Former millworkers, Allied Textile settle

WINTHROP – Former employees of the defunct Carl-eton Woolen Mills will receive $4,000 to $4,300 each on average as part of a settlement with the mill’s former owner, an attorney representing the workers said Wednesday.

Jonathan Beal said the money comes from a $2 million settlement for two cases filed against Allied Textile Cos., the British corporation that bought Carleton in 1994.

About $1.1 million will go to the 350 members of Carleton’s Paper, Allied-Industrial, Chemical and Energy Workers International Union Local 1235. The money will cover pay that employees were entitled to under the Federal Worker Adjustment Retraining Notification Act, which requires employers to give 60 days notice before plant closure or mass layoffs, Beal said.

Nonunion employees will receive about $286,000 total, and $240,000 will go toward unpaid medical benefits for union and nonunion employees, he said. Remaining money will cover administrative and attorneys’ costs.

Carleton’s former employees have been fighting for various claims since Carleton ceased operations in 2000 and filed for bankruptcy. Two lawsuits seeking severance pay are still pending in U.S. Bankruptcy Court.