Thousands laid off as PESG leaves Michigan; fears it could happen in Huntsville

Thousands laid off as PESG leaves Michigan

HUNTSVILLE, AL (WAFF) - Thousands of people in Michigan were notified late Monday evening that they were out of a job, leaving nearly 100,000 students without classroom instructors. This same company has hundreds of employees in Huntsville.

In a letter Monday night to affected employees, the Profession Education Services Group or PESG, one of the largest educational staffing companies in the world, said it would be stopping all operations and anyone employed by them would be terminated as of Monday. This according to reports in the Oakland County Press.

According to the group, this decision will affect between 1,500 and 2,000 substitute teachers across Michigan.

According to a statement, PESG officials said they tried to stay open, but negotiations to sell the company fell through over the weekend.

With the abrupt announcement of their departure from the state, employees with the company working for Huntsville City Schools were worried Thursday the same thing could happen to them.

In Huntsville, PESG hires substitute teachers, special education instructional aides, cafeteria workers and more. They were awarded the contract in May 2018.

We’ve investigated the company for months based on a number of concerns surrounding application deadlines, that led to even more confusion over pay rates, and some people said they weren’t paid for weeks. This all resulted in the company being slammed with two lawsuits.

EDUStaff is a company similar to PESG. Several dozen school systems in Michigan recruited them this week after PESG’s departure.

Clark Galloway is EDUStaff’s president. He’s worried about the image this paints for companies like his and PESG.

“Just because one staffing organization made terrible decisions and couldn’t manage their organization properly, doesn’t make the rest of us difficult organizations," said Galloway.

As it stands now, this appears to be an isolated situation in the state of Michigan.

As this news made its rounds, PESG sent out a letter to local employees saying in that the decision to leave Michigan in no way affects this district. Calling the move an ‘unique business situation.’

Huntsville City Schools officials tell WAFF 48 News they are monitoring this situation closely to ensure employees here aren’t blindsided down the road.

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