Yellow agrees to $7 million settlement in class-action suit

| Tuesday, August 09, 2005

Yellow Roadway has agreed to pay $7 million to settle a class-action lawsuit brought by the former employees of a number of freight terminals closed by the shipping giant.

The Overland Park, KS-based Yellow, which acquired USF Corp. in May, will pay on behalf of USF for the closing of 26 freight terminals. More than 1,900 people lost their jobs when the terminals closed.

According to The Associated Press, the closings came after a one-day strike in Philadelphia, PA, which resulted after USF would not allow 15 office workers to join a union. After the strike, USF closed the terminals, citing significant financial damage from the lost workday.

However, the Worker Adjustment and Retraining Notification Act requires companies to provide 60 days’ notice if they lay off more than 50 employees.

Workers who filed a claim in the suit will receive an average of $3,000, according to The AP.

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