Rail Merger Would Cause Job Losses

STEVENS POINT, Wis. -- About 70 jobs in Stevens Point will be eliminated by the merger of Canadian National Railway Co. and Wisconsin Central Transportation Corp., company executives say.

The job losses over the next three years will occur primarily at Wisconsin Central's maintenance shop, Ann Thoma, a spokeswoman for the railroad, said Wednesday.

Most shop-related functions for the rail line will move to Fond du Lac, where a large shop already exists, Thoma said.

About 400 Wisconsin Central workers are now stationed in Stevens Point and Plover, she said.

The $1.2 billion merger calls for 252 total job cuts.

Most of Wisconsin Central's job cuts will occur in the first year at the company's Rosemont, Ill., headquarters, Thoma said.

The merged company also plans to eliminate 25 jobs in Fond du Lac, she said.

The merged company's operating plan says there will be a need for fewer rail cars and fewer locomotives than the Wisconsin Central currently has, Thoma said. "We're not going to be rebuilding old locomotives like we had been doing."

Canadian National has a newer fleet, so officials plan to get rid of about 1,580 older rail cars and 87 locomotives, she said.

In addition to the shop in Stevens Point, Wisconsin Central has a large rail yard, a communications and signaling division, a claims and safety division, a Plover training center, as well as the main office, which houses customer service and crew and train dispatching.

Wisconsin Central will become the sixth division of Canadian National, meaning most workers will stay together and the rail line will retain its regional feel, Thoma said.

A decision on the merger from the U.S. Surface Transportation Board is expected by late fall, Thoma said.

Wisconsin Central employs about 2,200 people. Canadian National employs 22,000 workers and has U.S. operations in Chicago, Memphis, Tenn., Jackson, Miss., New Orleans and Mobile, Ala., she said.