Over $ 4 Million in Bonuses to Top Management of a Burned Oil Refinery: Hundreds of laid-off workers without medical insurance and severance pay
The June fire at Oil Refinery in Philadelphia, owned by Philadelphia Energy Solutions, forced the owners to close the plant and declare the company bankrupt, but in a strange way, the plant management sentenced the company on the day of the disaster.
According to a court statement filed with the US Bankruptcy Court, most of the laid-off employees will lose all payments. Also on September 6, additional documents were submitted stating retention bonuses for senior management in the amount of $ 4.6 million.
Bankruptcy experts say this is a clear violation. According to the law, the Company has the right to pay retention bonuses, but only when the bankruptcy process begins, and not when thousands of employees are left without work and without social benefits, and their superiors are enriched at that time.
“It’s repulsive that they did that,” said Ryan O’Callaghan, a spokesperson for Steelworkers Local 10-1, which represents refinery workers. “While they’re telling everybody else they’re poor, bankrupt, had nothing for severance and canceled the medical benefits plan, they stuffed their own pockets.”
According to documents filed with the court on Friday, Mark Smith received more than $ 1.5 million in additional money, General counsel John McShane received $ 875 thousand, chief financial officer Rachel Celiberti received more than $ 700 thousand, deputy general counsel Anthony Lagreca $ 450 thousand, Refinery manager Daniel Statile - 325 thousand dollars.
“While the refinery was still on fire, they’re not thinking about starting the refinery right then, they’re already thinking about shutting it down, that’s what it’s telling me,” said O’Callaghan, one of the employees who lost their jobs and all payments.