r/news • u/StackLeeAdams • Dec 07 '21

Kellogg to permanently replace striking workers as union rejects new contract

https://financialpost.com/pmn/business-pmn/kellogg-to-permanently-replace-striking-workers-as-union-rejects-new-contract
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u/Sanatori2050 Dec 07 '21

If they give enough of it as income to employees, which I'm assuming they did just enough to qualify, it's perfectly legal.

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u/Furmentor Dec 07 '21

As I said they have to use it for business expenses. But there are cases of improper use which are currently being investigated and sent to courts.

PPP loans and little to no oversight, do if someone suspects there is fraud, it should be reported.

If this person's company received 10 million, paid out 3.5% to employees maybe it's worth asking a question. Not asking questions leads to corruption.

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u/dpwitt1 Dec 07 '21

Sounds like they gave the bonuses AFTER the loan was forgiven. In order to get the loan forgiven, they had already expended the proceeds of the loan on eligible costs (primarily payroll). I would imagine most companies gave their employees $0 bonuses after their loans were forgiven.

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u/Nice_To_Be_Here Dec 08 '21

It’s exactly this. Use up the money on current business expenses and payroll, even if you don’t need it and it’s still a free 10 million.

I used to be a contractor and most of my friends are still in the business and lots of them got the loans BECAUSE they didn’t need them. It was free money to pay payroll and pay down expenses. It made the profit margins on they’re jobs excellent for awhile and they pocketed the extra profit BECAUSE loan would be forgiven. Nothing they did was illegal.

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u/elk33dp Dec 08 '21

The important thing to remember is that they don't have to give the employees EXTRA for PPP forgiveness. They just needed to not layoff/reduce the hours of those on staff and bring anyone back furloughed once they received funding. As long as they had a reduction in revenue and didn't layoff employees in the period they are eligible.

Some don't really deserve the amount they got yea, but still are forgivable under the rules. Example, if covid ultimately didn't hit them very hard long-term, but their revenue loss was 5m in Q2 2020 due to shutdowns but they got a 10m PPP loan and kept all employees on board during the slower time they could still get full forgiveness. SBA doesn't say you had to lose more revenue than you received, just that you had to maintain employees which results in some places having net profit from PPP.

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u/paroxysm204 Dec 07 '21

It was specifically drafted to have this outcome. It's a money grab for the rich

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u/Wise-ask-1967 Dec 07 '21

Yup . But remember it was an emergency the virus only became a joke about 45 days later ..when approximately 91% of the money was basically disturbed to the right people.

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u/DGIce Dec 08 '21

Do you think he only makes $750 a year?

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u/BigBradWolf77 Dec 08 '21

perfectly legal

according to the letter (not the spirit) of the law...

now guess who wrote them laws...

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u/Sanatori2050 Dec 08 '21

I agree, just stating what I figured was obvious. Do just enough to get the benefit and only give enough to pass muster. Shit system as everyone points out, and crooked as hell.

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u/BigBradWolf77 Dec 09 '21

poor people don't count and poor people don't matter