Alabama-based processing plant lays off over 100, triggers legal investigation
AlaTrade Foods, a poultry processing company that focuses on deboning, trimming and sorting chicken, was founded in 2000. The company operates three plant locations in Alabama, in Albertville, Boaz and Phenix City.
AlaTrade Foods, according to the company itself, processes 400 million pounds of chicken annually and is the largest 100% employee-owned company based in Alabama.
According to the Alabama Department of Commerce, the Phenix City location laid off 165 employees, effective March 27.
The reason for the layoff — as well as opportunities and resources for employees affected by the layoff — are unclear, as AlaTrade Foods has not responded to requests for comment.
More: Alabama manufacturing plant to end operations after almost 50 years and lay off 200
The WARN act, a federal law passed in 1988, requires companies to notify workers in writing before mass layoffs. Specifically, companies with over 100 employees are required to provide a 60-day notice of significant layoffs or plant closings to allow workers to properly accommodate for the loss of work.
The WARN notice documenting the AlaTrade Foods layoff, according to the Alabama Department of Commerce, is dated March 28, one day after the layoff was in effect.
AlaTrade Foods' recent round of layoffs at its Phenix City location has sparked some investigation into their compliance with these policies. Strauss Borelli, a class action lawsuit firm, in a post dated March 31, announced that their firm is investigating a possible breach of WARN notice policies in this particular incident, noting that based on the law, they "believe AlaTrade Foods employees may be entitled to sixty days of severance pay and benefits."
AlaTrade Foods has not responded to requests for comment about the timing of the WARN Act notification.
Sarah Clifton covers business for the Montgomery Advertiser. You can reach her at sclifton@montgome.gannett.com or follow her on X @sarahgclifton.
This article originally appeared on Montgomery Advertiser: Chicken processing plant lays off over 100 in Alabama
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