International Brotherhood of DuPont Workers

Jim Flickinger - President     

Tony Davis - Vice President

Donny Irvin - Secretary/Treasurer 

Kenneth Henley - General Counsel 

"Workers Representing DuPont, Bemis and INVISTA Workers"

   DUPONT BOARD MEMBERS' COMPENSATION IS EXORBITANT

The following article is a letter to the editor submitted to the Wilmington News Journal by IBDW General Counsel, Kenneth Henley and printed on April 23, 2010.

Why is it that DuPont is so tough on its wage roll employees—including its closure or reduction of so many plants, and its near total elimination of the employee pension plan back in 2008—when it is so generous with its Board of Directors and top executives?

Perhaps the answer can be found by considering the structure of the Board to the top executives of DuPont. Lets follow the money. For starters, each member of the Board received annual compensation of between $250,000 and $300,000 for their service on the Board in 2008.

Yet it does not appear that these members of the Board are required to attend any meetings or even participate in conference calls. Nor is it clear precisely what work, if any, is actually performed by any individual member of the Board.

Is it any surprise, given this extraordinarily generous compensation provided to the members of the Board, that these same members have approved extraordinarily generous compensation to the top executives of DuPont? We are told by the Board that this generous compensation of DuPont’s top executives is necessary to “retain and motivate”.

These same executives attempt to demonstrate their “expertise” by making the “Boy, am I tough” decisions. These decisions include simply selling off the fiber business—including its plant in Waynesboro, VA - for next to nothing (and then getting sued by the purchaser for misrepresentation in the sale); reducing the wage roll in Richmond, VA by well over 300 employees (then facing a dramatic, long term employee shortage requiring vast amounts of overtime in order to meet production needs); and abruptly closing the strategically required Philadelphia laboratory (apparently in a short term effort to save payroll dollars).

Another decision by these executives, which became effective in 2008, involved cutting the employees pension plan benefit by two-thirds for current employees, and eliminating it entirely for new hires. (After several years of litigation, an arbitrator found that the elimination of the plan for new hires violated the Union’s collective bargaining agreement with DuPont in Richmond.)

These decisions demonstrate the top executives “necessary expertise”.

Do you really think these executives would leave DuPont if they weren't treated with quite such generosity? Especially in today’s economy, is there a line of companies out there waiting to hire them?  I seriously doubt it.

Once again, it seems there is one set of standards for wage roll employees, marked by plant closures and reductions, and for the remaining employees, shrinking wage and benefit packages,  There is another, far different standard for those privileged enough to call the shots.

It is said that a rising tide lifts all ships.  However, when the tide goes out - as it has in this recession - it seems that the wage roll employees are left behind, stuck in the sand, while the Board members and top executives remain floating just as before.

This is what is actually going on at DuPont.  This is not something that I expect you will hear anything about at DuPont’s annual “aren’t we wonderful” stockholders meeting to be held later this month.

Kenneth Henley is legal counsel for the International Brotherhood of DuPont Workers.

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