Simmons Denies Workers Severance and Termination Pay
September 19, 2008, 2:30 PM EST
CAW officials met with Simmons Canada Inc. and the company told the union it was unwilling to pay employees severance or termination pay, even though Simmons Canada plans to close its Brampton facility, throwing nearly 160 people out of work.
Hemi Mitic, assistant to CAW national president, expressed his frustration that the company has walked away from the workers and their families, after the company's announcement to close the factory.
"What this company is doing is utterly wrong," said Mitic. "People who have worked all their lives are entitled to get their fair share when a multinational corporation decides to walk away."
The CAW has challenged the company's decision and has filed proceedings before the Ontario Labour Relations Board.
The union will be pursuing a boycott of Simmons products and encouraging the public to do the same.
The company announced closure on September 8, 2008. No Labour Board hearing dates have been set.