Yellow agrees to $7-million settlement for USF Red Star closure

Yellow Roadway has agreed to a $7-million settlement on behalf of USF Corp. to a class action lawsuit involving 1,900 employees who were laid off upon the USF Red Star closure on May 21, 2004, according to a news release put out by the law firms representing the plaintiffs.

The law firm representing the 1,900 employees in the suit filed a complaint that alleges the employees were not given any notice or severance. The plaintiffs argued that the worker adjustment and retraining notification act requires that employees be given at least 60 days notice prior to a mass layoff. USF Corp. said the unannounced one-day strike initiated by the Teamsters forced the shutdown and absolved the company of the requirement to issue the notice.

The settlement must be approved by Judge Petrese Tucker of the District Court for the Eastern District of Pennsylvania.

Yellow Roadway was contacted but did not issue a comment at press time.