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Home / News & Reviews / News Wire / UP moves forward with closure of Texas car shop, set for June 14

UP moves forward with closure of Texas car shop, set for June 14

By | June 9, 2021

Closure comes as city, county continue to fight February court ruling

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Union Pacific logo with Building America slogan

Union Pacific logo with Building America sloganPALESTINE, Texas — Union Pacific is advancing plans to close its Palestine Car Shop even as legal efforts continue by the city of Palestine and Anderson County continue to block the closure

The Palestine Herald reports employees were told last week they will be furloughed after their shift on June 14. Closure of the shop will result in the loss of as many as 57 jobs; those affected will have the right to bid for other jobs in accordance with seniority rights, with those unable to land a position continuing to receive pay and benefits for 60 days.

Union Pacific sued last year to end an agreement between Palestine and UP predecessors, which dates to 1872 and was last renewed in 1954, requiring the railroad to maintain a set percentage of its workforce in Palestine. A federal court judge ruled for the railroad in February [see “Digest: Federal judge voids UP employment requirement …,” Trains News Wire, Feb. 5, 2021], and the railroad first informed employees of its closure plans in April [see “Digest: Union Pacific to close Palestine, Texas, car shop,” News Wire, April 16, 2021]. The city and county is continuing to fight the closure on two legal fronts, and U.S. Rep. Lance Gooden has written UP CEO Lance Fritz asking him to reconsider, saying the decision “will have a devastating impact on this rural community,” the Herald reports.






3 thoughts on “UP moves forward with closure of Texas car shop, set for June 14

  1. We all hate to see good jobs lost, but the purpose of being in any business is not to create jobs. Jobs are created, as needed, to further the business in order to make money. If it is not in the railroad’s interest to keep a facility operating, then the railroad owes it to its investors to close the facility. This is just a harsh reality. I would love to travel back in time to live in the period when the railroads went everywhere and were among the major employers, where the primary means of long distance travel was by train. But I’m living in 2021 when that romance period is no longer reality. Yes, good jobs are needed, but that’s a complex subject we can’t resolve here.

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