Suit against former Spring Air owner resurfaces
American Capital Strategies, which owned the “old” Spring Air brand, probably was hoping to rid itself of a class action lawsuit filed by former workers when it went to bankruptcy court on May 29.
But the suit, which seeks 60 days wages and retirement benefits for some 700 workers who were suddenly dismissed earlier that month, has resurfaced in the form of an adversarial proceeding in the Chapter 7 bankruptcy case.
In their filing, the four former Spring Air workers who brought the original suit are asking the U.S. Bankruptcy Court in Wilmington, Del., to have the back wages and benefits listed as an “allowed administrative priority claim.” That means the workers would be paid before just about everybody else who has a claim, including unsecured creditors who are owed some $12.3 million.
The workers say Spring Air and American Capital violated the Worker Adjustment and Retraining Notification (WARN) Act by not giving the required 60 days notice before shutting down the factories.
Sadly, former Spring Air workers shouldn’t expect a check to arrive in the mail anytime soon — if ever. The company has told the court its only assets are $26,299 in cash.
Nevertheless, it’s good to see that someone is trying to hold American Capital accountable for the shameful way the workers were treated.
another former spring salesman commented:
Seabiscuit, I agree with others, you are a true horse's ass. Put yourself in the same situation as some 700 workers who were put out of work by ACS. If you were in this group you would see it differently. You can bet a spreadsheet circulated at ACS if the WARN act monies were paid.it The WARN act protects workers form companies like American Capitol. Hopefully this company and others will get the justice they deserve.
former Spring salesman commented:
Great name Seabiscuit because you're a horse's ass.I can't believe with all the recent press regarding companies like American Capital,H.I.G, Madoff and others that you don't yet understand how they operate. Money and greed are their only motivation. American Capital and their highly paid flunkies closed the Spring Air company abruptly and without proper notification because they thought it would cost them less to do so and they believe they're above the law. Hopefully they get what they deserve and so do the former employees.
Larry Thomas commented:
You may not agree with the Warn act, Seabiscuit, but it is a federal law that has been in effect since 1989. American Capital and any other company with 100 or more employees is required to follow it. Several furniture producers have provided proper Warn notices when they have closed factories in recent years, and I'm not aware of any problems.
Seabiscuit commented:
What BS. So the workers didn't get 60 days to sabotage the factory and claim various and sundry disabilitating workmen's comp injuries.
You can't give people 60 day warnings, it is idiotic.
