STEVENS POINT, Wisc. — Canadian National will cut 84 jobs between its Stevens Point and Fond du Lac repair shops, the Stevens Point Journal reported.
The cuts, which were announced Tuesday, are part of a companywide reduction of 1,146 jobs, which officials anticipate will save $79 million. Canadian National bought the former Wisconsin Central Ltd. Railroad last year. Officials were uncertain how many jobs would be eliminated at each site, but said normal attrition and retirement and early retirement will account for 75 percent of the 1,146 jobs cut.
About 30 of 84 employees at Stevens Point and Fond du Lac will have the chance to relocate to the major locomotive repair shop in Homewood, Ill., said Mark Hallman, system director, media relations for Canadian National Railroad Co.
The shop in Illinois is centrally located in the Canadian National system, Hallman said. The other positions will be cut completely. About 360 Canadian National employees work at divisions in Stevens Point and Plover, which include a dispatch office, engineering department, mechanical department and operating department. The Stevens Point repair shop employs 47 workers who staff the facility 24 hours a day. The railroad, which operates across Canada and in 15 U.S. states, has 18,000 miles of track and employs 22,000 workers.
The job cuts are the result of rising labor costs and a reduced volume of grain hauling in the United States and Canada, officials said.
“We take no joy in announcing these permanent job reductions, but CN must leave no stone unturned in this productivity initiative given these difficult conditions in our bulk commodity business and escalating labor costs,” said Paul Tellier, CN president and chief executive officer.
Numerous Canadian National employees at the Depot Street operations in Stevens Point declined to discuss the job cuts with a reporter. Allan Rothwell, human resource manager for Wisconsin Central Railroad in Stevens Point, also declined to comment.
The Fond du Lac and Stevens Point locomotive shops will continue to perform servicing and minor repairs. Wisconsin Central traditionally used older train engines that needed more work, and Stevens Point has been hub for much of the rebuilding work the railroad did on older engines. At the acquisition, Canadian National planned to cut 1,580 older rail cars and 87 engines because it prefers newer engines and has a newer fleet.
Job cuts from Wisconsin Central operations have been expected since the railroad’s sale closed last year. The three-year plan called for 47 Stevens Point jobs to be cut in the 2002, with six more lost in the 2003 and 15 in 2004.
In October, Canadian National posted a 12 increase in earnings to $268 million compared with $240 million for the same quarter of 2001. The company had revenues $1,503 million and operating expenses of $1,019 million.
Canadian National’s announcement comes less than two weeks after Blue Cross Blue Shield officials announced they will cut 98 jobs at the company’s office in downtown Stevens Point. Despite cutbacks by both companies, there still is job growth in the area, said John Gardner, director of planning and community development.
Jobs are being added at other companies, such as Sentry Insurance and the Noel Group, he said. While these are different people in different fields, it shows employment is growing, he said. “From my understanding the numbers of people being laid off in Portage County is less than half – and that’s the good news,” Gardner said.
BY THE NUMBERS: Canadian National will cut 1,146 jobs, 84 of which will be eliminated in Stevens Point and Fond du Lac.
* 25 percent will occur through severance packages.
* 30 percent will occur through normal attrition and retirement.
* 45 percent will occur through early retirement.
Canadian National employs approximately 22,000 workers in the United States and Canada.