POWERTEL LEAVES STATE ABRUPTLY - Workers Left Without Pay, Company Once Considered Calhoun

(11/13/2003)
By Bob Weaver

Powertel, a West Virginia telemarketing company didn't turn their lights off as they abandoned their employees in Morgantown, Phillipi and Keyser last month.

The demise was barely reported by West Virginia media.

Larry Walker, with Florida's Division of Labor's wage and hour section, told the Associated Press that Powertel likely owed several weeks wages to about 800 West Virginians, as they abruptly pulled their operations during the late night hours, not communicating their exit to employees.

The company said they had much fewer employees at time of closure.

The company had solicited donations for nonprofit groups. It also operated a call center in New Jersey.

Powertel was once sought to bring jobs to the struggling economy of Calhoun County, with the assistance of Morgantown developer Kris Warner, now Republican State Chairperson.

In May, the Federal Trade Commission sued Community Affairs (Powertel) in U.S. District Court in Florida for allegedly making false statements to obtain donations.

Walker said the state had investigated past payroll-related complaints from Community Affairs employees, but the closure came as a surprise.

Former Gov. Cecil H. Underwood joined state and local officials in announcing the opening of the Grand Central Business Center in Keyser, a new business development that promised to create jobs and bring six new companies to the former Keyser High School building.

Underwood said there was a $31 million commitment over five years in the Mineral County community to assist Powertel and other business generators.

"The refurbishment of the building, financed through a $5 million investment by Kris Warner and his partners, was a major factor in the companies' decision to locate here and keep West Virginians working," he said.

"This development is an excellent example of the success business and local leaders can achieve, working together in West Virginia's communities."

Powertel also had an operation in property owned by Warner and his business partners in Morgantown.

The Hur Herald was unable to obtain information regarding the use of state economic development money for the Powertel-Warner projects, nor would Powertel answer their phones.

Well over 1000 Calhoun and regional workers filled out applications for prospective Powertel jobs, which were proposed to be located in the old Calhoun County High School.

Warner blamed the failure of the Calhoun project on a lack of viable employees and indicated the former owner of the local school property, Shirley Fitzwater, was too high on his selling price to Warner's development company.

Fitzwater, in fact, was selling the property at a "basement sale" price, in order to get jobs in the county.