By Paul Ziobro

Union Pacific Corp. senior executives will take a 25% salary cut and non-union workers will be required to take unpaid time off as the railroad suffers from a drop in shipping volume due to the coronavirus pandemic.

The executives' salary cut will apply from May through August. The non-unionized workforce will be required to take one week of unpaid leave each month during that same period. The railroad has about 37,000 workers and 85% are represented by unions.

Chief Executive Lance Fritz said he considered furloughs and layoffs but decided on the required unpaid leave to get through the next few months.

The railroad logged a 24% drop in the number of carloads and intermodal containers shipped last week versus a year ago, and shipping volume is down 22% in the second quarter.

Union Pacific reports its first-quarter results on Thursday.

(END) Dow Jones Newswires

April 21, 2020 17:21 ET (21:21 GMT)

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