Judge again blocks closure of UP car shop in Palestine, Texas

Judge again blocks closure of UP car shop in Palestine, Texas

By David Lassen | July 9, 2021

State district court judge says railroad must continue to observe 1955 judgment

Union Pacific logo with Building America sloganPALESTINE, Texas — A Texas judge has again ruled that Union Pacific must continue employment of workers at its Palestine, Texas, car shop, which the railroad had planned to close last month.

The Palestine Herald-Press reports Judge Michael Davis of the 369th Judicial District Court in Rusk, Texas, must continue to observe a 1955 judgment requiring the railroad to maintain 0.52% of its office and shop employees in Palestine, and to provide employment information to the city. Davis had previously delayed the closure, originally set for June 14, pending Thursday’s hearing [see “Digest: Ruling delays closure …,” Trains News Wire, June 16, 2021].

UP sued in 2019 to void the agreement with the city, which dates to an 1872 deal with predecessor railroads, seeking to eliminate more than 60 jobs [see “UP sues to end employment provision …,” News Wire, Dec. 2, 2019]. It informed employees of plans to close the shop after a U.S. District Court judge ruled that the agreement is preempted by federal regulation [see “Digest: Federal judge voids UP employment requirement …,” News Wire, Feb. 5, 2021].

— This is a developing story. Watch Trains News Wire for further information as it becomes available.

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