Lawsuit filed against company who laid off hundreds of Pueblo Steel Mill workers
PUEBLO, Colo. (KRDO) -- A month and a half after over 600 workers employed by Wanzek Construction to complete the state-of-the-art solar-powered steel mill expansion were unexpectedly laid off, a federal lawsuit has been filed against the company on February 14.
The lawsuit, filed by attorney Jack Simpson of Langston & Lott in Booneville Mississippi, alleges that Wanzek violated conditions of the "WARN Act" or federal Worker Adjustment and Retraining Notification Act. Simpson filed it in Colorado District Court on behalf of a Pueblo resident who was laid off, Joseph Padilla.
"The WARN Act requires large employers such as Wanzek, to give 60 days notice before they conduct a mass layoff," Simpson told 13 Investigates. "None of these employees were given any sort of severance pay or any sort of heads up prior to this layoff."
The lawsuit alleges that 660 contracted employees were relieved from duties after Palmer North America, a subsidiary of EVRAZ North America, terminated their agreement with Wanzek to complete the construction at the Steel Mill.
Nonetheless, Simpson says nearly all of the employees were caught completely off guard, many with no conceivable backup plan to support themselves and their families.
"What we have heard so far from the employees we've spoken to is that they had no idea this was going to happen," Simpson said. "In that moment, when you have an unexpected job loss, you're looking for answers. You know, why did this happen? What am I going to do next? How am I going to pay my bills?"
Simpson is requesting the court certify the lawsuit as class-action, which would allow additional employees to receive compensatory damages in addition to the named representatives, typically only a few employees.
"If class certification is not granted, and it may not be, that's why it's important to reach out to legal counsel now because if that decision is not made for any reason, this case can't be prosecuted at once on behalf of everyone," Simpson said. "Those that do not have certain rights, that do not hire an attorney, will be left out."
Simpson estimates that nearly half of the employees he has spoken with are local to Pueblo County and have since had to find employment elsewhere while EVRAZ North America seeks a new construction contract.
He anticipates that Wanzek will deny the claimed violation of the WARN Act, by alleging that the termination of their agreement with EVRAZ North America was sudden and unexpected, thus protecting them from legal liability.
"The company has to prove, and has the burden of showing that, this contract loss that may have brought about the 660 employees was truly unforeseen, and that they did not know about it within enough time to communicate to their employees the probability that they're going to lose their job," Simpson said.
Monday, Wanzek Construction issued this statement to 13 Investigates denying the allegations in the lawsuit:
“We are in full compliance with the WARN regulations. However, Palmer/Evraz was in default of the Rail Mill contract, and then elected to improperly terminate the contract on New Year’s Eve without appropriate notice. This unforeseen decision by Palmer caused the termination of employees. We will vigorously defend against the baseless allegations in the WARN case."
-- Wanzek Construction
