Teamsters Reach $7 Million Settlement With USF

Aug. 16, 2005
USF Corp. reached a tentative agreement with the International Brotherhood of Teamsters (IBT) following an IBT complaint filed in the U.S. District Court

USF Corp. reached a tentative agreement with the International Brotherhood of Teamsters (IBT) following an IBT complaint filed in the U.S. District Court in Philadelphia that claimed the company did not provide the required 60-day notice of closure when it decided to shut down its USF Red Star operations. The $7 million settlement will result in payments to nearly 1,600 union workers who lost their jobs, the IBT claimed.

The IBT complaint said USF failed to give the 60-day notice required by the Worker Adjustment Retraining Notification Act. The Union also alleged “USF Corp. and its affiliated companies engaged in an unlawful scheme to evade Red Star’s obligation to bargain about the decision to close in order to shut down and replace Red Star with USF Holland.” The IBT has also filed charges with the National Labor Relations Board (NLRB).

The proposed settlement seeks to resolve both the court case and the NLRB charges. The court must approve the proposed settlement and attorneys’ fees.

USF Background:

USF Closes Its Red Star Company

Other Teamster issues:

Teamsters Break From AFL/CIO; Vow (again) to Organize Overnite

UPS to Acquire Overnite; Teamsters Watchful

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