Showing posts with label plant closures. Show all posts
Showing posts with label plant closures. 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when the NDP were last in power (from 1990 to 1995), but that the Conservative Party under former Premier Mike Harris repealed it.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

Tuesday, March 26, 2013

Vertis ex-workers in Fort Erie post song describing their ordeal


Rooster1966, one of my faithful social-media sources, advises that the ex-workers of the closed Vertis Communications plant in Fort Erie, Ontario, have composed a ballad about their recent legal and political ordeal.  

Based on the lyrics, I'm guessing that the title of the song is “Thank you very much for dumping on me”.  

A folk rendition, performed by a cartoon cat (with an unexpectedly good singing voice), is posted on YouTube at:
http://youtube.googleapis.com/v/p-ocwNchVlE&hl=en_US&fs=1&

Update on 23 April 2013:
Very sorry to report that the video mentioned above has been removed from YouTube by the user, and as yet I have been unable to locate it elsewhere.  I will post its new location here if and when I find it. 

Background on this story is available at:
http://vicg8.blogspot.ca/2013/03/vertis-communications-files-for.html
http://vicg8.blogspot.ca/2013/03/union-representing-closed-vertis-plant.html
http://vicg8.blogspot.ca/2013/03/vertis-set-to-close-dallas-plant-on.html


Vertis set to close Dallas plant on April Fool’s Day


According to the Dallas Business Journal, Vertis Communications will close its Dallas facility, laying off 27 workers, on Monday 1 April 2013. The company disclosed the plan in a letter to the Texas Workforce Commission.  The Dallas facility at 8000 Ambassador Road was one of four facilities left out of the recent purchase of Vertis by Quad/Graphics Inc., along with Vertis facilities in New Jersey, Ohio and Ontario, Canada. 

I have been unable to uncover any further on-line news stories about the Dallas closure nor suggestions that it is causing anything near the furor of the Fort Erie, Ontario and Medina, Ohio closures.  Please drop me a line if you have more information.

Background on the other Vertis closures is available at:
http://vicg8.blogspot.ca/2013/01/sudden-closure-of-canadas-only-vertis.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

Friday, March 8, 2013

Union representing closed Vertis plant workers and Quad/Graphics appear in Ontario court


Yesterday (Thursday) lawyers representing protesting ex-workers of the closed Vertis printing plant in Fort Erie, Ontario (who are members of CEP, the Communications, Energy and Paperworks Union of Canada) and Quad/Graphics appeared in the Superior Court in St. Catharines, Ontario, to resolve issues arising from the workers’ continual picket line outside the closed plant.

The workers are protesting their treatment in January when their jobs were terminated without severance pay.  Quad/Graphics, who owns such assets inside the closed plant as equipment, paper, and ink, and is in the process of having these assets relocated, had filed a motion for an injunction, claiming the workers have no right to form a "blockade" preventing trucks going in and out of the plant, since their dispute is with Vertis not Quad/Graphics. 

But since the U.S. parent company of Vertis filed for U.S. bankruptcy protection last year and Vertis has told the ex-workers they have no money, the ex-workers are afraid these assets are their only potential source of recompense.  They don't want to see them removed until they are paid what they claim is legally owed to them, an amount estimated at around $2.7 million.

Justice Robert Nightingale postponed the hearing until Monday 11 March 2013 to give the union time to prepare its case. 
Meanwhile, lawyers for the two sides have agreed to try to come up with a mutually acceptable “picket protocol” that will include rules for how long the the protesters can stop a vehicle.
http://www.printaction.com/News/20130317-vertis-quad.html
http://www.forterietimes.ca/2013/03/07/former-vertis-workers-quadgraphics-head-to-court
http://www.bulletnewsniagara.ca/2013/03/07/labour-company-takes-picketing-vertis-employees-to-court-seeking-to-end-plant-gate-blockade/
http://www.wellandtribune.ca/2013/03/07/former-vertis-workers-quadgraphics-head-to-court


More background on this story is available at:

http://vicg8.blogspot.ca/2013/02/may-closure-of-vertis-plant-in-medina.html


http://vicg8.blogspot.ca/2013/01/sudden-closure-of-canadas-only-vertis.html

Wednesday, February 6, 2013

Controversy over Vertis plant closures in Ohio and Ontario persists on line


My initial post on 6 February 2013 appeared as follows:
The closure of a Vertis Communications plant in Medina, Ohio has been scheduled for May 1st  and will lay off 53 workers.  Based on an article in today's Medina Gazette, this matter seems to be attracting less controversy than the same company's January closure of their plant in Fort Erie, Ontario.
http://medinagazette.northcoastnow.com/2013/02/06/53-jobs-lost-after-sale-of-vertis-communications-in-medina/
http://vicg8.blogspot.ca/2013/01/sudden-closure-of-canadas-only-vertis.html
http://vicg8.blogspot.ca/2013/01/mpp-kim-craitor-champions-ex-employees.html

Update on 13 February 2013:

Although a similar article published in yesterday's Medina Post does not mention any labour disputes, the reader comments that have accumulated since 6 February 2013, when the Medina Gazette article was published, suggest that ex-Vertis employees in Ohio may be encountering similar problems to those faced by ex-Vertis workers in Ontario.

Anonymous, who has worked at the Medina facility for a decade, reports that workers received “No severance, no warn pay, no vacation paid out, no straight answers on what was happening to the company for 6 months.”  S/he also claims that, in order to secure his bonus, their general manager informed workers falsely that if the company stayed profitable, there was a good chance it would remain open.  From social-media sources like this one, it still remains unclear what the legal status of the ex-Medina-workers is, whether they have taken any collective remedial action, or whether a union represents them.

Meanwhile, Mad In Canada and Rooster1966 report that the controversy at the Fort Erie plant has still not been resolved.  They say the picket line continues 24/7 outside the closed plant and aims to prevent owner Quad/Graphics from removing assets until ex-workers receive the entitlements they have legally earned.
http://medinagazette.northcoastnow.com/2013/02/06/53-jobs-lost-after-sale-of-vertis-communications-in-medina/   
http://www.thepostnewspapers.com/medina/local_news/article_8b6f38ce-7071-5878-8aa6-91a6f66c5d5b.html

Update on 8 March 2013:

Like the Medina Post, PIWorld.com has turned in another neutralized report on the Medina plant closure:
http://www.piworld.com/article/commercial-printing-news-briefs-printing-impressions-march-2013# 

The following is an Internet link to a letter dated 3 March 2013 from James A Thibert, General Manager, Fort Erie Economic Development and Tourism Corporation, outlining Mr. Thibert’s version of recent events:  http://www.redbulldiaries.ca/node/3025



Detailed information on the recent escalation of Ontario protests by ex-Vertis employees is available on the Website of CHCH Television (based in Hamilton, Ontario) at:
http://www.chch.com/component/k2/itemlist/search?searchword=vertis+communications
http://www.chch.com/home/item/11669-vertis-workers-say-they-were-stiffed-on-severance

But at least someone is still happy with Quad/Graphics:  their shareholders.  The company enjoyed profits of $21 million in the fourth quarter of 2012 and on Monday March 4th declared a quarterly dividend.  Shareholders of record on Monday, March 18th will be given a dividend of $0.30 per share on Friday, March 29th
http://sussex.patch.com/articles/quad-graphics-posts-4q-profit-sales-down-7
http://www.jagsreport.com/2013/03/quadgraphics-plans-quarterly-dividend-of-0-30-quad/







Monday, January 28, 2013

Ontario MPP champions ex-employees of closed Fort Erie Vertis plant


On Friday, former employees of Vertis Communications staged a public-information rally and picket line outside the company's now defunct printing plant in Fort Erie, Ontario.  When it closed the plant suddenly last week, its U.S.-based owner refused to pay them termination and severance, which is required under Canadian law.

The Liberal Minister of Provincial Parliament for Niagara Falls, Ontario, Kim Craitor (right), attended the rally and told the Niagara Falls Review:  "[Vertis] basically, in my opinion, premeditated the murder of this Canadian plant."

Craitor added that, although Vertis had a longstanding strategic plan in place to close the Canadian plant, it gave the employees "false expectations that things were going to be okay there."

"People should know what this company has done to them," he asserted. 


Update on 11 March 2013:

The ex-workers have asked both the federal and provincial govrnments to step in and help them recover the money they feel is owed to them.
Recently, Welland Member of Provincial Parliament (MPP) Cindy Forster and Welland  federal Member of Parliament (MP) Malcolm Allen, both members of the New Democratic Party, visited the workers on the picket line as a show of solidarity. Ms. Forster and Mr. Allen have both raised the ex-workers’ issue in the provincial Legislature and federal House of Commons respectively.
Mr. Craitor has also visit their picket line and has been in regular contact with union officials to offer whatever assistance is available from his office.  Along with Jim Thibert, general manager of the Fort Erie Economic Development and Tourism Corporation, Mr. Craitor also attended last Thursday’s court hearing of an injunction motion filed by Quad/Graphics against the union
Source:
http://www.bulletnewsniagara.ca/2013/03/07/labour-company-takes-picketing-vertis-employees-to-court-seeking-to-end-plant-gate-blockade/


More background on this story is available at:
http://vicg8.blogspot.ca/2013/01/sudden-closure-of-canadas-only-vertis.html
http://vicg8.blogspot.ca/2013/03/union-representing-closed-vertis-plant.html

Update on 8 May 2013:

Another politician sympathetic to the plight of ex-Vertis workers is Ontario Labour Minister Yasir Naqvi, who wrote to his counterpart in Ottawa asking the federal government to intervene on the workers' behalf.
Source:
http://www.bulletnewsniagara.ca/2013/05/03/labour-former-vertis-workers-denied-severance-end-plant-gate-picketing-but-the-fights-not-over-yet/