Palestine TX – Judge Allows Union Pacific to Break Contract

A federal judge ruled recently that Union Pacific Railroad is no longer bound to its 149-year-old contract with the City of Palestine and Anderson County.

Local officials called the move a blow to local railroad workers and the economy, effectively gutting the future of the railroad jobs in the area.

Through the original 1872 contract, Union Pacific agreed to establish a railroad hub in Palestine with offices, machine shops and roundhouses. The contract also stipulated that Union Pacific will retain a facility and minimum number of employees in Palestine – currently set at 65. In return, the city agreed to raise $150,000 in bonds for the railroad.

United States Federal Judge for the Eastern District of Texas denied the city of Palestine’s motion to dismiss.

“This is a devastating blow to this area and these jobs,” said Carman General President Rich Johnson. “We are disappointed with this decision, there is no end to the corporate greed with the UP.”

Click here to read the full story on the Palestine Herald-Press.

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