‘Long term structural market shift’ blamed for BNSF shutdowns

Mark DeLap
Posted 5/19/20

In an announcement that came from the BNSF Railway May 6, Guernsey residents found out that the coronavirus wasn’t the only thing that would severely affect the town

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‘Long term structural market shift’ blamed for BNSF shutdowns

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GUERNSEY - In an announcement that came from the BNSF Railway May 6, Guernsey residents found out that the coronavirus wasn’t the only thing that would severely affect the town in 2020. There will be a complete shutdown of all mechanical operations as of July 7.

In a letter obtained from BNSF to the town of Guernsey regarding the furlough of mechanical employees, the company states, “We closely monitor changes in the markets we serve, and we continue to see a persistent structural decline in the demand for coal. Unfortunately, this is a long-term structural market shift that will have a lasting impact on BNSF and the rail industry.”

The letter went on to state that they have come to a “difficult conclusion that the BNSF network no longer requires the mechanical maintenance capacity located in Guernsey, Wyoming, to support reduced coal volumes.”

The company has stated that on or about July 7, 2020, they will abolish 87 mechanical positions and cease operations at the Guernsey mechanical shop located at 1607 Highway 26 in Guernsey.

“They are laying off all the mechanical,” said Kellie Augustyn, Guernsey city council member and BNSF union representative. “They are moving all their mechanical operations to Alliance, Denver, and all those people that are here in the car department and mechanical department are all going to be displaced. A minimal amount of 3-4 employees will be left here to run what they call road truck. That’s there plan as of now.”

Augustyn said that those employees who have seniority will be placed where they can, and in the trickle down of employees there will be some employees who simply will not be able to keep their jobs. Those members of our community will be needing to seek other career opportunities.

“While we cannot provide potential positions for all affected employees, we believe that many will have the option to transfer to open positions at other locations in our network. Employees accepting transfer will receive a generous relocation package including paid moving expenses, paid travel time, and a $5,000 one-time relocation assistance payment.”

Although BNSF is offering an attractive package to some of their employees, it will depend upon openings within the organization, and the incentive to move on to greener pastures is leaving behind a community in crisis.

“I had a meeting with the (BNSF) general manager, and the feeling I got from that meeting is that the switching operation will shut down here as well,” Augustyn said. “They’re taking a big bite here. This is a large swipe and with my experience in the railroad and the 26 years I don’t see how they can do it.”

Augustyn mentioned the importance of the Guernsey operation and how vital it was to the overflow, but he did say that from what he knows about the railroad, he feels that they will try to make it happen anyway.

“With the 40-60 families that are affected here, in Guernsey specifically, another 10-15 will be on top of that down the road,” Augustyn said.

Although some of those families that Augustyn mentions are eligible for retirement, he also has certain protections that have to be maintained in the collective bargaining agreements set up and monitored by the union.

“When I left that meeting today, it was more or less, ‘we still haven’t decided how this looks yet,’” Augustyn said. “So many will be affected within the community including the schools, the tax base, all the small businesses here that rely on those people are going to be affected.”

According to Augustyn, when the memo came down from corporate, the operational side was not made aware of the plans.

“This just shows you the disconnect within this company,” he said. “I think this is them taking advantage of a really bad situation with the COVID-19. I’ve never had much respect for the BNSF. I’ve worked for them for 26 years. They’re a cutthroat company. They’re not a family-oriented company. Although they are a good piece of this community.”

As a community, there are people already hitting the ground running to try to find solutions for the displaced and to fill the holes that will be left by a mass exodus by almost 100 workers.

Craig Frederick, the board president for the Guernsey Economic and Tourism Development Corporation said that after he got the news from BNSF, he began to explore different options.

“I sent a letter off to The Wyoming Business Council,” Frederick said. “I was asking for how they could assist us and what sort of leads do they have. Often times in the paper you’ll hear that there’s not enough workforce. With the skills that these displaced workers are going to have, I think that could be a good link for some industries that are looking for a workforce that have these skills that our mechanical department have.”

Frederick also mentioned other options.

“One is to reach out to EWC and the community college in the workforce center there,” he said. “We want to see what kinds of programs or things we might be able to offer to some of our displaced workers.”

He also mentioned tapping into the local Workforce Specialists division in Wheatland for options and ideas.

“Some of these guys have been with the railroad for the past 25 years and haven’t had to look for a job,” Frederick said. “They may not know that there’s any jobs out there. The community college would be more for reeducation, but the Workforce Services would be able to provide information as to what jobs are out there.”