Drain on the economy!!!

I was wondering ... If anyone knew anything about this or exactly who these things work I would really like to know. There is a place around here called Lufkin Industries that closes down in the middle of the year I guess because they have no more work. These people that work for them just file Unemployment ... Then about 2 months later or whenever the Unempoyment checks stop coming ... They will fire her up again .... Then every year for the last 3 years at Christmas they have shut down ... Must be nice for the employees they do the same thing File Unemployment .... Shouldn't there be a law reguarding this ?? or .. ??? Am I just paying thier unemployment for them to get off the times of year that I take my Hard earned Vacation for ??!??!!?!?!

[edit on 22-2-2007 by asala]

You don't provide much in the way of substantiation for your claim, but I doubt that Lufkin Industries shuts down twice per year just so the employees can get a vacation and a Christmas break.

I think this happens quite a lot in the the oil and construction industries and, perhaps in others, as well.

Whether or not it's ethical would depend on more factors than you provide and I'd bet that the Texas Employment Security would have taken action if it were illegal.

I HAVE WORKED IN THIS TOWN since 10/03 and many of my insureds ... Work at the Lufkin Industries ... And I KNOW for a fact that at certain times of year ... When they ..." CAN GET ENOUGH WORK" they shut down ... for thier employee's to get on Unemployement ... and getting paid for not working ... Then about 3-5 weeks later by some miracle they always get work ... Every year at christmas time they do this ... Is it just because of the type of work that they do or ?!!???????????

Originally posted by GradyPhilpott
You don't provide much in the way of substantiation for your claim, but I doubt that Lufkin Industries shuts down twice per year just so the employees can get a vacation and a Christmas break.

I think this happens quite a lot in the the oil and construction industries and, perhaps in others, as well.

Whether or not it's ethical would depend on more factors than you provide and I'd bet that the Texas Employment Security would have taken action if it were illegal.

If I am not mistaken, the individual company pays into the unemployment fund that is calculated to cover their employees in the event of unemployment..

I don't believe that tax money is used for unemployment...

I could be very wrong, but I am pretty sure this is the case...

Semper

Can we get some more detail.

Are these employees on contract?

Looking at the profile of the business from their website, what you describe would be a crazy way to run this business.

Theres a plant that only makes fruit cake. Its doors are only open 6 months a year or something like that. It has to do with the price of being open versus no buyers, etc.

If people need to collect their own unemployment, then who are you to say that they aren't allowed to? They're paying into it, they don't have the jobs at the time, and therefore they are entitled to unemployment.

Then about 3-5 weeks later by some miracle they always get work

So what? The company lets people go and closes its doors when they decide they don't have work, and then reopens it when they do. Its perfectly legal, there's nothing wrong with it.

See, that's why it's called unemployment insurance. You and the employer actually pay into it to be able to receive it.

I know construction guys that do this every year. The work is seasonal, they make a fat wad of cash (and bust a hump for it) then when winter rolls around, collect unemployment. If the union hall doesn't have a job for them to go out on, they're entitled to collect off the unemployment insurance.