Live

Watch CBSN Live

Peeps candy workers win strike case against Just Born

BETHLEHEM, Pa. - A federal judge has dismissed a Pennsylvania lawsuit against workers who make marshmallow Peeps.

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.

Workers went on strike after Just Born moved to eliminate their pension plan and offered substandard wage increases, according to the Local 6 union, which represents the employees.

Most employees returned to work in October 2016, but no new contract has been reached.

A political spin to the Peeps diorama contest

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.

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.

View CBS News In