Lien filed against Consolidated Freightways

| 9/6/2002

Wisconsin Attorney General Jim Doyle announced Sept. 4 his office filed a lien against Consolidated Freightways seeking $3.4 million in compensation for displaced state workers.

The lien claims the Vancouver, WA-based trucking company violated the state's plant closing law requiring companies to give a 60-day notice before mass layoffs. It also claims the company failed to pay wages due to affected workers.

CF announced on Labor Day it was filing for Chapter 11 bankruptcy protection and canned 15,500 workers around the country. Workers calling into the company Monday heard a recorded message from Chief Executive John Brincko telling them not to show up Tuesday. Employees also were told by the recording their "employment ends immediately."

Doyle said state statistics show about 400 Wisconsin workers were out of jobs as a result. Wisconsin's plant closing law requires companies to give 60 days notice of a business closing or mass layoffs to the Department of Workforce Development and the highest elected official in any municipality affected.

The lien seeks $3.4 million for affected employees, including $2.7 million for violating the plant closing law and $700,000 in wages and benefits due for the two-week period employees worked prior to the closing.