From: rich@pencil.cs.missouri.edu (Rich Winkel)
Subject: OCAW Runaway Plant Suit Settled
Followup-To: alt.activism.d
Originator: rich@pencil.cs.missouri.edu
Organization: PACH
Distribution: na
Date: Thu, 30 Jul 1992 00:55:45 GMT

/** labor.newsline: 243.0 **/
** Topic: OCAW Runaway Plant Suit Settled **
** Written  3:23 pm  Jul 29, 1992 by ocaw in cdp:labor.newsline **
AGREEMENT REACHED IN RUNAWAY PLANT SUIT
Drug-Maker to Pay $24 Million to Settle All Claims

     The Oil, Chemical and Atomic Workers announced today that a
tentative agreement has been reached in settlement of various lawsuits
and other disputes between the American Home Products Corporation, OCAW
and workers in several states who were displaced after AHP initiated drug
manufacturing in Puerto Rico.

     The agreement calls for AHP to make a payment of $24 million in
consideration of all outstanding claims of its workers at several
locations and the OCAW.  These claims include damages to individual
workers, to the Union, and various lawsuits and other actions brought by
OCAW on behalf of its members.

     In consideration of these settlement terms, OCAW has agreed to
terminate the corporate campaign that was undertaken by the Union in
connection with its dispute with AHP.

     "Our long struggle with American Home Products was just a part of
our larger struggle over Section 936 of the Federal tax code," said OCAW
President Robert Wages.  "We fully expect to continue if not re-double
our efforts against the tax-financed export of mainland jobs to Puerto
Rico.  While this chapter has ended, it should serve notice to other
companies that are presently laying plans to shift operations and jobs to
the Commonwealth."

     The tentative agreement will require the approval of Federal
District Judge Jaime Pieras.  Following this, notice to the individuals
named in the class action suit must be served, and a fairness hearing
before Judge Pieras must be conducted.  Barring objection by the class
members, damage claims will be evaluated by an Independent Trustee for
the purpose of determining individual damages and overseeing the
distribution of funds.

     Former Secretary of Labor Ray Marshall has been named to serve as
the Independent Trustee.

     The tentative agreement provides for distribution guidelines that
provide some individual members of the class with payments of up to two
weeks of pay times their years of service with the company.  Lesser
amounts could be paid to other individual class members, for example
those who transferred to other locations.  In addition, funds would be
available to those class members who are able to demonstrate unusual
hardship.

     The agreement also provides for a payment to OCAW of $2 million.

     The tentative agreement includes satisfaction of related claims,
including a consolidated lawsuit under the RICO statute, a lawsuit under
the WARN statute, and administrative law judge's ruling with respect to
complaints issued by the National Labor Relations Board, an age
discrimination suit and arbitration cases.

     Robert Wages and Connie Malloy, President of OCAW Local 7-515 will
be testifying Thursday morning at 9:30 a.m. before Congress on matters
concerning AHP and the use of job training funds in Puerto Rico and on
the mainland.  The hearing will take place in Room 2247 of the Rayburn
House Office Building.
** End of text from cdp:labor.newsline **

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