UP cites COVID-19 in announcement of forced unpaid leave, executive pay cuts
Citing an "unprecedented drop in volume due to COVID-19," Union Pacific on Tuesday announced four weeks of forced unpaid leave and four months of executive pay cuts.
According to an email from a UP spokeswoman, "nonagreement" employees, will be required to take a week off without pay each month from May to August. In addition, executives and members of the board of directors will take a 25% pay cut for the same duration, the email states.
Nonagreement employees are those workers who aren't covered by a union contract, "typically referred to as our management employees," the release states.
"Union Pacific has enacted several cost-saving measures, but they are not sufficient to offset the significant decline in volume," the email states.