Post by pigeonpie on Mar 26, 2009 22:04:48 GMT
CATISA employees to keep working but with no pay
C.M.W. Maó
The 31 employees at the troubled CATISA factory are continuing to work without being paid. The fashion jewellery manufacturer declared itself bankrupt on 25th February and has been unable to pay its workers their wages for the last two months nor the extra payments due in the summer and at Christmas. The head of the firm, Xavier Borbolla, explained that declaring the company bankrupt was the “best formula” for ensuring that the workers would receive the money owing to them.
The company, which moved from the centre of Maó to new premises on the Maó industrial estate in 2006, had hoped that the regional Department of Industry might have invested some money to help the firm keep afloat but those hopes were dashed when the Councillor for Industry refused on the grounds that it would set a precedent for other companies who may be in financial difficulty. CATISA, however, has had no official communication to notify them of the Government’s refusal to help.
The banks have cut off CATISA’s credit, leaving no option but to carry on manufacturing to fill the orders which are still arriving, and invoice for the products, until the court in Palma rules on the bankruptcy hearing. In the meantime the workers are not entitled to unemployment or social security payments.
The management of CATISA have asked the Department of Employment, headed by Joana Barceló, for public aid for the employees which would consist of up to 2,400 euros per worker, an interest-free sum which would have to be repaid later. The company is waiting for an answer to this petition and in the meantime the employees are working to fill the orders but with no pay and no option of “going on the dole”.
C.M.W. Maó
The 31 employees at the troubled CATISA factory are continuing to work without being paid. The fashion jewellery manufacturer declared itself bankrupt on 25th February and has been unable to pay its workers their wages for the last two months nor the extra payments due in the summer and at Christmas. The head of the firm, Xavier Borbolla, explained that declaring the company bankrupt was the “best formula” for ensuring that the workers would receive the money owing to them.
The company, which moved from the centre of Maó to new premises on the Maó industrial estate in 2006, had hoped that the regional Department of Industry might have invested some money to help the firm keep afloat but those hopes were dashed when the Councillor for Industry refused on the grounds that it would set a precedent for other companies who may be in financial difficulty. CATISA, however, has had no official communication to notify them of the Government’s refusal to help.
The banks have cut off CATISA’s credit, leaving no option but to carry on manufacturing to fill the orders which are still arriving, and invoice for the products, until the court in Palma rules on the bankruptcy hearing. In the meantime the workers are not entitled to unemployment or social security payments.
The management of CATISA have asked the Department of Employment, headed by Joana Barceló, for public aid for the employees which would consist of up to 2,400 euros per worker, an interest-free sum which would have to be repaid later. The company is waiting for an answer to this petition and in the meantime the employees are working to fill the orders but with no pay and no option of “going on the dole”.
