UNP is vulnerable to strikes or work slowdowns from the 86% of unionized employees in the company.[1] Since the company laid off thousands of employees in 2008 and has made clear that more may be on the way in 2009,[2] employee relations could get ugly.
On March 30, 2009, Goldman Sachs downgraded UNP from "buy" to "neutral" as it moved competitor Burlington Northern Santa Fe up from "neutral" to "buy;"[1] Goldman believes that BNI has overthrown UNP from the best railroad throne.[1] In Quarter 1 2009, UNP had the worst volume declines in the industry;[1] this goes to show that Burlington Northern has been capturing market share from UNP. Lost pieces of the market share pie is a double whammy in an economic environment where the entire pie may be shrinking.