NORFOLK SOUTHERN TO RAISE FUEL SURCHARGE, IMPLEMENT RETIREMENT PROGRAM

NORFOLK SOUTHERN TO RAISE FUEL SURCHARGE, IMPLEMENT RETIREMENT PROGRAM

   Norfolk Southern said Wednesday it is tentatively planning to raise its fuel surcharge to 4 percent, from 2 percent, effective Dec. 22.

   The Norfolk, Va.-based railroad also said it will implement a voluntary early retirement program which would effect up to 870 non-agreement employees, or 18 percent of non-agreement employees.

   The surcharge will be implemented if the daily price of West Texas Crude is $33 or above as of Dec. 19. The surcharge will remain at 4 percent until the price of West Texas Crude closes below $33 a barrel for 30 consecutive days or until the price of fuel rises to a level at or about $38 per barrel, which would invoke a 6 percent fuel surcharge.

   The early retirement program allows certain active non-agreement employees who will be 53 or older in 2000 to add three years to this year's creditable service and three years to their ages in calculating their pension benefits under the corporation's retirement plan. Applications for the plan must be received by Dec. 31.