CSX announces Corbin layoffs

One of the area’s longest standing employers felt the crunch of the struggling economy Monday as CSX railroad laid off 27 employees, with jobs ranging from mechanics to car-men, from its locomotive shop located in Corbin.

According to Garrick Francis, spokesperson for the company, 27 workers were placed on furlough and told they could be brought back to work as the economy allows and when business improves, which if current trends continue, could be a while.

"I can confirm that 27 employees in the locomotive shop in Corbin were placed on furlough, though I cannot specify exactly what areas were effected," Francis said. "I know they weren’t on the transportation side, so it was strictly in the mechanic division of the locomotive shop."

Francis said the slumping economy is mainly to blame for the layoffs, adding that the Corbin area is not the only part of the company that is struggling.

"We currently have 2,400 employees across the company that are on furlough at this time," Francis said. "We have 30,000 rail cars in storage that are not being used and 600 locomotives that are not being used."

One employee that was laid off told the News Journal that he was told that he could be called back this year, but it didn’t look good, and could possibly be off until next year.

Francis agreed that workers could be out of a job for a lengthy period of time based on current conditions.

"We are facing a really challenging economy and of course we would prefer to have employees to work," Francis said. "We will bring them back to work as business improves and as the economy allows.

"However, employees on furlough do retain their health and wellness benefits for four months," he added.

Francis said he was unsure if furloughed employees were able to draw unemployment, citing several differences in their pay practices, but one employee said he did not believe they would be eligible.

He said that it was his understanding that employees would receive $41 per day due to the fact they pay into a railroad retirement fund as opposed to social security.