Ousted Emery workers win a round in suit
By Wes Hills
e-mail address: wes_hills@coxohio.com
Dayton Daily News
DAYTON | A federal judge Tuesday tentatively certified a class of about 575 pilots and ground crew who charge that Emery Worldwide Airlines laid them off in August 2001 without giving them a required 60-day notice.
Chief U.S. District Judge Walter H. Rice also denied a request by CNF Inc., EWA's parent company, that his court lacks jurisdiction to hear the case.
The lawsuit, filed Feb. 12, 2002, sought a proposed class of about 800 EWA employees who were laid off without prior notice between Aug. 11 and Aug. 15, 2001.
They were first notified their layoffs would be temporary after the Federal Aviation Administration unexpectedly informed EWA on Aug. 11, 2001, that it must cease flight operations or have its operating certificate suspended. EWA grounded its fleet after the FAA found what it claimed to be more than 100 safety violations during 18 months of special inspections.
EWA announced the layoffs were permanent on Dec. 5, 2001. It did not resume commercial carrier operations and CNF rolled three of its companies — Emery Worldwide, Menlo Logistics and Vector SCM — into a single operation, Menlo Worldwide. Emery has since contracted with other cargo airlines to carry its freight.
The plaintiffs claim they did not receive 60-day notifications of their initial layoffs nor 60-day notifications of their terminations, which they argue constituted a plant closing.
Rice ruled the tentative class as about 575 employees employed by EWA in Dayton as of Aug. 13, 2001; who were notified by EWA between Aug. 13 and Aug. 15, 2001 of their subsequent layoffs; who were notified by EWA on Dec. 5, 2001 that that their layoffs were permanent; and who did not receive 60 days' notice or 60 days' pay.
Rice also rejected, for now, CNF's arguments that his court lacks jurisdiction.
CNF argues that it has never done business in Ohio and that it is a holding company with its principal place of business in Palo Alto, Calif., with EWA only one of more than 20 subsidiaries.
"The truth of the matter is crucial," Rice noted. "If CNF was calling the shots at Emery, then this court would likely have personal jurisdiction over it. . . . If it was not, then this court would likely not have personal jurisdiction over it, for it would have no relationship to Ohio other than being the corporate parent of Emery."
Rice said he would not make a final ruling on this issue until "after the plaintiffs have had sufficient time to conduct discovery on the relevant facts."
Rice also ruled that the plaintiffs are not entitled to a jury trial on their claims under the Worker Adjustment and Retrainiing Notification Act.
Contact Wes Hills at 225-2261 or wes_hills@coxohio.com