Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 13, 1993 TAG: 9304130295
SECTION: VIRGINIA PAGE: C-3 EDITION: METRO
SOURCE: MELANIE S. HATTER STAFF WRITER
DATELINE: LENGTH: Medium
CONTRACTOR BLAMES COX FOR PAY PROBLEM
A cable contractor says it's Cox Cable's fault that it couldn't pay its employees.Cox says it paid Boeck Telecommunications for its work but that the contractor fell behind schedule.
Last week, Boeck employees complained that the contractor owed them two weeks' pay. They said some of their paychecks bounced before Boeck announced in mid-March that it couldn't pay them and closed the business.
Cox paid the company's owner, Ed Boeck Jr., approximately $180,000, according to a news release. A contract between the two stated payment would be on a monthly basis but at Boeck's request, Cox agreed to pay weekly.
By early March, Boeck was four weeks behind production schedule. "Additionally, we had been called by five of Mr. Boeck's major suppliers advising us that they had not been paid," according to the release signed by incoming manager Gretchen Shine.
"We met finally with Mr. Boeck on March 4th to address our concerns personally," the statement said, "and to notify him in writing as well that he was in violation on two crucial aspects of the contract, specifically production and non-payment of his vendors."
Cox says Boeck did not return phone calls, and so the company opted to terminate the contract.
Boeck, however, says invoices to Cox for work completed went unpaid, according to his lawyer, Bradley D. McGraw. As a result, Boeck had to close his business, leaving employees without two weeks' pay.
Boeck kept his employees advised of problems with Cox, McGraw said. "When it became apparent that Cox would not pay back as they should," Boeck told them he couldn't pay them and closed the company, McGraw said.
Asked if Boeck will pursue legal action against Cox, McGraw said, "a final decision on that has not been made." But at the moment, Boeck doesn't have the money, he said.
"Boeck said he will do everything he can so that the employees will get paid in full," McGraw said. "That may not be quickly or easy. . . . He's in a position much like they are, he's out of a job too."
Ed Boeck Jr. has been a cable contractor for 35 years, McGraw said, and this is the first time he has experienced anything like this.
Boeck came from Montana to work with Cox. In September, the company was registered with the Virginia State Corporation Commission, but it didn't have a business license.
James Williams, chief deputy commissioner of revenue, said last week that the tax assessment will be turned over to the city for collection after the amount is determined.