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Rail News: Rail Industry Trends

Duluth, Missabe and Iron Range offers 'noncompulsory severance' program to MOW workers

Because of advancing technology and more predictive maintenance procedures, Great Lakes Transportation L.L.C. (GLT) plans to trim a number of maintenance-of-way workers from Duluth, Missabe and Iron Range Railway Co.'s (DMIR) track, and bridge and building departments. Like many railroads, DMIR has been able to do more maintenance work with fewer workers without sacrificing safety or service, according to a prepared statement.

But GLT isn't anticipating any layoffs. The holding company recently announced plans to offer a one-time voluntary severance program to certain hourly workers in the 450-mile regional's two MOW departments. In exchange for a lump-sum payment, eligible employees can resign or retire.

"In the past, many firms — including ours — have offered management employees incentives to leave early," said GLT President and Chief Executive Officer John Giles. "The Missabe's noncompulsory severance program now makes something similar available to union-represented people."

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More News from 2/12/2003