Brooke Corp. makes employee cuts
Published on -10/9/2008, 4:29 PM
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By MIKE CORN
PHILLIPSBURG -- A special master appointed to help sort out financial difficulties affecting Brooke Corp. has laid off as many as 100 employees at the company's Phillipsburg office.
That would leave about 80 people still working for the company, which includes Brooke Insurance among its subsidiaries.
Details of the layoffs still are sketchy, but stem from a decision made by special master Albert Riederer, a Kansas City-area attorney who was appointed by a federal judge to help sort out differences that resulted in a series of lawsuits by Wall Street banks against the company.
"I think they laid off a total of about 100 people," said Rob Orr, a member of Brooke's board of directors but no longer involved in the day-to-day operations of the company. "In this community, that's devastating."
Other reports suggest the actual job losses will be between 40 and 50 employees.
Orr had given up his role in the day-to-day activities of the company and was focusing his attention on resolving the issues that have resulted because of the lawsuits.
Orr, who lives in Smith Center, said the layoffs were conducted by the special master, and he received the information for officers within the company.
Although he is a director, Orr said a news release expected to be released either Friday or Monday will announce he is no longer a shareholder in the company.
"I sold my stock and applied it to the debt of the company," he said in a telephone interview late this morning.
The layoffs, he said, were announced Tuesday afternoon and took effect immediately.
A special reception for employees of the Phillipsburg facility is planned for Friday afternoon, a time when Orr and other primary owners of the corporation plan to extend their thanks.
"This isn't about the business," he said. "It's a social gathering to provide support. What we're trying to do is help people understand."
Orr said he also has a conference call scheduled for this afternoon with Riederer in an attempt to learn more about what has happened.
State workforce agencies will respond to Phillipsburg with a "rapid response" team, designed to help displaced workers enroll for unemployment. The officials also ensure recently laid-off workers are aware of and know how to register for other benefits.
Deb Scheibler of Kansas Workforce One said information packets will be mailed to affected workers and a job search workshop is scheduled for 10 a.m. to 4 p.m. Tuesday at the E-Center, 205 F Street, Phillipsburg. She said a job fair also could be in the community later this month to help connect displaced workers with employers.
Why were all the employees being paid for last month, when the francisees were getting nothing. The company was taking commissions that belonged to the franchisees and giving it the company employees. Now the company employees know what it is to work for free! I will take great personal joy when this company goes bankrupt!
(Posted by: EX Brooke Franchisee)
Workers UNPAID: 10/11/2008
Special Master Albert Riederer, DID NOT bother to PAY the employees on Friday, October 11. I'm sure they would have rather had money in the bank instead of a "social gathering" of the primary owners. Either give these people their pay or lay them off so they can apply for unemployment benefits and start looking for work. A SOCIAL GATHERING DOES NOT PAY THE BILLS.
(Posted by: A BROOKE EMPLOYEES MOM)
They had a job.......: 10/11/2008
That should of been nice enough compared to the griping now. What earthly good is a state workforce going to do for the area? You cannot just create jobs in a failing economy. Hear that you credit card abusers and ones that only knew spend spend spend?? Its the fat lady singing. Now sleep in the bed you made.
(Posted by: )
Now you care about your employees!: 10/10/2008
You never did anything nice for them before this. Why start now?
(Posted by: )
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