CSX furloughs 142 in Russell

By TIM PRESTON - The Independent

RUSSELL May 22, 2009 11:42 pm

— A CSX spokesman confirmed this week the company has placed on furlough 142 employees from operations in Russell as a result of declining economic conditions and demand for rail services.
The furlough notices have been spread out over a period of several weeks, according to a local rail worker who asked to remain anonymous.
Russell Mayor Bill Hopkins said the furlough action won’t have an immediate impact on the city’s budget. The mayor agreed Russell “always has been” considered a railroad city, even though CSX operations and properties aren’t actually in the city. The city does provide water service to nearby CSX operations, Hopkins said.
For Russell residents who work for CSX, however, Hopkins said the furlough is certainly unfortunate news. A majority of CSX workers in Russell live in the city or in nearby Flatwoods, Hopkins said.
“Both cities will have a harder time with collecting property taxes next winter,” Hopkins said, adding “with the current economy, it’s just getting worse and worse. Who knows what is going to happen?”
Garrick Francis, CSX director of corporate communications, said the furlough process has been ongoing “during the course of this year” in response to the nation’s economic circumstances.
“We’ve had to adjust to the sharp decline,” Francis said, explaining CSX has 2,400 to 2,500 furloughed employees as well as thousands of idled rail cars and locomotives. “It will be a challenge throughout the year.”
CSX workers on furlough retain their health and wellness benefits for four months, Francis said, adding the company hopes to put the railroad employees back to work as soon as conditions allow.
“These folks have put in a lot of training time. They are very skilled workers,” Francis said.
At this time, CSX does not plan additional furlough notices for workers in the Russell area, Francis said.
TIM PRESTON can be reached at tpreston@dailyindependent.com or at (606) 326-2651.