The Joplin Globe is reporting O'Sullivan Industries blinked and paid the company's $200,000 plus overdue utilities bill. The company had been given a noon deadline by Lamar city officials.
The city's hardball approach came after O'Sullivan officials asked the city to allow the company to go six months without paying utilities, a decision which would have cost the city $1.2 million over the period and possibly for longer if O'Sullivan officials were not able to repay the debt.
9 comments:
I think the city did the right thing.
Interesting how the city will do whatever it can to give incentives to new business, but won't help an existing business.
Shortsighted as far as I am concerned.
Time for a new Mayor and City Council!
I'm glad the City stood their ground. Just what would you do with a bankrupt city? This is a company that will fold sooner or later, why give them over a million dollars in free electric bills and then see them fold. The city would have nothing then. Perhaps its the Osullivan Company that needs new leadership, not the City of Lamar.
Drust
One interesting that you failed to bring up is the fact that O'Sullivan prepared a contract providing 100% repayment of utilities before year end. All that O'Sullivan asked for is some time to recover from the debilitating ice storms and restructuring events. The company will survive with or without the city. The employees will remember how the council was so unprepared to discuss the issue that they didn't even have a counter offer on the table. Say what you want about O'Sullivan. The city needs them more than they need the city.
It looks like the employees are stuck in the middle. If the employees receive a cut in pay be sure to share the pain. Give less effort at work and do not shop in Lamar. Not even Wal Mart. Do not buy a stick of gum in town.
as a employee at osullivan ind i do not hold it against the city for the bad managment that osullivans has put in place.they also told the city that we were working 32 hour work weeks and were wanting to work 48 hour work weeks we have been working 6 days a week for some time now most of us would rather have a steady 40 hours a week instead of 48 hours now and then 32 hours a week latter.i will continue to do business in the city if i work at osullivans or have to go some place else to find work.if they were to ask the employees to work 6 months without pay and then they would pay us back a little at a time after that how many employees do you think they would have.if the doors do close the big boys(so too speak)will walk away with lined pockets and the little guy will walk away dust off and find a new job.as for the city all they will lose is the monthly income from the company itself.the biggest part of the employees drive from outher towns anyway.
As an outsider, neither living in Lamar, or working for O'Sullivan, I feel the city had to force the issue. O'Sullivan had already dismissed a utility bill during their bankruptcy filing.
If the new management team had done better in their 'public relations' area when they took over a few years ago, it's possible that their would be more options. By moving the headquarters, firing everyone with any RTA knowledge at all, and a consistently inconsistent message to their employees, what did they expect?
To the outsider - O'sullivan did pay the utility bill prior to bankruptcy. However, due to legislation deadlines, O'Sullivan had to file by a certain date. The bankruptcy judge revoked O'sullivan's payment to the city. It pays to know what your talking about before you comment. There's a lot of layers to this onion.
They estimate 40% to 50% of the Lamar plant employees live in Barton county. The city should have made a small counter offer at least to distance themselves and to say "we tried" Now that they have flat out decided not to help they are as much a part of the problem as anyone. The city council and the management need to work together to find a solution. Happy employees work harder.
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