MPP CALLS FOR INVESTIGATION OF MAHLE
BROCKVILLE – Leeds-Grenville MPP Bob Runciman is calling on Ontario’s Minister of Labour to review the circumstances surrounding the closure of Mahle Engine Components in Gananoque. The company closed its doors in December, then subsequently declared bankruptcy and failed to make severance payments to employees.
In a letter to the Minister, Runciman expressed concern that the company’s estimated $7 million assets could not be utilized for pension and severance obligations but instead would flow to Mahle’s parent company in Tennessee.
“It’s very upsetting to employees and their families that a bankruptcy can be structured to allow a firm to bypass its obligations and still see the parent company given access to remaining assets” said Runciman.
As well as asking for a review, the MPP also suggested that the government consider legislation that would give the Province some access to assets when severance and pension obligations are not met.
