The Morning Call newspaper reports U.S. District Judge Jeffrey Schmehl ruled last week the Just Born Quality Confections company in Bethlehem failed to prove about 400 union employees violated a no-strike clause when they walked off the job Sept. 7, 2016.
The company also makes Mike and Ike candies and had said the strike was timed to hurt production of Peeps, which are typically made in the fall for the following Easter sales.
Most employees returned to work in October 2016, but no new contract has been reached.
The president of the Local 6 union says "it was a frivolous lawsuit from the beginning."
Just Born had sought unspecified monetary damages. Spokesman Matt Pye says the company will appeal.
Information from: The Morning Call, http://www.mcall.com
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