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					ACOEM CORPORATE HEALTH ACHIEMENT AWARD
                 2003




               Union Pacific Railroad
                  Dennis Richling
     President Midwest Business Group on Health

            Former AVP-Health Services
Union Pacific Railroad
Company Vision
• Union Pacific is committed to be a company
  where:
  – Our customers want to do business,
  – Our employees are proud to work,
  – And shareholder value is created
Union Pacific Values
• Safety
• Quality Principles
• Respect for Employees
• Commitment
• Accountability
• Simplicity
• Communications
Fast Facts in The USA
Miles of Track   33,000+
Employees        47,000
Locomotives       6,886
Freight Cars     96,776



The largest railroad in North America
Operating in the western two-thirds of the United States
The system serves 23 states
Freight Transportation
CHALLENGES

• Geographically dispersed population
• Mobile population
• Rural locations
• Fifteen unions
Union Pacific- Health Services
Department
• The Health Services Department is committed to
  minimizing both employee and company related
  losses through
  – Assurance of employee fitness for duty,
  – Compliance with existing & anticipated regulatory and/or
    company health standards,
  – Integration of wellness/prevention health concepts into
    company culture,
  – Efforts to protect the company against unwarranted work
    related health claims, and
  – The provision of medical staff resources to support company
    plans, operations, and training
Healthy People
Operation RedBlock
• Operation RedBlock is a joint union and
  management effort that began in the late
  1970’s in response to a special study of
  alcohol abuse among railroad workers
• Operation RedBlock is an alcohol and drug
  abuse prevention and intervention program,
  lead by employees and supported by labor
  and management
Healthy People
Operation RedBlock
• Program Goals
  – Alcohol and drug free workplace



• Program Elements
  – Awareness
  – Education and Training
  – Intervention
UPRR Substance Abuse Referrals
        Program Recidivism Rate is 8 to 10%
  200
  200
  180
  180
  160
  160
  140
  140
  120
  120
  100
  100                                                          2001
                                                               2001
  80
  80                                                           2002
                                                               2002
  60
  60
  40
  40                                                      V=Volunteer referral
  20
  20                                                      M=Mandatory referral

   0
   0
        Drugs V
        Drugs V       Alcohol V
                      Alcohol V     Drugs M
                                    Drugs M   Alcohol M
                                              Alcohol M


                  Totals:   Drugs   Alcohol
                   2002     190     290
                   2001     174     249
Healthy People-Further Efforts
Operation Lifesaver
• Operation Lifesaver
  – began 1972 as a 6 week awareness program sponsored
    by the State of Idaho and Union Pacific Railroad.
  – In 1986, a national non-profit organization was formed

• Mission
  – Education
  – Enforcement
  – Engineering
Healthy People-Further Efforts
Community Coalitions
• Developed through the realization that grade
  crossing collisions & trespasser incidents are
  both a railroad and community issue
• Develop community involvement in collision &
  trespasser prevention programs including:
  – Operation Lifesaver
  – Grade Crossing Collision Investigation Training
  – Officer on the Train Program
  – Grade Crossing and Upgrade plans
Healthy Environment
Safety Process Elements
• System Safety and Derailment Prevention Team
• Work Unit Safety Action Plans
• Human Factors Engineering
• Industrial Hygiene
• Prevention Programs
• Safety Assurance and Compliance Program
• Public Safety and Grade Crossing Accident
  Prevention
• Safety Strategy Team
Healthy Environment-How Do We
Communicate
• UP Online -3 day a week electronic newsletter
• ITV- 24 hour video “Slide Show”
• UPLINC-Business TV
• Video Production
• Newsletters/Printed Communication
Healthy Environment
                          Employee Reportable Rate
                                1993 - 2002
    Per 200,000 MHRS
7
7

6
6        5.96
         5.96

5
5
                4.65
                4.65
4
4                        3.88
                         3.88
                                              3.2
                                              3.2     3.51
                                                      3.51
                                3.01
                                3.01   3
                                       3                     3.12
                                                             3.12   3.07
                                                                    3.07
3
3
                                                                           2.41
                                                                           2.41
2
2

1
1

0
0
      1993
      1993   1994
             1994      1995
                       1995   1996
                              1996   1997
                                     1997   1998
                                            1998    1999
                                                    1999   2000
                                                           2000   2001
                                                                  2001   2002
                                                                         2002
Healthy Environment
PPE Vending
• Benefits
  – Provides real-time access for employees and relieves
    management from having to personally distribute safety
    equipment and keeping inventory
  – Allows instant access and control for management to
    set, raise, or lower usage limits
  – Reduces supply expense by encouraging use when
    needed and discouraging waste
  – Reduces total supplies used
  – Maintains historical record
Healthy Environment
PPE Vending
Healthy Environment
Environmental Management
• Policy Statement
  – Union Pacific Railroad Company (UPRR) is committed
    to protecting the environment for our customers, our
    employees, and the communities in which we operate.
Healthy Environment
Environmental Management Facts
• Over 1,400 new fuel efficient locomotives purchased
  between 2000 and 2002 replacing 20% of fleet.
• Union Pacific has the youngest fleet and most eco-
  friendly fleet in the business
• 40% of fleet and all new acquisitions since 1993 have
  been equipped with impact-resistant fuel tanks
• 97% of fleet is equipped with retention tanks to
  capture fluids that previously may have reached the
  ground
Healthy Environment
                Continuing improvement in fuel
                efficiency (gallons / 1000 GTM)*
  1.55
  1.55
                                             > 11% improvement in 7 years
  1.50
  1.50

  1.45
  1.45

  1.40
  1.40

  1.35
  1.35

  1.30
  1.30

  1.25
  1.25

  1.20
  1.20
         '94
          '94    '95
                  '95   '96
                         '96   '97
                                '97   '98
                                       '98      '99
                                                 '99   '00
                                                        '00   '01
                                                               '01   '02
                                                                      '02
Healthy Company
Preventive Programming
• Health Promotion Programs
  – Health Track - Risk Identification/Reduction Program
  – System Health Facilities
  – Medical Self-Care
  – Know Your Numbers
  – Butt-Out & Breathe
  – Research Grants

• Alertness Management
• Work/Life Balance Programs
Healthy Company
Research Grants
• Reduce Obesity Now
• Training & Education for Diabetes
• Get Healthy DeSoto
• NHLBI Cholesterol Lowering Study
• NHLBI Weight Control Study
                                                Healthcare Costs due to Lifestyle-Related Factors

                   35.0%




                   30.0%    29.0%


                                        24.0%                         23.9%                                  24.0%
                   25.0%                            23.4%
                                                                                        22.4%                          22.1%
Percent of Costs




                   20.0%                                                                                                       18.8%



                   15.0%




                   10.0%




                   5.0%




                   0.0%
                       90




                                       95




                                                    96




                                                                     97




                                                                                        98




                                                                                                              99




                                                                                                                        00




                                                                                                                                    01
                    19




                                    19




                                                 19




                                                                  19




                                                                                     19




                                                                                                           19




                                                                                                                     20




                                                                                                                                 20
                                                            Date Lifestyle Claims Analysis was Conducted
Percent of Total Health Costs Related to Lifestyle
Diseases - Medstat/Hero Analysis
        Analysis compared UPRR to HERO Data Base
 60.00%
                                                                                       48.4%
 50.00%                                                                        45.8%
                                                                       43.2%
                                                               40.6%
                                                       38.0%
 40.00%                                        35.4%
                                       32.8%
                               30.2%
 30.00%                27.6%
               25.0%
          22.4%                                         2.6% Annual Growth
 20.00%
               Study predicted a $77M cost avoidance in 2008 using
 10.00%         current dollars with a 1% annual reduction in risk.

  0.00%
          1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

                                       Predicted Contribution
Percent of Total Health Costs Related to Lifestyle
Diseases - Actual Vs Predicted

  35.0%
                                                                30.2%
  30.0%                                       27.6%
                              25.0%
  25.0%
          22.4%               24.0%
  20.0%                                       22.1%
                                                                18.8%
  15.0%

  10.0%

  5.0%

  0.0%
              1998            1999             2000             2001

                     Actual Contribution   Predicted Contribution
Lifestyle Costs - Actual Vs. Predicted
In Millions of Dollars

$160.0                                                 $142.1
$140.0
                                        $118.1
$120.0
                                                                $53.6M
$100.0                 $90.2
         $85.5                          $94.6
 $80.0                 $86.6                           $88.5
 $60.0
 $40.0
 $20.0
  $0.0
             1998      1999              2000          2001
                      Actual Costs   Predicted Costs
Management and Leadership

• Keys to Management/Leadership Commitment
  – Big Financial Deal both Safety and Health and Welfare
  – Safety #1 Responsibility of Every Employee
  – Integration of Health and Safety into daily operations of
    railroad
Future
• Continued integration of Preventive Health
  Programs into Total Safety Culture
• Creation of Health Index to ensure
  responsibility for health programs at local
  level
Recommendations to Others
• Know your business
• Incorporate health activities into existing
  business structure
• Partner with other organizations when
  possible
ACOEM CORPORATE HEALTH
   ACHIEMENT AWARD
         2003

				
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