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Stella D'oro's Bronx, NY factory to close following dispute with union

Posted by trainsarefun on Mon Jul 6 18:21:37 2009

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Full draft story from NYT here.

excerpt:

July 6, 2009, 5:03 pm

Stella D’oro Factory to Close in October

By Jennifer 8. Lee

Last week, a federal judge ordered Stella D’oro to reinstate 134 workers after a protracted 10-month strike. This week, the company invited the workers back. It also announced that it would close the factory in October.

The decision to close Stella D’oro’s only factory, which is based in the Kingsbridge section of the Bronx, was made by Brynwood Partners, the private equity company based in Greenwich, Conn., which bought the company in 2006.

....

The workers had gone on strike on strike last Aug. 14, two weeks after their contract had expired. The owners maintained that the hourly wages of $18 to $22 an hour and nine weeks of paid leave made the factory unprofitable. It demanded significant reductions in wages and benefits in order to move the factory to profitability.

Last week, an administrative law judge with the National Labor Relations Board in Washington found that the company had improperly refused to bargain with the union by declining to provide the union with a copy of its 2007 audited financial statement.

The union representing the workers — Local 50 of the Bakery, Confectionery, Tobacco Workers and Grain Millers — was alerted by a letter from Daniel J. Myers, Stella D’oro’s chief operating officer under the federal Worker Adjustment and Retraining Notification Act, also know as the WARN Act, which requires that mass layoffs have at least 60 days notice.

Under the legislation, the workers might be eligible to receive unemployment insurance benefits, job retraining, and re-employment services.

....


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