CSX to Cut 300 Jobs as Coal Freight Drops
The railroad’s move reflects changing markets in the central Appalachian coalfields, where rail operations were supported by workers in Erwin. CSX is closing locomotive and car shops there as well as terminating switching operations.
“The combination of low natural-gas prices and regulatory action has significantly decreased CSX’s coal movements over the past four years, with more than $1 billion in coal revenue declines during that time,” the Jacksonville, Florida-based railroad’s statement said.
The move follows a drop of about 30% in coal shipments over the past four years.
Those who lose their jobs will receive at least 60 days’ pay and benefits, with additional compensation based on union agreements for each craft.
“Many furloughed employees will be eligible for jobs in higher-demand areas on CSX’s network,” the railroad announced.
Management workers will get relocation benefits if jobs are available elsewhere, or they will receive a severance payment.
CSX announced the move two days after a third-quarter earnings announcement that included a record-low quarterly operating ratio of 68.3, and net income of $507 million, a decline of less than 1%.
In that statement, CSX cautioned that it’s expecting domestic coal shipments will drop at least 10% this year, and that conditions will continue next year.
While coal has declined, CSX has increased intermodal volume, primarily from domestic truck/rail moves.
