Norfolk Southern lays off 250

By Staff -- Logistics Management, 1/1/2001

Faced with revenue losses, high diesel prices, and a weak coal market, Norfolk Southern posted furlough notices for about 400 employees at the end of the year. The temporary, payless furlough began at the close of business Dec. 17 and ended with employees returning to work Jan. 2.

Another 250 NS employees were laid off with no immediate return date. The trades affected included machinists, carmen, sheetmetal workers, and electricians.

The rail carrier is also offering voluntary early retirement to about 900 non-union employees. About 18 percent of the railroad's 5,000 non-union workers are eligible for the plan, which would take effect this month and next. This is the second round of early retirements at NS. More than 900 workers accepted a similar offer last March.

NS announced 1,300 job cuts in 2000. Workers have blamed the layoffs on revenue losses associated with the carrier's troubled takeover of former Conrail lines in 1999. Problems during the transition, which caused major disruptions in service, prompted many shippers to switch their freight to motor carriers.

For the Record

Due to a reporting error, some names were misspelled in the November 2000 article "Railcar 54, where are you?" The correct spelling of the polyester manufacturer featured in the article is KoSA, and the name of its order-fulfillment manager is Chris Fernandez.