A company doing something good for once
Okay, most of you are probably like me--watching the news for the last few months and getting disgusted with corporations, legislators and wall street. :mad::(
I just came across a story with a footnote which resonated with me. Its a small thing (but I am sure its not small to the laid off employees), so I thought I would share this little note of pleasantness. Maybe its just me, but "I" was happy to see it.
There are two stories below, both related how Archway cookies just went under and booted its employees to the curb. Said employees just discovered they have no health insurance now (COBRA does not apply here).
The small good note: Lance cookies has stepped in to purchase the remnants of the company, and is giving preferential hiring to former employees, and trying to bring them back at the same senority/salary.
Lance does not have to do this, so I found it encouraging that they would make the effort. Again---its a small thing, but after the tidal wave of news stories about greedy, corrupt, piggish companies being handed free money by the feds, I found this a small bright spot. I know--I'm odd, but I wanted to share it anyway. Maybe someone else will also enjoy seeing it....
(PS, I will now pay attention to this brand)
By Jennifer Pifer-Bixler
(CNN) -- In early October, Starla Darling was just days away from giving birth to her second child. The 27-year-old mother from Polk, Ohio, had a well-paying job with good health insurance at the Archway Cookie plant in nearby Ashland.
But during a visit to her parents' house, Darling received news that sent her into a panic. A neighbor, who also worked at Archway, told them the plant was closing and their health insurance was ending two days later.
"I flipped out," Darling said. "It was five minutes after she told me, I was on the phone with the doctor," Darling said. "I told her, 'I need to be induced.'"
A few hours later, Darling was in the hospital. The next day, she had to have an emergency C-section. Darling was angry and disappointed. "I was supposed to have water labor. I wanted everything to be natural. I was forced into something I did not want to do."
After the mad rush to give birth to baby Kathryn, Darling got some more bad news. A bill for nearly $18,000 arrived from the hospital. Even though Darling gave birth before she says she was told her insurance was supposed to run out, the company denied the claim. She also says it denied other claims from earlier in the year. She wonders where the money went. "I paid $67 a week out of my check," she says, exasperated.
She and her husband Derek are trying to figure out what to do next. "We are two months behind on rent. The light bill is past due," she says with a sigh.
Darling is one of the growing numbers of Americans who are not only losing their jobs, but also their health insurance. The Labor Department reported Thursday that the number of Americans filing for unemployment is at a 26-year high. Initial filings for state jobless benefits surged to 573,000 for the week ending December6. That was an increase of 58,000 claims from the previous week. That means more families are without insurance.
"We are hearing dire predictions on where that will land," said Kathleen Stoll, deputy executive director of Families USA, a nonprofit that advocates for universal health coverage. "If we are not in a crisis now, we are certainly heading there quickly in 2009."
Under federal law, when someone loses his or her job, they can apply for COBRA. COBRA allows employees who leave a company to be covered under the company's health care plan for a year and a half. In special cases, COBRA coverage can last up to three years. Former employees have to pay the full premium and that can be expensive. According to Stoll, the average COBRA premium is between $12,000 and $13,000 a year.
Darling wasn't offered COBRA because Archway Cookies had filed for bankruptcy. According to The Ashland Times-Gazette, 274 people lost their jobs. The company's health plan had been self-insured, meaning the company paid all the costs itself. And when the plant closed, the money dried up.
"It leaves individuals in a huge lurch," said Amy O'Meara Chambers, an employee benefits attorney in Grand Rapids, Michigan. "You can't get blood from a stone."
President-elect Barack Obama says expanding access to health insurance is one of his top priorities. According to the U.S. Census bureau, nearly 46 million Americans don't have health insurance.
"If we want to overcome our economic challenges, we must also finally address our health care challenge," Obama said Thursday when he announced former South Dakota Sen. Tom Daschle is his pick for secretary of Health and Human Services and director of the White House Office of Health Reform.
Obama also said some people ask how the United States can afford health care reform. "I ask a different question -- I ask how we can afford not to," he said, pointing out that small businesses are laying people off and closing down because of rising health care costs.
As for Starla Darling, she is trying to figure out how to pay her medical bills. Darling applied for Medicaid while in the hospital. In many states, including Ohio, Medicaid covers medical expenses in special circumstances, such as pregnancy, if the expenses were incurred up to 90 days before the date of application and if eligibility requirements are met.
Many of Darling's former coworkers are not so lucky. Health care bills are stacking up and some people are putting off visits to the doctor.
But there is a bit of a silver lining. Lance Inc., which makes cookies, crackers and candy, bought Archway. On Tuesday, company officials met with the plant's employees in a local high school gym. Armed with crackers and $1,500 Visa gift cards, they announced plans to reopen the plant. The company is starting to hire people back at the same wage and seniority.
Darling has re-applied for her job and is optimistic. "Lance is the best thing that's ever happened to us," she said as she looks at her children.
By GINGER CHRIST
T-G Staff Writer
As Lance Inc. prepares to reopen Ashland Archway bakery, plans are under way to manufacture Lance products and Archway cookies.
"It'll be something of a combination," said Mark Carter, Lance vice president of strategic initiatives.
Lance -- a manufacturer of cookies, sandwich crackers, nuts, candies and mints based in Charlotte, N.C. -- purchased the Archway facility and brand for $30 million in a bankruptcy auction.
Production will be limited when the bakery fires up Tuesday, but will increase as the market allows.
"We can scale up very easily and very quickly as sales opportunities come up," Carter said.
The plant will initially employ one shift of workers, which officials estimated would include 50 to 70 workers. Archway workers will be given first consideration in the hiring process.
The bakery will have local management. "Many of those people will be former Archway employees," Carter said. "The plant itself will report back in to our main organization, which is responsible for all our manufacturing in North America."
Carter could not yet identify who would make up the plant management team.
Lance was founded in 1913, and has manufacturing facilities in North Carolina, Iowa, Georgia, Massachusetts, Texas, Florida, Arkansas and Ontario, Canada.
Carter said the former Archway bakery will be considered a Lance facility, just like the other facilities Lance owns.
"We are one company," Carter said.
That is an amazing thing at a time like this. I don't know about other states, but here in MA you are legally required to have health insurance or they tax the hell out of you. Since July 2007, all MA residents must have health insurance and proof of coverage. I don't remember the amount that they tax you, but for a lot of people it is a lot of money.
America needs more companies like this and far fewer private jet flying, golf playing, champagne drinking, greedy grabbers. These people lived life in luxury at the hands of their underlings and ultimately the American taxpayer.
I sure am glad to only have to pay $1.80 for gas now that all of the local stores are closed and groceries cost way too much. I'm just grateful for my job and my sweet benefits. I try to keep my head down and worry about my family first. When I hear stories like this, I am given a chance to smile and be proud to be an American.
The insurance regulations in MA are ugly. Glad I don't live there, as I would be even MORE annoyed than I am right now at the government (urgh). You also have some nasty gun laws. :(
What many people do not realize, is that there are a number of companies that are "self insured". IE they pay for the insurance themselves (there is some convoluted accounting process which I don't understand) but because of this, they are then not required to follow many federal laws. My husband's company is one. I think maybe that is why this story struck struck a nerve-----it could have been us in that situation, and frankly it frightens me. :(
I found this little tidbit out when I was having an issue about our prescription coverage. I "thought" they were violating federal law, but when I started making calls, found out that the fed regs did not apply to that insurance because the company was "self funded". This of course was much to my major annoyance. :mad:
That is why I appreciated this article. A little happiness in the news.
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