Broken Agreement

[arboldt]

[vent on]

A year ago my employer told all of us this location would be closed by the end of February 2008, and gave us all agreements promising a retention bonus.

By December, it was apparent they could not meet that deadline to convert to a different system, so we all accepted a new agreement promising a bonus on May 9 if we stayed until April 30 (or were laid off sooner). This was a written contract that each of us signed. Two were laid off a couple weeks ago and have received their bonus.

Because we know the company has had a track record of not paying all its vendors, we repeatedly were assured our bonus money was budgeted and would be there.

Today we were told the company has cash-flow problems and could only pay 1/3 of the amounts on 5/23, 1/3 on 6/6, and the remaining on 6/20. They've known this was coming for over a year, and should have been planning for it.

So what do we do? Not show up on May 1? Not show up on May12 if they don't pay? File a Department of Labor complaint but keep working?

I'd be inclined to keep working as long as I can, but I have no confidence that'll be paid, either.

With the Michigan economy in a 7-year depression, I really hate to give up that bird in the hand...

[/vent off]

 

[BamaAlum97]

Re: Broken Agreement

Sounds like a tough situation. I would keep working and at the same time solicit the advice of a labor attorney. Typically, an initial consultation is free. The attorney might be interested in respresenting all of the affected employees in a single case...for a fee of course.

Good luck to you.

 

[SgtMaj]

Re: Broken Agreement

This is actually one of the few times I would hold off on an attorney, at least until 6/21. If you haven't received the full amt. by then, then I might consider an attorney. The problem with hiring an attorney now is that you still wouldn't see any money until at LEAST that long, and even then your attorney's fees would be taken out of it. The only time that wouldn't necessarily hold true is if you made a substancial financial desicion and could show that the breach of contract caused you further financial loss. In that case you could also sue for damages, but since from what it sounds like, you don't have any damages (other than just not having the original amt.), which you'll likely get just as fast by not contacting an attorney.

PS - You know it's not time to talk to an attorney yet when even I am saying not to.

It is sucky, and you should pester them, but do keep working until the regular pay stops.

 

[phwrd]

Re: Broken Agreement

Insert a bomb into the programming code of the old system. If you dont' get paid, set it off and blame it on the new system that ain't working yet...

Just a throught.

 

[PW2]

Re: Broken Agreement

It depends a lot on what your options are. I assume you are out trying to find a new job.

I'd, if it were me, bend over backwards to honor my end of the contract unless another job comes up that I wanted to take, or if it was taking up time that I could better spend finding that job.

If the choice is sitting at home watching soap operas or working with the hope that I'd be payed some or all of what was owed to me, I'd go to work.

What I'd absolutely not do is spend much time venting about something you have little control over. If you feel so strongly about it, leave. A proactive approach is always better than a reactive approach, and healthier.

 

[tashasdaddy]

Re: Broken Agreement

you have to go with you gut, even with an attorney. you can't get blood out of a turnip.

 

[turfman]

Re: Broken Agreement

I don't know how the labor laws are in MI, but alot of states are pretty cut and dry with labor disputes involving contracts.

In My state (Nj) if you have a signed contract and that contract is breached; you can sue for triple damages and the employer picks up the legal fee.

Ask me how I know.

 

[aspeck]

Re: Broken Agreement

Okay, how do you know?

 

[arboldt]

Re: Broken Agreement

I don't know how the labor laws are in MI, but alot of states are pretty cut and dry with labor disputes involving contracts.

In My state (Nj) if you have a signed contract and that contract is breached; you can sue for triple damages and the employer picks up the legal fee.

Ask me how I know.

Thanks, all. I appreciate the comments and support.

And Turfman, I'd appreciate youir sharing your experience. You can PM me if you don't want to post it publicly.

I've tentatively decided I'll keep doing my job to the best of my abiility to maintain my integrity. The location and system everything is moving to is so incompetent I don't have to plant a bomb -- it'll self-destruct on its own. The route I'm seriously considering is filing a Michigan Department of Labor complain on May 9 if the money is not there.

Over the weekend, the corporate CIO emailed that he will be here later today. Our department head thinks the visit is to fire him, since he's regarded as our spokesman. It may be to propose or negotiate extensions with the 2 or 3 of us that will remain after all business is transitioned to the other system.

A year ago we questioned the [then] Exec VP about whether or not the money would actually be there, and were repeatedly assured it was in the budget and would indeed be there; we could trust her. She's since been fired. Seems to us the new CIO has told us we can't trust the company any more.

It's really painful to see what was once a great company intentionally self-destruct. I'm actually the new guy in the department -- I've only been here 15 years.

And, yes, I have been looking for another job. Problem is the Michigan economy sucks big time. I could probably find another job if I wanted to move out of state, although my age (58) is working against me. The other thing is that with our lake property (and boat) only a couple hours away, I'm afraid we'd hardly ever see or use them again.

I'll let everyone know what happens after the CIO's visit later today.

 

[turfman]

Re: Broken Agreement

Okay, how do you know?

The year was 1993 ( dramatic voice over)

I was working for a company that had two partners. One partner hired me; we came to an agreement, and drew up a contract. The other partner later on decides he wants to run the company and first move is to get rid of me. I say, thats ok just run up stairs to accounting and get my buy out. He tells me to get lost. I say ok; see you in court.

I had 1 yr left on my contract @ 80k/ year. Go to court in Rahway, lawyer spells out the case for me and the judge took all of 5 minutes to hand down the judgement. Triple damages and employer pays for legals. That mistake cost him about $265,000.

That gave me the opportunity to start my own business.

 

[arboldt]

Re: Broken Agreement

I promised an update after the CIO's visit. Yesterday was actually rather busy. The best part is our immediate boss did not get fired and is still here.

The company is proposing a 5% increase in the bonus, with the recalculated bonus being paid in thirds, on 5/23, 6/6, and 6/20. Problem is, there are no guarantees and we fear they'll just keep stringing us along until they don't need us anymore. The company already has an established track record of not paying vendors.

We all indicated that, before we could accept any amendment, there would have to be significant and severe penalties if payments were not made on time. Of course, even 10% of nothing is nothing, so one suggestion was that any default to any of us would result in immediate transfer of ownership and rights to all non-licensed software on the computer. After all, they're just going to discard it after the transition, and we think it could be marketed. A risk, but any business venture is.

This morning we received a rough draft of the proposed amendment. Absolutely no reflection of any of yesterday's conversation. Why did he bother even coming up from Columbus?

We are trying to consult an attorney for advice on what kind of a counter offer we can / should make.