May 8, 2008FreightCar told to pay millions to settle claimsA manufacturer with a major Roanoke facility, FreightCar America, has been told to pay millions to the nearly 400 employees it laid off at a Pennsylvania facility. FreightCar moved production from the Johnstown plant to its facilities in Roanoke and Danville, Ill. Here is more info from Reuters: U.S. railroad car maker FreightCar America Inc said on Thursday that it would take a charge of $20 million to $24.5 million after an arbitrator ruled that it was liable for back pay and benefits to workers at a Johnstown, Pennsylvania, factory that it said in December 2007 it intends to close. It said the charge would reduce first-quarter results by $1.11 to $1.32 per share. The Chicago-based manufacturer earlier this month reported profit for that period of $1.1 million, or 10 cents per share. Workers at the factory represented by the United Steelworkers of America are covered by a collective bargaining agreement that runs through May 15. The ruling found FreightCar responsible for back pay and benefits to more than half of the workers at the plant, the company said. When FreightCar disclosed plans to close the 390-worker unionized facility, saying it would move functions performed at that factory to Danville, Illinois, and Roanoke, Virginia. |
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As the U.S. economy struggles to find its footing -- and experts debate daily whether or not we are in a recession, heading toward a recession or neither -- business editor Chris Winston writes this blog to provide local, state and national information to help you make heads or tails of the headlines. .....Advertisement.....
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