Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, August 20, 1993 TAG: 9308200052
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The proposal "should result in a smaller [non-union] work force, with staffing levels compatible with changing department requirements," Thomas C. Sheller, executive vice president of the Norfolk-based transportation company, said in a letter sent to all of its non-union employees.
Sheller said the early retirements "will help Norfolk Southern realize organizational and staffing objectives that will enhance future opportunities."
Just over 13 percent of non-union NS employees are eligible for the program.
About 25 percent of those eligible - or 151 workers - live in the Roanoke Valley, said Paul Austin of the NS personnel department.
NS had 42,000 employees in June 1982 when it was created through the merger of the Norfolk & Western and the Southern railroads.
Austin said the railroad has 26,000 employees now, the result of normal attrition as well as a series of job-buyout and early-retirement offers.
In the Roanoke Valley, NS distributed 3,427 W-2 tax forms to workers last year, although some were to temporary or part-time employees. About 10 percent of the company's work force lives in the Roanoke Valley, more than at any other single location.
Austin said that although the company has made several buyout or retirement offers since 1985, only one other was comparable to the proposal announced Thursday.
That was in 1987, when an offer was made to 1,100 eligible non-union employees. Of that number, 999 chose to retire early.
Other buyouts have targeted staffing needs of specific work groups. Two offers in 1990 were aimed at non-union workers in accounting and operations. Others have been designed for specific groups of union employees.
Austin said NS has an offer pending for trainmen based in Asheville, N.C.
Thursday's offer requires that applications for early retirement be submitted between Aug. 23 and Sept. 17. All applications received between those dates will be accepted, with the retirement effective on Oct. 1.
NS outlined these highlights of the program:
Eligible employees must be 55 years or older in 1993.
They will retire Oct. 1 with their current accrued pension benefits.
The company will supplement their pensions to the level of their Railroad Retirement or Social Security benefits until they reach normal retirement age - 62 for both programs, except that people with 30 or more years of service under Railroad Retirement can qualify at age 60.
An amount equivalent to the 1993 year-end bonus will be added to the pension calculation.
Full vacation also will be added for 1993 even if the vacation has been taken. Credit will be added for any unused vacation.
by CNB