Showing posts with label Wage Income Protection Fund. Show all posts
Showing posts with label Wage Income Protection Fund. Show all posts

Thursday, May 9, 2013

NDP to introduce legislation protecting Ontario workers from Vertis ex-workers’ plight


MPP Cindy Forster

On April 25, 2013 at Queen’s Park, Welland New Democratic Party (NDP) Member of Provincial Parliament (MPP) Cindy Forster held a news conference with a handful of ex-workers from the closed Vertis Communications plant in Fort Erie, Ontario.  Their goal was to publicize the problems faced by employees of foreign-owned companies that go out of business. 
Although the unionized ex-workers have stopped picketing the closed plant, they are still fighting to get over $2 million in pension plans, benefits, and severance packages they were denied when the U.S.-based parent company abruptly closed the plant in January. 
Vertis was granted bankruptcy status in the United States and sold its assets to Quad/Graphics, another U.S.-based company, but the deal excluded the Fort Erie plant (Vertis’s only Canadian operation) and several of its other U.S. facilities.  
Because of the circumstances of Vertis’s bankruptcy, Vertis has been successful in circumventing Canadian labour laws protecting the ex-workers' right to compensation.  The ex-workers have also been denied access to the federal Wage Income Protection Fund that pays a small amount of financial compensation to terminated employees of a Canadian company that closes without paying severance.  Appeals to the federal government from Ms. Forster, Niagara Falls Liberal MPP Kim Craitor, and Liberal Ontario Labour Minister Yasir Naqvi have failed to gain the Vertis ex-workers access to the fund.
Ms. Forster believes the provincial government should do more to prevent this kind of situation from recurring in Ontario.  Accordingly, she plans to table legislation, probably in the form of a private members’ bill, that would better protect the province's workers when a foreign-owned company closes. She says that the law might provide for the province to pay the terminated employees what they are owed, then use its powers to retrieve the money from the company.
She says such legislation existed when the NDP were last in power (from 1990 to 1995), but that the Conservative Party under former Premier Mike Harris repealed it.  Since then, one subsequent effort by the NDP to reinstate a similar law failed to gain government support.
“As foreign ownership of Canadian manufacturers continues to grow, and global financial markets continue to struggle, more and more Ontarians could be exposed to similar situations,” Ms. Forster said in a press release. “We need to take a serious look at these loopholes, and figure out the best way to protect the rights of Ontario workers.”
Recent news stories & videos:

Wednesday, May 8, 2013

Ex-Vertis workers end Fort Erie picket line but continue fight for compensation

Bullet News Niagara reports that last week former employees of the closed Vertis Communications plant in Fort Erie, Ontario, stopped picketing outside the plant's front gates, since all the equipment has now been removed, and the few remaining employees working during the shutdown were let go on April 30.  

But the nearly 100 terminated workers are still continuing their fight for the approximately $2.7 million (roughly $27,000 each) they claim is owed to them since they were terminated without prior notice, termination pay, or severance in January, when the plant was closed.  

The closure occurred after Quad/Graphics Inc. purchased most of the assets of Vertis in October 2012, but not the Fort Erie facility.

The ex-workers are represented by the Communications, Energy and Paperworks Union of Canada (CEP).  

Through their union, the workers have tried to get at least some compensation from the Wage Income Protection Fund, a federal program meant to provide a maximum of $3,640 to Canadian workers caught up in similar cases.  But although they qualify for the fund, their claim remains unprocessed, because of a technicality:  Vertis apparently did not file for bankruptcy in Canada but rather had a Canadian court recognize the U.S. bankruptcy the company filed in December 2011.  

Rumour also has it that one of the company's former customers, a large Canadian newspaper chain that still owes the company about $2 million, is withholding payment in hopes of finding a legal means to redirect the money to the workers instead of the receiver for the company.  

Please let me know if you have any more news about recent developments.

Current news reports: 
http://www.bulletnewsniagara.ca/2013/05/06/updated-former-vertis-workers-denied-severance-end-plant-gate-picketing-but-the-fights-not-over-yet/  
http://printaction.com/News/20130507-vertis-picketing.html  

Background to this story:
http://vicg8.blogspot.ca/2013/03/ex-vertis-workers-in-fort-erie-post.html 
http://vicg8.blogspot.ca/2013/03/vertis-communications-files-for.html

Wednesday, March 13, 2013

Vertis Communications files for bankruptcy in Canada, Quad obtains court order against protesting ex-workers


Among the latest developments in the labour dispute arising from the January closure of the Vertis Communications plant in Fort Erie, Ontario, Vertis Communications has filed for bankruptcy in Canada.

Formerly, since Vertis’s parent company was based in the U.S. and bankruptcy proceedings never took place in Canada, the company was able to avoid paying severance to its Canadian ex-workers.

The new move turns Vertis’s former Canadian workers into unsecured creditors.  “So we’re going to the bottom of the food chain,  Everyone else will get paid and if there’s anything left, it will be divided among us,” today’s Niagara Falls Review quotes Dan Wickson, president of Communications, Energy and Paperworks Union of Canada (CEP) Local 425-G, as saying.  CEP Local 425-G represents the former workers, who number about 100 and believe collectively they are owed about $2.7 million in severance pay (or a crude average of $27,000 per ex-worker.)

Social media rumours
One of my social media sources, Rooster1966, says the latest rumours suggest that the Fort Erie plant made too much profit last year to be eligible for bankruptcy and that the filing is supposedly backdated to October 2012.  S/he promises to keep me informed of new developments.  (Thanks again, Rooster.)
http://medinagazette.northcoastnow.com/2013/02/06/53-jobs-lost-after-sale-of-vertis-communications-in-medina/

Wage Income Protection Fund
 Although the ex-workers seem less and less likely to get all of what they say is owed to them, Vertis’s Canadian bankruptcy will potentially make each of the ex-workers eligible for a pittance in compensation under the Wage Income Protection Fund.  This federal Canadian program provides up to $3,700 per employee in situations where workers are terminated without severance.

Quad/Graphics obtains court order against protesting ex-workers after threatening individual lawsuits
Since January the ex-workers have been picketing the closed Vertis plant gates 24 hours a day, about five workers at a time, delaying anyone from entering the property to seize the equipment and other assets remaining in the building. 

The assets have been purchased by Quad/Graphics, who took the ex-workers to court last week, seeking an injunction to end their picket line. The Liberal Minister of Provincial Parliament (MPP) for Niagara Falls, Kim Craitor, who has been supporting the ex-workers, tells Niagara This Week: “I was in court with them, and I’m pretty disgusted that Quad did that.” Craitor adds that Quad was not only seeking an order to force the workers out but also threatened separate cases against individuals to recoup costs.

“[Quad] implied they might sue people because of costs that were incurred when they had to hire some security,” Niagara This Week quotes Craitor as saying. “The workers were very upset and worried that they might now have to pay some kind of fine.” 

As a result of Quad’s court action against them, the ex-workers  are now subject to a new court order requiring them to allow trucks to enter the closed plant.  The order limits the protesters to holding only a 10-minute information picket on each vehicle,

Wickson tells Niagara Falls Review reporter Ray Spiteri:  "We're telling [vehicle drivers] why we're there, telling them our story and asking them to honour our picket. But we understand they're just average guys trying to feed their families, too."

"We still have to get our message out. It looks like it's too late for us, but maybe our effort will raise enough awareness so that others won't have to go through this in the future."
http://www.wellandtribune.ca/2013/03/13/vertis-files-for-bankruptcy-in-canada
http://www.610cktb.com/News/Local/Story.aspx?ID=1910605
http://www.facebook.com/niagarafallsreview/posts/357109794406625

More background on this story is available at:
http://vicg8.blogspot.ca/2013/01/sudden-closure-of-canadas-only-vertis.html