Republic Windows Redux? Chicago Bakery Faces Class Action Suit for Pre-Christmas Closure
Kari Lydersen
Almost exactly two years after workers at Republic Windows and Doors famously occupied the plant after the company’s owner closed it suddenly (without giving them advance notice and severance and vacation pay), in December 2010 a suburban Chicago bakery called Rolf’s Patisserie similarly shut down operations without notice. Like with the republic closure, Rolf’s closure allegedly violated the WARN Act and left employees without a job a few days before Christmas.
But unlike Republic Windows, the Rolf’s situation received virtually no attention, workers were allegedly never paid the money due them and in January 2011 the factory started hiring new workers again, joining a skeleton crew of about eight who had been kept on even after the shut down. The company soon called back some of the former workers and some others returned on their own.
These workers experienced déjà vu last month, when Rolf’s again shut down on December 10 — apparently for good this time — without providing WARN Act notice, severance pay or vacation pay due the 136 workers who were laid off. When workers tried to cash their last paychecks, which they picked up on December 15 according to orders on the company’s website, the checks bounced.
This week renowned labor lawyer Thomas Geoghegan filed a class action lawsuit on behalf of the workers laid off from Rolf’s in December 2010 and December 2011, arguing that the company violated the WARN Act both times by failing to give 60 days notice or 60 days severance pay. The suit also allegations violations of the Illinois Wage Payment and Collection Act, for failing to pay workers their last pay checks and for unused vacation time.
A press release from the workers rights faith-based group Arise Chicago, which organized a protest about the situation Jan. 10, describes how workers discovered they would be without work two weeks before Christmas:
Workers were told on Dec. 10 that the plant would be closed all weekend for cleaning, but that they should report to work as usual on Mon., Dec. 12. On Dec. 11, the factory’s president and owner Lloyd Culbertson asked the production manager to present to log him into the company’s web site, then demanded that the worker leave the room. Curious about Culbertson’s activities, workers checked the company’s site 30 minutes later. They were shocked to discover a three-sentence announcement that the plant was now closed – the web site listed the closure as in effect as of December 10. Culbertson had not informed any of the plant’s 136 workers of the plant’s impending closure; the web site’s announcement was the first any employees had heard that they would be losing their jobs.
The company’s website stil lists the curt closing notice, along with photos of the fancy delicacies it produced – including wedding cakes, cupcakes, truffles and special holiday treats. The notice says:
With deep regret Rolf’s Patisserie, Inc. announces the closing of its business in Lincolnwood, IL, effective immediately. Due to sharply higher operating costs, the cost of financing an expansion project and the inability to operationally meet the seasonal demands of our customers, we have made this difficult decision. We thank you for your patronage and we apologize for any inconvenience.
The lawsuit lists three named plaintiffs – Deyanira Alvarez, Karen Leyva and Jose Cabrera Ortega – who worked at Rolf’s before the 2010 closing and up until the closing last month. The suit seeks payment and damages for the plaintiffs and other workers, including managers. The lawsuit names Rolf’s president-owner Lloyd and secretary Ford Culbertson as defendants. The lawsuit also casts blame upon – though does not officially charge – First American Bank, saying:
On information and belief, the Named Plaintiffs allege that First American Bank, who owned all the assets of Rolf’s and had control of Rolf’s bank account, made the decision to halt payment on the paychecks. Upon information and belief, the Named Plaintiffs allege that Rolf’s and the individual defendants knew or should have known that they should have given notice to the workers at least 60 days prior to December 10, 2011 because of the financial condition of Rolf’s and knew or should have known that they should have set aside sufficient funds to pay the wages and benefits of the workers.
On Jan. 5 plaintiff Leyva sent an email to Lloyd Culbertson complaining about the bounced checks. A day early she and other workers had gotten letters purporting to be WARN Act notices. But coming almost a month after the closing, the letters do not comply with the federal law which mandates 60 days advance notice – or 60 days severance pay – for mass layoffs. The act, which was key to the Republic Windows drama, is meant to provide workers and government officials notice of mass layoffs to help workers and municipalities prepare and seek or provide retraining. WARN stands for Worker Adjustment and Retraining Notification.
According to Arise organizers, Rolf’s supplied cakes and pastries to Whole Foods and other upscale retailers in the Chicago area. The factory was located in Lincolnwood, a suburb on the city’s northwest side.
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Kari Lydersen is a Chicago-based journalist, author and assistant professor at Northwestern University, where she leads the investigative specialization at the Medill School of Journalism, Media, Integrated Marketing Communications. Her books include Mayor 1%: Rahm Emanuel and the Rise of Chicago’s 99%.
