AFA Foods sued for back wages
AFA Foods, a ground beef processor that declared bankruptcy after the controversy over lean finely textured beef (dubbed “pink slime” by critics) reduced the demand for ground beef, is being sued by former workers. About 200 meat-plant workers were fired without being given the 60 days’ notice required under the federal Worker Adjustment and Retraining Notification Act, according to a complaint filed today against AFA and parent company Yucaipa Cos. in U.S. Bankruptcy Court in Wilmington, Del., reports Bloomberg News.
AFA Foods filed for bankruptcy on April 2. It told the judge overseeing the bankruptcy that it would try to sell assets as quickly as possible to preserve jobs and raise money to pay creditors, who probably won’t recover all they are owed.