Grand Rapids, Michigan-headquartered Founders Brewing Company laid off 89 retail workers at its taprooms in Detroit and Grand Rapids, effective November 18, according to a Worker Adjustment and Retraining Notification Act (WARN) filed that same day with Michigan’s Department of Labor and Economic Opportunity, Workforce Development.
“While Founders intends that this layoff be temporary and less than six months in length, Founders cannot predict the duration of this layoff because of the ongoing COVID-19 pandemic and the mitigation efforts of state and local governments and health officials,” Founders director of human resources Audrey Strieter wrote. “Therefore, as it did in April of this year, out of an abundance of caution, Founders is providing this notice to comply with the Worker Adjustment and Notice Retraining Notification Act.”
The move is once again in regards to restrictions being imposed on on-premise retail by the state of Michigan. In April, Founders furloughed 163 employees of its taproom and retail stores in Detroit and Grand Rapids.
Founders said it will continue to provide healthcare benefits to the affected employees at no cost through the end of 2020, “at a minimum.” The company added that the layoff is intended to be temporary. All of the employees are non-union workers.
The company said it was unable to give “great advance notice of this mass layoff” due to “unforeseeable business circumstances,” citing the accelerated spread of COVID-19 throughout Michigan and renewed restrictions on bars, restaurants and other retail operations.
Strieter cited the Michigan Department of Health and Human Services (MDHHS) prohibiting indoor gatherings at restaurants and bars for three weeks, starting November 18, which she said would limit those establishments to takeout sales.
“And, given the rapid spread of COVID-19 throughout the State in recent weeks and the approach of winter weather, it is unclear when MDHHS will allow in-person service to resume, what restrictions MDHHS or other governmental agencies will place on bars and restaurants going forward, or when customer demand will permit Founders to resume in-person services,” she wrote.