Lawsuit alleges Zone Safety violated union contract

A Lorain County business that recently had a mass layoff is the defendant in an ongoing 2021 lawsuit over allegations it failed to abide by a collective bargaining agreement signed in 2018. Ohio Laborers Benefits sued Zone Safety, on Royalton Road in Columbia Township, in U.S. District Court for the Southern District of Ohio in Columbus in May 2021. The lawsuit asked the court to order Zone Safety, which provides traffic and work zone safety services, to open its financial records for an audit starting with records in November 2018 through at least the date of the lawsuit, May 27, 2021. It also seeks monetary damages for unpaid benefit contributions required under a collective bargaining agreement signed by Zone Safety owner, President and CEO Julie Reichard, a copy of which was included in federal court records. The case was filed in the Southern District of Ohio because Ohio Laborers Benefits is in Westerville in Franklin County. Attorney David Vance, who is representing Zone Safety in the lawsuit, declined to comment. "The company does not comment about active cases," he said Wednesday. Messages seeking comment were left for attorney Ryan Hymore, who is representing Ohio Laborers Benefits. According to its lawsuit, Ohio Laborers Benefits represents three employee benefit plans: The Ohio Laborers' District Council Ohio Contractors' Association Insurance Fund; The Laborers' District Council and Contractors' Pension Fund of Ohio; The Ohio Laborers' Training and Apprenticeship Trust Fund; and a labor-management cooperative, the Ohio Contractors' Association Cooperation and Education Trust, which also is under the Ohio Laborers' District Council. Based on a collective bargaining agreement signed by Reichard in 2018, the plans collect contributions to the Laborers International Union of North America Tri-Funds, three national labor management cooperative trusts, from Zone Safety. Per the agreement, Zone Safety is required to file monthly contribution reports, permit audits of its financial records and make hourly contributions to Ohio Laborers Benefits on behalf of all those doing covered work under the CBA. Failure to do so means Ohio Laborers Benefits can collect delinquent contributions, damages and interest, according to the lawsuit. Reichard also allegedly refused to allow Ohio Laborers Benefits auditors access to her financial records dating back to November 2018, something Ohio Laborers Benefits said is required under the collective bargaining agreement. Laborers District Council of Ohio LIUNA Local 860 and Reichard signed the CBA on Nov. 23, 2018. It covered work in Ohio, Kentucky and West Virginia that was done between May 1, 2016, and April 30, 2019. According to the lawsuit, the CBA automatically renewed for a second three-year term from May 2019 to April 2022, with a 60-day termination notice required. Because Reichard didn't terminate the agreement by March 2019, she was bound to it through April 30 this year, according to the lawsuit. She then allegedly tried to end the agreement in June 2019, according to the lawsuit. Even if she had terminated the agreement 60 days prior to the automatic renewal in 2019, it wouldn't have taken effect until April 30 this year, according to the lawsuit. In the meantime, Zone Safety continued to do work covered by the CBA between Nov. 23, 2018, and the day the lawsuit was filed, Ohio Laborers Benefits alleged. Zone Safety told the Ohio Department of Job & Family Services in a letter earlier this month that it would have to lay off up to 77 employees after the utility Dominion Energy canceled its contracts with the Columbia Township firm. Reichard told The Chronicle-Telegram in an email July 19 that the number ended up being less than 77, but did not specify exactly how many jobs it was. Dominion Energy has yet to respond to a request for comment by The Chronicle. Zone Safety has an A+ rating with the Better Business Bureau, where it was accredited in October. It had zero customer complaints as of July 23. No complaints about Zone Safety were found in the Ohio attorney general's public and searchable online Consumer Complaint database. Contact Dave O'Brien at (440) 329-7129 or dobrien@chroniclet.com. Follow him on Twitter @DaveOBrienCT.