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CSX seeks to trim management ranks by 300 positions
At least there going after the suits instead of the men and women in the trenches
A job loss is a job loss.
Bull.
Hmmm, EHH makes a big play for CSX, and suddenly 300 office types are surplus?? A coincidence?? I don’t think so…
Something aint right,
The 5th paragraph says it all, maybe CSX wants to treat their employees right before a merger cuz those workers would just be cut with nothing, it’s the southern thing to do. Or CSX is planning to hire a ****load of workers ahead of the Panama Canal completion, who knows! Everything happens for a reason and the coal excuse is not that reason.
I find it particularly telling that CSX used the term “nonessential costs” to describe the salaries these people were paid. Were these folks just sitting on the posteriors and collecting paychecks? Doubtful. I think Mr. Reid and Mr. Jeffries are on to something…the official explanation doesn’t pass the smell test. Sounds like typical D.C. Doublespeak.
Yep, first thing I though of was EHH
Ummm. The loss of coal traffic has been made up with other commodity increases. Its the never ending quest for return on investment driving this. My feeling is take all the picture’s of Class 1’s today because something is going to happen. The market will make it happen.
I like the contradiction between the firewall of “streamlining management” and trimming costs as if they were one and the same. trying to make it a chicken or egg puzzle. Its obvious its trimming costs…so you have an organisation feeding on itself. I have seen this many times. Usually this sort of thing results in a change in management…this strategy is sort of a canary in the coal mine type of flag.
Maybe CSX should have listened to CP and not been so quick to say no. CSX has trouble getting out of it’s own way. I know coal is way down on the Kinsport Sub where I live there are almost as many grain trains as they are coal trains now, but you are telling me that 300 manangment people have to leave because of coal traffic being down. Really!!!
AS A RETIRED CSXT’er, I CAN ONLY AGREE WITH THE MAJORITY OF THE COMMENTERS…THE CORP JUMPS ON A GROUP TO RAISE PRODUCTIVITY, CUT COSTS (I.E. ELIMINATE UNION EMPLOYEES) AND THEN REWARDS THEM WITH BIG DEPARTMENTAL CUTS. NEW EXCUSE, SAME OLD METHODS.
Is the Children’s Investment Fund making a move?
FTA:"…“Coal has declined with environmental regulations restricting the use of coal and with the advent of cheap natural gas,” Sease says. “We have been and continue to be declining in profitable shipments, including coal. It’s something we’re cognizant of working to maintain profitability, with rigorous attention to cost.”
In spite of those loses, the company is posting increased revenues and operating income and a lower operating ratio, compared with previous years.
[Pulled the trigger too soon] It would seem that the two paragraphs I quoted above are contradictory. In the face of fiscal successes, you do not cut your team that put you there. There has to be another rationale.
In this area Boeing’s big airframe contractor Spirit Aero Systems recently went through a period of job buyouts/furloughing of employees; some old enough to retire, some who were not. They did it in increments of groups up to several hundred each. In the aftermath several constants appeared to be within the group of employees effected. Health issues with the employee/their family members, Productivity of the individual was another reason, union activities and sentiments(?). As there was some time between these incidents, Spirit made announcement of “Job Fairs” for hiring. Funny thing was, those hired had health plans, and scales of benefits degraded quite a bit from what was previously offered’ new employees’. Not to mention rumors that former ‘in-house’ jobs were ‘to be outsourced’ I some cases they seemingly hired on a basis of two new employees for one position… Possibly similar mechanisms are at work at CSX ? Are they anticipating new Corporate directions? or in the case as one poster mentioned [paraphrased] are they doing the "Southern Thing’ and ‘helping out’ long term employees before they are simply down-sized out of their jobs? Will be an interesting set of circumstances to watch and see how it finally shakes out over time…
What would be employee counts if industry operates like CP ?
They just don’t want to pay those people their benefits they would be entitled if they made it to 55. Ask yourself sometime how many people you know who actually retired from a company on their own terms in the last 20 years.
it’s proof that of the remaining 7 major railroads in the United States, CSX is the sickest fish in the tank.