CSX to close mechanical shops in Corbin, Ky.

Written by Jenifer Nunez, assistant editor

As CSX continues to evaluate network resources and match them to demand in a changing business environment, the company plans to close its mechanical shops in Corbin, Ky.

Approximately 180 active CSX employees who work at the facilities and in support roles will be affected and will receive at least 60 days of pay and benefits.

The shops at Corbin were primarily used to maintain, inspect and service locomotives and rail cars for coal trains moving from Central Appalachia to the Eastern consumption regions. The decision to close the locomotive and car shops and a locomotive service center is the result of reduced need for locomotive and car maintenance there because of the significant decline of the region’s coal traffic.

Union employees may have other benefits available in accordance with their labor agreements. Many furloughed employees will be eligible for jobs in higher-demand areas on CSX’s network.

Mechanical management employees at Corbin will be offered relocation opportunities as they are available, or will be eligible for severance benefits.
The Corbin rail yard will remain open and train operations will continue.

Approximately 100 engineering and transportation employees will remain at Corbin to support and manage the yard traffic. A small number of mechanical employees will also remain to support train 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.

This news follows CSX’s announcement of the reduction of train operations at Erwin, Tenn., earlier this month, which was a direct relation to the significantly reduced coal traffic through the region. Approximately 300 CSX contract and management employees who work at the Tennessee facilities and in support roles will be affected.

 

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