Taxpayers still on the hook for Abound employees?
Are taxpayers still paying for Abound Solar employees despite the company’s cost saving measure of laying off 70 percent of its work force? Could be, and the figure could be more than $2 million.
Late last month Colorado-based Abound Solar announced layoffs of 180 full-time and another 100 part-time employees so the thin-filmed photovoltaic manufacturer could “re-tool” to produce its “next generation” of solar panels.
The company, which has drawn down $70 million of a $400 million taxpayer-guaranteed loan, claims it will rehire the laid off employees in the next six to nine months. Wink, wink. Imagine if Apple announced it was laying off 70 percent of its work force to prepare for the manufacturing of its updated iPad. No one would believe it. No one should believe Abound either. If there existed a market for their solar panels, employees would be working.
The problem for taxpayers is Abound employees aren’t working. Taxpayers paid $70 million to create the 280 jobs ($250,000 per job) and now they could be on the hook for unemployment benefits while those employees are out of work.
Doing the Math
According to Career Bliss, an online career search Web site, the average Abound Solar annual salary is $57,000 or $14,250 per quarter. Using the quarterly figure on the Colorado Department of Labor and Employment’s (CDLE) unemployment benefits estimator, a laid off full-time employee could receive $500 per week in taxpayer-funded unemployment benefits. Assuming Abound’s six-month estimate until the company is ready to resume production is correct, an employee could receive a total of $10,500. With 180 full time employees now out of a job, 180 x $10,500 equates to $1,890,000 in taxpayer-funded unemployment benefits for laid off full-time Abound employees.
That figure is just for the full-time employees. Another 100 part-time employees were laid off as well. An email was sent to CDLE about whether or not part-time employees are eligible for unemployment benefits. No response has been received as of this posting.
The hemorrhaging of taxpayer dollars continues courtesy of Abound Solar.