Published: March 06, 2008 11:07 pm      

FreightCar injunction stayed on appeal

Furloughed workers at the local FreightCar America plant have been dealt a setback in the effort to regain their jobs.

The 3rd U.S. Circuit Court of Appeals has stayed a preliminary injunction issued by a lower court against the company.

The preliminary injunction, ordered by U.S. District Judge Kim Gibson in Johnstown, was issued Jan. 11. The order stated that FreightCar America should return about 180 union employees to work at its plant in Franklin Borough.

The stay of the preliminary injunction will remain in place until the 3rd Circuit decides on the company’s appeal of the preliminary injunction. The company may take no action while the appeal is pending – including closing the local plant, which FreightCar announced in December is being planned.

The local union has filed civil claims against the company contending that FreightCar laid off about 180 employees last year to prevent them from qualifying either for special pension or regular pension benefits. The United Steelworkers sought the injunction, arguing that the workers could suffer irreparable harm while the court proceedings played out.

The company immediately appealed and sought a stay of the injunction.

U.S. District Court denied the stay Feb. 11, but the decision by the 3rd Circuit court in Philadelphia overruled that decision.

“We welcome this decision by the U.S. Court of Appeals,” said Tom McCarthy, FreightCar senior vice president of human resources, in a prepared statement.

“The layoffs at our Johnstown plant during 2007 resulted from a downturn in railcar demand. Our actions were appropriate and we will continue to defend them vigorously as this litigation proceeds.”

Representatives from the local union could not be reached Thursday for comment.