labor lawAdivision of labor law center

The U.S. Department of Labor recently announced a grant of more than $1.2 million to assist some 246 Rhode Island workers who were displaced by layoffs at the Brooks Eckerd corporate offices in Warwick. The layoffs are due to acquisition of Brooks Eckerd by Rite Aid.

The total grant is $1,224,099, of which $685,497 is to be released immediately under the National Emergency Grant program.

“This $1.2 million grant will provide these Rhode Island workers with skills training and other employment services to help them find and succeed in new jobs,” said U.S. Secretary of Labor Elaine L. Chao.

The grant is formally awarded to the Rhode Island Department of Labor and Training to provide workers with a full array of employment services, including assessment, career advice, occupational skills training and basic skills development.

On June 5, 2007 Brooks Eckerd announced layoffs beginning in August 2007. The layoffs are expected to continue through May 2008. The change comes as the new ownership changes Eckerd Pharmacies over to the Rite-Aid brand.

Brooks Eckerd Pharmacy was created when Jean Coutu purchased the Eckerd Drugstore chain from J.C. Penney and merged it with Brooks Pharmacy, a regional chain. The company was a unit of the Quebec-based Jean Coutu Group, however, the Brooks Eckerd corporate headquarters was located in Warwick, Rhode Island.

On August 23, 2006, the Wall Street Journal announced that Rite Aid would buy Brooks Eckerd for $3.4 billion. The deal closed on June 4, 2007. One day later, the company announced plans to relocate the corporate office in the merger.

Rite Aid Corporation is one of the nation’s leading drugstore chains. With the acquisition of Brooks Eckerd, the company has annual revenues of more than $27 billion. Rite Aid now has more than 5,000 stores in 31 states and the District of Columbia, with a strong presence on both the East and West coasts. The stores employ about 116,000 people. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The company is publicly traded on the New York Stock Exchange under the ticker RAD.

According to company sources, all of the acquired Brooks Eckerd stores will be renamed Rite Aid and carry Rite Aid products and services. Integration of the more than 1,850 acquired stores is expected to be completed over 16 months.     

According to the U.S. Department of Labor, National Emergency Grants (NEG) are discretionary awards by the Secretary of Labor. The grants temporarily expand service capacity at the state and local levels through time-limited funding assistance in response to “significant dislocation events.” When a layoff, plant closing or other event creates a need beyond what the state can reasonably be expected to meet, the state may apply for an Emergency Grant.  In order for a state to qualify, any discretionary funds available at the state level must be included in the state’s resources.

Grants are given for different purposes. Disaster grants benefit areas afflicted by floods, wildfires, blizzards, hurricanes, earthquakes and other natural disasters. Other grants include Trade-WIA Dual Enrollment grants and Trade-Health Coverage Infrastructure grants.

Regular NEG grants may be available when a single or multiple company layoff affects 50 or more workers. NEG grants are also appropriate when layoffs are industry-wide within a region, or when small or rural communities are severely affected by layoffs of fewer than 50 people.

A number of resources are available to inform the state and local employment agencies of the policies that govern grant awards. Communities are urged to initiate the grant process early, to ensure that funds are available when needed.

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1. Posted by: Idaho Workers Grant of $2 Million - Labor Law Center Blog

   [...] According to the U.S. Department of Labor, “National Emergency Grants are part of the secretary of labor’s discretionary fund and are awarded based on a state’s ability to meet specific guidelines.”  NEG grants have also been issued to Minnesota and Rhode Island recently. [...]

2. Posted by: $1.2 M Federal Grant for Wisconsin Workers - Labor Law Center Blog

   [...] The U.S. Department of Labor (DOL) provided a grant earlier this year to almost 250 workers in Rhode Island who were laid off. As a grant of more than $1.2 million, it helped the 246 employees who had worked at the corporate offices of Brooks Eckerd in Warwick, Rhode Island, after Rite Aid acquired Brooks Eckerd. [...]

3. Posted by: Alaska Wins $2 Million Grant - Labor Law Center Blog

   [...] For example, the DOL awarded a grant of more than $1.2 million this year to help almost 250 workers in the corporate offices of Brooks Eckerd in Warwick, Rhode Island. The employees were laid off when the company was acquired by Rite Aid. [...]