Last week the U.S. District Court in Georgia approved a donning and doffing settlement between Tyson Foods and about 17,000 plant employees in twelve states. Workers in 41 plants in these states will receive an average of $1,000 each under terms of the consent decree. The total cost is estimated at $32 million, including $15 million for legal fees.
Regarding the settlement, Tyson Foods said the terms of the parties’ joint settlement agreement prohibit public commentary from the company and the plaintiffs, other than to note that the action was resolved on a satisfactory basis.
It was also noted in the company’s published reports that, from a financial standpoint, Tyson records accruals for such matters. In this case, the matter is substantially accrued for this settlement, and therefore, will have no material impact on Tyson Foods financial fourth quarter 2011 results.
