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Employers Can Legally Lie to Workers, Court Rules

Posted on August 22nd, 2014 at 16:22 by John Sinteur in category: News -- Write a comment

[Quote]:

In 2002 E.I. du Pont de Nemours announced plans to turn some of its operations into a separate subsidiary. Most of the affected employees were under a union agreement that gave them the right to transfer within DuPont if they preferred, a decision which would have cost the company an enormous amount of money to retrain the transfers and hire their replacements.

The employees were worried that if DuPont sold the new subsidiary it would hurt both their pay and retirement funds. To convince them to work in the subsidiary instead of transferring within the company, DuPont assured its employees that it had absolutely no plans to sell the spin-off. Based on this promise almost everyone moved to the subsidiary, which a few weeks later DuPont sold to Koch Industries. Koch cut both salaries and retirement packages. DuPont had, as it turns out, been negotiating this deal the entire time.

The Texas Supreme Court sees no problem with any of this.

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