QUOTE (emouse @ Mar 23 2010, 05:20 PM)
As an aside, I worked at a place where a high up exec was brought in for a while. After about a year on the job the employees were all called in for an announcement. The exec would be taking some time off for a medical treatment program. That is literally all that was said, aside from outlining how the organization structure would be altered during his time away.
I'm going to go into complete conjecture (best guess/blow smoke out of my drekhole) based on what has been said on the boards here by catalyst (JM Harding) and others.
For some time the free lancers have not been paid as agreed.
For some time one of the part owners of the LLC* has been mixing a business account with his personal account.
Recently there was an audit of the books (did catalyst get some new owners? what prompted the audit? a change of book keepers?)
They found money missing in the audit and brought it to the attention of the owners (amounts of $850,000 over three years according rumors). The owner said yeah, mea culpa. I'll pay it back. The other owners said sure we accept that.
The free lancers get wind of this (maybe one of the owners told Frank, Frank might be spot on, who knows?, maybe frank heard it from a disgruntled employee involved in the audit, maybe he heard a rumor and being one of those freelancers owed money called in and got some information, this information could also be partly right and mostly wrong or vice versa). But with Frank Trollmans post, he has gotten word out that not all is right at CGL--and CGL admits this bit. Some Freelancers, as do some employees quit because of this.
Why do they quit? Maybe they don't like the owners decision, or don't feel they can trust management any more. This might have been one of those last straw type things too-especially if you have to keep hassling people (like the owners) to comply with your contract and keep getting ignored from the freelancers perspective.
I would note that JM Harding did say they were working on getting out notices to the freelance community on what was still owed and what the payment plan would be. However, if as a freelancer you don't trust the management, then this promise will most likely be ignored. I'd add that this happened in the span of less than a week, so I would not expect either a final agreement being signed between the partners, and consequently I do not think that CGL will be in a position to say when the freelancers might get their back pay.
*Note for those not familiar with what an LLC is, it is a business partnership or sole proprietership that provides some benefits that being corp (limited liability) and being a partnership (in catalysts case) where there is no double tax (on the company and then the individual). This also means that the owners/partners are only answerable to each other and their creditors (if their happy, there ain't drek all an employee can do other than quit to show their frustraion with the situation) .
Now as independent contractor, the freelancers have the right to withhold their copyright,so they must get paid at some point or there will be lawyers involved. This lawyer scenario will get expensive for all sides. The best solution is for everyone to take a deep breath, and go into arbitration or negotiation to settle all the back payments. This will take time, depending on the liquidity of the assets the owner will sell/borrow against to make the payments (if any).
PS: I have a hard copy of Vice. So it is in print at the FLGS unless it sold out already.
PSPS: Sorry for the long rant, and bull I'm with you on the slang---the real four letter words come out more as crass than anything IMHO. It helps get me in character too.
Drek,drek, drekitty drek drek...slot.