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NUMMI pays $6 million to settle plant-closing suit

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in Compensation and Benefits,Employment Law,Human Resources

The EEOC and the New United Motor Manufacturing Inc. (NUMMI) have settled claims that the company denied benefits and locked out disabled workers before a plant shutdown in Fremont. NUMMI was a car factory jointly owned by Toyota and General Motors. It closed last year.

The workers, some of whom were injured on-the-job, had alleged that they were on disability leave when the plant shut down in April 2010. According to their lawsuit, the workers were unfairly denied severance benefits and a retention package bonus payment, and denied reinstatement or accommodation in violation of the ADA.

The workers argue that had they been permitted to work, they would have had an opportunity to participate in a program paying workers for staying at the plant until it closed. Those who took part in the program collected as much as $40,000 in retention payments.

NUMMI did not admit liability to any of the claims. Still, the settlement will provide $6 million to the workers, of which Toyota will contribute $2.2 million.

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