MONTICELLO - The 43 workers at hanger-producer Shanti Industries in Monticello can go back on the job for about a week, but there's no guarantee there will be any more work for them after that.
Employees had worked at the factory until a few days ago but they haven't been paid, plant supervisor Tom Marty said.
The lack of pay has cost some employees their vehicles and others their homes.
At the heart of the issue is a disagreement between Shanti Industries and Scottsdale, Ariz.-based, Laidlaw Company to see who will make hangers in the Monticello factory. The dispute ended up in Green County Circuit Court Tuesday.
Shanti contends Laidlaw owes it money for hangers already made, while Laidlaw wants the 26,000 boxes of hangers, plus the raw material used to make the hangers, which Laidlaw owns. The hangers are sitting in the Monticello facility.
Both sides agreed that Laidlaw can have the raw materials and the hangers already made. In addition, Laidlaw will pay Shanti Industries about $50,000 for the hangers, which the plant made over the past few weeks.
Workers were told by plant manager Jeff Bosen Tuesday, at the courthouse, that they would finish up the last of the hangers they already began to build and then be finished with Laidlaw. The employees applauded when Bosen gave them the news.
Bosen told them the $50,000 Laidlaw will pay Shanti Industries today will be placed in the company's account and the workers each will receive a week's check from the money.
"Can I call my landlord and tell him I'll have the rent tomorrow?" one woman asked.
Bosen said the money from Laidlaw is expected in Shanti's account Wednesday.
Marty said it will help, but will not cover the entire period when the employees weren't paid.
Bosen also told them Shanti plans to look for other partners who would provide the material to produce hangers, but he said he didn't know when another partner would come forward.
Laidlaw Chief Financial Officer Robert Barba said his company tried to reach an agreement with Shanti and came to the table in "good faith" to get a settlement. He said Laidlaw cares about the Monticello employees and for the well-being of their company.
Shanti operates in the approximately 80,000-square-foot facility where Laidlaw Corporation operated for many years in Monticello before closing the plant in late 2006 and moving the company's approximately 37 jobs to China. The Monticello plant was run for a time after that by some local venture capitalists, who found the going too tough to continue. Shanti Industries stepped in after that, buying the plant and its equipment, and eventually entering into an agreement with Laidlaw to produce hangers for the company. But the Shanti-Laidlaw relationship has strained in a dispute over how much Laidlaw will pay for the hangers made.
The outcome of Tuesday's proceedings didn't satisfy the employees who work at the company, however.
Without another company to step forward to provide Shanti Industries with the raw materials needed to make hangers, workers face an end to their jobs.
That compounds their concerns about how they will pay bills and even feed their families, they said.
Some employees said their payroll checks bounced when they tried to cash them at the end of May, because money that was supposed to be in the company's account never was transferred from Laidlaw to Shanti Industries. They cashed their payroll checks thinking the money would be there, then learned it wasn't. Some weren't paid for a few weeks before that, because Shanti didn't have money in its account. They expected Laidlaw would put the money in the company's account to help Shanti Industries meet its payroll.
"We spent money we didn't have," employee Mark Risley, Monticello, said. "This has nothing to do with the economy. It's two companies arguing over profitability."
"We want our money and we want our jobs back," employee Chad Green, Browntown, added. "Some of us haven't been paid for two weeks."
Bosen also told employees Shanti will file a $2 million lawsuit against Laidlaw in Arizona court, which has jurisdiction over the case, and, after arbitration, any money Shanti receives will be used to pay the employees.
He didn't know how long the case will take, however.
For now, the employees just have to wait.
Amy Loeffel, Monticello, has worked for the company for 15 years, all the way back to when Laidlaw originally owned the plant. She has seen it all, she said, from working six days a week to now.
"I have bills I can't pay," she said. "Some of these guys don't even have gas money to get to work."
Employees had worked at the factory until a few days ago but they haven't been paid, plant supervisor Tom Marty said.
The lack of pay has cost some employees their vehicles and others their homes.
At the heart of the issue is a disagreement between Shanti Industries and Scottsdale, Ariz.-based, Laidlaw Company to see who will make hangers in the Monticello factory. The dispute ended up in Green County Circuit Court Tuesday.
Shanti contends Laidlaw owes it money for hangers already made, while Laidlaw wants the 26,000 boxes of hangers, plus the raw material used to make the hangers, which Laidlaw owns. The hangers are sitting in the Monticello facility.
Both sides agreed that Laidlaw can have the raw materials and the hangers already made. In addition, Laidlaw will pay Shanti Industries about $50,000 for the hangers, which the plant made over the past few weeks.
Workers were told by plant manager Jeff Bosen Tuesday, at the courthouse, that they would finish up the last of the hangers they already began to build and then be finished with Laidlaw. The employees applauded when Bosen gave them the news.
Bosen told them the $50,000 Laidlaw will pay Shanti Industries today will be placed in the company's account and the workers each will receive a week's check from the money.
"Can I call my landlord and tell him I'll have the rent tomorrow?" one woman asked.
Bosen said the money from Laidlaw is expected in Shanti's account Wednesday.
Marty said it will help, but will not cover the entire period when the employees weren't paid.
Bosen also told them Shanti plans to look for other partners who would provide the material to produce hangers, but he said he didn't know when another partner would come forward.
Laidlaw Chief Financial Officer Robert Barba said his company tried to reach an agreement with Shanti and came to the table in "good faith" to get a settlement. He said Laidlaw cares about the Monticello employees and for the well-being of their company.
Shanti operates in the approximately 80,000-square-foot facility where Laidlaw Corporation operated for many years in Monticello before closing the plant in late 2006 and moving the company's approximately 37 jobs to China. The Monticello plant was run for a time after that by some local venture capitalists, who found the going too tough to continue. Shanti Industries stepped in after that, buying the plant and its equipment, and eventually entering into an agreement with Laidlaw to produce hangers for the company. But the Shanti-Laidlaw relationship has strained in a dispute over how much Laidlaw will pay for the hangers made.
The outcome of Tuesday's proceedings didn't satisfy the employees who work at the company, however.
Without another company to step forward to provide Shanti Industries with the raw materials needed to make hangers, workers face an end to their jobs.
That compounds their concerns about how they will pay bills and even feed their families, they said.
Some employees said their payroll checks bounced when they tried to cash them at the end of May, because money that was supposed to be in the company's account never was transferred from Laidlaw to Shanti Industries. They cashed their payroll checks thinking the money would be there, then learned it wasn't. Some weren't paid for a few weeks before that, because Shanti didn't have money in its account. They expected Laidlaw would put the money in the company's account to help Shanti Industries meet its payroll.
"We spent money we didn't have," employee Mark Risley, Monticello, said. "This has nothing to do with the economy. It's two companies arguing over profitability."
"We want our money and we want our jobs back," employee Chad Green, Browntown, added. "Some of us haven't been paid for two weeks."
Bosen also told employees Shanti will file a $2 million lawsuit against Laidlaw in Arizona court, which has jurisdiction over the case, and, after arbitration, any money Shanti receives will be used to pay the employees.
He didn't know how long the case will take, however.
For now, the employees just have to wait.
Amy Loeffel, Monticello, has worked for the company for 15 years, all the way back to when Laidlaw originally owned the plant. She has seen it all, she said, from working six days a week to now.
"I have bills I can't pay," she said. "Some of these guys don't even have gas money to get to work."