The saga between FreightCar America Inc. and its local unionized former employees likely has come to an end.
Members of the United Steelworkers who worked at the idled Franklin Borough mill voted overwhelmingly, 194-54, on Thursday to accept a proposed global settlement. The accord will bring to a close a variety of issues, including litigation regarding pensions, contract matters and outstanding grievances.
The deal must be approved by a judge before the settlement orders can be made effective.
“Most of the guys just wanted to get on with their lives,” said Dennis Conahan, president of the local union.
“If they didn’t want to build rail cars in Johnstown, shame on them. We were willing to do the work, but they weren’t willing to pay the rate. We’re ready to get on with our lives.”
The settlement award differs for employees based upon years of service to the company, placing them in one of five benefits groups.
All employees will receive their pension.
Over two-thirds of the more than 300 workers will receive a special pension that will kick in at some point during the next
18 months; the remainder will receive their standard vested pension.
Most workers will receive health-care benefits. All will receive either a settlement bonus payment of $2,000 to $5,000 or their negotiated severance pay.
It’s little consolation to a work force that traced its roots to the Bethlehem Steel rail car building operations founded in the early 20th century.
FreightCar America, once Johnstown America, is now a public company with annual revenues exceeding $800 million.
“It’s kind of a shame,” Conahan said. “We made lots of millionaires out of there.
“That place was making money. Just to walk away from it doesn’t make sense.
“It’s heartbreaking for the city. It was in business for over 100 years and there aren’t a
lot of businesses that can say that.”
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