Union Pacific 2001 Annual Report Download - page 65

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contributions to their health and welfare plan. Contract discussions with the remaining unions are either in negotiation
or mediation. Also during 2001, much of the operating craft unions' focus was on a proposed merger between the United
Transportation Union and the Brotherhood of Locomotive Engineers (BLE). In a December 2001 re-vote, the BLE
resoundingly rejected the merger. Both operating craft unions have indicated a desire to complete national negotiations.
The Corporation anticipates significant progress in 2002.
Trucking Segment
Operations – The trucking segment includes the operations of Overnite and Motor Cargo. Overnite is a major interstate
trucking company specializing in less-than-truckload (LTL) shipments. Overnite serves all 50 states and portions of
Canada and Mexico through 170 service centers located throughout the United States providing regional, inter-regional
and long haul service. Overnite transports a variety of products including machinery, tobacco, textiles, plastics,
electronics and paper products. Motor Cargo is a western regional LTL carrier that provides comprehensive service
throughout 10 western states. Motor Cargo transports general commodities, including consumer goods, packaged
foodstuffs, industrial and electronic equipment and auto parts. Overnite and Motor Cargo experience intense service
and price competition from regional, inter-regional and national LTL carriers and, to a lesser extent, from truckload
carriers, railroads and overnight delivery companies. Major competitors include USFreightways and CNF Inc. Overnite
and Motor Cargo believe they are able to compete effectively in their markets by providing high quality, customized
service at competitive prices.
Employees – Overnite continues to oppose the efforts of the International Brotherhood of Teamsters (Teamsters) to
unionize Overnite service centers. Since the Teamsters began their efforts at Overnite in 1994, Overnite has received 90
petitions for union elections at 66 of its 170 service centers, although there have been only nine elections since August
1997, and Teamsters representation was rejected in seven of those nine elections. Twenty-two service centers, representing
approximately 14% of Overnite’s nearly 13,000 nationwide employee work force, have voted for union representation,
and the Teamsters have been certified and recognized as the bargaining representative for such employees. Employees
at 18 of these 22 locations have filed decertification petitions since 1999. Elections affecting approximately 400 additional
employees are unresolved, and there are no elections currently scheduled. Additionally, proceedings are pending in
certain cases where a Teamsters' local union lost a representation election. To date, Overnite has not entered 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 union 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.
The following table details reportable financial information for the Corporation’s segments and other product lines for
the years ended December 31, 2001, 2000 and 1999:
Millions of Dollars 2001 2000 1999
Operating revenues:[a]
Rail.......................................................................................... $10,800 $10,731 $10,140
Trucking ................................................................................. 1,143 1,113 1,062
Other....................................................................................... 30 34 35
Consolidated .......................................................................... $11,973 $11,878 $11,237