Workers protest Colibri's quick closing

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Workers protest Colibri's quick closing

February 04, 2009

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East Providence, R.I.--A crowd of more than 200 protested outside the headquarters of shuttered jewelry manufacturer The Colibri Group, claiming the company violated federal law by not giving them proper notification before closing, The Providence Journal reports.

According to the Journal, the protest, called "Rally for Justice for Colibri Workers," took place on Tuesday amid the blowing snow in East Providence, R.I.

The workers, organized by Fuerza Laboral (Power of Workers), a local immigrant and labor-rights group, are demanding that Colibri compensate them for 60-days pay, 60-days health care and severance for years worked.

According to the Journal, Colibri shut down suddenly on Jan. 14, telling 280 workers that it was their last payday, and workers who reported to the plant the next morning found the doors locked.

One day later, a Rhode Island judge appointed attorney Allan M. Shine to act as a temporary receiver for Colibri, a move that gave Shine power over the company's financial affairs and assets.

Fuerza Laboral claims Colibri's closing is a violation of the Worker Adjustment and Retraining Notification (WARN) Act, a law passed by Congress in 1988 that compels companies with at least 100 employees to provide a minimum of 60-days notice before closing a plant and plans to file a federal lawsuit in the case, according to the Journal.

However, a spokeswoman for the Rhode Island Department of Labor and Training, told the Journal that some circumstances, such as emergency financial challenges, can exempt companies from WARN Act regulations.

According to the petition for receivership filed in the case, Colibri's main stockholder, Founders Equity SBIC, stated that it "is informed and believes that [Colibri Group] is insolvent and unable to meet its obligations as they become due."

In addition, the petition stated that Colibri, "is far in arrears in payment of its obligations and there is a danger of dissipation and depreciation of the assets of the defendant."

Shine told workers they have until early June to file claims for severance, back pay and health care and promised the workers would get a fair hearing and decision on their claims, according to the Journal.

Colibri Group, which manufactures brands such as Seth Thomas, Dolan Bullock, Krementz and Colibri, sold its products through 20,000 U.S. retail outlets, including both chain and independent stores.

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