PHILADELPHIA, Nov. 21, 2012 /PRNewswire/ -- A former employee, Mark Popovich, filed for damages on behalf of himself and all employees laid off by Hostess as a result of its proposed liquidation, which was preliminarily approved by the bankruptcy court earlier today. Mr. Popovich worked in Hostess's Toledo, Ohio facility.
Hostess indicated in court that it would be laying off 15,000 today. The company said the reason for the shutdown and liquidation was because of losses suffered as a result of a strike by the Bakers Union, which began on November 9, 2012. Hostess believes that event plus the fact it issued multiple notices throughout 2012 are sufficient to excuse it from WARN Act liability.
Failure to give sixty (60) days advance notice violates the federal Worker Adjustment and Retraining Notification Act ("WARN Act"). Some of the states where Hostess employees had facilities have their own WARN Acts and the Complaint says Popovich intends to add those claims later.
"We believe Hostess violated the federal WARN Act as well as state laws. These employees deserved better," said Charles A. Ercole, who filed the Complaint for Mr. Popovich.
Klehr Harrison is a full service law firm with its primary office in Philadelphia. Mr. Ercole is Chair of the Labor and Employment practice group and has had significant recoveries for employees in numerous other WARN Act cases including $35 million for 2200 former employees of Qimonda North America; $6.775 million for 1900 former employees of USF Red Star; and $4.0 million for 550 former employees of Arrow Trucking.
Co-counsel on the case is the Dallas, Texas, firm of Simon, Ray & Winikka.
SOURCE Klehr Harrison Harvey Branzburg, LLP