Company claims warrant is related to a matter it had already disclosed
By BRIAN NEARING, Staff writer
First published in print: Wednesday, July 1, 2009
WATERFORD -- While federal and state officials who swept into the Momentive Performance Materials chemical plant early Tuesday remained tight-lipped, the company claimed their search warrant involved something it had already admitted to the state.
Officials from the state Department of Environmental Conservation's Bureau of Environmental Crimes, the U.S. Attorney's Office and the U.S. Environmental Protection Agency spent much of the day inside the plant off Route 32, where several DEC police vehicles and a mobile command post were parked outside.
Assistant U.S. Attorney Craig Benedict, who handles environmental crimes, confirmed the investigation into Momentive, which manufactures silcone-based products.
He said the search warrant would not immediately be made public. He also said there would be no court filings on the matter in the near future, and declined further comment. DEC spokeswoman Maureen Wren also confirmed the probe, but referred questions to Benedict.
A Momentive spokesman would not say what was being sought under the warrant.
"The agents indicated the investigation involves an issue we self-disclosed to the New York state Department of Environmental Conservation last year," spokesman John Scharf said. "Because we are not certain of this, we cannot comment further on the investigation at this time. We are continuing to cooperate with the agencies."
Momentive, the world's second-largest producer of silicones and related products, was created in December 2006 when General Electric Co.'s Advanced Materials business was acquired by Apollo Management LP, a private-equity fund. Apollo paid GE $3.8 billion.
Momentive, which has $2.5 billion in annual sales, employs 1,000 people at the Waterford factory, which dates to 1947 when GE began manufacturing silicones. The plant makes adhesives, sealants, resins and water repellents used in the automotive, construction and textiles sectors.
In 2003, concerned over the history of chemical spills into the nearby Hudson River from the plant, DEC ordered GE, which then owned the plant, to build a remote-controlled pollution sampling station so state officials could better track spills.
In October 2006, GE agreed to pay up to $250,000 in state fines for spills since 2003 and delays in the sensor project. And it promised to finish the sampling station plans within six months.
The fine was the third agreed to or paid by GE in the past five years for illegal discharges and handling of industrial waste at the plant. Since 2001, more than $1.4 million has been paid under consent orders with the DEC in 2001, 2003 and 2006. The sensor plant was included in the 2003 order.
Wren, the DEC spokeswoman, was unable Tuesday to update the status of the pollution sampling project or the status of pending enforcement actions against Momentive that the agency had been exploring late last year.
"It is something that we cannot get into right now," she said.
Waterford Supervisor Jack Lawler, who has complained in the past that the company was slow to inform the town about spills into the river, which the town relies on for drinking water, could not be reached for comment.
Tuesday's raid also came as the company faces declining sales in the recession and a nasty labor battle.
In January, Momentive cut the pay of 400 production workers by an average of 25 percent. Officials in IUE/CWA Local 81359 filed unfair labor charges in connection with the wage rollback with the National Labor Relations Board, which hasn't yet issued a decision.
Salaried workers subsequently saw their pay cut by 7.5 percent, with CEO Jonathan Rich and other top managers taking a 10 percent cut.
Momentive, which is based in Colonie, in May reported a $96.8 million loss for the first quarter on sales of $418.1 million. That compares with a loss of $48.9 million on sales of $656.6 million in the year-ago quarter.
Brian Nearing can be reached at 454-5094 or by email at bnearing@timesunion.com.
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When you log on this website you will be asked for a user ID....
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New information in the "EAP Help" tab on the left, Anthem EAP Orientation.
****Contract raise 2 1/2% effective June 21st 2009. COLA for this period was negative or $ .00 for this contract period.****
CHIEF SHOP STEWARDS CORNER : We need everyones help documenting the issues. Contact your Steward or a Board member and fill out the Statement of Occurance. Located in the Chief's section of this website -
Contact Chief See - Chiefs corner UPDATE 1-29-09 Video
DO NOT take any chances or put yourself or anyone at risk based on bad decisions or poor direction being given here. Get your STEWARD INVOLVED and STAY SAFE.
PRESIDENTS CORNER :Update note 7-02-09 from Legal Department
This is a RECORD! The comments and battle continues even in the Blogs!
No one can match the wits of the 359 Blog machine!
Tough fighting and Educated and experienced workforce!
This is getting NATIONAL attention.......
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Union claims new job descriptons and pay scales violate contract
By ERIC ANDERSON, Deputy business editor First published in print: Tuesday, January 6, 2009
WATERFORD — Union officials at Momentive Performance Materials Inc. on Monday filed 477 grievances claiming contract violations as new pay scales and job descriptions went into effect.which represents 600 production workers at the plant. "It was a complete disaster," said John Ryan, chief shop steward for IUE/CWA Local 81359, which represents 600 production workers at the plant. "Each grievance has many, many violations on it," Ryan said.
Violations include failure to post job openings, not following transfer procedures from one job to another and failure to follow "bumping" procedures.
Ryan said many workers experienced in one area of operations had been moved to new positions that required different skills.
A company spokesman, meanwhile, gave no hint of any difficulties.
"Everyone was informed what their new job assignment is and what their new pay rate will be starting today (Monday)," said spokesman John Scharf.
The union on Dec. 15 filed a charge with the National Labor Relations Board accusing the company of violating its national contract by unilaterally cutting wages.
Momentive on Dec. 3 said it was cutting the pay of 400 workers by about 25 percent, while leaving the wages of more than 200 other employees unchanged, as it copes with "the current severe economic recession."
The company had at least two temporary layoffs, which ran as long as two weeks each, during the Thanksgiving and Christmas holidays.
The company said it was within its rights under the contract.
Scharf on Monday said everyone was back on the job Dec. 29 and that no additional furloughs are planned at this time.
Momentive said it has been hit by the slowdown in the automotive, residential construction, textiles and furniture markets, and the temporary layoffs were a way to deal with that. It also said the restructuring was intended to avoid permanent job loss for hourly employees.
The company said production workers were making a base pay of $50,000 to $65,000 a year. As of Monday, that structure was reduced to $30,000 to $70,000 a year. While most production workers saw pay cuts, about 20 employees are in line for pay increases averaging 9 percent.
And while the base-pay reduction was criticized, cutbacks in the availability of overtime work — and pay — meant many workers will see cuts deeper than 25 percent, union officials said.
"They overfilled some areas so there won't be any overtime," said Ryan, the chief steward. "You've got a bunch of unhappy people who feel betrayed."
Eric Anderson can be reached at 454-5323 or by e-mail at eanderson@timesunion.com.
You have the legal right to do the following under Section 7 of the National Labor Relations Act:
Attend meetings to discuss joining a union.
Read, distribute, and discuss union literature (as long as you do this in non-work areas during non-work times, such as during breaks or lunch hours.)
Wear union buttons, T-shirts, stickers, hats, or other items on the job.
Sign a card asking your employer to recognize and bargain with the union.
Sign petitions or file grievances related to wages, hours, working conditions, and other job issues.
Ask other employees to support the union, to sign union cards or petitions, or to file grievances.
Good Faith" Bargaining
After the union's election victory is officially certified by the National Labor Relations Board, your employer is legally required to negotiate in "good faith" with the union on a written contract covering wages, hours, and other working conditions.
Protection from Employers Action
Under Section 8 of the National Labor Relations Act, your employer cannot legally punish or discriminate against any worker because of union activity.
For example, your employer cannot legally do the following:
Threaten to or actually fire, lay off, discriminate, harass, transfer, or reassign employees because they support the union.
Favor employees who don't support the union over those who do in promotions, job assignments, wages, hours, enforcement of rules, or any other working condition.
Threaten to or actually take away jobs, pay, or any benefits or privileges employees already enjoy in order to discourage union activity.
Promise employees a pay increase, promotion, benefit, or special favor if they oppose the union. .