WINSTON-SALEM, N.C.—
After weeks of not getting paid, between 100 and 200 Pace Airlines employees were told Tuesday they were being let go.In a memo from owner William Rodgers Sr., roughly 200 employees were told they were being "furloughed without attachment," a technical way of saying the company has no plans of hiring them back.
Pace Airlines, which provides charter and repair service for commercial airlines, is under investigation by the state Department of Labor and the Department of Insurance. For weeks, employees say they've been working for free, and last week, many found out their health insurance wasn't being paid.
"Due to unforeseeable circumstances, Pace Airlines Inc. is downsizing the number of hourly and salaried employees through furlough without attachment. Your furlough is effective upon receipt of this notice," said former employee Mike Johnson, reading from the memo he received.
According to the Employment Security Commission, "furlough without attachment" means employees are being let go without any plans of being rehired. If they want unemployment benefits, they have to file them on their own.
"No we were fired," said former employee Scott Michael. "The letter says furlough, but we asked about callbacks and they said there will be no callbacks. We will have to reapply if the company decides to hire again."
"At least we will have some type of guaranteed pay, but now everybody's question is, 'What about the four, five weeks they owe us?'" he said.
The Department of Insurance told FOX8 News it had not found any wrongdoing on the part of the company, but their investigation is not over. FOX8 was unable to contact the Department of Labor.
In the letter to employees last week, Rogers said he had secured a multimillion-dollar credit line, and funds for payroll, health insurance and other expenses are being transferred to cash assets so they can be used. Rogers said he expected the cash to reach Pace's account Tuesday or Wednesday.
"I had some money saved up, but I am running out of it now. I figure if I don't have something by next month, we are going to be really hurting," said Johnson.
"We are trying to work with the creditors and debtors and loan companies," said former employee David Norman. "They don't understand. They just want their money just like we do."
