Leader DeSimone’s legal skills help wage thief


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John DeSimone
John DeSimone

House Majority Leader John DeSimone is also a lawyer and one of his clients is Chung Cho, a restaurant owner who was fined for wage theft in Connecticut and, more recently, faces a lawsuit for allegedly stealing wages from his employees at Gourmet Heaven in downtown Providence.

“Defendants are without sufficient knowledge or information to admit or deny that plaintiffs were employed by Gourmet Heaven,” wrote DeSimone in a court filing on behalf of Cho.

Cho is facing a lawsuit from eight workers in Rhode Island for unpaid wages in violation of the minimum wage and overtime provisions of the federal Fair Labor Standards Act and the Rhode Island Minimum Wage Act. The eight workers are being represented by Robert McCreanor and Marissa Janton of the RI Center for Justice. Gourmet Heaven, which Cho recently sold, has been the center of several public demonstrations.

In Connecticut, Cho was charged with “42 felony and misdemeanor counts of wage theft, larceny, and defrauding immigrant workers after a 2013 Connecticut Department of Labor investigation found that Cho owed over $218,000 in unpaid wages” to two dozen restaurant employees, according to a court filing.

Gourmet Heaven 010The Center for Justice initially filed its lawsuit in February, 2015, after “several requests for extension of the deadline for filing responsive pleadings”. DeSimone filed Cho’s legal response to the Rhode Island lawsuit on May 11, 2015. About a week later, on May 20, 2015, Cho sold Gourmet Heaven to GSP Corp for half a million dollars. At least some of the transactional paperwork for this sale was prepared by DeSimone.

Gourmet Heaven 004GSP Corp had come into existence about a month earlier, on April 9, “listing 173
Weybosset Street … as its address and Dae Hyun Yoo as its registered agent,” according to the lawsuit. Gourmet Heaven was incorporated at this address, which is also where the restaurant is located. “Dae Hyun Yoo (aka David Yoo) is the Chief Executive Officer of B.C.S. International Corporation (B.C.S.), a wholesale food supply company,” according to the filing. “While operating Gourmet Heaven, LLC, Defendant Chung Cho regularly ordered inventory from B.C.S. and two of its subsidiaries, Hyun Dai International Food Corp and New York Cheese Corp.”

DSC_2087-421x600 (1)After the sale was finalized on September 14, “$225,389.11 of the $500,000 purchase price was paid directly to B.C.S., Hyun Dai International Food Corp, and New York Cheese Corp, purportedly to satisfy existing debts.” In the closing statement, Chung Cho is listed as receiving only “$1,620.78 from the $500,000 purchase price” after other debts were settled.

In response to this “sale” (quotation marks are included in the complaint) the Center for Justice amended its complaint to include GSP Corp as a defendant., believing the “sale” is merely an attempt to evade liability. GSP Corp hired Brian LaPlante and Michael J Jacobs as lawyers and have moved to have the complaint against them dismissed. A judge will hear the motion on September 20.

Selling the business and pleading poverty to avoid responsibility seems to be Cho’s signature move. One month after he was arrested in Connecticut, he sold his Connecticut Gourmet Heaven stores to Good Nature Café Inc, which was incorporated the previous October.

After selling his Connecticut stores, “on September 30, 2015 Defendant Chung Cho filed for personal bankruptcy in Connecticut,” says the complaint, “In December of 2015 Defendant Chung Cho testified at a hearing in Connecticut that he has no assets, contradicting a previous sworn statement that he possessed between $1 million and $10 million in assets.”

Back in Providence, on September 16, 2015, GSP Corp took over operation of the store located at 173 Weybosset Street, and renamed it Serendipity Gourmet. “The store continues operation at the same address, with many of the same employees, and sells the same products. The signage on the store uses the same font and colors, and the word ‘Gourmet’ still appears in the name. Signs on the exterior of the store proclaimed that it was ‘under new management.’”

In March of this year, GSP Corp applied for a new food dispenser and holiday sales license with the Providence Board of Licenses for their newly minted Serendipity Gourmet. The board’s attorney is Louis DeSimone, Representative John DeSimone’s cousin.

Voters should know when the people we elect to represent us also defend the monsters who oppress us. Anybody being sued deserves legal representation, but using slick legal moves to avoid paying workers their earned wages is simply gross.

DeSimone is facing a challenge to his House seat from Marcia Ranglin-Vassell.

DeSimone did not respond to requests for comment.

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Former employees protest Gourmet Heaven, demand stolen wages


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DSC_2087Ahead of his court appearance on charges that his upscale deli Gourmet Heaven, located in downtown Providence, owes nearly $150,000 in unpaid wages,  activist groups Fuerza Laboral, RI Jobs With Justice, and Restaurants Opportunities Center United of RI (ROC RI) held a press conference calling on owner Chung Cho to pay up.

“We want Mr. Cho to respond to us and pay us what he owes,” said Roberto Quinilla, a former employee of Gourmet Heaven who is seeking over $32,000 in unpaid wages. “A group of us went to Mr. Cho’s house this weekend to try to track him down, and demand what he owes us, because we’ve been waiting too long, and we need an answer now.”

Cho has denied all charges, according to the organizers of the press conference, despite being found guilty in Connecticut of 43 charges of employment law violations, and being ordered to pay roughly $150,000 in a settlement with workers at stores in New Haven, CT, now closed.

Mike Araujo, Policy Organizer with the ROC RI, and co-chair of RI Jobs With Justice, said, “We must pass stronger penalties for employers who steal workers’ wages, and raise the tipped minimum wage—a mere $2.89—so workers don’t have to make ends meat by kowtowing to the whims of the customers whose tips pay the vast majority of their salary.”

In a statement, Senator Donna Nesslebush said, “Workers are the engine and backbone of our economy, our families and our society. We need to treat them well which means we must rout out wage theft wherever we see it, wherever we find it. Too often, workers are abused in the shadows of industry for the greed and aggrandizement of unscrupulous employers/owners. We need to shine the light of day on these shadows by strengthening our laws to better protect and honor workers, and this means increasing the penalties for wage theft and increasing the minimum wage.”

Jesse Strecker of RI Jobs With Justice said that he did not expect anything to be decided in court today, as proceedings were just beginning, but he was optimistic that the case would be decided in the worker’s favor.

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RI workers pay an early morning visit to Gourmet Heaven owner’s home in CT


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DSC_0978Early Saturday morning about 20 people, including former employees of Gourmet Heaven Rhode Island and their supporters, traveled by bus to Woodbridge, CT to wake up Gourmet Heaven owner Chung Cho, who owes workers hundreds of thousands of dollars in unpaid wages across two states.

Organized by Fuerza Laboral and RI Jobs with Justice, the group exited the bus and walked up the driveway towards Cho’s mansion, loudly calling on him to pay his workers what he owes, even if it means selling off his fabulous home and moving into lesser digs. Cho did not show his face at the windows or respond to the crowd, but the Woodbridge Police Department did respond minutes after the action started.

DSC_0411The police, once they determined that this was a peaceful labor protest, did not interfere, much to the consternation of some of Cho’s neighbors. Since Cho decided against meeting with his former workers, the protesters took a walk through Cho’s neighborhood, chanting and distributing flyers.

This was the morning that Cho’s neighbors, if they didn’t already know, learned what kind of person he is.

Chung Cho was found guilty in Connecticut of 43 violations of employment law, and was ordered to pay $140,000 in back pay to workers. In Rhode Island, Cho is accused of not paying over $150,000 in back pay. Cho denies that he owes any money. The trial is scheduled to start on Tuesday.

Pedro Guarcas, in a statement, said, “I worked in the kitchen of Gourmet Heaven in Providence for over a year. For months I worked grueling 72 hour weeks for only $400 a week. Twice I fell down the kitchen stairs carrying heavy boxes of fruit because my supervisor was pressuring me to work faster. In April of 2014, the kitchen supervisor met me out back when I was taking out the trash and punched me several times in the stomach. Eventually I had to stop working because I couldn’t handle the pain in my foot and my hip where I had fallen and where my supervisor had punched me.”

This is at least the second time workers have taken early morning action against business owners who steal wages. In January workers paid an early morning visit to the home of Juan Noboa, accused of owing his workers at least $17,000 in unpaid wages from his failed Café Atlantic restaurant venture. His neighbors were also displeased.

Owners of businesses stealing wages from workers should take note: You could be next.

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Providence fights for $15; local march part of national day of action


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tax day 039On April 15th, Providence became one of over 200 cities to participate in a “National Day of Action to Fight for $15.”

In a two hour march through downtown Providence, nearly 100 workers and activists visited businesses engaged in wage theft, low pay and anti-unionization efforts. The event was organized through Rhode Island Jobs with Justice in collaboration with Restaurant Opportunities Center of RI (ROC-RI), Fuerza Laboral, Carpenters Local 94, SEIU Rhode Island, UNITE HERE Local 217, Direct Action for Rights and Equality (DARE) and IUPAT Local 195 DC 11 Painters.

The groups are “seeking a city ordinance that would require all companies getting tax breaks in Providence to pay workers a living wage of at least $15/hr, provide paid sick days, health benefits, and fair, predictable schedules.” They also want the city to “follow the First Source ordinance by hiring residents of Providence, prioritize hiring people from high poverty neighborhoods, and make sure that people working these jobs have a pathway to a real career by using apprenticeship programs.”

tax day 040The groups are also asking Mayor Jorge Elorza to live up to the campaign promises he made while still a candidate at a mayoral forum in South Providence, “to set up a community board with the power to approve/disapprove projects, take back money if companies aren’t living up to what they say they’ll do, and negotiate the construction of projects community members identify as needs, such as affordable housing, or fixing up an abandoned lot into a park.”

The Providence Police Department cleared the streets ahead of the marchers, who started their protest outside of Gourmet Heaven  on Weybosset St. This is the third time protesters gathered outside the restaurant, which is accused of stealing wages from employees here in Rhode Island in a situation similar to Connecticut where substantial fines have been levied against the company for wage theft. Two workers addressed the crowd, and spoke about the abusive working conditions they say they endured. One worker said he was told, when he demanded his pay, that if he complained the management would have him deported.

The marchers then walked a short way up the street to Cilantro restaurant, a chain recently fined by the US Labor Department for wage theft to the tune of $100,000. Oddly, a Cilantro worker met the crowd, offering tortilla chips and bottled drinks, which were refused. “We don’t want your crumbs, we want our money,” quipped Michael Araujo of ROC-RI.

The march then continued across the city to the Providence Hilton Hotel, owned by The Procaccianti Group, where hotel workers were already outside picketing. The two groups merged into a protest of well over 150 people. The workers at the Providence Hilton announced a worker-led boycott of the hotel, joining the boycott efforts of workers at the Renaissance Providence Hotel (also owned by Procaccianti Group.) Employees from the Omni Providence Hotel were also on hand to support the boycott effort.

City Councillor Carmen Castillo spoke to the crowd about her experiences working at the Omni Providence Hotel, which was owned by the Procaccianti Group when it was called the Westin. Since the Procaccianti Group sold the hotel, worker conditions have markedly improved. Also speaking to the crowd was hotel worker Santa Brito.

The protest then headed for the Providence City Hall, stopping along the way at the Subway sandwich shop attached to the skating rink. Here Jo-Ann Gesterling, a fast food worker from Wendy’s, spoke to the crowd. Gesterling has led previous at her store and was arrested last year in Hartford CT during a Fight for $15 protest there. Gesterling talked about the importance of raising the minimum wage to $15, and about the effort to improve working conditions at her restaurant.

The final stop of the march was Providence City Hall, where Malchus Mills of DARE called on Mayor Jorge Elorza to honor his campaign commitments and enforce the First Source ordinance, which prioritizes city hiring from Providence communities. Mills also called upon the City Council to demand fair wages and benefits for workers from companies seeking tax stabilizations from the city. Also speaking at the City Hall was Jeffrey Santos, member of Carpenters Local 94.

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‘Wage Theft Street Theater’ outside Gourmet Heaven


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DSC_1243A protest outside the upscale downtown Providence deli Gourmet Heaven was scheduled for the same day that three workers filed a case in district court for non-payment of wages. Six more workers are expected to join the case later this week, alleging a total of $140,000 in unpaid wages over two years. The workers have organized through Fuerza Laboral and Rhode Island Jobs with Justice.

As they did during their last protest back in December, workers and protesters entered the restaurant to confront management about the unpaid wages. This time store manager Mohamed Masoud was in the store, but he declined to comment to the press. The police arrived quickly and moved the 30-40 protesters outside and onto the sidewalk without incident.

Outside the protesters picketed and chanted for about 30 minutes. Passersby were handed flyers informing them of the working conditions at the restaurant. The police were vigilant in making sure there was ample room for pedestrians to get through the picket line, at one point picking up my video camera and moving it, even though there was a four foot wide path available.

The highlight of the protest was some “street theater” in which former employees acted out the experience of being hired by Chung Cho, the owner of Gourmet Heaven, which started off with promises and handshakes, but soon devolved into physical abuse, unsafe working conniptions and stolen wages. The scene ended with Cho and his manager, Masoud, being hounded down the street by an angry mob of workers.

In Connecticut, Cho reached an agreement with the [Connecticut] Department of Labor to pay $140,000 in back wages to 25 workers, but has so far not made his payments in a timely manner. Former employees of the two Gourmet Heaven stores in New Haven, CT have already filed suit against Cho in federal court in Connecticut for wage theft at the New Haven locations.

“The only way for Cho to pay workers what he stole from them is for us to bring this to the public and let his clients know what labor rights abuses were going on at this store,” said Jesse Strecker, Executive Director of RI Jobs with Justice in a statement. “Since Cho has not given any response to the [RI] Department of Labor and Training or to us, we are filing in the courts and continuing our public protest.”

A December 2014 report by the US Department of Labor determined that wage theft in New York and California amounted to between $1.6 and $2.5 billion dollar a year and that “…affected employees’ lost weekly wages averaged 37–49 percent of their income.”

Donna Nesselbush has introduced legislation in the Rhode Island State Senate that would increase the penalties for wage theft, and give more options to workers seeking lost wages.  In the press release for today’s action Nesselbush says, “Theft of any kind is wrong, but wage theft is particularly disturbing because it is often perpetrated against the most vulnerable in our society, those who need their wages the most, even to survive.”

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Wage theft leaves victims few options other than protest


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DSC_9811The recent protest outside Juan Noboa’s Olneyville residence by restaurant workers claiming that they were owed thousands of dollars in unpaid salaries for work at his Café Atlantic restaurant has provoked conversation about the propriety of such tactics. Noboa, though his lawyer, denies any wrongdoing and claims that one of his children was “terrified” by the crowd outside his house. His lawyer added that dissatisfied employees should not “protest at a man’s home in the dark” and suggested that a suitable location for protest might be the now closed restaurant.

It is true that no one would be disturbed by a protest at a closed restaurant. For Noboa and other business owners accused of misconduct by their employees, such an event would be perfect, because the media would not cover it, and no one would have to hear the protester’s demands. Those targeted by such protests and their defenders like to point out that there are proper channels through which to make such complaints. The protesters outside Noboa’s home, with the help of Fuerza Laboral, did file complaints with the Rhode Island Department of Labor and Training, so we can all rest assured, it is argued, that once the system has run its course, justice will be served and Noboa will be compelled to pay, or not, depending on the Dept. of Labor decision.

Yet protests like these are not about one business owner who may have stolen wages from employees, or even about two restaurants (the other being Gourmet Heaven, located in downtown Providence and formerly on the East Side) that have closed suddenly, leaving their employees high and dry. These protests are about what Phoebe Gardener, a Community Organizer for Fuerza Laboral, called, “…a pattern of Providence-based food establishments intentionally cheating workers of their wages.”

Statistics on wage theft are difficult to find. At the Economic Policy Institute (EPI) it is estimated that nationally, wage theft, “is costing workers more than $50 billion a year.” To put that into perspective, the EPI notes that “All of the robberies, burglaries, larcenies, and motor vehicle thefts in the nation cost their victims less than $14 billion in 2012, according to the FBI’s Uniform Crime Reports.” Wage theft is at least three times more costly than all other forms of theft combined, yet our prisons are filled with conventional thieves, not duplicitous employers.

Surveys indicate that most victims of wage theft never sue and never complain to the government. “A three-city study of workers in low-wage industries found that in any given week, two-thirds experienced at least one pay-related violation,” reports EPI, emphasis mine.

Wage theft is widespread, extremely profitable and easy to get away with.

Workers at the low end of the pay scale, or who are socially vulnerable, such as undocumented immigrants or former prisoners, are frequent victims. Reporting the crime of wage theft takes time, time the working poor need to be working in order to survive.

There is little reason for employers to properly pay what they owe workers. If caught, an employer will be ordered to pay the workers what they are determined to owe and may be fined a “maximum civil monetary penalty” of $1,100.

So let’s revisit the tactics of protest.

DSC_9779Having protesters arrive outside your home at 6am to accuse you of theft with a bullhorn is embarrassing and may be even a little frightening for your family. The very possibility that this might happen should serve as a deterrent to any business owner in Providence who might be considering cheating employees out of the money owed to them. As the Fuerza Laboral press release stated, “Workers and allies are bringing the message that they must be paid in full immediately or else they will continue to bring public attention on Noboa and the other owners.” [emphasis mine]

Workers, who used to be all but powerless in these situations, are finding ways to shift the playing field. This doesn’t mean that workers suddenly have the advantage, far from it, but if workers continue to use such tactics, business owners will no longer be able to steal from their employees so easily. Now offending employers risk something much more valuable than money: Their public reputations and the respect of their neighbors and family.

Laws could be passed that strengthen the rights of workers and make it easier to file claims of wage theft. Fines and penalties for non-payment or underpayment of wages could be increased to the point where they act as real deterrents, rather than as a cost of doing business. Our legislature could enact legislation that makes it economically worthwhile for unpaid employees to pursue their rightful claims.

However, in the absence of thoughtful legislation that protects the rights of workers, public protest must fill in to loudly proclaim a simple truth: Workers have dignity and deserve to be treated with respect.

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Workers protest ex-boss’s home at dawn; demand $17,000 in unpaid wages


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Juan Noboa 9857 About 40 people showed up before sunrise at Juan Noboa’s 23 Julian St. residence in the Olneyville section of Providence this morning to demand the payment of over $17,000 in back wages to six employees.

According to organizers, Noboa and his partner, Jose Bren, employed around 15 workers to help open Café Atlantic, a restaurant located at 1366 Chalkstone Ave. between August and September, 2014. Some employees worked up to 70 hours a week, but, according to organizers, “by September 28th, Noboa and Bren closed the restaurant just months after opening and walked away without paying workers their full wages.”

The workers have organized through Fuerza Laboral (Power of Workers) “a community organization that builds worker leadership to fight workplace exploitation.” They have filed complaints with the Rhode Island Department of Labor and have attempted many times to contact the owners with their concerns, but have received no response.

DSC_9790Juan Noboa was a volunteer for Buddy Cianci during his unsuccessful run for mayor last election. During the election Noboa reported Representative Scott Slater to the state police for possible voter fraud after taking video showing Slater, “leaving Kilmartin Plaza, a Providence high-rise for the elderly, with what looked like a ballot.”  The police investigated and cleared Slater of any wrongdoing. Slater issued a statement saying that he recognized the man filming him “as someone who had threatened him in the past.”

According to the Providence Journal, Noboa “is a convicted felon and has been arrested 10 times dating back to March 2000.”

This morning’s action follows last month’s protest outside Gourmet Heaven on Westminster St. downtown. “We see a pattern of Providence-based food establishments intentionally cheating workers of their wages,” said Phoebe Gardener, Community Organizer with Fuerza Laboral.

“It makes me so angry that I am doing everything I can to provide for my family and do my job the best I can and Noboa doesn’t care about anything but making money for himself,” said Flor Salazar, former employee of Café Atlantic in a written statement, “Some of us are single mothers and are barely getting by.”

After chanting in Noboa’s driveway and pounding on his door for about fifteen minutes, the Providence police arrived and moved the protesters onto the sidewalk and into the street. Protesters handed out fliers to neighbors accusing Noboa of theft.

Noboa never came to the door or showed his face in the window.

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Gourmet Heaven in Providence accused of wage theft


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Gourmet Heaven 002Supporters, activists and former employees stormed Gourmet Heaven, an upscale deli on Weybosset Street in downtown Providence Friday. They say employees are owed more than $100,000 in back wages, as is the case at Connecticut delis under the same ownership.

The protesters entered the Providence deli at noon and temporarily stifled the business to the consternation of the manager on duty. “Get out!” she yelled.

“We’ll leave when you pay your workers what they are owed,” replied one of the protesters.

“What you’re doing is illegal,” said another.

Gourmet Heaven 004Gourmet Heaven is owned by Chung Cho, and he runs two other Gourmet Heaven outlets in New Haven, Connecticut. There was also a Gourmet Heaven on Meeting Street here in Providence, but it recently closed. In New Haven, Cho has been charged with “42 felony and misdemeanors” for wage theft, and was “arrested twice for discrimination and retaliation related to these claims.”

Labor activists here say Rhode Islanders are owed more than $100,000 in minimum wage and overtime pay. Phoebe Gardener, organizer at Fuerza Laboral, a workers’ rights center in Central Falls, has filed claims here in Rhode Island for seven workers.

After about five minutes of protest inside Cho’s downtown deli, the Providence Police Department arrived and the protesters left the store. But they continued to picket and chant outside Gourmet Heaven on the Weybosset Street sidewalk for the next hour, seriously impacting business. Flyers are distributed to passersby explaining the reason for the protest.

This protest was marked by excellent, artful signs and a few fun touches such as a rat mask and Hulk gloves.

In Connecticut, Cho reached an agreement with the Department of Labor to pay $140,000 in back wages to 25 workers, but has so far not made his payments in a timely manner. There are reports that the New Haven stores are in the process of closing.

Gourmet Heaven 017In November, Mohamed Masaud, manager of Weybosset Street Gourmet Heaven, claimed that there were no such violations going on in Providence.

Gardener and Jesse Strecker of Rhode Island Jobs with Justice, claim to have found ten workers who are owed thousands, or even tens of thousands of dollars in back pay. All told, it is asserted that over $100,000 in minimum wage and overtime pay is owed to workers here in Rhode island.

“I worked grueling 84 hour weeks, 7 days a week, 12 hours a day on the night shift, from 7pm to 7am,” said Pedro Us in a written statement, “For all that work, and on the night shift, I was paid only $360 a week, way below minimum wage and with no overtime.”

Gourmet Heaven 021Pedro Guarcas worked, at both the downtown and Meeting St locations of Gourmet Heaven. Guarcas claims that while on the job, he suffered workplace injuries and physical abuse.

“The managers pressured us to work so fast that I slipped and fell down the stairs twice and hurt my foot badly. This past April, the kitchen supervisor… punched me in the stomach when I was taking out the trash, but when I reported it to the store manager, he didn’t do anything about it.”

Guarcas claims that he worked 72 hour weeks for less than $400 a week, a paltry $5.50 an hour and well under Rhode Island’s minimum wage. Guarcas did not file any complaints because he has “a family to feed and it is hard to find another job.” Now that he no longer works for Gourmet Heaven he is speaking up in the hope of collecting his lost wages and because he wants justice.

Guarcas and another former Gourmet Heaven worker from Rhode Island, as well as a former worker from Connecticut, spoke at the protest. In addition George Nee, president of the RI AFL-CIO, James Riley, Secretary-Treasurer of UFCW Local 328, Providence City Councillor Carmen Castillo and union organizer Marino Cruz, recently dismissed from his job at the Providence Renaissance Hotel for his unionization efforts also spoke briefly to the protesters.

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