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Windstream Seeks $20 Million Bonus to “Motivate’ Executives”

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Windstream hopes to maintain its Key Employee Incentive Program (KEIP), which would could dole out a total of $20.1 million if its executives meet their performance requirements throughout 2019, Channel Partners reported. Windstream filed for bankruptcy in February after a court ruled that it owed $310.5 million to one of its bondholders. The company announced last week that it will cut 15 percent of its partner base while upping commissions for the remainder. The five executives — President and CEO Tony Thomas, Chief Financial Officer and Treasurer Robert Gunderman, Enterprise and Wholesale President Layne Levine, Kinetic business unit President Jeff Small, and Executive Vice President, General Counsel and Corporate Secretary Kristi Moody — are “generally responsible” for Windstream’s strategy and play a “central role” in the company’s chapter 11 proceedings, according to Willis Towers Watson, which is consulting the reorganization efforts. The advisory firm declared to the U.S. District Court of the Southern District of New York Tuesday that the court should approve the KEIP as Windstream goes through the bankruptcy process. The court filing states that the five members of senior management would only earn their base salaries without KEIP. Windstream would dish out incentive payments for the first half of 2019 and the respective third and fourth quarters. Windstream is also trying to retrain its Key Employee Retention Program, which gives up to $5 million to select “non-insider” employees.

GM Squeezed $118 Million From Its Ohio Workers, Then Shut The Plant

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Union workers in Lordstown, Ohio, are livid that they agreed to make $118 million a year in annual concessions to save the plant in mid 2017, only to have GM effectively threaten to close it down a year and a half later, Bloomberg News reported. Unless GM reverses its course, Lordstown will fall victim to the harsh reality that fewer consumers are buying small cars and that Chief Executive Officer Mary Barra is hyper focused on doing business only where GM can earn big returns. GM idled the plant in March saying demand for the Cruze was too weak to continue. In an email, GM spokesman Dan Flores said that the union agreed to many concessions, but that they didn’t address the realities the company faces. The problem isn’t high wages, it’s falling sales — and GM’s post-bankruptcy cash flow discipline. “We didn’t discontinue the Cruze because of something the local union did or didn’t do,” Flores wrote. “It was a market-driven decision to discontinue the Cruze, and there were no products to allocate to Lordstown.”

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Federal Pension Insurer Cleared in Delphi Retirees’ Suit

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Retirees of Delphi Corp. lost a long-running lawsuit attempting to hold the federal pension insurance agency liable for its 2009 takeover of their pension plans, Bloomberg Law reported. The Pension Benefit Guaranty Corp. (PBGC)  didn’t need court approval before it terminated the Delphi pension plans and assumed liability for the benefits of about 70,000 workers and retirees, Senior Judge Arthur J. Tarnow of the U.S. District Court for the Eastern District of Michigan held March 22. The retirees said that the PBGC should have used its negotiating leverage with General Motors Corp.—which owned Delphi before a 1999 corporate spin-off—to force GM to assume their pension liability. Tarnow disagreed, saying GM “repeatedly, and emphatically” declined to assume the Delphi pension liability. Judge Tarnow’s order, which granted summary judgment to the PBGC, also found the plan termination didn’t constitute a breach of fiduciary duty. That’s because the PBGC owed no fiduciary duties to the Delphi retirees until after the plan terminated and the PBGC became the plan sponsor, Judge Tarnow said.

Newark Watershed Asks Bankruptcy Judge for Help with Insolvent Pension Woes

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Trustees of the Newark Watershed Conservation and Development Corp. have asked a bankruptcy judge for a break from its obligations relating to the agency’s insolvent pension plan, the New Jersey Law Journal reported. Counsel for the Watershed group asked U.S. Bankruptcy Judge Vincent Papalia on Tuesday to void claims for pension benefits by the agency’s former executive director, Linda Watkins-Brashear, and Donald Bernard Sr., its former senior projects manager. The Watershed also asked the judge to reduce or eliminate a claim for more than $1.8 million by the U.S. Pension Benefit Guaranty Corp., which represents the amount that agency says is needed to make the pension plan solvent. The trustees are represented by Daniel Stolz of Wasserman, Jurista & Stolz in Basking Ridge, N.J.
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New Overtime Rule Expected to Boost Pay Eligibility

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Business groups expect the Labor Department’s forthcoming overtime proposal to be more palatable than rules sought by the prior administration, but worker advocates say it doesn’t go far enough to protect Americans when they work more than 40 hours a week, the Wall Street Journal reported. The Labor Department is expected to release its proposed rule as soon as this month. It would set a new salary threshold, below which, in most cases, workers must be paid time-and-a-half regardless of their role in the firm. Interest groups and labor attorneys expect the level to be near $35,000 a year. That would be an increase from the $23,660 threshold set in 2004, the last time it was raised, but be below the $47,476-a-year level President Obama’s administration sought in 2016. A federal judge halted that rule from being implemented in December 2016.

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