General Crane Employees Now Working for FrankCrum

April 15, 2010

Multiple General Crane USA workers have contacted CraneWatchdog.com stating that company officials are mandating that workers sign a contract with FrankCrum, an employee leasing firm based in Clearwater, Florida.

Upon signing the FrankCrum paperwork, the worker would be an employee of FrankCrum and then leased back to work for Gulfstream Crane, LLC (aka General Crane USA).

On April 2, General Crane filed an emergency motion in its pending bankruptcy case requesting authorization to enter into an employee leasing agreement with FrankCrum, Inc. According to the court filing, the agreement is “essential to maintaining workers compensation insurance.”

The filing further states that the General Crane had an existing employee leasing agreement, which was set to expire on April 1, 2010. General uses the employee leasing firm to provide labor that “supplements” its regular workforce. General did not disclose the name of the leasing company with the expiring deal but did state that the annual cost for the agreement was approximately $350,000.

The General Crane employees that contacted CraneWatchdog.com were not aware of an earlier employee leasing company and recalled signing their previous employment contract only with General.

The court motion notes that General has made temporary arrangements for workers’ comp. coverage until the court approves the FrankCrum deal. Florida’s Workers’ Compensation “Proof of Coverage” database shows that Gulfstream Crane uses Bridgefield Employers Insurance Company as its insurance carrier. The coverage was effective until: April 1, 2010. A search through Florida’s workers’ comp. “Loss Run” database reveals that Gulfstream/General Crane has used Bridgefield since the late 1990s.

In the new employee leasing deal, FrankCrum “will secure workers’ compensation coverage and will be responsible for workers’ compensation claims, claim filings,” and will also provide General Crane with “administrative services.” General alleges that the cost savings with FrankCrum are “substantial” and will likely cost about $175,000 on an annual basis.

Gulfstream Crane, LLC (aka General Crane) owner James Robertson previously testified in court that Gulfstream can procure “global insurance” such as general liability and workers’ compensation for not just itself but also affiliate companies like Royal Crane, LLC (aka Hunter Crane) and Palm Beach Trucking, LLC (aka Merchant Transport).

It is not clear at this time if employees for Hunter and Merchant are being required to sign employment agreements with FrankCrum.

CraneWatchdog.com previously documented (scroll to the bottom) that Beyel Brothers, Inc. had used FrankCrum as an employee leasing company. Certain Beyel workers received weekly paychecks not from Beyel Brothers, Inc. but from FrankCrum.

CraneWatchdog.com will provide more updates on the FrankCrum situation as we learn more.