Employees at The Greenbrier warned their health care may end next week
By Stephen Baldwin, RealWV
Early Monday morning, employees of The Greenbrier Hotel who are covered by the company’s health care plan were informed that their health coverage may soon come to an end. The current expiration date for employee coverage is Aug. 27 – the same day the hotel is scheduled to go up for auction on the steps of the Greenbrier County Courthouse.
Read The RealWV’s full report on the potential sale of the Greenbrier Hotel.
“The Greenbrier Hotel Corporation is four months delinquent in its contributions to the Health Fund, owing approximately $2.4 million in delinquent contributions with an additional $1.2 million in contributions currently, or soon to be due and owing,” says a letter from Ronald Richman, attorney with Schulte Roth & Zabel LLP representing the Amalgamated National Health Fund, addressed to The Greenbrier Hotel.
The letter further states, “The Greenbrier’s Delinquent Contributions include contributions that were deducted from employees’ pay but not remitted to the Health Fund.”
Richman says payment must be made by August 27, 2024, noting, “If payment is not timely made, the Health Fund will suspend health and welfare coverage to all of the Greenbrier’s covered employees.”
The letter was delivered, Monday morning, to all applicable Greenbrier Hotel employees.
Peter Bostic, Chairperson of the Greenbrier Council of Labor Unions, released a statement in response to RealWV’s request for comment, saying, “We are heartbroken and disappointed to learn that The Greenbrier Hotel, despite its contractual and legal obligation to do so, has become severely delinquent to our Health Insurance carrier. “
“Additionally, we are concerned to learn that The Greenbrier has not even remitted to the Fund the employees’ share of the Health Benefit contribution which the Greenbrier has been deducting from employee’s paychecks,” he continues.
“The Greenbrier’s delinquency has put our member’s Health Care benefits in severe jeopardy and is morally and legally wrong.”
Neither The Greenbrier Hotel nor The Health Fund immediately responded to RealWV’s request for comment.
The Greenbrier Hotel’s Health Fund delinquency is in addition to multiple liens on the property from the State of West Virginia for the collection of unpaid sales tax. Two liens were paid off earlier this summer, and more than $2.7 million is still owed to the state tax department.
Read MetroNews’ full report on the satisfaction of the liens here.
Gov. Jim Justice, who also is the owner of The Greenbrier, during a recent media briefing, reiterated his belief that the auction will not proceed and is politically-motivated.
“I believe with all my soul that this will get worked out but if you believe that this is not a political play I think you’re crazy,” Justice said. “There is no other reason. There’s no reason.”
JPMorgan, however, mailed Justice a letter in April saying he was out of chances to make good on previous debts, as reported by Brad McElhinny of MetroNews.
Several months later, JPMorgan sold the deed to McCormick 101, a debt collection company. They say Justice owes in excess of $40 million and have scheduled an auction on August 27 to satisfy the debt.
The deed held by McCormick applies to some 60 acres of The Greenbrier Hotel’s property including the main hotel, but it does not appear to include intellectual or personal property, nor does it include areas such as the golf courses. If an entity were to purchase the McCormick deed, it’s unclear if they could operate the hotel without those other pieces which would still belong to Justice via outstanding deeds with creditors including Carter Bank & Trust.
RealWV reached out to Chris Schueller, who represents McCormick, and he declined comment at this time.
Earlier this summer, Justice and Carter agreed to a repayment of more than $290 million for previous debts.
Stay tuned to RealWV for updates regarding this developing story.
