I don't know what UP's problem is. The article associated with this hotlink seems to make the statement that UP ought to be hiring across the board and to look at their web site, one would get that impression as well.
http://www.utu.org/worksite/detail_news ... leID=14001
As the article states, it seems like the UP's management is asleep at the switch. Two major problems like this in such a short time indicate that either 1) management cannot recognize the seriousness of the problem; 2) they don't care; or 3) the management, (executive levels) are scared to spend a dollar to save the line. I've witnessed production "meltdowns" like this when I worked for Boeing. Customers believe that the problems are systemic and begin to look for other vendors. In UP's case, the Surface Transportation Board may allow the take over of certain lines to get things moving again.
Is this the end of UP, I doubt it. Will the executive's negligence be taken out on the workers who have had nothing to do with these system wide problems. Bet your butt they will.
I recently applied at BNSF. I was made a conditional job offer within a week of taking the test, had my physical the next week and was notified in time to give my employer 3 weeks notice I was leaving. Now if UP is in such dire straights, they ought to pull their head out of the sand and look at the way BNSF is meeting this hiring boom.