CONCORD, N.H. (AP) –New Hampshire has pledged to help 500 employees of a Bedford company that closed Wednesday without warning, while investigating whether the closure was illegal.
“I’m appalled that workers would show up and find the doors locked,” Gov. John Lynch said Thursday. “I think that’s inexcusable. The Department of Labor is looking to see if any labor laws were violated.”
Employment Commissioner Richard Brothers said his office will do everything it can to help Car Component Technologies employees in Bedford and Merrimack find new jobs. He urged them to head to their local Employment Security offices immediately to file unemployment claims.
Brothers said he is concerned about the way the company closed.
He said federal law requires companies that meet certain guidelines provide 60 days’ notice of layoffs.
With proper notice, he said state agencies could have been preparing for the layoffs. Companies that violate the law can be fined $500 a day for each day of violation and are liable to pay employees wages and benefits for up to 60 days.
The company’s parent, American Remanufacturers Inc., filed for bankruptcy protection this month, citing declining sales and increased competition. Workers at CCT remanufactured car axles.
“CCT workers need to know that the State of New Hampshire is here for them, especially during the holiday season,” Brothers said.
“We don’t know what to do,” worker Edwin Castrillon said. “Do you come to work? They say the company is bankrupt, everyone go home. Just like that.”
“What are you going to do, you know?” Louis Sterns, a manager, said. “What are you going to do? The holidays are coming up, and there’s no money.”
Workers said they met last week with company officials who said that even though the parent company and CCT had filed for bankruptcy reorganization, they shouldn’t worry about their jobs.
WMUR-TV quoted an ARI executive saying the company was preparing to sell the business but at the last minute lenders who had been funding operations pulled out of the deal.
“There’s no excuse for blindsiding the employees who made CCT profitable under former ownership. ARI has an ethical as well as a legal obligation to its employees and their communities,” said Mark MacKenzie, head of the state AFL-CIO.
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