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US railroads lose appeal over two-person crew rule

Created at 11 Aug · 11:20 PM1 source↑ Market-relevant
IN SHORT

Six U.S. freight railroads and two industry groups have lost their appeal challenging a new Federal Railroad Administration rule requiring at least two crew members on many trains. The court rejected arguments that the rule exceeded the agency's authority or failed to consider costs.

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Key Numbers

11thCircuit Court of Appeals

Who's Involved

Union Pacific
freight railroad opposing crew-size rule
BNSF
Berkshire Hathaway-owned railroad opposing crew-size rule
Federal Railroad Administration
agency that issued the crew-size rule
U.S. Court of Appeals for the 11th Circuit
court that ruled on the appeal
US railroads lose appeal over two-person crew rule

↳ Why This Matters

The ruling upholds federal safety regulations aimed at ensuring adequate staffing on freight trains, a decision influenced by recent high-profile derailments and ongoing labor-management disputes in the rail industry.

Key facts

  • A U.S. Court of Appeals for the 11th Circuit upheld a Federal Railroad Administration rule mandating at least two-person crews on many freight trains.
  • The ruling rejected an appeal filed by six railroads, including Union Pacific and BNSF, and two industry groups.
  • The railroads contended the rule exceeded the FRA's authority and failed to adequately consider compliance costs.
  • A dissenting judge agreed with the railroads, citing insufficient evidence and flawed cost-benefit analysis by the FRA.

Six U.S. freight railroads and two industry groups have lost their appeal challenging a new Federal Railroad Administration rule that mandates at least two crew members on many trains. The U.S. Court of Appeals for the 11th Circuit upheld the rule on Tuesday, rejecting the railroads' arguments that it exceeded the agency's general rulemaking authority and failed to consider the costs associated with shifting from one-person crews.

The railroads, including Union Pacific and Berkshire Hathaway-owned BNSF, had opposed the Federal Railroad Administration's crew requirements. The rule was established following efforts by organized labor to maintain crew levels amid heightened scrutiny of railroad safety, particularly after a 2023 derailment in East Palestine, Ohio, involving hazardous chemicals.

One judge dissented from the majority opinion, stating that the FRA's research and evidence did not sufficiently support a minimum crew size. The dissenting judge also noted that the agency's cost-benefit analysis failed to account for the labor costs railroads would incur to comply with the new rule.

Frequently asked questions

The rule requires many U.S. freight trains to operate with at least two crew members.

Six U.S. freight railroads, including Union Pacific and BNSF, along with two industry groups, appealed the rule.

The railroads argued the rule exceeded the Federal Railroad Administration's authority and that the agency failed to consider the costs of compliance, particularly regarding labor expenses.

The U.S. Court of Appeals for the 11th Circuit rejected the railroads' arguments and denied their petitions to review the rule.

What Happens Next

01Railroads may explore further legal avenues or adapt operations to comply with the two-person crew mandate.

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Cadence

How It Developed

Six U.S. railroads and two industry groups appealed a new Federal Railroad Administration rule.
The rule requires many trains to operate with at least two crew members.
Railroads argued the rule fell outside the FRA's rulemaking power and failed to consider costs.
The U.S. Court of Appeals for the 11th Circuit rejected the railroads' arguments.
One judge dissented, stating the FRA's research did not support the minimum crew size and cost-benefit analysis was flawed.

Sources

T1
US freight railroads lose appeal challenging new rule requiring at least two-person crewsReuters

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