JUNE 3, 2021 — LAID OFF EMPLOYEES BRING AMENDED FEDERAL LAWSUIT INCLUDING UNJUST ENRICHMENT
Laid-off Flexsteel employees who are suing the company for allegedly violated their fiduciary duties to the company and its workers including enriching top executives at the direct expense of laid-off workers. The six employees who filed suit are requesting class action to cover all similarly situated employees.
Among the allegations being reported, “The series of events leading to the plant closures and refusal to pay severance show that defendants used COVID as an excuse to accelerate the restructuring at a reduced cost, at the expense of terminated employees. It alleges that top executives diverted money allocated for the employee-termination benefit fund in an effort to increase the value of the company’s stock price, then engaged in self-dealing through stock purchases for themselves.”
MAY 7, 2020 — Original post
Dubuque, Iowa-based Flexsteel Industries, a manufacturer of residential, RV, and contract furniture for the hospitality industry, has announced several restructuring activities which include abandoning its recreational vehicle and hospitality operations and concentrating on home furnishings, e-commerce, and workspace solutions.
Other actions include:
the permanent closure of its Lancaster, Pennsylvania distribution center;
the closure of its Dubuque manufacturing facility impacting 213 employees including those with jobs in corporate, engineering, support, and manufacturing operations; and
the permanent closure of its Starkeville, Mississippi manufacturing facility impacting 170 employees by September 2020.
According to a company spokesperson, “It has become clear that what was thought to be a short-term hit to these two already challenged businesses will now extend well into the future and will likely not return to pre-pandemic levels for some time. These decisions were extremely difficult and in no way reflect the dedication or performance of our employees at the Dubuque and Starkville manufacturing facilities. This pandemic has been unforgiving to many companies including ours, and we find ourselves with heavy hearts in making these hard decisions as we attempt to navigate these uncharted business conditions.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?