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APC Having Paycheck Problems Following Layoffs

Posted at: 04/05/2013 11:17 AM

(ABC 6 NEWS) -- The Austin Packaging Company is having problems paying its current and former employees.

A number of employees contacted ABC 6 News to learn what was happening, and we found out.

A company spokesman tells ABC 6 News that due to the company's recent financial problems, it had some changes with its bank.

That restructuring with the bank, caused a glitch with payroll.  As of 11:00 a.m. Friday, the problem had not been fixed, and no paychecks had been issued.

APC says it does expect the issue to be fixed either during, or by the end of business Friday, and workers will get paid.

If the problem isn't fixed until the end of business Friday, paychecks would likely not be released until Monday.

If there are workers, either former or current, who incur overdraft or other type of penalty fees, the company says they will pay for those fees as well.

The company also says many of the current and former employees have direct deposit, so when the problem is fixed, their paycheck will be automatically deposited.

Austin Packaging, as we've reported, lost a client, and was forced to end their frozen pizza line.  Initially it was expected about half of their workforce, or 125 people would be laid off.  A company spokesman tells ABC 6 News that last Friday, about 90 were let go.

The company has filed the necessary paperwork notifying state regulators that a full closure is possible, however APC is restructuring in hopes of preventing that from happening.

Stay with ABC 6 News for the latest on this development.  We'll have the latest online, and tonight on ABC 6 News at 5 and 6.