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.