Goodwill Closing

SkyRider

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Mar 31, 2009
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Except,...two things,...that artical is from the RED STAR,...and,...the GOODWILL still exists,...just not the unionized facility.
Couple of questions:

1) What is the wage differential between the unionized and non-unionized stores?

2) How productive are unionized workers versus non-unionized workers?

There must be a difference because the non-unionized stores are still open and the unionized ones are not.
 

KBear

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Aug 17, 2001
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Goodwill's problems were in management, not the union workers. Ed Keenan had a good writeup yesterday:
http://www.thestar.com/news/gta/2016/01/22/goodwills-descent-a-disgrace-keenan.html
Is good, except the two main points in the article are wrong. GoodWill is not defaulting on its payroll, and the management did see the end coming. Goodwill tried to adjust payroll, but was blocked by the union.

There is no good way to close up an company that has no money. The employees will be able to collect EI.

Maybe Goodwill could have closed some less profitable locations, sold off leases if possible, raised more money, etc, we won't know.

Expected the government or some donor would have come forward by now to save the company. Maybe the Goodwill groups outside the GTA can take over the GTA locations, less the management and union.
 

Galseigin

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I remember years ago Good will and Salvation army were all over the place, now I see mostly value village.
 

Occasionally

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Is good, except the two main points in the article are wrong. GoodWill is not defaulting on its payroll, and the management did see the end coming. Goodwill tried to adjust payroll, but was blocked by the union.

There is no good way to close up an company that has no money. The employees will be able to collect EI.

Maybe Goodwill could have closed some less profitable locations, sold off leases if possible, raised more money, etc, we won't know.

Expected the government or some donor would have come forward by now to save the company. Maybe the Goodwill groups outside the GTA can take over the GTA locations, less the management and union.
What's interesting is that the government already pays $4M of funding. Going by the financials said in articles, they might be losing $1-2 mill a year. So at the end of the day, the government tossing in an extra few million to keep it going is a drop in the bucket.

But if the government doesn't come in to offer extra funds to keep GW afloat, it shows what the government thinks about GW..... which would be "see ya later."
 

SkyRider

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Mar 31, 2009
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Goodwill tried to adjust payroll, but was blocked by the union.
Here's the thing. Would any reasonable and rational person be willing to take a 6% pay reduction and keep working or a 100% pay cut and live on welfare? I don't think any of the unemployed former employees are candidate for IBM jobs.

Of course, they can always whine and bitch about bad management but that won't put food on the table and pay the rent.
 

Occasionally

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May 22, 2011
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Here's the thing. Would any reasonable and rational person be willing to take a 6% pay reduction and keep working or a 100% pay cut and live on welfare? I don't think any of the unemployed former employees are candidate for IBM jobs.

Of course, they can always whine and bitch about bad management but that won't put food on the table and pay the rent.
That's because they get hosed by their union leader, who probably makes 5x what they make. I don't think the union leader's salary is going to drop due to lost jobs.

On the other hand, an agent for an athlete (as greedy as they are) has to at some point give in because their pay portion (5% or whatever it is) is based on whether the athlete is paid. No athletes under his supervision = no cut of their contract.

On the plus side, a union is suppose to use those funds and help out their members in crisis. When someone I know was on strike and the place didn't pay daily wages, they got $50/day (I think) until a deal was struck. So it's time for members to get back some of those union dues they paid into.
 

explorerzip

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Jul 27, 2006
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Do they teach Latin anymore? I recall a friend going to a retirement party for one of her friends around 10 years ago and she said this woman was one of two remaining Latin teachers in the TDSB.
For a great deal of people, Latin is totally useless. There are professions like Medicine and Law that probably use it a lot more. Here's an article that claims that students that study any language tend to do better than those that do not. If that's the case, perhaps Mandarin would be a better choice since that's where jobs have been flocking to for a long time. Learning a language is certainly challenging, but that's precisely what students need to increase their critical thinking skills.

http://www.thestar.com/life/parent/...to_keep_the_language_in_ontarios_schools.html
 

MattRoxx

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Nov 13, 2011
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More evidence that Goodwill's problem was incompetent management, not the unionized workers. And this time it's not from The Star but one of the Conservative-supporting Postmedia rags.

Amid crocodile tears, Keiko Nakamura — CEO for Goodwill of Toronto, Eastern, Central and Northern Ontario (TECNO) — claimed last month that a “cash flow crisis” forced her operation to shut down and put 430 people out of work.

She said Goodwill was strapped for donations and suffering under the weight of high GTA rents.

Now they don’t even have a name. Late Friday, Goodwill International issued a statement indicating they decided to disaffiliate Goodwill TECNO from membership — noting the shuttering of 16 stores and 10 donation centres and the board’s decision to resign amounted to “egregious acts.”

After trying to reach Nakamura for days, she sent me an e-mail late Friday indicating she can’t talk because the Goodwill International decision “changes the landscape.”

If Nakamura’s operation was indeed strapped for cash, according to a Toronto Sun investigation, it wasn’t due to a lack of revenue or a lack of donations, or even a lack of affordable space.

Footage provided to the Sun from early January shows their 21,000-square-foot Midwest Rd. warehouse packed to the rafters with skids of donations. Minutes of Goodwill’s Community Partnership and Engagement Committee from last March indicate they were the “partner of choice” with the City of Toronto’s Environment days and had just signed a deal with 1-800-GOTJUNK in the GTA to divert “usable” items to their drop-off depots.

According to information provided by Noelle Broughton, of Peel Region, for at least 10 years, Goodwill has operated the reuse store at Chrysler Dr. in Brampton as well as three other drop-off sites. Boughton indicated that over a 10-year period, Peel Region received approximately $33,000 (or about $3,000 per year) from Goodwill for use of the four locations.

A Goodwill insider says Nakamura hired Gladys Okine away from Toronto Community Housing Corp. to act as the organization’s unofficial grant-getter and go after “every free dollar that exists.”

In addition to grants, totalling $1.7 million from the Ministry of Community and Social Services, and nearly $2 million from the Ministry of Training, Colleges and Universities, Goodwill accessed money from the Ontario Trillium Foundation and the George Cedric Metcalf Foundation, a private family foundation.

Adriana Beemans, of the Metcalf Foundation, confirmed they approved a $97,481 grant to Goodwill over two years “to increase the employability prospects of low-income workers through the design and implementation of sector specific career ladders.”

She said the first portion, or $65,941, was released in 2015 but the remainder of the funds will not be released due to Goodwill’s current status.

“We have not as yet managed to reach anyone at Goodwill to discuss the situation,” she said.

Goodwill’s grant from the Trillium Foundation was $132,700, awarded over 24 months “to develop and implement a volunteer service program,” says spokesman Ana Ariyadasa.

She says all the funds were disbursed as of May of last year and last summer “everything was fine” — that Goodwill reported 255 people as having “enhanced capacity of increased health and well-being” and 296 people “felt more connected to their community” as a result of the money given to them by Trillium (whatever the heck that means.)

Ariyadasa says the final report was due to be submitted by Goodwill on Jan. 25 and they have “contacted Goodwill on several occasions but have not heard back from them.”

RENEW THE GOOD

The effort is called Renew The Good.

But for those who have donated cash to help the 430 people left without a job or severance when Goodwill shut its doors on Jan. 18, will it be a case of throwing good money after bad?

According to the Renew the Good effort website, some 148 people have contributed a total of $104,575.

But it’s anybody’s guess which employees will actually get the money — and who decides on the lucky recipients.

After sending questions to an anonymous e-mail address last week, I learned that Renew The Good is being managed by 15 former Goodwill management employees headed up by the senior director of donations, Gladys Okine.

Okine started her own non-profit foundation in 2010 called Sesheme, whose website was wiped clean on Jan. 16 — three days before all information on Goodwill’s website was removed, never to be found.

Sesheme is not a registered charity with the Canada Revenue Agency. It is just one of nearly 60,000 non-profit corporations governed by the Ontario Corporations Act.

The anonymous e-mail address indicated that the trustee and advisor for Renew the Good is the Working Women Community Centre. There was no indication the trustee is a lawyer.

Mary Stinson, who worked as Okine’s executive assistant for 10 months, said her boss expected all of her employees to follow the rules when it came to filing expenses or obtaining cash advances, but never stuck to them herself.

For example, says Stinson, contrary to protocol — which stipulated that all expenses be documented and submitted to accounting for reimbursement — Okine was constantly dipping into the petty cash box (which contained $1,500) for cash to cover her meal expenses and for money to go to the U.S., where she was taking an MBA at the University of Phoenix on a Goodwill International scholarship program. Stinson said even though Okine provided invoices, the petty cash box was to be used for “sundry expenses” only.
 

MattRoxx

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Did I say incompetent? Should have included "management's nepotism" as another reason for failure.
This group of managers, with zero retail management or operating experience went from ruining TCHC to ruining Goodwill.
Nothing the warehouse and store-level union staff could do would have prevented this bunch of idiots from taking the money and running Goodwill into the ground.

POVERTY INDUSTRY'S REVOLVING DOOR

The ties between TCHC and Goodwill Industries of Toronto run deep. Here is a list of staff who have worked at both TCHC and Goodwill in the past 10 years and their jobs:

Keiko Nakamura

TCHC: 2006-2011, COO and CEO
Goodwill Industries: Late 2011-2016, CEO
Gladys Okine

TCHC: 2007-2012, manager of community economic development
Goodwill Industries: 2012-present, senior director, mission advancement/donations and donor relations
Mitzie Hunter (MPP)

Goodwill Industries: 2002-2009, v-p external relations and corporate secretary
TCHC: 2009-early 2012, CAO
Len Koroneos

TCHC: 2010-2012, CFO and acting CEO (left with a $461Gs-$600Gs package)
Goodwill: July 2015-present, consulting services
Louisa Muffo-Magalhaes

TCHC: 2002-early 2013, human resources consultant
Goodwill: Early 2013-present, manager, HR and organizational development
Steve Curic

TCHC: 2013-2014, HR associate
Goodwill: 2014-present, senior adviser, HR
Jaemar Ivey

TCHC: 2014-2015, admin assistant to director, resident access and support
Goodwill: March-September 2015, co-ordinator people strategy
TCHC: 2015-present, tenant services co-ordinator
Rajesh Kanhai

TCHC: 2008-2010, manager community engagement
Goodwill: September 2014-present, director strategy and operational effectiveness
Julet Allen

TCHC: 1998-2013, youth specialist, children and youth manager, community health manager
Goodwill: 2014-present, clinical case manager
David Chu

Housing Services Corporation: 2004-2012 director, operations and CFO (While at HSC, David’s father, Gordon, worked with Keiko Nakamura at TCHC)
Goodwill: 2012-2015, vice-president business services
 

Butler1000

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Oct 31, 2011
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The management was filled with people who had previously worked at TCHC. And one Mitzie Hunter Liberal MPP for scarborough.

This is what happens when those used to the unlimited funds of the public sector get into the private sector. They don't have a clue how to truly run things.

A long standing company that does good works run into the ground within a few years.

By gov't bureaucrats.
 

Bud Plug

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Aug 17, 2001
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The management was filled with people who had previously worked at TCHC. And one Mitzie Hunter Liberal MPP for scarborough.

This is what happens when those used to the unlimited funds of the public sector get into the private sector. They don't have a clue how to truly run things.

A long standing company that does good works run into the ground within a few years.

By gov't bureaucrats.
While it might be true that Goodwill had a number of managers who were not very good at their jobs (it would take a lot more information than what has been made public to know this), I think people are underestimating the impact of the current economy on all retail businesses.

While it may seem unthinkable to some that a business that relies on donations for its inventory, and also receives various forms of government and private funding, could lose money, leasing costs and all of their other operational costs (including wages) have been increasing in the Toronto market at the same time that retail sales have not. Further, in the same period of time, their competition (eg. VV) has been aggressively expanding into their share of the market.

It's not clear to me, and I know it's not clear to the business geniuses who write articles in our local newspapers (who, by the way, are also struggling industries which have massively cut back on staff over the last couple of years) what Goodwill could have done about this. Of course, they might have taken on the union during the last round of negotiations, and, likely : a) ended up with a strike, b) received criticism in the papers for being unsympathetic to the plight of their workers, c) lost even more market share to VV during the strike, and d) lost management (probably the best of their management, not the worst) as they jumped ship to other employers rather than deal with the stress and additional work demands of a strike. I suspect that their largest operational cost by far is wages, and that if the business was bleeding cash, therefore wages (jobs) is where the cuts would have to be made.

Smart business people can mitigate against the effects of poor market conditions, but rarely can they completely avoid them. Lots of smart, well run, successful businesses have been wound up over the years. Perhaps Goodwill was not well run. I'm not so sure better management would have mattered.
 

Polaris

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More evidence that Goodwill's problem was incompetent management, not the unionized workers. And this time it's not from The Star but one of the Conservative-supporting Postmedia rags.
Remember Abraham Lincoln?

Lefty managers for the unions, by the unions, of the unions.

Remember the government bailout of General Motors?

There was an union involved.

Remember the Ontario deficits and debt accumulated by Mcgunity & Wynne, where one third of the cost of running the province goes to wages.

There is another lefty manager and unions involved.

Lets remember they are privatizing Hydro One, which we should given Wynne credit for.

Again another union involved.

These examples show that the unions are not part of the solution, they are part of the problem, along with excessively high taxes.
 

ogibowt

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Aug 3, 2008
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Anyone else notice a certain style of posting by ogibowt? Debate by insult. That always works so well.

JFYI, media has reported that the average wage at Goodwill was $14.00 / hr.

That's about 40% more than minimum wage, which is what you would get at Walmart. So it's not bad.
if my math is correct, then according to you , minimum wage in Ontario is 10 hr...which is incorrect..i believe it is 11.40

best regards
No Insults
 

ogibowt

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Aug 3, 2008
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When Danier Leather goes under at the end of the month.....I guess the anti union crowd will have to come up with another reason for its failure.....other than fat cat overpaid retail workers..
 

KBear

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When Danier Leather goes under at the end of the month.....I guess the anti union crowd will have to come up with another reason for its failure.....other than fat cat overpaid retail workers..
People don't seem to be wearing leather coats as much. If Danier leather was doing well in one region and going bankrupt in another you might be able to make some comparisons.

The Toronto Goodwill employees were hardly overpaid fat cats. In most retail stores the staff is part time, which allows the store owners to better control staffing levels to the needs of the business. At Goodwill a higher percentage of the staff was full time, and the union prevented Goodwill from cutting staff levels during slow times. Having entitled management that has little to no retail experience or experience working in a business where there isn't a bottomless pit of taxpayer money available probably killed the business.

Have not heard of Goodwill locations being seized by the landlords and contents sold off. Goodwill must be able to pay their rent.
 

SkyRider

Banned
Mar 31, 2009
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At Goodwill a higher percentage of the staff was full time, and the union prevented Goodwill from cutting staff levels during slow times.
Some people will argue that this is management's fault.

My suggestion is to turn the stores over to the employees and let them run it. (Why not? It's a weird business anyway.) That way they can work whatever hours they like and pay themselves salaries however much they want.
 
Ashley Madison
Toronto Escorts