RACELAND — More tough economic news rained down on the area Tuesday morning.
Because of the lack of rail cars in need of heavy rebuild, CSX Transportation announced it no longer has heavy repair work to send to Progress Rail Services Corp.’s Raceland Heavy Repair Shop.
It’s expected to result in the furlough of 125 employees who work at the shop.
CSXT employees work at the PRSC Raceland facility pursuant to a Management Services Agreement between the two companies.
Workers were told of the indefinite furloughs during a meeting at 6 a.m. Tuesday. A few workers are being retained to perform maintenance work at the plant. Also, some of the workers being furloughed will be offered transfers or severance packages.
Affected CSXT employees will receive their regular earnings during the next 60 days. After 60 days, union employees will be eligible to receive additional pay and benefits, including health coverage, in accordance with their labor agreements.
“They’re not anticipating any additional work there in the foreseeable future,” said Barbara Cox, a company spokeswoman for Progress Rail.
A number of factors have impacted the need for freight car heavy rebuilds at Raceland, according to a press release from CSXT. These include improvements in freight car utilization, a trend toward shipper-owned cars and new car purchases and leases.
In addition, CSXT has completed virtually all of its heavy rail car rebuilds and does not anticipate additional work in the foreseeable future.
CSXT has major operations at Louisville, Russell and Corbin and more than 2,600 employees across the state, according to the release.
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Kevin Goldy
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April 7, 2010
CSX furloughs 125 at Raceland shops
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