Norfolk Southern will deemphasize the use of furloughs as a way to cut costs during market down cycles.
The plan comes as two activist investors are pressing NS (NYSE: NSC) and Union Pacific (NYSE: UNP) via shareholder proposals to address paid sick leave.
The Class I railroads have used furloughing as a means to reduce costs during cycles when freight demand might be down. It has also been used on a seasonal basis to align workforce needs with operational needs.
Furloughing is when a railroad...