Operator: The next question is from the line of Ken Hoexter with Bank of America.
Ken Hoexter : Congrats on its team and the Board on the next steps and on naming Jim as CEO. So many moving parts with the labor agreements. Obviously, Jen ran through some of the cost side from the pay increase last year to what you’re now adding on after the main contracts. Maybe — can you take a minute, walk us through some of the benefits that you see? And I presume these are all Union Pacific add-ons. Maybe differentiate what is UP add-on versus the industry. And then just thoughts on your outlook. I think you removed the operating ratio from your target. Is there a thought on the scale that you want to put together on costs? Or are we just leaving that off all together?
Jennifer Hamann : Yes. So I’ll start off, Ken. So when we did our 8-K in June, we took the operating ratio improvement off the table for the year, and that hasn’t changed. Certainly, you heard us talk about some of the headwinds that we have. So we are not — with the addition of the labor expenses, volumes moving away from us and then obviously, some fuel headwinds relative to OR in the back half of the year, we don’t expect year-over-year improvement. Our task, and I kind of touched on this a little bit with the question from Amit, is to get better from where we sit today. And I’m not going to forecast what our OR is going to be in the back half of the year, but we’re going to work really hard to improve each and every day. And that’s both in terms of being more productive with that cost structure as well as going out and selling in the marketplace and doing all we can to drive profitability on that side. I don’t know, Eric, you want to…
Eric Gehringer : Yes. And on the agreement side, so if we start with sick days, the opportunity that Lance mentioned obviously reinforce as we see the opportunity to improve the attractiveness of our jobs. And as a result of that, that can have a positive impact on how we do our hiring. If you go to the brake person deal, clearly, the biggest opportunity there is to reduce brake person labor in line with where the jobs are no longer needed and also allows us to partially offset some of our hiring in the short term. And of course, we get the benefit of establishing a ground-based enhanced utility position. And as Jennifer pointed out, the payback period on that is approximately two years. And if you look right now, we’re about 60% of the way through that implementation.
And then certainly on the 11 and 4 scheduled work, it really boils down to improved availability, as Lance pointed out, and more efficiently managing our staff levels with more latitude on how we do that under this new agreement.
Operator: The next question is from the line of Scott Group with Wolfe Research.
Scott Group : Best of luck to you, Lance. Jennifer, Just wanted to just make sure I understood the answer to that last question. Are you — so relative to like the 62% adjusted OR in Q2, are you not — you’re just not giving any color? Or are you saying it’s probably going to get worse, the OR second half versus at 62%? I’m just not sure what you’re trying to message there. And then just Kenny, CN last night was just — talked about raising their expectations for the U.S. grain — upcoming U.S. grain harvest just with some better rain recently. Just your thoughts on how you think about the grain harvest in your territory going forward?
