Hiring a Signal Contractor

In recent years, the railroad industry has changed considerably as short line railroads are consolidated and large players are moving into the contracting field. Meanwhile, many changes are taking place in the labor market, all of which are beyond the control of employers.

It’s no secret that every industry is having difficulty finding employees with the “hands-on” skills and the self-discipline needed to study and absorb in-depth technical concepts. The reasons for this are beyond the scope of this article, but a conversation with any HR department in these fields will confirm this observation. Railroad signal contractors are not only faced with this problem, but also the fact that railroad signaling is a highly specialized field. As such, finding employees who can be trained and ultimately exercise effective trouble-shooting skills is very difficult.

It is rare to find employees with railroad signal experience, therefore it is necessary to recruit individuals who demonstrate the ability to learn and apply technical knowledge. Our experience indicates that this process requires a minimum of four to six months training for individuals without prior formal training in electrical contracting, electronics, or a related field. However, one will often find signal contractors who pay lip service to the training process. Many provide little training due to the up-front cost associated with the process. An argument can be made that this is the result of market forces, particularly when large signal contractors come in with inadequately trained personnel, driving down the cost of testing and maintenance services and therefore forcing their competition to do the same.

Shortline and regional railroads must be aware of the significant liabilities associated with employing personnel who are underqualified. For example, should an accident occur in which an employee or motorist is injured at a grade crossing and decides to sue, the plaintiff’s attorney will do what attorney’s do best…he will dig for any data, relevant or not, that can be used to call the railroad’s practices into question, even if the signal system was functioning normally. As one insurance official said,” lawyers don’t sue coal mines, they sue railroads.” Without digging deeply into the dynamics of this FACT, it can be argued that the Class One railroads bring this upon the railroad industry by often settling out of court, thereby offering carrot rather than stick to a legal profession, which claims to do “god’s work” but at the cost of 40-percent.

The above is a long-about way to reach this simple point: When selecting a signal contractor, one shouldn’t confuse fancy advertisements with competency, nor should they look at the cost of testing and maintenance services alone. In our experience creating in-house signal departments from scratch, proper signalman training takes approximately four to six months, including both classroom instruction and on-the-job training in which a new employee is shadowed and advised by a qualified mentor.

Railroads seeking contract testing and maintenance should ask these questions BEFORE entering into a contract:

1. Are the employees qualified under e-rail safe or a similar background screening program?

2. Have any of the current employees been dismissed from another railroad for significant safety or rules violations, failed drug and alcohol tests, or the like? While people are entitled to second chances and while people can change, company policies should be in place to make a determination of suitability for employment in a safety-sensitive, life-critical position.

3. How many weeks of training are provided for new employees? This can serve as a good barometer to determine if the required knowledge and skills are in place. It is important to understand that the ability to perform the required FRA tests is only a small portion of the signal maintainer’s job. The far more important task is the ability to troubleshoot and safely correct deficiencies. These more complex skills are the ones that can result in significant safety hazards.

4. Is the training provided for the contractor’s employees from an independent third-party organization? Does the training plan meet FRA Part 243 requirements? Does the training process include the working knowledge of basic electrical and electronic theory needed to understand complex systems and devices? While perhaps a sensitive subject, a contractor may tell you that the employee has had adequate training, but that may be far from the truth. Should an accident occur, the lawyer will certainly look into the training, education, and experience of the maintainers involved. If found wanting, the railroad will pay the price through joint and several liability with the contractor.

5. Has the contractor been associated with FRA violations? For example, a  railroad recently reported that a well-known contractor was associated with an FRA violation involving non-secured signal equipment on more than one occasion. The task of applying locks on cabinets, gate mechanisms or electrical disconnects is certainly not a high-level task, and the failure to address this easy and common FRA requirement likely indicates the contractor’s employee was either overworked or underqualified for the job.

6. What processes are in place to assure quality control? Is a qualified (?) supervisor present on the property periodically to ensure work is performed properly? Is this specified in your contract? 

7. The railroad should understand the difference between maintenance cost and the repair and construction costs articulated in a contract. Low fees for routine testing service may be offset by high costs for repairs and installation projects. Contractors are certainly entitled to make money on emergency repairs and construction activities, but one may want to inquire about the formula utilized for mark-up on such services when entering into a no-bid agreement. In other words, “has your legal and financial advisors examined the contract?”

In summary. Do not confuse aggressive sales and marketing with competence in railroad signaling and communications. let’s apply an analogy; If you suffer a major heart attack and require the services of a cardiologist, are you going to seek out the medical doctor who advertises the most on television, or are you going to make inquiries to locate a cardiologist who has earned the respect of his peers? Think of this analogy the next time you write a check to a signal contractor..

Photo caption: A contractor's field expedient repair that became a permanent FRA rule violation