Freightcar Workers Fear Pension Problems
Posted: 10:43 pm EDT April 15, 2008Updated: 11:09 pm EDT April 15, 2008
CAMBRIA COUNTY, Pa. -- The United Steel Workers of America have been battling in court with Freightcar for months, trying to prove employees were let go just so the company wouldn't have to pay their pensions. That matter is still being worked out in court, but now there's a new issue.According to an article on seekingalpha.com, an industry Web site, Freightcar's pension budget is underfunded right now by more than $10 million. That's not sitting well with some laid-off workers who have been fighting for several months to get retirement benefits. However, union representatives said they're not worried."They are going to have to get the money," said Denny Conahan, president of the union. "They have about 165 million sitting there. They could easily fund this."The union and Freightcar have also been negotiating a contract in case the appeals judge rules that they must go back to work. Denny said so far those contract talks are at a stalemate. Another session is scheduled for next week.The last railroad contract is up on May 15.
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