Chapter 11 approved, pay on the way
ServiCom call centre’s parent company gets court permission to release payroll to employees
The approximately 700 employees working at ServiCom anxiously waiting for their late pay are expected to receive it today, one week after the Sydney call centre’s parent company filed for Chapter 11 in the U.S.
New Jersey-based JNET Communications filed for bankruptcy protection on Oct. 19 in U.S. Bankruptcy Court in Connecticut. A meeting of creditors is tentatively scheduled for Nov. 13.
All of JNET Communication’s assets were frozen until a court ruling on Wednesday afternoon, which allowed the company to meet its payroll obligations.
Todd Riley, ServiCom site director in Sydney, said it should be “business as usual” from here on out.
He acknowledged that many employees showed both signs of optimism but also worry about what lies ahead for the company that originally set up shop in Sydney River in 1999 as Ron Weber and Associates Inc.
There were few other details provided on the bankruptcy protection order at this time, Riley said.
It’s unclear whether employees’ regularly scheduled pay day next week will be in bank accounts on Nov. 2.
“We’re still working out the finite details of all of that stuff right now. I expect that we will be getting the results of the (bankruptcy) order later (Thursday),” Riley said.
“The biggest thing was getting people paid and making sure that we fulfill the commitments that obviously people have been doing over the last while and that’s working.”
He said he was expecting to finalize and get approval from the company late in the day Thursday to roll out the process for paying employees a loyalty bonus as well as any increases in pay.
He said those details would be outlined to staff today.
When news broke of the Chapter 11 filing, ServiCom told employees it would implement a $250 loyalty bonus to current active employees to be paid out on Dec. 14. Other incentives added include a new retirement program and a tuition reimbursement program for eligible employees.
Rumours on social media concerning the Chapter 11 filing being the “final dagger” for the call centre are untrue, said Riley.
“At the end of the day, these things happen,” he said, in pointing out large companies such as General Motors, Delta Airlines and Macy’s have all sought bankruptcy protection at some point in a bid to restructure their debts.
According to Riley, attendance this week has been at about “85 to 90 per cent” when it’s typically at 95 to 97 per cent.
A source, who works at the call centre, said there have been a noticeably large number of people not at work this week.
Some employees have been forced to deal with overdrawn bank accounts and missed car payments, the source added.
Another employee who spoke to the Post last Friday said he refused to work last weekend due to the bankruptcy filing and the missed pay.