ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Saturday, March 15, 1997 TAG: 9703170046
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
DATELINE: PHILADELPHIA
SOURCE: ASSOCIATED PRESS
The new agreement with CSX and NS does not guarantee workers' jobs or headquarters.
Conrail employees and the city of Philadelphia should consider suing CSX Corp. if the company intends to lay off workers or move Conrail's headquarters out of Philadelphia, Sen. Arlen Specter said Friday.
``I want to put all the cards on the table, and I want them to know that according to my legal judgment there could be a lawsuit,'' Specter said in a news conference.
Philadelphia-based Conrail and CSX, based in Richmond, announced a merger in October that would have placed the headquarters of the combined company in Philadelphia. Norfolk Southern Corp., based in Norfolk, followed with a hostile takeover effort, outbidding CSX and convincing Conrail shareholders to vote against the CSX deal.
Norfolk Southern and CSX announced March 7 an agreement to split Conrail's rail lines between them.
But the new agreement does not guarantee workers' jobs or a headquarters in Philadelphia, Specter said. A major consideration is the fate of rail car repair shops in Altoona. If those operations go to Norfolk Southern, they are seen as competing with NS facilities in Roanoke, leading to layoffs at one or both.
Under federal and state laws governing the takeover, employees and affected communities could sue to block the takeover and hold CSX to the original agreement, Specter said.
A letter Specter sent to the heads of the three companies referred to the possible lawsuit and requested more details regarding the rail companies' plans for Conrail.
``I want to know exactly what's going on here,'' he said at the news conference.
Specter also said he wants to ensure competitive rail service with fair rates along Conrail's current routes.
LENGTH: Short : 47 linesby CNB