QVC turns away workers

For nine years, Layvonne McAuley worked her job processing returned merchandise at the Rocky Mount QVC Distribution Center.

When she swiped her security card to go to work Wednesday, it didn’t work.

She was among several workers who were accused of possibly making improper withdrawals from the company’s 401(k) plan.

McAuley is livid.

“This is so unjust,” she said.

She said she wrote the hardship letters for a withdrawal from her own 401(k) when she needed money for medical bills and tuition for her children. McAuley said she was embarrassed to talk to other employees about her need for the money.

“My daughter had $3,000 worth of dental work that is having to be done, which QVC is not paying,” she said.

Nobody helped her write the hardship letters, which she faxed herself to the company from a grocery store, McAuley said.

“I didn’t fake anything,” she said.

Some of the employees, who gathered a block away from the plant on Wednesday, said they suspect the company’s real motive is to find bogus reasons to lay off employees.

“We believe there are 250 employees who are under investigation,” McAuley said. “It’s just a soft way of them lowering their employee staff.”

She said security was all over the place at the QVC headquarters on Wednesday morning.

“We had so many new faces in the building, the courtyard. I didn’t know who it was – if it was FBI or secret agents. It was intimidating,” McAuley said.

Those employees whose badges did not work were directed to the human resources department.

They were handed letters with the allegations and asked to set up an appointment to provide documentation to show their innocence.

In a prepared statement, QVC said: “QVC is investigating alleged irregularities regarding employee 401(k) hardship withdrawals at our Rocky Mount Distribution Center. Due to the current investigation, we cannot provide any additional information at this time.”

QVC Spokewoman Tara Hunter said she could not divulge any details of the probe, including the number of employees affected.

Mike Shamrell, a spokesperson for Fidelity Investments, confirmed that QVC is that company’s client.

He said he was not allowed to comment about anything else, including what hardship allowances are allowed by the employees’ plans, and whether Fidelity approved of the hardship withdrawals.

A letter dated Aug. 4 to the employees states the company’s case: “As you may have heard, QVC is looking into alleged irregularities regarding employee hardship withdrawals from the company’s 401(k) plan at our QVC Rocky Mount Inc. Distribution Center. This is a matter of great concern to our site and the company.”

The letter, signed by Nick Brecker of VP Total Rewards that handles human resources for QVC, gives the employee two days from the receipt of the letter to schedule an appointment with human resources.

“If you fail to schedule such an appointment, we will accept your inaction as your decision to voluntarily resign your employment,” the letter states.

The letter also tells the employee that if it is determined that the hardship withdrawal was improper, “you may be subject to corrective action, up to and including possible termination of employment.”

The employees are not being paid for the days they are not working.

Pamela Rand said this is causing a hardship on her family.

“I think it’s messed up,” she said.

The letter to the employees said they are allowed to pick up their paycheck today, adding “otherwise, we ask that you not frequent QVC property until your scheduled interview.”

Rand said in May, she took out a hardship 401(k) loan for $780.

“My loan was to prevent eviction,” Rand said.

She added that her landlord wrote the letter to justify the hardship, and Fidelity approved of it.

As she looked around at other employees who had gathered outside of a flea market a block away from the plant, she said she was unaware that these co-workers also had applied for the hardship withdrawals.

“I didn’t know their situation,” she said. “They didn’t even know I did a hardship (withdrawl). But today they do because my badge was disconnected.”

Yashica Lynch was shocked at being shut out of work on Wednesday.

“Nobody went in this morning expecting to voluntarily resign,” Lynch said. “We do not know who initiated this. Is Fidelity pursuing this investigation, or QVC?”