DETROIT—Two weeks ago, Mayor Dave Bing got job security — at least for the next four years — when he emerged victorious in the municipal election. Now, two weeks into his first full term leading the city, Bing has sold the auto supply company he founded 29 years ago.
Last month Bing said that he would likely wait until 2010 to sell The Bing Group, so last week’s sale to Belleville metal stamping company L & W engineering came as a surprise — even to the 350 people he employs.
Now, controversy is developing around the sudden layoffs of all Bing Group employees. The Michigan Citizen reports that The Bing Group may have violated the WARN (Worker Re-Adjustment and Re-Training) act which requires an employer to give at least 60-day notice to workers during a plant closing or transfer.
The Michigan Citizen quoted a U.S. Department of Labor Report from the year the WARN act was passed:
“An employer who violates the WARN provision … is liable to each aggrieved employee for an amount including back pay and benefits for the period of violation, up to 60 days,” according to a report issued by the U.S. Department of Labor at the time.
So far neither the Bing Group nor UAW spokespeople have commented on the matter.
L & W Engineering has not committed to re-hiring Bing Group workers to run the new company, now called Oakland Stamping, but they have not ruled out hiring some workers back.
Until that is decided, 350 Detroit jobs are in limbo.