Who's Left To Lay Off?

First NLC makes the local paper again, and it's not good news:

"First NLC Financial Services is shedding 154 workers in Boca Raton."

I'm not sure if the author is referring to layoffs that have already happened, or if this is a new announcement...

Now This Is What I Call "Doing What Is Required"

Some folks are questioning my motives for this blog. "Move on," they say, "you're just being vindictive." Perhaps I am. But when a company treats its employees and customers the way FNLC has during the past couple of years, I feel that these actions should not be forgotten nor swept under the rug. FNLC has many resources at its disposal to put a postive (and false) spin on what's been going on within the company. But who is the voice for the common worker? We don't have PR firms or the backing of a corporate parent. Really, all we have is a chance to tell our side of the story in forums such as this.

If you are reading this blog with the intention of defending FNLC, you're wasting your time. This blog is for people who have been burned by the company, whether they still feel the sting or not. If you want to talk about how great a company FNLC is, start your own blog, for that is certainly not the purpose of this one.

Now that this piece of business is out of the way, I'd like to focus your attention on a company that is trying its best to stand by its employees during difficult times, including bankruptcy. For those of you who think that FNLC has done everything they can for its workforce, consider what First Magnus is doing and then contrast it to some of the decision-making that has gone on this year in Deerfield and Boca Raton:

Bankrupt Firm's Owners Establish Employee Fund
$1 million fund set up for First Magnus headquarters employees

August 22, 2007

By JERRY DeMUTH

Owners of a bankrupt mortgage lender have established a $1 million fund for some of its nearly 6,000 laid off employees.

More than $1 million has been pledged to assist some former employees of First Magnus Financial Corp. by the mortgage company's shareholders and executives.

The privately-held, Tucson-based company, which originated more than $17 billion in loans this year, shut down on Aug. 16 and filed for protection under Chapter 11 of the U.S. Bankruptcy Code on August 21.

Although First Magnus had nearly 6,000 employees in more than 300 offices nationwide, monies from the "assistance fund" will be provided only to the approximately 800 employees who worked in its Tucson headquarters, according to a spokesman.

"We, as shareholders and executives of First Magnus," President and CEO G. S. Jaggi explained in a statement, "are committed to doing what we can to personally help those individuals in Tucson who will suffer the greatest hardship."

This is because the Tucson employees lacked the loan origination skills of employees elsewhere, the spokesman said.

The company also has helped arranged a job fair for former Tucson employees, which will be held Monday, August 27, in a Tucson hotel, which is donating the space.

When First Magnus told employees that it was halting lending operations, it told them to expect a delay in the payment of wages and that those payments would be mailed out as checks rather than made by direct deposit, according to a spokesman.

Now, making the payments that were scheduled to be made on August 20 is in the hands of the bankruptcy court, Gary Baraff, senior vice president, marketing, told MortgageDaily.com, pointing out, "We have asked the bankruptcy judge to make that his highest priority and make those funds available for the [Aug. 20] payroll prior to any other creditors being addressed."

No complaints regarding unpaid back pay had been filed with the Arizona Department of Labor as of late Tuesday, a department spokesman told MortgageDaily.com.

(NOTE: the entire article can be found and read by subscribers to MortgageDaily.com)

Bright Future In Retail

As many of you know by now, we've basically shut down our wholesale operations. We couldn't even keep it going in our own Florida backyard. I'm surprised the wholesale website ("Committed to Our Future Together" with a nifty picture of T. Rex) is still live. I guess they want to get full value from the folks that redesigned it. Plus, where else are we going to talk about FIRSTQUAL?

Retail is still limping along, but eventually there isn't going to be anything left to consolidate. Maybe Sun will just hold onto the brand and relaunch it when the market rebounds (which is still a long way away, according to all financial forecasters).

By the way, have any of you seen Jim Cramer's mortgage industry meltdown? Good stuff.

The Local Angle

Courtesy of the Boca Raton News...

Nearly 40 percent of local First NLC staff laid off

It was the sort of letter no employee wants to receive – that your services are no longer required.

And certainly not after having only been in your new home for such a short period of time. First NLC had completed a move from Deerfield Beach to Boca Raton only in April of this year – and said in December 2006 that with the move would come an expected 200 more jobs.

Now it’s August, and there’s no 200 more jobs. In fact, First NLC has reduced its Boca Raton workforce by about 40 percent -- last week laying off about 129 of its more than 320 employees in its new Boca headquarters office in T-Rex Park. The move follows a general nationwide fall-off in the sub-prime mortgage lending market, and reflects what the firm said is an attempt to stem money losses....

More

The Hammer Has Fallen

Judging by the comments on the last post, I think everybody knows that the poop has hit the fan again. With such a small amount of people left in the office, I haven't been able to post without fear of getting caught. These are sad and angry times around here.

It appears that management (or supporters of management) have been posting comments to the blog. Hey - that's fine - it's a free country and I'm not going to censor anybody. However, I do need to address an issue that has been brought up.

Let's get this straight right now: everybody's situation with this company is not nearly as simple as "if you don't like it, leave." Anybody expressing this sentiment is foolish, arrogant and self-delusional.

When a company hires you, they typically put their best foot forward during the interview process, just as you try to make a great impression by wearing a nice suit as an interviewee. Often, despite our best efforts, we find that the company isn't all that it was cracked up to be only AFTER we are hired and become firsthand witnesses to the general nonsense and shenanigans going on.

At this point, according to some commenters, we should leave the company. Nobody is forcing us to stay, right? ABSOLUTELY WRONG. In the REAL WORLD, people have bills to pay. Getting another job isn't easy, especially with the fear tactics First NLC uses regarding folks who access HotJobs, CareerBuilder and Monster. This industry is in the dumps right now, and other gigs are hard to find. Plus, right now, having "First NLC" on a resume isn't very desirable. The mortgage industry knows what this company's reputation is and doesn't place much value on anybody working for it.

You do what you have to do to keep the kids fed with a roof over their heads. Dare I say you "DO WHAT IS REQUIRED" to keep your home and family safe and secure.

How anybody can insinuate that we are being whiners and complainers while we are free to leave on our own accord is absolutely irresponsible and myopic. This is the type of thinking that plagues this company and will keep it from recovering on its own.

As for management: I wouldn't be so smug and cavalier if I were you. It is no achievement to get bailed out for a second time by a company that specializes in this sort of thing. Take a look at how Sun has turned around their acquisitions. They know dead weight when they see it, and I'm pretty sure their due dilligence will land them on this blog at some point, if not already.

Link: http://www.palmbeachpost.com/business/content/business/epaper/2007/08/03/a8b_firstfin_0803.html