The settlement goes back to the 1996 closing of Allied Signal’s Stratford, Connecticut plant, according to The Connecticut Law Tribune. Allied Signal, a major engine supplier, announced that upon closure, severance was not going to be paid out under the old labor contract.
The union filed a lawsuit using the Katz doctrine. This doctrine, resulting from the 1962 Supreme Court decision NLRB v. Katz, maintains basic benefits of a labor contract will remain in place until negotiations for a new contract reach an impasse.
Based of the Katz doctrine, the US Court of Appeals for the DC Circuit now ruled the 500 former Allied Signal workers were entitled to their full benefits and compensation under the old labor contract that had never been phased out.
The latest ruling will increase severance benefits for the workers anywhere from $2,000 for new hires to $56,000 for veteran workers.