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    WARN ACT CLAIM FAILS
    The Worker Adjustment and Retraining Notification Act (WARN) requires covered employers (generally those with more than 100 employees) to provide 60 days notice of any layoffs of one-third of the employees or a plant closing. In this case, U.S. Steel, after three record quarters in 2008, determined [...]


    WARN ACT CLAIM FAILS


    The Worker Adjustment and Retraining Notification Act (WARN) requires covered employers (generally those with more than 100 employees) to provide 60 days notice of any layoffs of one-third of the employees or a plant closing. In this case, U.S. Steel, after three record quarters in 2008, determined in December that "due to recent major and unanticipated downturn in the United States and global economy, and the resultant sharply lower demand for the plaintiff's products[,]" layoffs would occur at its Keewatin plant. The layoffs occurred starting December 7 and ending December 31, in which 313 employees were laid off. In January, 145 of those employees were moved to a nearby plant, where they were laid off again in 2009. The union claimed that all of this action was in violation of WARN because, in its view, the affirmative defense of unforeseen business circumstances did not apply. Two issues arose in this case—(1) whether or not the downturn was foreseeable, and in this situation it was clear that the high demand for steel was still a possibility at the snapshot date (60 days before the layoffs began); and (2) until the time that the layoff was announced, there was a possibility of government intervention in the automobile industry that might defer any changes. Moreover, there is a requirement that the unforeseen business circumstance exception is not available if there is inadequacy in the layoff notice. The words of the notice are provided above, and in this case the Court found that the notice was consistent with acceptable notices in other cases, and certainly there were numerous media reports about the status of the economy in 2008, which support the language concerning recent major and unanticipated downturn in the U.S. and global economy. United States Steelworkers of America Local 2660 vs. United States Steel Corporation (Minn. D.C. 2011).

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