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)
Subscribe to:
Post Comments (Atom)
3 comments:
Yep, they are doing it "totally correct". Taking care of employees 100%.
Another class action suit where only the attys win.
http://housingdoom.com/2007/09/10/former-first-magnus-employees-not-receiving-final-wages/#more-941
1. Well, the verdict is in and First Magnus employees will not get anything for wages/commissions they have earned. The judge for some reason granted the objection in Countrywide’s and WAMU’s favor, that these creditors will be paid before any employees will be paid. Please see the quote from the judge stating that all employees will have to get in line as an unsecured creditor and maybe if there is anything left, maybe on a first come first serve basis will you get money. Here is the article.
2. Here is info from a blog on dogmatic: There are 2 firms who are trying to represent the employees in a WARN ACT suit, they are requesting we receive 60 days severance, our back pay, commissions, bonuses and benefits. Their premise is the company knew it was in trouble and violated the WARN ACT. Some of the branches with less than 60 people may not be able to join in….but it is worth trying to contact them:
The firms involved in the case are:
Nichols, Kaster & Anderson
Minneapolis, MN
612-256-3200
Outten & Golden
New York
212-245-1000.
3. First Magnus somehow escaped giving COBRA insurance to their employees: This info can be found at www.firstmagnus.com . As a result, there are several First Magnus employees that have HIV or Cancer that basically have had their death certificate signed for them. They will not be able to continue radiation or chemo. HIV patients can’t get meds! No Insurance company will pick tem up. They will die quickly now.
4. Per court DOCS, Jaggi, the CEO, will be able to keep one of his Jets and a 3 person crew to run the jet so he can fly around and close down operations and liquidate assets. All this while people are starving and dying thanks to First Magnus.
5. Rumor has it, that First Magnus was investigated by the FBI just 3 weeks before the shutdown and they obviously knew of the trouble in sight. Why else would the CEO himself dump 13 million of his own funds into the company just 2 weeks before the collapse.
I'm not defending FNLC but just think you are all a bunch of wimps whining and complaining because you may have to go and get another job. There is no guaruntee given to you when you are hired that your job will last forever. People in other industries are laid off all the time with no sympathy from you or any one else. Grow up you bunch of pansies and go get another job like everyone else who gets laid off does. Maybe if you spent more time doing something productive instead of blogging and crying about it you wouldn't have anything to complain about because you would already have a new direction. I hope you ANNA do get laid off and end up a waitress at Waffle House where maybe you can find a sympathetic ear. I fully expect you will not allow this comment to appear on your blog because obviously reality has no place here.
Cindy Tran: Let me start by saying you obviously are selfish and self centered. I found a job within a month of the closure of the company, but my heart goes out to the single mothers, primary bread winners or husbands or wives who dedicated their career to a company that locked their doors without paying them their salary for hours worked. Yes they cannot expect for the job never to end, however not to receive your earned salary; have the bank return reimbursed expense checks that were received from First Magnus and finally what would you tell those employees who had family members under their insurance they can no longer continue with their important medical treatments because First Magnus did not pay the premium? Maybe you are too immature and that is why you say “People in other industries are laid off all the time with no sympathy from you or anyone else.” Did you stop to realize” Bankruptcy” is not the same as “Lay Off”?. Let me explain with Bankruptcy those single mothers, primary wage earner will NOT received a final check, vacation pay or even severance pay? No I don’t think you know that otherwise you would not be so insensitive! For the record since you are also here, may I quote you? “Maybe if you spent more time doing something productive instead of blogging and crying about it you wouldn't have anything to complain about because you would already have a new direction”
Sincerely,
Former FMFC Employee
Post a Comment