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Silver Palace Workers Fire Their Boss & Expose Tip-Stealing Landlord

Moon Tong Leurng is a deep-voiced man of few words. "If workers don't fight," he sayss, "we have no say." He and other members of 318 Restaurant Workers Union, New York's Chinatown's only independent restaurant workers union, have won a major battle at the Silver Palace Restaurant not only fighting for their jobs and better conditions, but ousting its notoriously abusive owner/manager, Richard Chan and his cronies.

For five years nonstop Tong and other workers withstood repeated threats, firings and abusive conditions to picket Silver Palace three days a week and demand the right to say "no" to long hours, stolen tips and other sweatshop conditions. When a court forced management to rehire them these fighters went back to work and continued to picket on off-hours withstanding intense pressure under management's heel. Their actions inspired many others in the NY-NJ area to stand up against sweatshop conditions and led to formation of Justice Will be Served, a campaign for all service workers.

In 1997 Silver Palace closed and reopened as "New" Silver Palace. Since then the restaurant has continuously violated labor laws, targeted and discriminated against union workers, stolen workers' tips and withheld wages. The National Labor Relations Board (NLRB) successfully brought charges against management, going to court and demanding Silver Palace compensate workers $4.5 million in back pay. The NYS Attorney General brought a criminal case against the owners and managers for non-payment of wages. In 2000 the workers filed a RICO case against the bosses, the first time that RICO, an anti-racketeering law used against organized crime, has been used against a restaurant. Due to overwhelming evidence, before the hearing the judge issued a summary decision that even if Silver Palace files for bankruptcy some owners and managers must pay part of the workers' back wages out of personal assets.

The bosses are unrepentant. They changed the restaurant's name four times to try to escape accountability, to bring in business and drag this fight out. Most recently owner/manager Richard Chan attempted to collude with Joseph Chu, the building's landlord and the owner of Eastbank which made loans to the restaurant. The two worked out a scheme where the restaurant would declare bankruptcy and then give all the stolen tip money to Chu as payment for rent and loans, leaving workers with nothing.

This time, however, the workers turned the tables and put Richard Chan out on the street for good. In October a NYS bankruptcy judge ruled against Silver Palace's attempt to file for bankruptcy and ordered its current management - including Richard Chan -- removed. A court-appointed trustee is in charge until the restaurant pays off its creditors. This victory was made possible only by the common ground the workers found with hundreds of working people and with organizations over the years that participated in the picket and boycott.

Unfortunately, the bankruptcy court is allowing landlord Chu to sell the lease to the buyer of his choice. The fight for reinstatement and compensation continues, but now 318 and NMASS must hold Chu accountable. Guo Chiang Liang, a 318 leader and Silver Palace worker explains that Chu, like many landlords in Chinatown, has been taking under-the-table money from management for years. "It's been coming from our tips," says Liang. "All that sweatshop money is in Joseph Chu's hands. We must make an example of New Silver Palace."


>> The 318 Restaurant Workers Union: Organizing Against Sweatshops
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