According to an AP report in The Charlotte Observer, the settlement with Pillowtex employees will be adding insult to injury. It is quite a bit smaller than originally anticipated. Workers had anticipated a pre-tax amount of about $2000 and since most workers were in lower tax brackets (not too many millionaires working the line) they probably anticipated checks with only a few hundred withheld from that amount. Instead, they will be receiving a little more than $1200.
Some of the nearly 4000 who lost their jobs when Pillowtex closed are still unemployed and some are underemployed, working jobs that pay less and have fewer benefits. I'm sure many were counting on every penny of that settlement to help make ends meet or to pay off debt incurred after the mill closed.
Meet me below the fold...
While there were many reasons that Pillowtex failed and closed its doors in 2003, free trade agreements have caused a huge problem for the industry as a whole.
Robin Hayes' broken promise and his vote for CAFTA in 2005 can't be blamed, but I imagine that many of these workers will make a connection between Hayes' broken promises and what they've had to endure. I'm sure many can't imagine that after what happened to Pillowtex, Hayes would vote to make matters worse in an area that once thrived because of the textiles industry.
So, why did Pillowtex workers receive smaller checks? Well, it's the damndest thing. It seems that under this Republican congress and this Republican White House their taxes were higher than anticipated.
Pillowtex had to withhold more taxes than anticipated because of federal law, said Mark Indelicato, who worked on the settlement for a New York law firm representing Pillowtex creditors.
Imagine that! Now we can call them the "Tax, Borrow and Spend Republicans." That has a nice ring, doesn't it?