FreightCar America Workers Ratify Pennsylvania Settlement

(financialwire.net via COMTEX) -- RAIL | Quote | Chart | News | PowerRating -- July 1, 2008 (FinancialWire) FreightCar America, Inc. (NASDAQ: RAIL | Quote | Chart | News | PowerRating) (Current Market Cap: US$420.82 Mil.) said that a pending global settlement relating to its Johnstown, Pennsylvania manufacturing facility has been ratified by the local union membership. The move paves the way to settle lawsuits related to the pending closure of the plant.

Members of the United Steelworkers of America approved the settlement on June 26. The settlement remains subject to court approval.

If approved by the court, the settlement would resolve all legal disputes relating to the facility and its workforce, including the current Sowers/Hayden class action litigation, a contested grievance arbitration award, and other pending grievance proceedings. A collective bargaining agreement between the company and the USWA would be terminated effective from May 15, and the Johnstown manufacturing facility would be closed.

The settlement would provide special pension benefits to over 200 workers at the Johnstown facility and deferred vested benefits for other workers, as well as health-care benefits, severance pay, and/or settlement bonus payments to workers depending on their years of service at the facility.

Chicago-based FreightCar America manufactures railroad freight cars, with a focus on coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers.

The company has manufacturing facilities in Danville, Illinois, Roanoke, Virginia and Johnstown, Pennsylvania.

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