Editor's Note: This story was one I was particularly proud of. It took a lot of reporting work and it was probably one of the first times something I wrote had to be vetted by attorneys before publication. Yes, I did call Thigpen Ltd.'s corporate offices six times in an attempt to get a comment.
After publication, this story went out on the wires and local TV. (I'd scooped the Santa Maria Times and The Santa Barbara News Press.)
This is the first of three stories I ultimately did on Thigpen Ltd. and VAFB. They ended up losing their contract with the Air Force in June 1995.
UNION TAKES STEP
By Matthew Hoy
Record Staff Writer
VANDENBERG AFB—A complaint, filed Thursday afternoon with the federal Department of Labor (DOL), accuses a Vandenberg Air Force Base contractor of illegal labor practices relating to a failure to pay employees' salaries.
The company, Thigpen Limited, runs The Breakers dining hall on Vandenberg, which provides meals for the Air Force's enlisted men.
Six attempts by the Lompoc Record to reach James Thigpen, president and CEO of Thigpen Ltd., at his Novato office were not returned.
The complaint, filed by Industrial, Technical and Professional Employees (ITPE) Union District No. 5, the union representing the employees, accuses Thigpen Ltd. of failing to pay its employees, a breach of two federal laws.
"I just found out today (Thursday) that the last paychecks bounced," said John Brenton III, ITPE vice president. The most recent checks were dated Feb. 15.
"I expect the DOL to step in and withhold any monies being paid to Thigpen Ltd.," Brenton said. The DOL, which oversees civilian contractors on military bases, would then disburse the funds directly to the employees.
According to Brenton, DOL officials were meeting Thursday to discuss the complaint.
Employees were told there was a foul-up with the payroll and the problem was being worked on, according to Diane Tutson, Thigpen's project manager at Vandenberg.
"He (James Thigpen) has been made aware that the checks have bounced," Tutson said. "He is working on the problem."
But according to several employees, they have had difficulties cashing their paychecks since June 1994.
"It's very rare that we have a payday when some checks don't bounce," said Maureen Taylor, shop steward. "Most times at least some of the people have gotten their checks cashed, but this last time, none of the checks cleared.
"The people were speeding to the bank to get their checks cashed before the money ran out," Taylor said.
According to Taylor, a 15-year employee, the problems date back to November 1993, but have become more widespread over time. Evidenced by the failure Wednesday of any employee to be able to cash their check.
Many employees don't deposit their checks at their own banks to avoid fees for bounced checks. At least one local financial institution, Vandeberg Federal Credit Union, no longer accepts Thigpen's checks for deposit.
"We are referring them to their (Thigpen Ltd.'s) bank to cash their check," said Christine Cross, teller supervisor at VFCU's Lompoc Branch. "It's just in the best interests of our members that we do it that way."
"The credit union did not make this decision alone," said Sally Stone, executive vice-president for VFCU. "It was based on recommendation from our base liaison."
Stone also said that the VFCU is working with the Air Force to find a way to honor the employees' checkcs.
Brenton usually does not deal with issues relating to Vandenberg, but has become with their problems during the past several months. The union representative who normally deals with the employees at Vandenberg, Paul Harvey, was out of town and could not be reached for comment.
While Brenton is not well-versed in the problems at Vandenberg, he is familiar with Thigpen Ltd.
According to Brenton, Thigpen Ltd. has another government contract to provide similar services at the Coast Guard Training Station in Petaluma. Employees at that facility, who number about 40, have not been paid either, he said. Approximately 60 employees work for Thigpen Ltd. at Vandenberg.
"These are people who live paycheck to paycheck," Brenton said. "You can't do this to people."
While the paychecks are perhaps the most pressing financial issue, Brenton claims that the company has faile dot pay some of its other obligations. According to Brenton, Thigpen Ltd. is late in making payments into the employees' pension and benefit funds. The company also owes the union three months worth of union dues that have been automatically deducted from employees' paychecks.
Brenton said employees are likely unaware of the failed payments because they are only informed of changes to those funds once a year.
According to DOL investigator Margaret Pringels, there was an ongoing investigation into Thigpen Ltd. before Thursday's complaint was filed.
If the employees have not been paid, then Thigpen Ltd. could be in violation of the Service Contract Act which requires wages to be paid on federal contracts and the Contract Work Hours Safety Standards Act, which deals with overtime pay, Pringels said.
Air Force officials said they are aware of the situation but are not taking any action yet.
"Right now, they are still meeting their contractual obligation to the Air Force" by feeding the airmen, said Lt. John Dorrian, Air Force spokesman. "The situation is going to monitored. This is a trouble sign."
Dorrian noted that, because Thigpen Ltd. is part of the Small Business Administration's Section 8(a) program for small, disadvantaged businesses, the Air Force has been especially prompt in its dealings with the company.
"We've been very careful to pay (Thigpen Ltd.) as promptly as possible," Dorrian said. "We have never been late on a payment."
Employees are continuing to work despite Thigpen Ltd.'s failure to pay them. Should employees stop working, Dorrian noted that the Air Force is prepared.
"Our people will definitely be fed," he said.
Air Force officials were aware of the problem as early as August 1994.
In a letter to contracting officer Kalman L. Huler dated August 12, 1994, and obtained by the Lompoc Record, Thigpen said: "I would like to assure you that we have sufficient assets to meet our bi-monthly payrolls and other accounts payable.
"We feel that the major problems causing a disruption in the cash flow have been resolved," Thigpen wrote. "This particular problem should not exist in the future."
But despite these assurances, employees say the problem has only gotten worse.
"It's been really bad for the last six months," said Robert Culley, who has worked at The Breakers for 2½ years. "Right now, there's not one penny in the account."
Bank of America officials would not comment on the account because they are forbidden by law from discussing a customer's finances.
Published Friday, Feb. 17, 1995, The Lompoc Record.
