I guess the problem is that the company just does not have the money to shell out and given its situation cannot get a loan. Surely the union could put some sort of lien on the property.
Workers occupy Collins & Aikman plant in Toronto
The Associated Press
Saturday, March 31, 2007
TORONTO: Disgruntled autoworkers occupied a Collins & Aikman Corp. plant on Saturday and said they will not leave until the Michigan-based auto parts supplier agrees to pay severance to 200 workers.
Doors were barricaded and about 100 workers inside were preventing production at the plant, which is scheduled to close at the end of July.
Bob Chernecki, assistant to the Canadian Auto Workers' president, said the company told them the U.S. operations are refusing to release the money for severance.
Southfield-based Collins & Aikman said it is aware of the situation and was trying to work toward a resolution.
"We are in a continuing dialogue with CAW and our customers to see if we can work constructively and cooperatively," said David Youngman, who noted the company has one week to pay severance.
Chernecki said there were a few hundred workers outside the plant as well. He said the purpose of the occupation was to force the company into complying with a previous agreement to pay severance.
"They have absolutely every obligation, lawful and otherwise, including an agreement with us, our union — CAW, to pay that severance out," Chernecki said.
Collins & Aikman filed for bankruptcy protection in May 2005. In November 2006, the company said it expected to sell part or all of its operations in an effort to get the most money to repay creditors and save as many jobs as possible.
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On the Net:
Collins & Aikman Corp.: http://www.collinsaikman.com
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