Truck drivers say that they are owed thousands of dollars following the sudden closure of a Michigan trucking company.
Grand Rapids-headquartered Sunset Logistics notified workers that they would be shutting down for good starting on September 25. The company closure was reportedly caused by ongoing financial struggles, including slow freight, low rates, and increasing operating costs.
Sunset Logistics employed 90 drivers and had 90 power units, according to the FMCSA’s SAFER website.
“It was just very demoralizing the way (the owner) did it. He put ninety drivers out of work with no warning,” truck driver Eric Miller told local outlet Target 8. Some drivers reported being out on the road when the news of the company closure was delivered.
A source asking to remain anonymous told CDLLife that the company would not be able to repay drivers $1000 each held in escrow as part of company policy:
“Each driver was required to pay $1000 escrow when starting at Sunset Logistics, in which they were promised to receive that money back if they left or were terminated from the company. The drivers were informed they would not be getting escrow back as the owner cannot afford to pay it … Drivers were not even informed the company had closed until 2 days later, via email! This is not right.”
Truck drivers have been told that the company is working to provide final paychecks and escrow but that financial accounts have been frozen, according to reports.
Harvey Gainey III (also known as Buddy Gainey) is the son of Harvey Gainey Senior, owner of trucking company Gainey Corporation, which filed for bankruptcy in 2008.
CDLLife reached out to Buddy Gainey for comment, but he did not respond.
