PACE Airlines Suspends Operations
Posted by JamesB in Business News, Triad News, tags: PACEIn what appears to be a final move before the end the owner of PACE Airlines, William Rodgers Sr., suspended all operations citing an instance of vandalism to the car of Stuart Carnie, a top executive. After weeks and weeks of delayed or missing paydays and a layoff of as many as 215 this past Tuesday further troubles started this week with investigations by U.S. Department of Labor, the N.C. Employment Security Commission and N.C. Department of Insurance. The U.S. Department of Labor is looking into possible wage violations and the Fair Labor Standards Act while the N.C. Department if Insurance is looking into the failure of PACE Airlines to make premium payments to insurers for employee insurance when deductions from paychecks had been made for those cost.
The memo sent out to employees citied specifically the incident to Mr. Stuart’s car which was located at the Residence Inn on North Point:
"With consideration of everyone’s personal safety being first and foremost at all times, and not knowing exactly what party has perpetuated this personal attack on Mr. Carnie, or who might be next be attacked, all non-essential personnel will be relieved of their duties and responsibilities, effective immediately upon notice by their supervisor,"
The use of this “personal attack” as cause for the shutdown has been called into question by many of PACE’s employees on various Internet forums and one has to question this considering the “vandalism” was a broken passenger window and theft of a GPS unit left in the car. Of course North Point being North Point there were no less than a half dozen Police reports for the same area from Drug Arrest, Shoplifting and Police Warrant service. The “LARCENY FROM AUTO” one just one of many reports Winston-Salem Police filed in an area some would say has a history of such issues. In fact a similar crime occurred in May at the same address with exactly the same results, a broken passenger window and stolen GPS as well as in April a few doors down. Seems there may be a slight pattern here but I’m no crime expert, ha ha.
According to further reports all aircraft owned by PACE Airlines have been recalled to Winston-Salem except for two one of which is awaiting an FAA check while the other will return at the first of the week. Maintenance contracts with Continental Airlines have been cancelled along with multiple deals for various charters or aircraft contracts. Lastly FalconAir has posted a job listing for Aircraft Mechanics in Winston-Salem on the same day PACE more or less closed their doors, interesting.
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Thank you for one of the most acurate accounts of what has transpired at Pace.
Rumor has it that Falcon Air was one of the prospective investors. They wanted to layoff all employees; rehire the ones they wanted at lower wages and no benefits; reduce that work force and move the certificates to Fla. You know how rumors go…but still interesting that Falcon Air is trying to hire in WS.
Considering the debt level PACE has I don’t think it’s a huge leap to say something was in the plans to reduce the workforce by attrition (no payroll) then bring a cheaper workforce back into play via Falcon Air. I’m outside my knowledge level when it comes to these FAA Certs but we have all seen the close up shop in one place to open up shop with cheaper labor someplace else many times before.
I suspect however they may be in a bit of trouble though with the legal issues considering the general mode of the country pushes any oversight group to look just a little harder at corporate scandals.
Thanks for posting and keep us up to date. I hope to move the blog into a faster server soon as our traffic doubled after posting about PACE Airlines.
Agreed… We knew a reductiong was coming; but to do it in such a hurtful manner to the employees that stood behind him for weeks without pay and now to find out that their insurance….health, dental, life etc. were cancelled even before they were layed off…that cuts deep. Putting a lot of people in financial trouble and medical debts. It will take a long time for these hard working individuals that were not used to using government assistance…and dont want to now…to ever find their way out. Hopefuly some legal action will transpire.
Well as if on Q Pace Airlines CEO arrested! N.C. Department of Insurance charged him with failing to pay those health insurance policies and willfully terminating the polices without notice. More charges pending.