JACKSONVILLE, Fla. — CSX Corporation, the country’s third largest railroad, announced that it is cutting 800 to 1,000 non-union jobs as part of organizational and management restructuring.

According to reports, most of the cuts will occur in Jacksonville, Fla., where 60 percent of CSX’s 5,000 non-union employees are based. However, additional cuts are expected system wide, including at the company’s operations yard in Waycross.

CSX is one of Waycross’ largest employers, with 1,000 employees in well paid, highly sought after positions, according to Lisa Cooper, a volunteer with the Ware County Chamber of Commerce. Cooper said, “This town was built around the railroad. Waycross survives because of the railroad,” adding that any loss of jobs would be hurtful to the local economy.

Cooper said the local college, Okefenokee Technical College, has a unique relationship with CSX, offering courses to train current and future employees. The college’s Web site lists certificate programs in Locomotive Electrical Systems and Locomotive Mechanical Systems.

CSX spokesman, Gary Sease, said the majority of the jobs at the Waycross Terminal are union, or contract, labor and therefore not affected by the company’s announcement. He added that positions will be cut throughout the system, however, including Waycross.

“It will take weeks or months before we know the local, regional or state impact. We have 5,000 management level positions in our total workforce, 3,000 of which are in Jacksonville and 2,000 in field locations, such as Waycross,” Sease said. “It will take some time before we know who has a role in the new CSX organization.”

According to Sease, employees who are terminated will have the choice of two benefit packages. For those close to retirement age, the company will add two years of service to their current level and two years to their age to help them qualify for their pension.

Sease said the majority of the employees would be more likely to be eligible for the second option, which will be a lump sum benefit based on years of service.

“We began meetings with our employees yesterday, and they are continuing today to help them understand what is happening. The more affirmation we can give, the less anxiety there will be. We hope that they’ll see the potential of this new organization and understand the opportunities for personal growth and development,” he said. The review process is under way and will be complete by the end of the second quarter of 2004.

“Despite tremendous successes in growing our revenue over the past three years, I am not satisfied with our efforts to control costs and improve productivity. The initiative announced today will result in broad changes in the way we do business,” stated Michael J. Ward, CSX chairman, president and chief executive officer, in a statement released Monday.

Nationwide, CSX employs 34,000, with rail transportation services over a 23,000 route-mile network in 23 states.



To contact Business Editor Kay Harris,please call 244-3400, ext. 280.