FreightCar America Workers Sue Over Layoffs

Lawsuit contends Chicago-based railcar manufacturer is illegally laying off employees to avoid paying pension benefits.

JOHNSTOWN, Pa. (AP) — FreightCar America is illegally laying off workers to avoid paying them pension benefits, according to a lawsuit filed by employees and backed by the United Steelworkers union.
 
Tom McCarthy, vice president of human resources, for the Chicago-based railcar manufacturer said the lawsuit was ''without merit.''
 
The lawsuit, filed Wednesday in federal court, stems from a series of layoffs affecting more than 200 workers.
 
Seventy of the workers were laid off just months short of qualifying for pensions. A second wave of layoffs announced May 31 includes about 100 workers who will be prevented from collecting pensions or health and life insurance benefits as a result, the suit said.
 
Joe Stuligross, a United Steelworkers attorney, said the company told the union that it could not afford to let a large group of employees reach 20 years of service because it would cost the company tens of millions of dollars in retiree benefits.
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