More than 40 employees of V.I. Cement and Building Products were fired Monday when the company was sold by Devcon International.
Ken Ketcham and Tortola businessman Ashley Ritter paid a reported $10.5 million for the company plus approximately 420,000 shares of Devcon common stock held by V.I. Cement.
The workers, some of whom have been with the company since it began doing business in the Virgin Islands, started receiving termination letters Monday afternoon along with severance pay, accrued sick leave and vacation pay in accordance with provisions of the company’s agreement with the United Steelworkers union, which represents the employees.
In announcing the sale of the company, Devcon International said the ready-mix concrete and quarry operations in Tortola and the ready-mix concrete operation in St. Thomas were included in the sale. The two operations generate a combined $12 million a year in sales. The quarry and concrete-block operation on St. Thomas was not part of the sale.
St. Thomas Concrete promised all who were affected adversely by the sale that they will be assisted in every way possible to obtain employment in the Virgin Islands community. In fact, the new owners reportedly will begin accepting job applications for vacancies this week, and may rehire some of those let go Monday.
Under the Industrial Development Commission benefits certificate awarded to V.I. Cement 12 years ago, the company was mandated to employ 142 workers, of which 80 percent had to be Virgin Islands residents. It is not known whether the new owners will seek IDC benefits.
The international representative for the Steelworkers Union, Randolph Allen, reacted to news of the sale saying that efforts will be under way to gain additional benefits for those workers terminated Monday.
"We are involved in meeting with the representatives at Devcon to negotiate benefits beyond what is contained in the collective bargaining agreement," Allen said. "We are concerned about the effects of this plant closing especially on the employees who have been with V.I. Cement from the beginning."
The union is lobbying for benefits that would extend the health insurance coverage for the affected workers and additional severance pay.
According to Allen, there is a major difference for the terminated workers between a plant closing and a change of ownership.
"Before any transfer of ownership, the plant must be closed, which the plant will be closed later this week," Allen said. "The moment you change owners, the plant is closed, the employees are re-hired and start as new employees."
If you just transfer ownership, the operations continue and the employees retain their seniority, he added.
Allen said the termination of almost half of the employees of V.I. Cement and Building Products is a sad beginning to the new year.
