Employees want to save Roadtrek brand
Former Erwin Hymer workers call for investigation into financial irregularities
CAMBRIDGE — Frank Van Damme clutched a custom licence plate with the name Roadtrek spelled out in capital letters.
It’s a souvenir now, a memento of a 35-year career at the recreational vehicle manufacturer, more recently known as Erwin Hymer Group North America.
“Roadtrek is a big name out there,” said Van Damme, who gathered with about 200 former colleagues Tuesday morning in front of the company’s Cambridge headquarters. “They want to do nothing but work.”
Holding handwritten signs reading “Betrayed” and “Save our company,” the workers stood in the snow in front of the plant that had, for many, been their workplace until Friday.
That’s when the news came down that the business had been placed in receivership, with an estimated 850 employees at facilities in Cambridge and Kitchener terminated. They were not represented by a union.
“It’s a shock,” Van Damme said. “It’s not warranted. It’s not fair.”
Problems arose in January with a round of layoffs and the suspension and possible firing of senior managers. German parent company Erwin Hymer Group announced an investigation was being launched into financial “irregularities,” and the North American operations were excluded from a multibillion-dollar acquisition of Erwin Hymer Group by U.S.-based Thor Industries.
While employees knew the situation wasn’t good, some spoke of being given false hope that additional cuts weren’t looming.
With Friday’s announcement came word that Erwin Hymer Group North America was facing more than $300 million in liabilities, amid the exaggeration or mischaracterization of profitability that may have gone on for years.
“I’m still in a state of shock,” said Tony Thompson, a 26-year employee. “It hurts.”
Now, employees are calling for action, and hoping that someone will step in to save the Roadtrek name.
“That’s what will interest people,” said Sandi Langer, a supervisor who had worked at the firm for three years. “We built a great product.”
The company was founded in 1974 as Home & Park Vehicles, and was renamed Roadtrek Motorhomes. Erwin Hymer Group acquired the business about three years ago, maintaining the Roadtrek brand and adding production of Hymerbranded vehicles and trailers at the local plants.
“We, the Roadtrek family, need your help; we need action to rebuild what is a viable and successful product that we believe in with our hearts and souls,” said Patrick Mullin, reading a prepared statement to the crowd.
Mullin said the employees’ goal is to save Roadtrek.
“Our family needs financial support from a buyer that believes in this product
like we do. Someone who has the resolve to turn this around, and see that the people who did this are held responsible.”
Mullin called on the RCMP and government for a full audit of business practices, “along with any criminal investigations that may be in order.”
An American firm, Corner Flag LLC, acquired Erwin Hymer Group North America as part of the larger deal with Thor Industries. Financial company Alvarez & Marsal Canada Inc. has been appointed receiver.
“Erwin Hymer made billions on the sale of (Erwin Hymer Group) to Thor. Its treatment of the lifeblood of its company after the fact is despicable.
“The employees are ready to defend themselves and demand our legal rights to fair treatment and to our much deserved severance pay, at least,” Mullin said.
In a statement issued Tuesday, Cambridge MPP Belinda Karahalios said her government will ensure “maximum support” is available for affected workers, including establishing an action centre.
“Our government will be there for the employees of Erwin Hymer to help them get back on their feet,” she said.
Addressing the crowd, 25-year veteran Scott Holden told his former co-workers — a group that includes his son and niece — that he loved them for coming out to the rally. “We’re a workforce that deserves answers.”