Jul 21, 2016

NAGE Fights Company’s Refusal to Pay Accrued Benefits to Deceased Employees

In January 2015, NAGE/IBPO became aware that EDP Enterprises, a company which provides services to Fort Leonard Wood in Missouri, has not been paying accrued vacation pay to the families of deceased employees because these employees “failed to give two weeks notice”. NAGE Local R14-139 filed a grievance on the issue and EDP responded by filing a lawsuit against NAGE.  The lawsuit was later withdrawn, when the parties agreed to pursue arbitration.  The arbitration hearing was held on March 3, 2016 and a decision is pending.  

Robert Richards, President, NAGE Local R14-139, spoke of the importance of this case, “We believe the arbitrator will rule in our favor.  This isn't just about the money owed, it's about giving family members a piece of their loved ones dignity and self-respect.” Several other employees have ran into this issue with EDP and in the past two years about 17 employees have passed away. Robert J. Shore, Complex Litigation Manager for NAGE Federal Division said, “It is our hope that a decision in favor of the union would be precedential going forward for these parties.”

Vacation pay is an accrued benefit that employees are entitled to receive upon departure of a company. NAGE believes that EDP is wrong in refusing payment of these earned benefits to the families of employees who died while employed with the company and their requirement that employees give two weeks’ notice before their death is absurd. Management should not be allowed to withhold and be enriched by these earned benefits that rightfully belong to deceased employees.  “Even though we're going up against such a large and powerful company, NAGE stands by our members and their families. We stand for truth, equal and fair treatment, and decent humane working conditions. These employees deserve to be paid all money earned and benefits accrued”, said President Richards.

Please see the local news story provided by KCTV News investigating this matter. The parties are currently waiting on the Arbitrator’s decision and NAGE will provide further information as it becomes available.


We can either have democracy in this country or we can have great wealth concentrated in the hands of a few; but we can't have both. - Supreme Court Justice Louis Brandeis
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