Governor Cuomo Announces $500,000 Returned to Workers Formerly Employed by Climax Manufacturing
State Investigation Results in Workers Receiving Full Restitution for Unpaid Vacation, Holiday, Medical and Life Insurance Payments
Governor Andrew M. Cuomo recently announced that $500,000 in unpaid wages
and benefits has been returned to former employees of the closed Climax
Manufacturing Corporation in Lowville. The 158 workers, members of United
Steelworkers Union Local 1888, received checks covering unpaid wages,
vacation and holiday pay, as well as unpaid medical claims and life insurance
after Climax Manufacturing closed in April of 2016 without advance notice.
"New York has zero tolerance for those who disregard their obligations,
exploit their workforce, and fail to pay them what they are owed,"
Governor Cuomo said. "This administration will continue to be vigilant against worker
exploitation in any form and will do everything within its power to ensure
a fair day’s pay for a fair day’s work."
Following Climax Manufacturing’s closing, the State Department of
Labor began an investigation centering on money owed to workers and established
that the company was liable and that the workers would receive the entirety
of what they were owed.
While DOL’s Worker Protection Division investigated the business,
the department’s Rapid Response team was dispatched to assist employees
during their time of transition. Rapid Response teams are dispatched when
layoffs occur, providing guidance to affected employees with the entire
suite of no-cost services the Department offers, including employment
referrals, customized recruitments, career development assistance, community
resources and assistance, and, when necessary, assistance with filing
for Unemployment Insurance benefits.
In September 2016, the New York State Department of Labor announced up
to $125,000 in additional training funding for workers impacted by the
closing of Climax Manufacturing. As of January 2017, the New York State
Department of Labor has assisted in finding jobs for 115 former Climax
Manufacturing employees, and continues to assist the former Climax employees
still in need.
New York State Department of Labor Commissioner Roberta Reardon said, "Let this significant settlement serve as an example to any company
across the state seeking to exploit workers. Far too often, when a company
shuts down, employees are owed wages and left scrambling to look for work.
I thank the Department of Labor’s Worker Protection and Rapid Response
teams for their diligent work throughout this difficult process."
Senator Joseph A. Griffo said, "The closure of Climax was a troubling setback for the communities
of Lewis County, and a devastating blow to those loyal and hard-working
employees who dedicated themselves to the company’s success. This
recovery is an important victory for the former employees of Climax, and
I thank the Governor and the Department of Labor for taking action on
behalf of these workers to ensure that they received what they are owed.
There is no excuse for mistreating workers, and I hope this instance sends
a clear message. It is great news that these workers have received the
compensation that is rightfully theirs, and I am pleased that state resources
through the Department of Labor have been able to assist many of these
individuals in finding new employment opportunities."
Assemblyman Ken Blankenbush said, "I'm glad to see some justice in this terrible situation and appreciate
the efforts of the Governor’s Office and the Department of Labor
in this matter."
Lewis County Board of Legislators Chairman Michael Tabolt said, “Thanks to Governor Cuomo, the former employees of Climax Manufacturing
have finally received their fair share of what is owed to them. This victory
will help these individuals and their families continue to get back on
their feet after unexpectedly losing their jobs last year and I thank
the Governor and the Department of Labor for their diligence in ensuring
that justice was served.”
To learn more about the Department of Labor’s Division of Labor
Standards, please click
here.
To learn more about the Department of Labor’s Rapid Response Team,
please visit this
link.