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Freightcar America Dispute Heads To Court

Freightcar America officials were in federal court on Friday to defend their motives for laying off hundreds of employees from the Johnstown plant.

Steelworkers claim the plant specifically targeted workers who were getting close to receiving their pensions. Over the past six months, there have been two layoffs at the railroad car plant.

On the stand, members of the Freightcar management testified they didn't have a choice in the matter because the Johnstown plant was simply too expensive to run. They said the plant was operating at $15 to $20 more an hour than the other plants in Danville, Ind., and Roanoke, Va.

Union representatives said, while those numbers might be accurate, the quality and years of service cannot be matched.

Jeff Baxter, one of about 20 Freightcar employees who are still working at the plant, said he's been loading up trucks to send equipment to Roanoke. Baxter said he believes that's proof that Freightcar has not intentions of keeping the plant open, which could mean more than 400 jobs will be lost.

In the meantime, Freightcar America is looking to open a plant overseas. The company's corporate offices confirm Freightcar is in discussions on a joint venture with another company based in India. Together, they would produce special-purpose, high-capacity, aluminum-body wagons. Freightcar executives are looking for 100 acres of land for a proposed $35 million investment.

Stay with Channel 6 News and WJACTV.com for continuing coverage.

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