Nip Impressions logo
Wed, Apr 24, 2024 03:25
Visitor
Home
Click here for Pulp & Paper Radio International
Subscription Central
Must reads for pulp and paper industry professionals
Search
My Profile
Login
Logout
Management Side
Former DuPonters say Chemours tricked them out of severance money

WILMINGTON, Del. (From news reports) -- A group of former DuPont employees is suing Chemours Co. for fraud, claiming the company tricked them into accepting a cheaper severance than it later offered other employees.

Fillings in the Delaware District Court and New Castle County Superior Court say the deal they accepted cost the individual plaintiffs as much as $102,000 compared with a later offering.

Company officials did this in an effort to "induce employees to forgo a richer benefit package ... and thereby reduce overall costs of its employee workforce reduction," the lawsuit states.

In court filings, Chemours denies wrongdoing.

In 2015, DuPont spun off its performance chemicals division into a standalone, publicly traded company known as Chemours. As part of that process, DuPont trimmed its performance chemicals division through involuntary layoffs and an accompanying severance package. The package offered employees a maximum of 12 months' salary and other benefits.

Workers in that division who were not laid off became employees of Chemours. The plaintiffs in the lawsuit were in that group.

Shortly after, Chemours announced further workforce reductions through an optional severance program offered to employees.

Workers were given a two-week window in which they could sign up to receive a lump-sum severance capped at a maximum of six months of their base salary.

During the window to volunteer for that program, Chemours employees believed the company was planning future job cuts through involuntary layoffs.

The rumor was that program would carry a similar package -- capped at 12 months of base salary -- to the one that DuPont implemented before the spinoff, court documents state.

"Chemours was abuzz with rumors of such a possibility," the lawsuit states.

Because of the rumors, many employees were reluctant to sign up for the voluntary program that offered only six months' salary, according to court documents.

In order to allay these concerns and spur participation, Beth Albright, Chemours' senior vice president of human resources, sent a companywide email on Oct. 20, 2015 -- less than a week before the window to sign up for the voluntary program ended, the lawsuit states.

That email confirmed the rumored future involuntary cuts but said that severance would be more akin to its voluntary program than the former DuPont layoff program.

"The Oct. 20, 2015, email was transmitted ... so that an increased number of employees would submit applications for the (voluntary) severance program," the lawsuit states.

Even so, participation in the voluntary program totaled only about one-third to one-half of the 600 to 700 former DuPont employees whom Chemours intended to cull, according to the lawsuit.

The company then announced involuntary layoffs in December 2015. The lawsuit claims the involuntary severance program offered benefits "substantially similar" to the previous DuPont program despite the representations in Albright's email.

The maximum severance under Chemours' layoffs was a year base pay, double that of the voluntary program plaintiffs signed up for months before. Medical payments, stock options and other benefits for those terminated were also higher than the voluntary severance and more akin to the DuPont layoff package, the lawsuit states.

Because of this, the lawsuit claims Chemours made "material misrepresentations" when officials stated the involuntary layoff benefits would be dissimilar to DuPont severances before the spinoff.

Mark Giradot, a Chadds Ford, Pennsylvania resident, had worked at DuPont and Chemours for 32 years as of October 2015. The lawsuit states he relied on the Albright email to agree to the voluntary program. It adds that the company saved $76,000 on Giradot's severance through its "misrepresentations."

Likewise, Gerhard Wittreich of Hockessin worked at DuPont for more than three decades and relied on the email in his decision to take the voluntary severance. The lawsuit claims the company saved $89,000 on his severance.

Peter Butler, a Kennett Square, Pennsylvania resident who is also a plaintiff, took the voluntary severance and claims the company saved some $102,000 through its "misrepresentations."

The plaintiffs did not return a phone call seeking comment. Their attorney declined to comment. A Chemours spokesperson and an attorney representing the company also declined to comment.

In court filings, the company denies some facts alleged by the plaintiffs, including those about the Albright email.

The lawsuit said the plaintiffs seek to represent a class of Chemours employees that could be as large as 200 people.

The lawsuit alleges fraud, breach of good faith and fair dealing, unjust enrichment, violation of Delaware Wage Payment and Collection Act and other counts.

It seeks compensatory and punitive damages from the company.

The challenge was filed in New Castle County Superior Court in October, and recently a judge rejected a push by Chemours to dismiss part of the lawsuit.

A similar lawsuit was filed by the same plaintiffs in Delaware District Court claiming a violation of federal wage laws. That lawsuit was dismissed as irrelevant to those federal laws, and that decision is being appealed.

****

EMPLOYMENT OPPORTUNITIES:

* We are looking for a Production Shift Team Leader to maintain high standards, plus ensure safety policies and regulations for a company located close to Chicago's Midway Airport. If you are experienced team leader who has a four-year degree in an engineering/technical field (paper science degree preferred, and experience in recycled linerboard or corrugating medium paper mills is a plus), we are looking for someone like you! If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* A family owned and operated corrugated packaging solutions company in Illinois is looking for an experienced Maintenance Technician to maintain production and quality by ensuring operation of machinery and mechanical equipment. Relocation and other perks are available to the right candidate who is committed to working third shift. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* Are you an experienced Maintenance Mechanic and would like to work for a family owned and operated corrugated packaging solutions company that invests in the best equipment and technology? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* A leading company in the corrugated solutions packaging business is looking for a experienced Electrician. The right candidate will possess the following skills: electrical; hydraulic; automatic drives (basic component machines 122 to 440 bolts). If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* An expanding company is looking for a Corporate Industrial Electro-Mechanical Engineer near Allentown, PA. Relocation is available. Do you have a storied list of unique electrical and mechanical engineering skills you're ready to take to the next level? Do you envision yourself in a corporate-level leadership role that your experience finally merits? And do you relish any opportunity to troubleshoot and solve real-time problems, all while designing and installing new services and systems that will not only ensure safety, but also turn a potentially hazardous work environment into a continuously thriving one? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* An expanding company is looking for hands-on Electro Mechanical Maintenance Techs in Conyers, Georgia. Preference will be given to candidates with higher education and additional certificates or training. You must be able to work any shift. Pay is negotiable with excellent perks and benefits. Relocation assistance is available to the right candidate. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* Working as a Consultant? Looking for some additional challenges with a flexible scheduling? Have a background in Consistency Control? This may be just the opportunity you are looking for: A large multi-national automation company seeks an expert in paper mill consistency technology. This individual will facilitate application support and start-ups in the paper mill environment. In addition, the ability to provide troubleshooting and technical advice and support is strongly desired. The individual should have an understanding of rotary, blade, microwave and optical consistency and the application of these devices in the paper mill. The company sells and maintains a line of consistency transmitters, sample valves and sheet break detectors. These products are marketed in the US through a rep. network. Knowledge of sheet break detection technology is also desirable. Individual must be willing to travel to paper production facilities across the US. Travel & Living Expenses to be reimbursed along with an agreed upon daily per diem rate. For more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

****

Jim Thompson is back again...with a new book on a taboo subject: the personalities in the pulp & paper industry. Jim has written in the past on many subjects based on his four plus decades in the worldwide pulp and paper industry. This new book is packed full of information valuable to the senior member of the industry as well as the recent entrant. A must for every pulp and paper library.


Printer-friendly format

 





Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: