A hotel corporation owned by the family of Republican West Virginia Governor Jim Justice is reportedly in millions of dollars’ worth of debt after failing to pay its health insurer. A letter issued by the Greenbrier Council of Labor Unions reveals how the hotel corporation failed to give employees their health insurance contributions back after regularly taking the payments from their paychecks.
According to the Amalgamated National Health Funds, a firm that provides insurance and benefits programs, including disability, retirement, and medical benefits, the Greenbrier hotel corporation was four months behind on its payments, accounting for $2.4 million in debt. The company also said that a further $1.2 million is due to be paid in the coming days.
The letter added that the account’s delinquency puts members in “severe jeopardy,” with the status of their plans now left in question. The letter also said that failing to make the payments is “morally and legally wrong.”
“Our members have met their obligation by working hard every day and paying their portion to the Greenbrier,” the letter reads, adding that the hotel company has “neglected its obligation to its employees.”
So what happens next? That all depends. If Greenbrier doesn’t come to the table and seek some kind of resolution soon, it could end up in court. Not only does Greenbrier face legal challenges directly from employees who could lose coverage, but the company also faces a significant threat from the union. Whether the company will cooperate, however, remains unclear. The company appears to be in serious financial trouble, and according to a report by Newsweek, advertisements have been shared online in recent days that suggest the hotel property could soon be going up for auction. It comes after the company defaulted on a $142 million loan, which has since been sold to another entity. And despite all this, attorneys representing the hotel company are fighting against the forced auction, arguing that they maintain the right to own and operate the property and company despite being in debt.
If the lawyers fail, the property will go up for auction on August 27. Let’s see how this turns out…
In the meantime, Democrats in West Virginia are calling on Governor Justice to drop out of the Senate race over the ongoing health insurance scandal.
