(The following story by Olivia Webb appeared on the Richmond County Daily Journal website on February 7, 2009. Curtis Driggers is a retired member of BLET Division 435.)
ROCKINGHAM, N.C. — The changing nature of the rail transportation industry is reflected in recent consolidation efforts by CSX Corporation – and memories of local railroad retirees.
According to Regional CSX spokesman Garrick Francis, the company had a solid fourth quarter, but it must brace for increasing challenges in 2009.
“We improved our efficiency and our operating ratio, revenue and operating income grew, but volume was slowed considerably by the acceleration of the global recession (during the fourth quarter). The economy has continued to slide in the first quarter and we expect our volumes to be down by double digits compared to last year.”
Francis explained the timeline that has led to decreased volume and, as a result, the need for CSX to reallocate resources.
“The economy hit the industry hard in the last month of 2008. We saw volume drop substantially a short amount of time, said Francis. “The auto and housing markets had been going down for over a year, but in the latter part of 2008 we saw a drop in metals and other industrial production.”
According to Francis, the drop has led to a need to consolidate. The company has had to reduce the number of trains on the tracks. About 10 percent of its trains are currently in storage. Approximately 1,600 employees are furloughed nationwide and 1,100 of those are engineers and conductors. Francis said the furloughs are seniority and location-based.
“We have had to make tough decisions to make sure we are prepared for the recovery, because there will be a recovery. People will come back, business will come back, and CSX will be the one to move those goods.
“CSX has a been around for 180 years. We’ve been through recessions and depressions, and we plan on being around for another 180 years.”
Curtis Driggers, a retired railroad employee and former chairman of the local chapter of the Brotherhood of Locomotive Engineers and Trainmen (BLET 435) said he has seen many of the latest effects of the economic downturn in action.
“Some of the trains you used to see would have 70 cars, now they average about half that. Hamlet works outlying jobs, and when one of those jobs closes, it impacts Hamlet. When a chemical plant shuts down in South Carolina, they don’t need to make as many trips out of there. What used to take two trips can be done in one. When a job closes in Lumberton, they may not take the train through Hamlet anymore.”
John Hamrick of Hamlet, who worked as a railroad engineer for 36 years before retiring in 1980, said he has seen some of the same changes.
“Back in the 1940s, we had trains going everywhere; we had 12 or 15 passenger trains out of Hamlet. Now we have one going North and one going South. You had five men on a crew back then, and now it’s just the engineer and the conductor.”
Driggers said it is hard on the managers, who are one of the parties most directly involved in laying off workers.
“The field manager has to watch what’s coming and going. If the crews aren’t handling a certain number of cars, he has to find a way to combine them, and the employees are going to look at him like he did something bad.”
Francis said that feeling goes all the way to the top.
“It is hard on the field managers. Our CEO has been working for the railroad for 31 years. He knows that.”
Hamrick noted that the life of today’s career rail worker is different from the one he knew and loved.
“I enjoyed working for the railroad, I really did. It was a good railroad to work for, good officials to work for. It’s not the same outfit now. They still make a good living, it’s still a good career, but they’re under more strict rules.”
According to Driggers, the outlook of career railroad men is shaped by times like these.
“They’re used to the fluctuation. If business is good, get it while it’s there, because you don’t know how long it’s going to last. When it’s good, they’re right there with it.”