Div2000.comDiv2000.com Multicultural Business News Print Article  |   Close Window
Minority Supplier sues Northeast Utility/Comensura

July 15, 2004

 

BERLIN -- The Nucon Group of New London has filed suit accusing Comensura, Inc., a Texas-based staffing firm of discrimination, defamation and unfair trade practices while under contract to Northeast Utilities, which the company claims permitted such activity.

    The suit alleges that Comensura caused Nucon to lose nearly 270 employees as well as millions of dollars generated annually with Northeast Utilities.

Nucon’s president and CEO, Gil Morrell, said his company has been providing staffing services to Northeast Utilities for more than 20 years and placed nearly 1,000 employees at the energy firm through a number of programs. Nucon’s services included screening, evaluating and processing employees, responsibility for payroll management, offering health and savings program and other related employee services.

But the president and CEO of one of Connecticut’s largest minority-owned businesses says he’s disappointed and puzzled over what he calls Northeast Utilities’ recent lack of regard for his company’s reputation in the marketplace.

The suit, filed in Superior Court in New London, alleged that Comensura made false statements to Northeast Utilities regarding Nucon and caused injury to Nucon’s reputation in the employment marketplace. Nucon’s suit states that Northeast Utilities condoned and approved the effective destruction of its largest minority-owned vendor by permitting Comensura’s actions.

Deborah Beauchamp, spokeswoman for Northeast Utilities, said the firm offers no comment onpending litigation, particularly when the utility is not named in a law suit.

"This is a vendor-to-vendor issue," she said.

Comensura did not return The Herald’s phone calls by press time.

During early 2003, Northeast Utilities solicited bids and eventually contracted with Comensura for the coordination of all temporary staffing responsibilities. Morrell said much to Nucon’s surprise, Northeast Utilities did not allow this minority-owned business to participate in the bidding process. He added that Comensura conducted itself in a way that discredited Nucon’s abilities, eventually achieving its goal of eliminating Nucon as a vendor in the contracting base.

After Comensura was awarded the contract, Nucon claims Comensura overlooked Nucon’s long and successful track record at the utility and transferred all but four of its employees to a New York-based staffing firm, FlexCorp.

"We simply can not see the logic or financial justification for Comensura and Northeast Utilities transferring work from a highly successful Connecticut firm to another out-of-state business," Morrell said. "Northeast Utilities has had nothing but praise for our services all these years, and we knew we could save them money if we had been permitted to continue handling these services."

Nucon believes Comensura’s actions have diverted Northeast Utilities from one of its own important corporate goals, which says that "diversity is part of Northeast Utilities core values." Nucon feels that with Northeast Utilities sitting on the corporate board of the Connecticut Minority Supplier Development Council,the near-total transfer of employees from Nucon to the Texas firm along with the significant loss of Nucon revenue violates the spirit of Northeast Utilities’ commitment to diversity, and has jeopardized the continued viability of Connecticut’s third largest minority-owned business.

Also important to Morrell and Nucon is the "peace of mind" they brought to their employees and how that now may be lost. According to Nucon, FlexCorp, the Texas firm Comensura hired to replace them, is a payroll service company and can not provide critical job-related services to employees, including assistance in preparing resumes, identifying employment opportunities, and job search mentoring.

"Our employees have come to expect a wide array of important services over and above getting them placed into long-term positions at Northeast Utilities," said Morrell. "They also fear the possibility that for the first time ever, limits will be established on how long their employment can last at the company."

Morrell said Nucon had always been proud of the recognition it received from Northeast Utilities regarding the high quality of services it provided. In fact, Nucon is featured on the utility company’s Web site, where it states: "Northeast Utilities has been a partner with Morrell and his company for nearly two decades. With a proven track record, the Nucon Group has met and exceeded all contracting requirements and goals with its precision engineering and rigorous standards."

Scott Whipple can be reached at swhipple@newbritainherald.com or by calling (860)225-4601, ext.224.

Source: The Herald

 

Close Window



DiversityBusiness.com is the online hub for Minority Business. Supplier Diversity Program of DiversityBusiness is the best online centralized upto date tool utilized by all major corporations including OfficeMax, Bellsouth, Master Foods, Deloitte and Waste Management. The heart of this website is its' informative database of Women and Minority Business Enterprises (W/MBE's) and contact's within Fortune 1000 companies. DiversityBusiness.com also facilitates your ability to remain abreast of activities and news that affect W/MBE's and Blue Chip Companies. DiversityBusiness.com is the only e-procurement resource that maintains a national database with up to date information, as well as providing all the data necessary for the expansion of Minority Businesses on a national basis.