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IBEW Workers to Testify How Enrons Downfall Cost Them Savings

Savings Locked in Company Stock, Employees Helpless as Value Plummeted

WASHINGTON, DCTwo members of the International Brotherhood of Electrical Workers will testify before the Senate Commerce, Science and Transportation Committee at 9:30 a.m. Tuesday, December 18, in room SR-253 Russell Senate Office Building.

Bob Vigil and Don Eri, longtime workers at Portland General Electric, are among the nearly 1,000 members of IBEW Local 125 who are victims of Enrons November bankruptcy. Once among the most powerful companies in the United States, Houston-based Enron bought Oregon utility Portland General Electric in 1997.

The hearing, which will be chaired by Senator Byron Dorgan (D-ND), will probe the collapse of Enron stock and its impact on stockholders who lost an estimated $63 billion in equity.

Until late this year, Enron was the largest energy trader in the country, making investors millions while hiding losses in complicated financial statements whose existence came to light in the last few months. On the same day the federal Securities and Exchange Commission launched an investigation, employee investment accounts were frozen, leaving workers to watch the company stock value plunge to junk status. In addition to losing their jobs, thousands of workers lost their retirement savings.

"Its unconscionable that hard-working, dedicated workers were forced to sacrifice their life savings to prop up a failing company," said IBEW President Edwin D. Hill. "Those who ran the company into the ground certainly arent wiped out financiallyjust the workers who made their success possible."

Besides bringing congressional and public attention to the human side of Enrons collapse, IBEW members are joining class action lawsuits and pursuing grievances against the company for violating collective bargaining agreements.

The International Brotherhood of Electrical Workers has approximately 780,000 active members in the United States and Canada. Of these, some 220,000 work in the utility industry. The IBEW also represents members in the construction, telecommunications, manufacturing, railroad and broadcasting industries.

A 401(k) Post-Mortem  
When Bill Quinlan retired from Enron Corp. after 30 years at its Florida Gas pipeline subsidiary, he had every confidence in the company and its future. (Washington Post)

Enron's 'Outside' Accountants Also Did Inside Audit
The big accounting firm Arthur Andersen wasn't just the outside auditor for bankrupt energy trader Enron Corp., it was also the company's internal auditor, Enron said yesterday. (Washington Post)