More Fallout
Another casualty of the writers' strike and big media's unwillingness to negotiate.
One of the leading payroll companies in Hollywood has just closed its doors!
CLICK HERE to read all about it.
[Images via WENN.]
A tipster writes in….
"One of the things I think is GREAT is that you report on MANY business aspects of the industry that have an affect on everyone out here. I'm not sure if you heard about this yet, but as of 6pm last night, Axium (one of the few MAJOR payroll companies for the entertainment industry) told it's employees to gather their personal things, stop what they were working on and leave the building. They have shut their doors. Axium has branches all over the world: New York, Louisiana, London etc… If you call any of those offices today you will only get a message saying that their offices are closed. This is going to have a HUGE impact on the industry. MANY MANY tv shows, feature films, reality shows etc… use Axium to pay their employees AND actors. Anyone working on a show that gets their payroll from Axium can no longer count on their paychecks showing up. To top this all off, NO ONE (not Variety, Hollywood Reporter etc…) is reporting on this. The major players around town DO know about it (I know one major company in town is VERY aware of what is going on but is NOT volunteering the information to their employees since they're afraid they'll stop working) but have no further information. This is going to have a MAJOR impact on the industry."
We've tried calling Axium but have been unable to get through to anyone in any of their offices.
As VB would say, this is mayjah!
Jake Loves Joan
Get Yours Today!
Re: former Chimes guy – Oh man! Awesome idea! We should get in contact with Chimes' former VP (the one that left to work with the competition - Art Knapp)
I cannot believe that I'm commenting on this, but for those of you who don't care–this has affected more than enough people. The way that we were notified was ridiculous, unprofessional, and down-right a shock to all. I realize that this is a gossip site, but seriously the people who tend to read this stuff would rather read about stupid celebrity gossip over things that really matter–hopefully this didn't intrude with getting the lastest details on how crazy Britney Spears really is or how Lindsay fell off the wagon– This report has substance and the days leading up to this event prove a point that nothing is stable and good luck to those that were laid off in finding new employment.
TV Sucks!!!! Just Pay the Writers they deserve it !!!!!!!!!!!!!!!!!!
Re: Meg –
Seriously don't give the corporations or even this strike so much credit. California is the only place that cares about this strike, the rest of the news world is focusing on things like kidnappings and sexual predators being locked away. The ONLY place I get my information about the Writers Strike from is PerezHilton.com and thats only because I visit regularly and he's always posting about it. I didn't even know the Writers Strike was still going on until that whole thing with The Golden Globes happened. Anyways its really obvious that Perez supports this thing but I personally think its absolutely ridiculous. Maybe more people would care abou this strike if it was about teachers or soldiers in the military or firemen or doctors - people who work jobs that are necessary for this world to function. If all the WGA quit we'll have Reality TV, movies and cable television left, if all the doctors quit millions of people would die. Yeah these writers should get their money but I don't understand why they have to handicapp everyone else to get what they want. Cancelling award shows, having wardrobe people, crew, and makeup artists losing their jobs, etc. etc.
Greedy writers go to hell!!
It's true the Axium offices have closed but other entertainment industry payroll providers are stepping in to make sure the flow of payroll is managed.
Re: Ex Axium Numbnut! – The last thing we received via email is that they still working on those questions! So my guess, be prepared to be left out with nothing.
Re: former Axium Employee – You are so right, I hope they all get caught and rot in jail. Assholes!
Re: Noni – Just tapped into this thread. I left ECG a while ago and found a great company, WorkforceLogic that does the same service as ECG but does it better with more sound offerings. Been around for several years with payroll, compliance & vendor management. They've got a very impressive client list, are very sound financially & extrememly ethical. the owner is one of the most respected men in the home office town of Sonoma, CA. Check'em out.
As someone else said, it is kinda wierd using this site for "real" stuff.
This has NOTHING to do with the strike and everything to so with corrupt and greedy owners that that would rather ruin the lives if their 300 employees than man up and fix the problems. This is devastating for my family and I don't appreciate it being used to advance some other agenda
Watch The L Word!!!!!
Re: Ex Axium Numbnut! –
Axium employees are supposed to be covered untl 1/31/08, but here is something most employees don't know; Axium NEVER paid the January 2008 health insurance bill beause the AP manager was on vacation and they didn't forward the bill to her when she returned lastn Tuesday, which leads me to believe that they knew what was up then. Because Axium filed Chapter 7, you will probably not be able to get COBRA, aloing with your paycheck.
Re: unemployed in payroll –
I knew back when I worked at Axium Payroll in Burbank that management was crooked. They didn't care about their employees. Top mgmt was only concerned about their bottom line. Forcing all employees to switch to a new in-house payroll system that was just not compatable for entertainment industry payroll. They wasted tons of money on that system and forced employees to use it, which caused massive OT due to the slow speed of the system and all the core problems with the system.
Then, of course, there was the whole IRS issue…just another sign of the shady business practices of top management. Oh, there were rumors…corporate jet plane, rampant affairs, illegal business practices. We all knew the way they paid their taxes was illegal. Then the company starts buying all sorts of other companies not related to payroll or entertainment. What was that about?
I do feel for the grunt workers of the company…the ones working in payroll or customer support. They did all the major work for the company, didn't get paid huge salaries and to have this happen without warning just sucks. But it's just another sign of what kind of people the management are.
All of this could have been avoided had the top guy(s) just given the IRS the files they wanted…but of course, it would have been very incriminating.
Good luck former employees of Axium, as for the top brass of Axium, let's just say you'll get yours in due time.
The bankruptcy of Axium has nothing to do with the WGA strike. The beginning of this bankruptcy was put into motion several months before the strike ever began. It has to do with a payroll company not depositing employees' withheld taxes with the government and using it for itself.
Re: I Knew It – The rumor is the top people left the country.
Re: I Knew It –
Thank you for wishing us luck. We will need it. You are right about the massive overtime. I didn't understand why they wouldn't hire more people. It was very hectic. It wasn't worth it. Especially when I think about all the time I was away from my family. Checks cut as of 1/7/08 on PAV and PAX are no good. As of 2008 these are the only two companies. Medical is supposed to be until 1/31/08. There is no cobra after that because of the company being closed. Here is a copy of the last e-mail sent: "Everyone – As a result of the liquidity crisis at Axium and ECG, the companies have been forced to file Chapter 7 petitions this afternoon and all operations are shutdown. The businesses will not reopen. All employees will receive a notice and further information from the bankruptcy court and later the bankruptcy trustee assigned to Axium concerning the cases and where and how to file claims. Regarding last paychecks and PTO – these payments will not be made this week and further information will be forthcoming when available. I have circulated unemployment information to all US employees and I continue to gather information for Canada and UK and I will communicate when available. I am trying my best to answer phone calls and e-mails from all of you. Please continue to be patient and I will get back to everyone with answers to questions as I find out more information. I am sorry everyone. Chris"
Just to make it clear: as a person whose paycheck has been delayed due to this Axium debacle, this has NOTHING to do with the Writers' Strike. Nothing. They are unrelated. However, it's a rough time for even more people in Hollywood to be without a weekly salary. It feels like the apocalypse lately. However, production companies are doing their best to ensure that their employees are getting paid as close to on time as possible. I just hope that I don't overdraft too badly in the next few days…likely.
Re: Unemployed in payroll –
So why is Toto still working on this? What does he give a crap about this?
Re: FOrmer Axium EMployee –
I don't know he does give a f**k. A former employee just email him saying he needs his 401-K money because he is in danger of losing personal effects if he doesn't get the money. All Toto said was "we are working on it, be paitent".
I"m one of the crew that this (Axium bankruptcy) just had an effect on. Producers of the film tell us that we won't see any money…at least for a while.
Re: Just Me –
Why is that not surprising?
We already knew the money that was supposed to be used to pay employees left the country.
Honey, the IRS doesn't come and shut down your company because of a Writer's Strike. Try something more sinister. They wish it was just the strike. And per union contracts cast and crew must be paid on Thursday. They'll get their checks. Poor accountants. Kiss your Accountant!!!!
Re: Found another company – God, thank you so much! I am so sending me resume!
Re: unemployedtoo – I don't know if you guys know, but there are people still working in the hopes of getting picked up by some of the clients. So, who knows! By the way, I just received an email from Beeline, does anyone else received one too?
Re: unemployedtoo – lol yeah be patient. We just served you without lube but now we're going to ask you to have manners. LOL
Re: Noni –
Found another company for what?Re: Noni –
I am guessing this is for ECG employees, not Axium
Re: R – so true that it has nothing to do with the strike. it has to do with selfish greedy owners who did not care about the loyal employees or clients that they had!!!!
Re: unemployedtoo – that last email from Toto was awful!!! how the hell can he tell someone who was laid off and NOT given thier last check to be patient?? Especially when we don't know if or when we will get those last checks!!!
more good news….
"Everyone -
I have some disheartening news. The medical and dental benefits will continue through the end of the month. There are unfortunately no COBRA benefits under a Chapter 7 bankruptcy proceeding."
Re: former axium employee – Are you serious???? of course all of the emails say that these questions are being looked into. Dammit-they keep screwing us!!!!
Anyone who thinks Axium closing has ANYTHING to do with the writers strike should pack their bags and move back to Kansas.
It boils down to YEARS and YEARS of crooked execs & fraud & has NOTHING to do with the strike.
And hollywood is better off without them.
Honestly… the WGA strike had nothing to do with this Enron-esque fiasco. You can blame the unemployment of thousands on the strike (both sides of it). But if anything, the strike gave Axium less money to work with and therefore probably exposed the tracks that their head honchos were trying to cover. According to my co-worker, their checks from Axium were being put on hold from up to 3 months ago (November) when the strike first started. So that would make sense; i.e, less money, less to account for, harder to cover up a huge scandal. Seriously, read what these former employees are telling you and stop blaming the writers.
Re: FOrmer Axium EMployee – he only gives a crap because he is an officer of the company and the only point of contact there is
Re: Anon –
This has absolutely nothing to do with the writer's strike. Only the corporate's and money. Despite what some people think we were very busy. We mainly had commericials and feature films. Not very much TV at all. We weren't holding payroll. The last checks that went out were on Friday.
I want to speak as the voice of the Payroll Department. We cannot even express the disappointment that we feel regarding the way this was handled. It was so very disrespectful to our department as well as all the other employees of Team Axium. We were notified thru a very unprofessional and non-personal email. No one ever had the slightest bit of courtesy to speak to any of us in person. We are sure that this did not happen over night and no one even considered letting us know that we may be unemployed and would not receive our last paychecks and/or our vacation cash outs. Not to mention that several of us had given up our Saturdays and or come in on our vacation to get work that had to be completed by the end of the year done in that time frame. We were not paid for that time due to a processing error. We, your dedicated Axium payroll Department who never put ourselves first and who went above and beyond in our efforts to always get the job done got a big fat slap in the face. I'm sure this has no effect on your lives as you live in your lavish homes with your lavish vehicles, your personal jet and money in the bank. We hope that your conscience allows you to sleep at night as your dedicated ex-employees struggle to live and provide a roof over their families heads.
As far as we know, being ex-Axium employees the closiing of the business had nothing to do with the writer's strike. More likely a mis-management of funds. We have a nice long email sent to the people in charge from their employees that doesn't fit in this comment section if someone can let us know where to send it we will gladly.
This has nothing to do with the WGA strike. Axium International was in trouble well before and it is a shame the company should have informed all the employees that 3 months ago, John Visconti and Ron Garber no longer had control of the company. These two men took a profitable company in 2001, and turned into a personal piggy bank. They bought ECG for something like 85 million. Not even a year later, they begin to push to sell it. It was priced at 20 million only 1 year later, what a waste of Axium Entertainment and Avalons profits. Lets not forget the private jet Visconti owned, but lied to us all saying it was a lease. What angers me the most are two things: Monday at 4:00 pm PST, Cast and Crew made an offer to buy all of Axiums payroll divisions in the United States and Canada. It was at a fair price, and would have saved hundreds of jobs. John and Ron said no, they had their pride to keep and said the offer was an insult. Second, one of the owners, Mr. Rueben Rodriguez left the company 3 weeks ago, yet no one knew. The officers of the company, excluding Christ Toto, should be ashamed.
I seriously doubt no one knew about the Axiom closings. This was a long time coming, so I've been told by my colleague. This doesn't just affect the entertainment industry, which I'm sure is already in the works of negotiating with new payroll vendors, of which there are many out there.
Re: Unemployed@Axium –
I don't know if anyone is an attorney, but is there anything ex-employees can do? These lying bastard normally carry insurance for when executives of the company F-up like this. Is there a class action lawsuit that we can start?
Re: Unemployed@Axium –
The sad part is that the CFO had the nerve to tell employees in the NY office right before Chirstmas that it wasn't a rumor that the company was in trouble and that jobs were safe. That is why he is getting nasty emails from those employees because he played with their lives and they are pissed off.
Re: Mindmesh – spoken like true corporate tool - the greed of corporations is planet sized compared to the fair share for which writers are asking
Okay. The writers are not greedy. The studios are greedy. Writers do not make tons of money. The studios make tons of money. The writers should be compensated fairly for the work they do. Without writers there is no tv, no movies, no music. WE NEED WRITERS!!!!!!!!! Someone here mentioned that there are lots of people that can do what the writers can do. No there isn't. Being a writer is having a talent. Not everyone can write. It's not as easy as you may think.
As far as the "below the line" workers who are out of a job for now, they knew what they were getting into when they decided to make a career for themselves in the entertainment industry. Everyone knows there is no stability or promises in tv, movies, and music. That goes for everyone not just the entertainers. I bet if we could ask those "below the line" workers they would tell you they support the writers because without the writers they wouldn't have jobs in the first place.
For all those that think they know what they're talking about but really don't, pick up an issue of variety, go on wikipedia.com, educate yourself about the strike instead of posting unintelligent posts about a subject you have no clue about. I miss my shows too but I'm willing to wait. It's only tv people. Go outside for gods sake.
For those of you from Axium who thought you had dental coverage, this is the email Toto just sent to all employees:
"The dental bill was being processed by the HR department in LA. There
were questions with the bill and we received it in NY accounting during
the Christmas holiday week and it was paid December 28th. The check was
one of the checks returned "UNPAID" by the bank since the accounts were
swept. I am sorry folks."
This would not have been known unless an ex-employee didn't take her child to the dentist to get a scheduled procedure done.
Chris
Re: Unemployed@Axium –
Oh no, Chris Toto is included right along with the rest of them. Thank you Rashida and Kathy for your heartfelt e-mail. We were clueless on what they were about to do to us.
More bad news, seems that we may never see the money that is owed to us for vacation and the last week worked. I have been in contact with someone working with the trustee and it seems that the 89 creditors (which includes the IRS, DGA, and the hedge fund company) will receive all of the asset money. This just plainly sucks because chapter 7 does not protect employees at all. Even crew members that we paid whose check bounced will see money while us Axium Employees will see nothing.
To all Axium Employees:
Do not go to the Dentist! Dental was cancelled as of 12/1/07 and we have been paying into all this time. Wow!
To all Axium Employees:
Do not go to the Dentist! FYI…Dental coverage was cancelled effective 12/1/07. We paid into this all this time.