Over Two Hundred Jobs Lost in Maple Leaf Loading Receivership
250News Exclusive
Prince George, B.C. – The closure of two mines in the Chetwynd area this spring is having a trickle-down effect on a Prince George-based company which has been providing specialized services to the mining and resource sectors since 2005.
As confirmed exclusively to 250 News by company President and CEO Martin Carsky, Maple Leaf Loading Ltd has been placed in receivership, throwing more than 200 employees out of work. In a telephone conversation from his Vancouver home Saturday afternoon, Carsky told us “yes that’s correct, that happened yesterday (Friday) mid-day and Ernst and Young have been appointed as the receiver. They’re acting on behalf of secured lenders of Maple Leaf Loading and I’m not in a position really to be able to make much of a comment other than to confirm that fact.”
Carsky says “the company’s business is to haul coal for mining businesses and one of the company’s biggest customers is Walter Energy (of Alabama), and you probably noticed back in April that they had shut down the Wolverine and Willow (Creek coal mines in the Chetwynd-Tumbler Ridge area). So the business of Maple Leaf is quited tied to the business of Walter Energy and other coal companies and so, with the prices of those commodities right now those companies are struggling and it has a knock-on effect obviously to businesses like Maple Leaf.”
Carsky says “when you’re a bank or another big financial institution and you’ve loaned money to a company and those businesses are struggling, my experience is you work with them for a little while but if the writing’s on the wall eventually the bank decides at some point to step in, and that’s what they’ve decided in this case.”
And that means the entire Maple Leaf operation, from its corporate office on PG Pulpmill Road to regional offices in places such as Chetwynd, Stewart and Grande Cache, Alberta, is now in receivership. “It’s everything, ya, unfortunately.”
Carsky says just over 200 employees are affected, “from truck drivers and maintenance personnel to supervisors and office staff.” He says his first concern right now is the employees. “It’s really a sad day, there are a lot of really good people at Maple Leaf and unfortunately the business has just been quite challenged based on the economic circumstances of its customers and the trickle-down effect. It’s sad.”
A concern was expressed to 250 News that the last paycheques due the employees may not have been issued. When asked about that Carsky could only say “I think its probably better for you to get some understanding of that from the receiver. I can’t comment on that unfortunately. Yesterday was an awful day.”
Carsky says his company’s operations came to a dead stop yesterday. “The receiver was appointed and they came in and took control of each of the sites and laid off all the staff.” All equipment, including pick-ups used by staff, was or is being seized. “Yes, they’re in the process of securing the equipment and doing what they have to do.”
Comments
The bank pulled the plug on Maple Leaf, but the management had to have know this was coming. It doesn’t just happen out of thin air. A lot of people are out a lot of money including the many lease operators that run their own equipment, pay their own employees, and who Maple Leaf insisted on paying over a 50-day account despite what they must have know was going on with their bankers.
The mines like Walter Energy have already said they intend to pay the lease operators directly a negotiated settlement… which is good because once Maple Leaf is in receivership those owed money by Maple Leaf will receive nothing. Apparently maple Leaf has yet to be paid for their latest payment, so the mine in theory can by-pass Maple Leaf and pay the lease operators directly.
Walter Energy wants trucks on site again on Monday to finish 5-months of hauling stock pile they have. Not likely to happen next week until the lease operators at minimum are paid for work rendered. Who will haul for the mines now is the question. Are they going to offer 50 cents on the dollar for what is owed, and if so who would work for them? They claim they are willing to pay weekly now rather than on a 50-day schedule, so that will help, but they will likely have to increase the rates for a Lomak, Excel, or Arrow to come on site in light of the situation with the mine itself, and in light of smaller contractors loosing their discounts for other services through Maple Leaf, such as tire shops and such.
This is a tragedy for anyone that worked for Maple Leaf, and their contractors… but it could be an opportunity for other trucking companies to get a foot into the mining industry.
IMO another great example of why the bankruptcy laws in Canada are grossly unfair to investors, employees, pensioners and the like. All the power resides with the bankers and they always manipulate the conditions so as to make money off the bankruptcy itself. In this case they will sell the assets for like 10-cents on the dollar to another entity that is in on the in with the bankers and they will start all over again with their pump and dump mentality of wall street.
The collateral damage to those that will not be compensated is of no concern to the bankers. Nor is the local economic impact of any concern to the bankers.
May very well be the bankers in question have even more lent out to their mining operators on the American side of the border, and in order to bring commodity prices back up this is the surest way to shut down the Canadian competition. That is how it looks from the outside anyways with a sudden unexpected receivership like this one.
An economy by and for the bankers… free markets be damned.
The employees of Maple Leaf Loading are not just out their last pay, they were also informed by Ernst and Young they will not get their hold back cheques, from the previous pay period. They will not get their holiday pay, they will not get a penny severance . They did not get notice beyond the lie that the new owner Mr. Les Dube planed to make the company a viable one, and that they had work until October, and perhaps even beyond that. They were told they could attempt to get 35 cents on the 1$ from the government. It seems they lost their jobs a full month ago, however, no one told them to stop working until Friday at 4PM.Someone managed to get a full months work for free. All government agencies began a holiday long weekend, so employees have no where to turn for answers, until Wednesday. Certainly not getting any help from Maple Leaf Loading, or Les Dube!
Aren’t Some Canadian business’s awesome! I know that I would get my pay out of them one way or another if I was in the same boat these employees are. No holds barred.
A good article by a billionaire making the case for a Free Enterprise capitalist economy… in striking contrast to the bankers of Maple Leaf.
http://www.politico.com/magazine/story/2014/06/the-pitchforks-are-coming-for-us-plutocrats-108014.html
Posted by: debla on June 28 2014 5:33 PM
The employees of Maple Leaf Loading are not just out their last pay, they were also informed by Ernst and Young they will not get their hold back cheques, from the previous pay period. They will not get their holiday pay, they will not get a penny severance
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They can get some money from the government under the WEPP program (a little of $3000 max) and whatever pennies on the dollar the trustee can get them.
Having had an employer go bankrupt I know it’s not a nice place to be.
It was like it was planned so that Les Dube’ of the Concord group sole owner of Maple Leaf Loading, or so the employees were lead to believe, could get as much free work out of the employee’s of Maple leaf as they could get, we are paid on the 15th and the end of the month with half month hold back, doing this at 4:00pm on a Friday before the end of the month, coming into a long week end means that the employees can not access help from government agencies for 5 days till the following Wednesday. We loose the current pay plus the 15th pay, and all our holiday pay and any severance or pay in lieu of notice that we would be entitled to. It is nice that CEO Martin Carsky can say how unfortunate it was that that the employees would be loosing two pay checks, their holiday pay, their severance.. These are people, they have children and families to take care of, bills to pay. I know of one of my guys that just had a baby, took some holiday time and was expecting a pay check on the 30th, not happening now, and now no job to go back to. I do not think Unfortunate covers it, it had to be orchestrated for this to happen just as it did and for the company to get the Maximum of free work from its employees that it can, and to leave them with 5 days to cover it, before their employees can seek help from government agencies or seek legal representation. The odds of this being anything other than an orchestrated, defrauding of the Maple Leaf employees is astronomical, I can not believe that Les Dube’ and the officers of the company would not know this was coming. They lead the employees to believe that we would be working till late fourth quarter, if not beyond, then in my own opinion defrauded them of thousands of dollars each, myself wages and holiday pay alone not including severance, approximately 12,000.00 multiply that by more than 200, Yes Mister Carsky that is unfortunate.. as you sit comfy in your Vancouver home, sure you got your pay ?? What about the 200 plus employees??
This is more than just employees and contractors. It is anyone who gave them credit. It says they had pickups so that would mean the dealers and repair shops, tire shops, and fuel companies are probably out money too. The equipment and truck dealers are probably on the hook for a big shot too. It was all ready pointed out that they pushed it right to the end of the month……almost like it was planned….
I guarantee the fat cat CEO got paid and will probably continue to get paid in one way or another.
Hey! CEO guy! How about you do the right thing and pay your employees out of your own pocket? You probably can afford it.
Dicks…….
Yep, jobs for BC and families first.
Where is Pat Bell? former Minister of Mining – oh yes, still getting his monthly salary – good for 18 months!!
Where is Shirley Bond and Mike Morris – why are they not helping these workers? oh yes – I remember- busy getting ready (beauty props) for photops on Canada Day. It is always the workers who suffer – so much for the Liberals and jobs for BC and families first!
Posted by: woodwoman on June 29 2014 9:05 AM
Where is Pat Bell? former Minister of Mining – oh yes, still getting his monthly salary – good for 18 months!!
Where is Shirley Bond and Mike Morris – why are they not helping these workers? oh yes – I remember- busy getting ready (beauty props) for photops on Canada Day. It is always the workers who suffer – so much for the Liberals and jobs for BC and families first!
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The government can’t possibly be expected to bail out every business in this province that goes under. We’d be bankrupt in no time.
The government does help workers like this out; we have the WEPP to help recover lost wages and we have EI to tide them over for up to a year.
Comment Posted by: axman on June 28 2014 7:08 PM
Posted by: debla on June 28 2014 5:33 PM
The employees of Maple Leaf Loading are not just out their last pay, they were also informed by Ernst and Young they will not get their hold back cheques, from the previous pay period. They will not get their holiday pay, they will not get a penny severance
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They can get some money from the government under the WEPP program (a little of $3000 max) and whatever pennies on the dollar the trustee can get them.
Having had an employer go bankrupt I know it’s not a nice place to be.
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Why should the taxpayer cough up their money? Thats idiotic!
The bottom line is, the employees should be first inline to get paid what these incompetent business owners owe them!
Posted by: Dragonmaster on June 29 2014 11:41 AM
Why should the taxpayer cough up their money? Thats idiotic!
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Unfortunately, in most cases the company that went bankrupt doesn’t have the assets to cover all the wages, etc. owing to the employees.
Besides, this is one of the benefits of living in a socialist-style country.
Can’t figure out what a business going broke has to do with the government? They will all get their EI… I do agree that employees should be paid before any one else gets their mitts on any cash
The company still has ads up for class one drivers
Posted by: Dragonmaster on June 29 2014 11:43 AM
The bottom line is, the employees should be first inline to get paid what these incompetent business owners owe them!
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That’s my biggest beef with bankruptcy laws; why is the bank considered a secured creditor and the ex-employees unsecured?
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