Former USF Red Star Workers Reportedly Settle Claim for $7 Mln.

ellow Roadway Corp., which acquired fellow less-than-truckload carrier USF Corp. in May, has reportedly reached a $7 million settlement with workers laid off when USF closed its Red Star unit last summer.

Attorneys representing 1,900 laid-off employees said workers were let go without notice, the Harrisburg (Pa.) Patriot-News reported Tuesday.

The employees sued under Pennsylvania’s Worker Adjustment and Retraining Notification Act for being let go without notice and for not being offered severance pay, the Patriot-News said.

USF announced the closure of its Red Star unit in May 2004 following a one-day strike at the unit. It had lost money at Red Star for the previous three years. (Click here for previous coverage.)

Yellow Roadway announced its $1.37 billion acquisition of USF Corp. in February and completed the deal in May of this year. (Click here for previous coverage.)

Yellow Roadway is ranked No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.