Quebec explosion leads to layoffs of 79 rail workers

[bluedigger]

HERMON — The railway that owns the runaway train that devastated a small Quebec town almost two weeks ago, killing at least 37 people, has laid off 79 of its 179 workers due to the disaster, a company official said Wednesday.

The Montreal, Maine & Atlantic Railway workers learned at the close of business on Monday that they would be temporarily unemployed immediately due to the “drastic drop in business” caused by the closure of the tracks through Lac-Megantic, Quebec, where the train explosion occurred on July 6, said Robert Grindrod, the company’s president.

“It is solely for that,” Grindrod said Wednesday. “We hope it will be temporary and then when other arrangements and other routes are developed, if and when the blockage and investigation is complete in Lac-Megantic, we hope to get back in business, but I can’t estimate the amount of time that is going to take.”

Grindrod could not immediately provide a breakdown of the number of American workers to be laid off.
http://www.sunjournal.com/news/0001/11/30/quebec-explosion-leads-layoffs-79-rail-workers/1394439

It's probably safe to assume that none of the workers were in senior management positions or had any direct involvement in the tragic event.

[House of Roberts]

1. I'm expecting that the corporate entity

known as the Montreal, Maine & Atlantic Railway, will shortly cease to exist in a chapter 7 bankruptcy. I doubt if there are enough assets to offset the litigation that is pending.

[bluedigger]

2. I think that's a good bet.

There seem to be plenty of shell corporations between it and ownership to provide them cover.

[hatrack]

4. They didn't even own the cars - all leased

I'm sure there's layer after layer after layer of deniability and cash-free legal entities that can be thrown off the back of the sled to lighten the load and appease pursuing lawyers.

[bluedigger]

5. Well that's pretty normal in railroad freight operations, I think.

You look at any good sized freight train and the cars will be from all over the country. It doesn't make any sense to transfer bulk commodities from car to car as they switch lines.

[Mopar151]

3. More political pressure

To close the investigation and re-open the line before any significant changes take hold.