Mayor: CSP Bonuses Would Be 'Insult' To WorkersPosted: Updated:
Management and supervisors at Carthage Specialty Paperboard could see $300,000 in bonuses coming their way once bankruptcy proceedings wrap up.
According to court documents, 3 mill executives, Ted Cordes, Don Schnackel, and Michael Lambert would each get $75,000 to incentivize them to stay on until the West Carthage mill is sold.
The mill went into Chapter 11 bankruptcy in February and is in the process of being sold. The bonuses must be approved in bankruptcy court.
"You have 60 employees right now that are working 12 hour shifts because management won't hire new people. They're going to work every day not knowing if they're gonna have a job the next day, not knowing if their health insurance is being paid by the company, not knowing the status of their pension. After what we've seen Delta Point do to Climax in Lowville, they're worried about their pensions that they've earned and worked so hard for. And to go to the judge and say that this key personnel deserves a $75,000 bonus each is really an insult to the workers that are running that facility daily and keeping it open until the sale of the mill," said West Carthage Mayor Scott Burto.
Another 14 "key employees" would receive varying amounts of the remaining $75,000 in bonuses.
Court documents point to an increased work load for these employees after half a dozen other management positions were eliminated as well as the work involved in bankruptcy proceedings and the effort to sell the mill as justification for the bonuses.
Burto, however, says money owed to the village and other creditors should be paid off before management is.
Carthage Paperboard owes the village more than $200,000 for water services.
"It shouldn't be up to our residents to supplement their business and keep them afloat when they're trying to offer large bonuses that are more than most of the employees make there a year," said Burto.
On the other hand, Key Bank, which is owed the most money by Carthage Paperboard, is okay with the bonuses being given out.
We reached out to management but got no comment.
The mill is expected to be auctioned off later this month.