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Settlement in Class Action Lawsuit Benefitting Female Verizon Employees Gets Court's Preliminary App

U.S. District Judge Denny Chin gave preliminary approval on Monday, Feb. 25, to a proposed settlement of several lawsuits brought in 1997 by the Equal Employment Opportunity Commission, the Communications Workers of America and other unions against Bell Atlantic and NYNEX (now Verizon Communications).

The lawsuits raised sex discrimination and equal pay claims on behalf of a class of current and former Verizon employees who took pregnancy/ maternity or child care leaves from AT&T Bell System employers during the period from July 2, 1965 through Dec. 31, 1983.

Policies in place at the time provided less service credit to women who took pregnancy and child care leaves than to men who took temporary disability leaves. The lawsuits charged that the policies continued to disadvantage female employees years later when pension, early retirement or enhanced severance benefits were offered to employees. Verizon uses service credit to calculate the amount of an employee’s pension and other employment benefits, as well as to determine eligibility for such benefits.

The proposed settlement will cover both union-represented and management employees who worked for a NYNEX or Bell Atlantic (now Verizon) company at any time between Jan. 6, 1994 and April 26, 2002 and who took pregnancy/maternity leaves between July 2, 1965 and April 29, 1979 and/or newborn child care leaves between July 2, 1965 and Dec. 31, 1983. Eligible women will receive additional service credit for any such leave taken during these time periods. The amount of credit will vary depending on the time period during which each leave was taken. Where the added service credit changes the amount of an individual’s pension or early retirement benefit, monetary compensation may also be provided.

In announcing the Court’s action yesterday, CWA President Morton Bahr said that “this settlement will finally fulfill the promises of the Pregnancy Discrimination Act for thousands of current and former female employees.” Noting that the proposed settlement followed extensive investigation and negotiations, Bahr complimented the parties on finding a “solution, which serves the best interests of class members.”

Potential class members will receive formal written notification about the proposed settlement terms and the process for filing claims for settlement benefits by late April, 2002. The formal notice will also include a toll-free “hot line” assistance number. Bahr expressed hope that all eligible women would elect to participate in the claims process. A Fairness Hearing will be held on September 13 in federal court in New York City to determine whether the Court should give final approval to the settlement.

The Communications Workers of America represents more than 700,000 employees in the telecommunications industry and in newspapers and other media, printing and publishing, higher education, health care, public service, manufacturing and the airline industries.


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