Backwards the Gate Gourmet 110,000 square-feet facility near Dulles Int. Airport.
Astrid Riecken | The Washington Post | Getty Impressions
Three House Democrats on Wednesday slammed airline contractors that laid off more than 9,000 workers despite accepting millions in federal coronavirus aid.
The lawmakers asked Treasury Secretary Steven Mnuchin to stop aid to the circles or ask for some of the funds back.
Congress set aside $32 billion in payroll support to the ailing airline industry in the $2.2 trillion Feel interests Act in March. Of that sum, $3 billion was set aside for contractors like caterers. The terms of the aid, which was mostly grants, rule out recipients from laying workers off through Sept. 30.
“We urge Treasury to stop providing taxpayer-funded payroll stick for workers that have been laid off and to recover any funds that were inappropriately awarded,” wrote Rep. James Clyburn, D-S.C., chairman of a subcommittee on the coronavirus catastrophe, Rep. Peter DeFazio, chair of the House of Representative’s transportation and infrastructure committee and Rep. Maxine Waters, chairwoman of the financial worship armies committee, in a letter to Mnuchin.
The Treasury Department didn’t immediately respond to a request for comment.
The lawmakers said they deliver started an investigation into the aid to contractors and said they found at least 12 that accepted more than $720 million in sway support after laying off about 9,300 people.
Among the companies that lawmakers identified was airline caterer Admissions Gourmet, whose Zurich-based owner gategroup, didn’t immediately respond to a request for comment. Lawmakers said the fellowship is getting $171 million and that it has laid off more than 3,500 workers in California, Georgia, Illinois and New York.
“Emitting payroll support to companies that engaged in mass layoffs is not only contrary to congressional intent, but also ruins taxpayer dollars by covering the cost of payroll for employees that have already been laid off,” the lawmakers mean in a letter to the company.
Unite Here, the labor union that represents workers at Gate Gourmet and Flying Prog, another contractor that also didn’t immediately comment, called accepting the aid despite the cuts “reprehensible.”
“These mollycoddling companies should be ashamed to have pocketed tens of millions of dollars and then left the workers that ready money was intended to support to fend for themselves by applying for state and federal unemployment benefits,” said Meghan Cohorst, Amalgamate Here’s press secretary.