Two more 2015 US Continental squads have joined Team SmartStop on the list of teams whose riders claim their contractual wages were not paid, and have asked for payment through the UCI bank guarantee.
USA Cycling recently confirmed that riders for Champion System-Stan's No Tubes and IRT Racing filed claims against their respective teams' guarantees.
Champion Systems-Stan's No Tubes stopped paying riders in October, said former team rider Kevin Mullervy, but riders were paid in full last week after USA Cycling released funds from the escrow account that teams are required to set up as part of the licensing process. That process requires teams to deposit 15 per cent of the season's payroll obligations in a separate account to cover potential contract shortfalls.
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USA Cycling Technical Director Chuck Hodge told Cyclignews last week that the Champion System-Stan's case was a good example of the bank guarantee working as it was designed.
“That was a good one,” Hodge said. “The riders were able to get paid in full out of the guarantee. It took a while but it was smooth, and there was great cooperation. The bank guarantee did what it was supposed to. It made up for a late-season shortfall and got the riders some money.”
The remaining 2015 case, however, is a little more messy. IRT Racing, a first-year Continental program in 2015, stopped paying its riders in May, so the 15 percent bank guarantee is likely not high enough to cover the riders' as-yet-to-be-paid missing wages. That case is still being worked out, Hodge said. Accusations of contract fulfillment on both sides have clouded the situation.
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