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Lawsuit filed against NAC

Employees contend company closure violated federal law

Employees of North American Communications Inc. of Duncans­ville have reacted to the sudden closing of their plant Monday by filing a class action lawsuit charging the company has violated federal law by not giving them 60 days’ advance written notice of termination.

Pittsburgh attorney Charles H. Saul of the law firm of Margolis Edelstein has filed a lawsuit in the U.S. District Court in Johnstown asking that the company, be­cause of its sudden mass layoff, be re­sponsible for 60 days of unpaid wages, accrued holidays and va­cation pay, 401(k) contributions and other pension and retirement benefits.

The lawsuit does not indicate how much money would be involved but states the legal action is being taken on behalf of approximately 250 employees.

Two employees are listed as representatives of the class of workers, Melony Lewis, a customer service account executive for almost four years with NAC, and worker Christian Padilla.

Saul said Friday that he had just received the case and had not yet had the opportunity to become involved with the details of the layoffs that occurred without warning, but he is contending that the company’s failure to provide 60-day notice violates the federal Worker Adjustment and Retraining Notification Act of 1988.

It contends that North American Communications “is liable under the WARN Act for failure to provide the plaintiffs and other similarly situated former employees at least 60 days’ advance written notice of termination.”

The employees are represented not only by Saul, but by attorneys Stuart J. Miller of New York and James Huggett of Wilmington, Del.

Two attorneys from the Maurice and Jane Sugar Law Center for Economic and Social Justice, of Mobile, Ala., have also asked to be admitted as representatives of the employees.

The law center is a nonprofit organization that deals with employee issues.

The attorneys for North American Communications could not be reached Friday.

Lewis said she had been contacted by the Law Center and by attorney Miller.

She said she didn’t necessarily enjoy the public role that she agreed to accept representing the class of employees, but she also stated she didn’t think company officials acted properly in closing the direct mail company so suddenly.

She referred to action taken by Rob Herman, the company president, who addressed workers Monday afternoon.

“It’s not right what Rob did, closing down like that,” she said.

The Mirror was unable to contact Herman when calling the plant Friday.

She said the company that handles bulk mailing for the customers traditionally has a very busy time from August through December, but she said business at the plant has been upbeat in recent months because clients that were served by a North American operation in Mexico have been coming back to the Pennsylvania facility.

The Mexican facility shut down in March in much the same way as what occurred in Duncansville on Monday, said Lewis.

A class action must be certified by the federal court, and Saul stated that Lewis and Padilla are bringing the legal action “on behalf of the other employees who worked at the facility and were terminated as part of a mass layoff and/or plant closing ordered by (NAC) at the facility.”

The two workers “will fairly and adequately protect the interests of the class,” it was stated.

A class action is the best way to resolve the controversy, according to legal papers filed by Saul.

There are several questions that must be resolved by the court, according to the lawsuit:

— Are the class members-to-be former employees of the NAC?

— Were they terminated as part of a mass layoff or plant closing “without cause?”

— Does NAC have a defense through WARN’s “unforeseeable business circumstance” or “faltering company” exceptions?

— Does the failure to provide 60 days’ notice render NAC liable for 60 days’ pay and benefits?

The lawsuit requests the federal court to order attorney fees and costs.

U.S. District Judge Kim R. Gibson has been assigned to the case.

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