CSX announces layoff of at least 180 employees in Corbin

CSX is laying off at least 180 people and closing its Corbin maintenance facility, the company announced Tuesday.

Corbin Mayor Willard McBurney said CSX officials contacted him Tuesday morning about the layoffs and closing of the locomotive shop, service center and car shop.

“The only things they will have down here is yard traffic,” McBurney said.

Rumors have abounded in recent days about possible layoffs at the facility and closing of some operations at the Corbin yard.

“They just walked in this morning and shut the doors,” said one source close to CSX.

The lost jobs represent about 50 percent of total employment at the Corbin facility.

CSX officials confirmed the layoffs and closings later Tuesday.

Though their last day was Tuesday, all of the affected employees will receive at least 60 days of pay and benefits. Union employees also may have other benefits available in accordance with their respective labor agreements.

According to information from CSX, 100 jobs composed of train crews and yard workers will remain in Corbin, in addition to a limited number of mechanical employees to support and manage yard traffic.

“Corbin continues to be an important part of the CSX network for the movement of automobiles, consumer products and other freight,” CSX officials stated.

In addition to the CSX employees, officials with General Electric confirmed a number of their employees who worked out of the CSX facility. are also being furloughed.

“At this time, the number of GE employees directly impacted remains to be determined. We are working through the transition and identifying new opportunities across the network for these employees,” said Jessica Taylor a spokesperson with GE Transportation.

A family member of one of the affected GE employees, who asked not to be identified, said the employees have been offered the option to transfer to facilities in Jacksonville, Fla., Santa Fe. N.M. or Nashville, Tenn.

The layoffs and closings, which are similar to those that occurred at the CSX facility in Erwin, Tenn. earlier this month, are the result of the downturn in the coal industry.

The one difference, being the switching yard in Erwin was also eliminated.

“Central Appalachian coal moving through the (Corbin) terminal has decreased 57 percent in 10 years, due to low natural gas prices and regulation,” CSX officials stated, adding that the company has lost more than $1 billion in revenue since 2011 because of the limited amount of coal being moved.

CSX officials added that transportation of other goods through Corbin has been cut in half since 2005.

The loss of freight has resulted in a decrease in the number of locomotives needed to support the operations.

“These trends are expected to continue,” CSX officials stated.

In an e-mail sent out Tuesday entitled “Coal Region Update,” CSX Chairman and Chief Executive Officer Michael J. Ward stated that cutting the jobs and closing the shops in Corbin and Erwin was a last resort.

“For some time, CSX has been responding to the contracting coal market with careful resource management, including longer trains, higher rail car loading capacity and other steps, but now more must be done,” Ward stated in the e-mail. “The actions at Erwin and Corbin and an ongoing evaluation of the Central Appalachian coalfields have to result in significant structural changes.”

Ward acknowledged the impact CSX and its predecessors, Clinchfied and L&N railroads have had on communities such as Corbin and Erwin.

“We know, and deeply regret that the company’s reduced activity will make already difficult area economic conditions worse,” Ward stated.

“Going forward, CSX will continue to examine ways to size the coal business appropriately,” Ward added. “While the conditions are tough, coal accounts for roughly 30  percent of electrical generation in the U.S., and coal remains an important CSX market with active mines in both Central Appalachia and the Illinois Basin. That said, to assure investment and a compelling future for the company and its team, we simply have to direct resources and strategies to growth opportunities, especially domestic intermodal shipments and merchandise traffic.”

Jeff Doerr, National President of the railroad division of the International Association of Machinists and Aerospace Workers, said 97 of its members are among the affected employees.

Doerr said there is still a chance those employees could secure other positions within CSX, though it may not be at the Corbin facility, requiring employees to transfer to Huntington, W. Va.

Doerr said union officials understand CSX’s position regarding the downturn in the coal industry and they have been in extended discussions with the railroad in an effort to keep its members on the job, even if it is at another location.

CSX and the union had a tentative agreement in place. While there has been no formal vote by the Corbin members, Doerr said when the agreement was presented to members, there was little interest in it.

“We continue to talk to members,” Doerr said, noting members at the Corbin facility may still elect to hold a vote.

Ideally, Doerr said the affected members will find new positions within CSX and the union will be working with them to help that happen.

However, the union maintains a list of vacant positions at all of its shops on its website.

“We will do anything we can to find employment for them,” Doerr said.

Whitley County Judge-executive Pat White, Jr. said while there has been a lot of positive news on the economic front in Whitley County, the loss of these 180 jobs will have a significant impact on the local economy.

“Obviously, this is heartbreaking news,” White said. “Those are the types of jobs where you can raise a family and have some discretionary income that can have a positive impact on a community.”

White said the downturn in the coal industry is being felt all over eastern Kentucky. However, with the Tri-county area becoming more diverse, the impact is being lessened.

“You are starting to see all over eastern Kentucky the decline of coal’s impact on the economy and increase of tourist impact on the economic,” White said, citing Keeneland as an example.

“Keeneland will be a big project for our region that will be in tune with that trend.”

Corbin Economic Development Director Bruce Carpenter said the region has suffered some serious economic losses in the past, pointing to the closing of Tremco in Barbourville, American Greeting Card in Corbin, but the loss of this facility and these jobs is one of the hardest to accept.

“This is very devastating for everyone, especially the families involved,” Carpenter said.

Carpenter added, that various workforce development agencies along with the Kentucky Career Center are taking action to help the affected employees, whether through job training, education, or in finding new job opportunities.

State Representative Regina Bunch, R-Williamsburg, said this is the result of President Barack Obama’s efforts to destroy the coal industry.

“Because coal production has been greatly reduced in large measure by the war on coal, that means companies like CSX have less product to haul to market,” Bunch stated.

Jack Mazurak, communications director for the Kentucky Cabinet for Economic Development, said the various state agencies will be working to assist the affected employees in any manner possible.

“The Cabinet for Economic Development continues to work to grow the number and diversity of good jobs in the area, and we will aggressively pursue any and all other opportunities,” Mazurak stated.

Congressman Harold “Hal” Rogers, R-Ky., offered is thoughts and prayers for the families impacted by the layoffs.

“This is a truly heartbreaking loss for Corbin and the surrounding area,” Rogers, said noting he will continue to push for regulatory relief in Washington in an attempt kick start the coal industry.

Hall said it is part of the painful effort the area must go through in order to shift away from an economy centered around coal production.

“The coal industry is not coming back anytime soon,” Hall said. “ Losing these jobs will be devastating to not only ours, but the surrounding counties as well. Sometimes you have to get in survival mode just to keep jobs here. Trying to hold your own is tough in today’s economy. That’s why we’ll continually strive to find jobs for our people.”