NECCO workers sue over sudden plant shutdown

Workers at the suddenly shuttered NECCO plant in Revere say the company's new owner violated federal law when it closed the place last week without warning.

In a lawsuit filed in US District Court, the workers cited the federal Worker Adjustment and Retraining Notification Act, which requires a 60-day notice of any plant closings and "mass layoff" of 100 or more workers. NECCO employed more than 100 workers, the suit says, adding:

Throughout the Bankruptcy Case and the acquisition by Round Hill, the Employees were consistently told that operations were continuing.

Last Tuesday, Round Hill issued a statement that while it was looking forward to embracing the world of chalky wafers, Valentine's Day message hearts and chocolate bars filled with four different centers, it had decided it didn't really want to make those things and was shutting the NECCO plant and would be selling off the brand.

The suit was filed by two NECCO workers, one from Lynn, the other from Revere, but they are asking to be appointed lead plaintiffs in a class-action suit on behalf of all the laid off workers. The suit seeks 60 days of back pay for all the workers as well as attorney's fees and unspecified damages.



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PDF icon Complete NECCO complaint145.77 KB


Round Hill

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Is Round Hill Investments LLC at all connected to Round Hill Capital real estate investment company?

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Dozens were laid off

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Right now, is this really appropriate?

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Good for them

Hopefully they get the pay they deserve. Any proceeds should go to the workers before the new owners or anyone else. They're the ones who got screwed.

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Screwed by being abruptly without a job with no warning so some investor can profit from the IP and/or building.

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Been around for years - duty on the employers to provide advance notice of closing & loss of jobs even in anticipation of plant closing.

WARN Act is Federal - there is also a state version of law.

In my experience of dealing with these issues, a number of companies try to by-pass this requirement but eventually get caught. It say a lot about the ethics of the business owners when they attempt to short change their workers with razzle-dazzle, no notice, closings.

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who knew

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the CEO of Round Hill was a UHub reader!

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There's an info session today at Revere City Hall from 1:00-5:00 for displaced NECCO workers.
Apparently a bunch of companies have stepped up with job offers.

(to be clear, the info session is about connecting workers with employment opportunities and is not connected to the above lawsuit, to the best of my knowledge)

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Just because many are able to find replacement jobs doesn't excuse the new owners from violating the law.

They knew the law when they bid on the company. If they couldn't afford the 60 days of wages they shouldn't have bought the plant.

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Oh I agree

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and I hope they win the lawsuit. But meanwhile the former employees need to find new jobs and since I knew an info session was happening today, I thought I'd share. (if it wasn't clear from the above link, the new plant owners are not involved in the info session. The City of Revere is behind it and is doing what they can to help the former employees)

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If They Knew ...

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They knew the law when they bid on the company. If they couldn't afford the 60 days of wages they shouldn't have bought the plant.

My strong guess

  • "They" (Round Hill) knew the law and went ahead with the purchase
  • "They" (Round Hill) were represented by competent counsel.

That "they" proceeded has A LOT of significance, I think.
We'll see what happens.

A court of law in not the best place to settle moral issues.
Likely, it's the only option.

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Yep, You're Right ...

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Five years from now ....
... or maybe seven ... or maybe ... nine ... or
The remnants of Necco Co5rp. will pay the litigants ... say
... $127.87 or maybe $5,157 ... or something in between.
Is that a LEGAL victory ... or a Moral victory ...
... or a lawyer payoff?

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NECCO is long gone

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Round Hill, on the other hand, is alive and well. And one would assume that whoever bought NECCO is also still extant, since, well, they just bought NECCO. Either way, someone's in trouble unless they obey the law.

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Why didnt Markey make mention

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Why didnt Markey make mention of this when he was there? He should know about the WARN act.

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I hope their legal grounds aren't wafer thin.

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When the capitalists leave, follow the lead of our fellow workers in Argentina, seize the factory and establish worker democracy using worker assemblies and councils.

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