UPDATE: Cequent can continue move to Mexico

It has been decided in the courts that Cequent Performance Products can continue to move its Goshen operations--to Mexico.

The United Steelworkers union went to court in an attempt to block a series of layoffs scheduled to start February 22nd, while the company and the union took a contract dispute to arbitration.

Today a federal judge denied the union's request for an injunction saying that the union failed to show it would suffer irreparable harm.

“Because an arbitration award in this case can consist of monetary damages, a reopening of the plant, reinstatement of employees, or a combination of those remedies, the Unions haven’t demonstrated irreparable harm sufficient to justify entry of injunctive relief,” wrote Judge Robert L. Miller.

The decision notes that Rich Brown, manager of the Goshen facility testified that Cequent’s move involves a year-long plan with the first lay-offs to take place at the end of February, and that the work force will be down to half after July, with the plant to remain open and operating until December

By the time the move is over, some 450 Cequent workers will lose their jobs.

The United Steelworkers Union Local 9550 claimed that the move is in violation of a collective bargaining agreement that expires March 12, of 2014. The union will continue to pursue that claim through arbitration.

“The court sympathizes with the Union members who may be laid off and/or ultimately lose their jobs in Goshen, but must conclude that the Unions haven’t established the irreparable harm or balance of hardships necessary to support the entry of a status quo injunction. For the reasons set forth above, the court DENIES the Unions’ motion for preliminary injunction and/or temporary relief.”


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