(The Duluth News Tribune posted the following article by Peter Passi on its website on May 14.)
DULUTH, Minn. — The train that leaves EVTAC today could haul the final taconite pellets to ever be produced by the facility. The plant ceased production Wednesday, and without new orders, it could be closed for good.
The shutdown may mark the end of the line not only for the 450 people employed by EVTAC, but also for many railroad workers who haul its raw materials and taconite pellets.
After 28 years on the job, today could be Harold Glowacki’s final day as a maintenance worker for the Duluth Missabe and Iron Range Railway. His is just one of 86 railroad positions being cut as a result of EVTAC’s closure.
EVTAC was the DM&IR’s second-largest single customer in terms of revenue and its largest in terms of sheer tonnage.
Pete Stephenson, DM&IR’s vice president and general manager, said his company is making painful adjustments but has attempted to soften the blow. He pointed out that about 25 percent of pending staff cuts at the railroad will be made without layoffs. Stephenson explained that 18 workers accepted buyout packages the company offered to members of its track, bridge and building departments. A few more employees have recently retired.
All told, staffing changes will trim DM&IR’s 470-person work force by about 18 percent, and most of the cuts should be completed this week.
No DM&IR management positions are slated for elimination as a result of EVTAC’s closure. Stephenson said the company reduced the size of its management team about one year ago.
Many of the workers who will lose jobs are long-time DM&IR employees.
“We have a fairly mature work force,” Stephenson said. “A lot of our people are in their 40s or 50s. And the preponderance of our workers have been with the company 20 years or more.”
The railroad benefits from that wealth of experience, and Stephenson said it’s difficult to let go of so many valued employees.
For older workers at DM&IR, finding a new job that’s comparable to their current one could be tough.
“I’m 49 years old right now,” Glowacki said. “If I retrain for work in another field, I’ll be 51 by the time I come out of vo-tech. Who’s going to hire me then?”
Maintenance workers, such as Glowacki, make anywhere from $17 to $19 an hour, and they’re not in one of the higher paying positions at DM&IR.
Glowacki said the timing of his termination is especially painful, as he was just a couple of years shy of qualifying for full retirement benefits.
Fortunately, Glowacki said his wife, Jane, is employed at Lake Superior College. The couple has two daughters, one who is soon to graduate from college and another who hopes to enroll next year.
Dick DeLano, a DM&IR engineer who serves as general chairman of the Brotherhood of Locomotive Engineers Local 163, said even those fortunate enough to retain employment will feel the impact of pending changes at the railroad.
“It’s going to affect everyone,” he said. “Even for those who are not furloughed, there will be fewer jobs. Some people will end up in less desirable positions and places where they’re not going to make as much money.
“For instance, DeLano said displaced engineers may be forced to take jobs as conductors. “Everything flows downhill.”
Glowacki said there’s also widespread concern about DM&IR’s future viability.
“There are so many rumors, it’s just unreal,” DeLano said.
Stephenson maintains that the cuts will rebalance and steady the company. If EVTAC resumes operations, the DM&IR will probably respond by rehiring workers, but the railroad’s not counting on business to return to normal.
“In the near term, we don’t see any replacement tonnage to make up for the loss of EVTAC as a customer,” Stephenson said. “But in the longer term, we’re working to find new business opportunities that may be out there.”
He said the DM&IR sees potential growth in the use of tailings — waste rock from taconite plants — as an aggregate that could be sold for road construction projects. Stephenson said the railroad will look at opportunities to boost other cargoes, such as coal and wood products, too.
“Obviously, we wouldn’t mind having a broader customer base,” Stephenson said. “And we’re going to do what we can to identify other promising business lanes.”