Former employees sue Skybus Airlines in bankruptcy court

COLUMBUS, Ohio (Map, News) - Former employees of Skybus Airlines filed a class action lawsuit against the company in bankruptcy court Tuesday, saying they weren't properly told of the airline's plan to shut down operations.

Skybus violated the federal Worker Adjustment and Retraining Notification Act, which requires companies to notify employees at least 60 days in advance of any mass layoffs, according to the lawsuit, which was filed in U.S. Bankruptcy Court in Delaware.

In a court filing dated April 4 - the last day Skybus was in operation - the Columbus-based airline said it planned to lay off 450 employees in several phases, with the majority losing their jobs as of April 7. Of those, 365 were based in Columbus, with the remainder in Greensboro, N.C.

Former Skybus CEO Mike Hodge told The Columbus Dispatch on Tuesday that the company believes it complied with the law. He cited a section of the WARN Act that grants an exception to companies that are actively seeking capital or business that, if obtained, would have allowed those companies to avoid or postpone a shutdown.

Passed by Congress in 1988, the WARN Act was intended to protect workers and their families. The law says employees who don't receive proper notice of plant closings or layoffs are entitled to 60 days pay.

Plaintiffs in the lawsuit are seeking unpaid wages, bonuses, retirement benefits and holiday pay that they would have received during the 60-day period.

Skybus declared bankruptcy less than a year after beginning service. The low-cost carrier was known for its $10 fares and a la carte, pay-per-service flying. Like other airlines, it struggled with rising fuel prices and a slowing economy.

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Information from: The Columbus Dispatch, http://www.dispatch.com

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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