Monday, December 8, 2008
Nothing like getting Scrooged before Christmas
I can understand that when economic times change that people get laid off but It's also my understanding that when you have a contract that the contract needs to be honored. Republic Window and Door was trying to do the right thing and notify and pay its workers 60 days before closing but Bank of America had other ideas. Bank of America rejected all of the company's plans to close the plant in accordance to Federal law. A timeline from Marketwatch:
10/16/08 a- Republic presents plan for "orderly" wind down including ceasing
manufacturing in January 2009. INFORMS BANK OF AMERICA OF POSSIBLE
WARN ACT NOTICE ISSUES AND VACATION PAY.
10/15/08 a- Informed Bank of America that Republic had a 10/24/08R buyer for
the existing Note for ±$3.0M, discount of $1.5M.
10/15/08 a- Offer rejected by Bank of America stating they believed they were
10/15/08 a- Bank of America demands plans for "orderly" wind down Republic.
10/18/08 a- Bank of America rejects plan and demands a shorter wind down
10/27/08 a- Republic responds with a new plan to cease operations January 2009.
10/29/08 a- Bank of America rejects plan.
11/25/08 a- Republic requests permission from Bank of America to issue
vacation pay to all employees.
11/26/08 a- Bank rejects Company request to make vacation pay.
It's interesting to note that nearly all of the the companies that are closing in the next few months are following the law. Notifying workers with 60 day notice and honoring their obligations. That's another issue. In searching for info on this post I was noticing the upcoming layoffs. I'd hold off on spending a lot this Christmas. Not to be a Scrooge but there's a bunch of companies that will close in January and February having given their 60 day notice and that's just the ones required. In looking at the closures 300 400 500 and 800 layoffs are what I saw. What surprised me was several food processing plants due to close. That will mean an increase in food prices.