Seven million dollars is on the table as the proposed WARN Act settlement to pay off Teamsters put out of work when USF Red Star closed its doors last year.
This figure was reached in negotiations with Yellow Roadway, USF’s new owner. The settlement means roughly a minimum payment of $3,200 for each Teamster who worked in a terminal of 50 or more employees and about $1,000 for each Teamster who worked in a smaller Red Star facility. It’s about 40 percent of the amount owed under the WARN Act.
For over a year, a diligent group of former Red Star Teamsters has organized to win justice. Without this effort, it’s doubtful any WARN Act suit would have been filed. These rank and filers have fought for their day in court and it comes on Sept. 22 when a Philadelphia judge will determine whether or not the $7 million settlement is appropriate.
Activists are encouraging former Red Star Teamsters to attend this “fairness hearing.” They see this as an opportunity to speak out on Yellow’s settlement as unjust. Teamsters are circulating a petition to deliver to the court. They believe the 1,700 Teamsters deserve more, especially considering the millions former Red Star management honchos took with their golden parachutes.
Members also continue to press unfair labor practice charges regarding their lost jobs. USF Holland has re-opened terminals in many of the areas formerly serviced by USF Red Star. The IBT worked out an agreement where former Red Star Teamsters would get an opportunity to work for USF Holland, but at reduced wages. A number of Teamsters have hired in at USF Holland but contend that they are doing the same work they did prior to the USF Red Star closure. Many are concerned that the WARN Act settlement may cause the dismissal of these charges.
You can learn more about how former Red Star Teamsters have organized at www.redstarteamsters.com