Published: January 11, 2008 11:24 pm         

Judge grants union injunction against FreightCar America

Local United Steelworkers union members learned on Friday that a preliminary injunction they sought against FreightCar America Inc. has been granted.

“We feel the judge made a good decision,” said Dennis Conahan, president of the local union. “It looks good for the steelworkers.”

The union representing workers at the company’s Franklin Borough plant pleaded their case in October at U.S. District Court in downtown Johnstown. The union accused FreightCar of moving work to other plants in order to proceed with layoffs that will allow the company to avoid extending early pensions to as many as 105 additional workers.

The company argued that it moved the work as a result of higher labor costs at its Johnstown plant. The company said in court that moving one work order alone saved it $1.4 million.

Under their current contract, the steelworkers at FreightCar America’s local plant qualify for their regular pension after five years of service and for special pension benefits at 20 years. More than 100 workers were nearing those crucial dates when they were laid off during two separate downsizings last year.

U.S. District Judge Kim Gibson ruled that both the employees who were nearing 20 years of service and those nearing their fifth year will be given the benefits.

Conahan said he is unsure if the decision means that work will be shipped back to the Franklin plant.

The company announced in December that it could not reach a new contract with the local workers, whose contract expires in May, and will close the plant.

“The judge is saying they shut it down because they didn’t want to pay the pensions,” Conahan said. “It was good news for us. We’re looking to go back to work.”

During the trial, Chad Apaliski, a technician with USW’s international office in Pittsburgh, testified that the 105 employees nearing early pension would lose out on about $20 million in benefits and pension payments between 2010 and 2028 if they do not qualify for a special pension.

Details of the decision were not available on Friday.

FreightCar America officials could not be reached for comment Friday.

     

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