Wabtec plans to permanently lay off up to 150 employees in the coming months, UE Local 506 and Wabtec both confirmed Friday.

UE 506 said it was notified of the layoffs by Wabtec's human resource manager Thursday.

The first layoffs are expected in November, the union said. The company said the layoffs will happen by the end of the year.

Wabtec cited the current state of the economy and the impact of coronavirus (COVID-19) pandemic as the reason for the cuts. In a statement sent to Erie News Now, the company said North American rail carloads and U.S. rail traffic are down roughly 10 percent compared to last year, and locomotive parkings remain at a high.

The union has scheduled a benefits session with Pennsylvania Department of Labor and Industry Rapid Response in December to make sure affected union members receive any benefits they are eligible for.

Wabtec's full statement

The freight locomotive market continues to be challenging with carload volume significantly down versus last year and the COVID-19 pandemic continuing to impact communities and the economy. As of October 1, 2020, North American rail carloads and US rail traffic are down roughly 10%, respectively, versus last year and locomotive parkings remain at a high.

With these continued challenges, Wabtec is adjusting its operations in Erie, PA, to align with today’s volume realties. This adjustment will result in a reduction to our hourly workforce by roughly 150 front-line employees during the fourth quarter. Decisions like this are never easy, but it comes as the result of an in-depth evaluation of the market and how to best position the company for success given today’s unprecedented environment. The company remains fully committed to all customer commitments and providing impacted employees with resources and benefits.