Sun Country Again and WARN Implications
October 7, 2008 – 8:16 amSun Country continues to be in the news (not a good thing) as they filed for bankruptcy yesterday. They plan to keep on flying and attempt to reogranize, but as I noted yesterday, announcing that you might go out of business is just the same as announcing you are out of business. Here’s the Tampa Tribune echoing Sun Country’s message that everything is “ok” so keep on buying those tickets. Still, when you have a choice between Northwest and an airline that is clearly on its last leg, it is not much of a choice.
So, just to be clear here, there is a law (see Wikipedia) named the WARN Act that mandates US companies give 60 days notice to employees prior to major layoffs. This creates a Catch 22 for airlines as the entire business is based off forward bookings. So either they violate a law (and your employees will be teaming up with Outten & Golden) or follow the law and ensure that everyone loses their jobs.
But, on a more basic level, airlines that are going to go out of business are going to go out of business, regardless of the WARN Act.
