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Rail News: Labor
11/6/2003
Rail News: Labor
NS to absorb voluntary-separation program costs in the fourth quarter
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On Nov. 5, Norfolk Southern Corp. announced it expects to record a $107 million charge against fourth-quarter earnings because of costs tied to a voluntary separation program for non-agreement employees completed Oct. 31.
Of 4,317 non-agreement employees eligible to participate in the program, 553 workers opted to leave the railroad, including 314 eligible to retire under NS' retirement plan.
The program — which offered eligible employees three weeks' severance pay for each year of service, free continued health insurance for one year and outplacement assistance for up to 90 days — enabled NS to accelerate attrition, says NS Senior Vice President of Administration Jim Hixon.
"On the non-agreement side, we can still shave [the workforce] a little bit yet, while on the agreement side, we're where we need to be now," he says.
— Jeff Stagl
Of 4,317 non-agreement employees eligible to participate in the program, 553 workers opted to leave the railroad, including 314 eligible to retire under NS' retirement plan.
The program — which offered eligible employees three weeks' severance pay for each year of service, free continued health insurance for one year and outplacement assistance for up to 90 days — enabled NS to accelerate attrition, says NS Senior Vice President of Administration Jim Hixon.
"On the non-agreement side, we can still shave [the workforce] a little bit yet, while on the agreement side, we're where we need to be now," he says.
— Jeff Stagl
