Foster & Gallagher Layoffs Could Bring Labor Charges

Share this content:
Nearly two weeks after Foster & Gallagher closed and laid off thousands of employees, the direct marketer may find itself answering charges of unfair labor practices.

Rep. Ray LaHood, R-IL, has called on the U.S. Department of Labor's Pension Benefits Administration to investigate whether Foster & Gallagher violated the Worker Adjustment Retraining Notification Act.

The WARN Act requires businesses with more than 100 employees to provide 60 days notice of a major layoff or plant closing to local and state government officials. Workers and local governments may bring individual or class-action suits under WARN. Penalties for noncompliance could result in 60 days back pay for employees and a $500 per-day penalty to the local government.

"I am also distressed by the fact that it appears the official 'Notice of Plant Closing' was given to employees on the same day the facility closed -- June 29," LaHood said.

Doug Morris, spokesman for Foster & Gallagher, said the company fulfilled its legal obligation to its employees and declined further comment on the matter.

The 50-year-old company let go nearly all its work force last month and filed for bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware. The privately held Foster & Gallagher, Peoria, IL, listed more than $100 million in assets and more than $100 million in debt, according to the court petition. The company will liquidate its Spring Hill Group, Michigan Bulb Group, Gurney's Group and all of their subsidiaries. It has arranged for short-term financing to assist in closing and liquidation and has put up for sale the Gift Group, which includes Walter Drake and The Home Marketplace catalogs.


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above