Money and Main Street
5 of 5
BACKNEXT
The Colibri assembly plant, East Providence, R.I.
The Colibri assembly plant, East Providence, R.I.

The Colibri Group, which makes high-end lighters and other men's accessories, went out of business and closed its East Providence, R.I. assembly plant back in January. CST Enterprises bought the product line.

But the 280 non-union workers who used to assemble these products say they were left out in the cold. They are demanding 60 days worth of pay and benefits, including two months worth of healthcare coverage, under the federal WARN act. They held a protest at the auction of the plant in March and 13 of them were arrested for disorderly conduct.

Colibri owed $24 million to its creditors, HSBC and Sovereign Bank. Even after the auction of the plant and other assets, the creditors are still out nearly $8 million, according to court-appointed receiver Allan Shine of Winograd, Shine and Zacks PC. "There still is a substantial shortfall," he said. "There is a virtual certainty that there will be no recovery for anyone other than the banks."

Fuerza Laboral, a group representing the former workers, connected them with a pro bono attorney that sued Founders Equity, the former shareholders of Colibri, for violating the WARN act, which requires a 60-day notice before a factory shutdown.

"Many had have been working there for 10, 20, up to 37 years," said Fuerza Laboral director Greg Pehrson. "In addition to be thrown into financial turmoil by being put out of work, many of them were thrown into emotional turmoil. They are continuing to fight not just for themselves, but to see changes made in labor laws for all workers."

Shirley Samayoa, a 27-year employee at Colibri who was arrested at the protest, said that Founders Equity and the receiver, who was paid a fee, should not have priority over the workers in being reimbursed.

"We wanted to demonstrate that you have Founders Equity that is robbing workers of their benefits, and they are allowed to get away with it," she said.

Founders Equity did not respond to messages.

NEXT

Last updated July 24 2009: 11:38 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.