Darren Gardner and Bob Nobile Quoted in The National Law Journal
03/21/2008
The issue of layoffs in a recession for U.S. employees based overseas reported in the article "Specter of layoffs overseas a new focus : U.S. companies face challenges" in the March 17, 2008 National Law Journal includes commentary by Bob and Darren. The article notes: "The growth of U.S. corporate work forces overseas and a rise back home in class actions by laid-off employees are giving employers new legal issues to contend with as they craft worker cutbacks in response to the slowing economy. The demand for counsel on work force reductions has surged since late last year, U.S. labor lawyers said. With seven years having elapsed since the last recession in 2001, attorneys are reminding clients that bigger international work forces this time around will require working through more foreign approval processes to implement cutbacks. In addition, the rise in U.S. discrimination lawsuits by former employees during the past two years makes it imperative that employers carefully analyze the demographics of employees slated for dismissal, the lawyers said. In the United States, lawyers are being more vigilant about arranging reductions that they believe could withstand class actions by former employees alleging discrimination. "We've been working much more closely with clients to make sure the job-selection criteria for cuts is job-related and nondiscriminatory," said Seyfarth Shaw attorney Bob Nobile, who is based in the Chicago firm's New York office. Lawyers are urging clients with work forces abroad to carefully review the laws of countries where they plan to cut employees to avoid illegal missteps and other moves that may work against their ultimate objectives. . . . U.S. labor laws tend to be more permissive and flexible than those in Europe, South America and Asia, said Darren Gardner, an attorney in Seyfarth Shaw's Los Angeles office. "It takes more time to do what you want to do overseas and, quite frankly, you may not be able to do what you want to do," Mr. Gardner said. Germany has some of the most stringent labor laws as far as company rights, Mr. Gardner said. Councils there must approve the terms of group dismissals, as opposed to simply being involved in discussions on the issue. One of Mr. Gardner's U.S. clients with a facility in Germany is considering closing the operation and laying off workers, he said. As a result, the company is in discussions with the works council on potential severance payments and unemployment benefits. Any union talks would follow discussions with the council. "The company can't implement until it reaches the agreement with the works council on these different measures," Mr. Gardner said.
