
are covered by two separate collective bargaining agreements with unions affiliated with the Teamsters. Although the
agreements cover most of the employees at these two facilities, less than half of these covered employees are actual
members of unions.
Other Product Lines
Other – Included in the other product lines are the results of the corporate holding company, Fenix, self-insurance
activities and all appropriate consolidating entries.
Other Information
Additional information regarding UPC's operations is presented within Selected Financial Data, Item 6, and the
Consolidated Financial Statements, Item 8.
Governmental Regulation – UPC's operations are currently subject to a variety of federal, state and local regulations (see
also the discussion of certain regulatory proceedings in Legal Proceedings, Item 3).
The operations of the Railroad and trucking segment are subject to the regulatory jurisdiction of the Surface
Transportation Board (STB) of the United States Department of Transportation (DOT) and other federal and state
agencies. The operations of the Railroad are also subject to the regulations of the Federal Railroad Administration of the
DOT. The STB has jurisdiction over rates charged on certain regulated rail traffic; freight car compensation; transfer,
extension or abandonment of rail lines; and acquisition of control of rail common carriers. In March 2000, the STB
imposed a 15-month moratorium on railroad merger applications between Class I railroads. The moratorium directed
large railroads to avoid merger activities for 15 months until the STB adopted new rules governing merger proceedings.
The rulemaking proceeding was completed June 11, 2001. On that date, the moratorium ended, and the STB issued new
rules to be applied in merger proceedings involving Class I carriers which impose greater protective conditions on future
transactions to enhance competition.
The DOT and the Occupational Safety and Health Administration, along with other federal agencies have jurisdiction
over certain aspects of safety, movement of hazardous materials, movement and disposal of hazardous waste and
equipment standards. Various state and local agencies have jurisdiction over disposal of hazardous waste and seek to
regulate movement of hazardous materials in areas not otherwise preempted by federal law.
Environmental Regulation – UPC and its subsidiaries are subject to various environmental statutes and regulations,
including the Resource Conservation and Recovery Act (RCRA), the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (CERCLA) and the Clean Air Act (CAA).
RCRA applies to hazardous waste generators and transporters, as well as to persons engaged in treatment and disposal
of hazardous waste, and specifies standards for storage areas, treatment units and land disposal units. All generators of
hazardous waste are required to label shipments in accordance with detailed regulations and to prepare a detailed manifest
identifying the material and stating its destination before waste can be released for offsite transport. The transporter must
deliver the hazardous waste in accordance with the manifest and only to a treatment, storage or disposal facility qualified
for RCRA interim status or having a final RCRA permit.
The Environmental Protection Agency (EPA) regulations under RCRA have established a comprehensive system for
the management of hazardous waste. These regulations identify a wide range of industrial by-products and residues as
hazardous waste, and specify requirements for management of such waste from the time of generation through the time
of disposal and beyond. States that have adopted hazardous waste management programs with standards at least as