AFL-CIO Calls on Companies to Refuse Re-Nomination of Enron


                         Directors 
                               To Their Boards 


  WASHINGTON, Jan. 25 /PRNewswire/ -- Citing the financial ruin Enron 
(NYSE: ENE) caused its 21,000 employees, and the financial loss caused to 
millions of working men and women who were invested in Enron through their 
pension funds and retirement accounts, the AFL-CIO called on companies to not 
re-nominate Enron directors for election to their respective corporate boards. 
Enron's directors also serve as directors on public companies such as 
Qualcomm, Lockheed Martin, and Motorola.  
"The future retirement security of practically every American worker was 
hurt by the collapse of Enron.  In our opinion, directors who permitted the 
accounting deception that led to the collapse of a company worth over seventy 
billion dollars are not suited to serve on other boards," said Richard Trumka, 
Secretary-Treasurer of the AFL-CIO.  Failures of the Enron directors include:  


      *  Waiving conflict-of-interest rules to let Enron executives participate 
       in related-party transactions that led to a $1.2 billion reduction in 
       shareholder equity; 
    *  Failing to question Enron's use of off-balance-sheet entities to remove 
       debt and losses from Enron's financial statements; and 
    *  Approving Enron's annual report to shareholders without ensuring 
       Enron's financial statement disclosure was straightforward and 
       comprehensible. 


  In a letter to the nominating committees responsible for selecting 
director candidates, the AFL-CIO urged companies with Enron directors to 
reconsider their future nomination. These directors could become the target of 
shareholder opposition as shareholders withhold votes from directors they feel 
are unqualified.  Many of these directors' terms expire at their companies' 
annual shareholder meetings later this spring.  
"Enron's directors need to be held accountable for their record; barring 
Enron's directors from future service at other companies will hopefully 
prevent this type of catastrophic loss for workers from happening again and 
will help restore investor confidence in the corporate governance system," 
explained Trumka.  The AFL-CIO's letter to companies with directors who also 
sit on the Enron board follows the resignation of former Enron CEO Kenneth Lay 
from the boards of Eli Lilly and Compaq Computer.  
Retirement security for working Americans is one of the top issues for the 
AFL-CIO.  The AFL-CIO represents 13 million working men and women who 
participate in the capital markets as investors through defined benefit and 
defined contribution plans, as well as through mutual funds and individual 
accounts.  AFL-CIO affiliate union sponsored benefit funds have over $400 
billion in assets and hold an estimated 3.1 million Enron shares.  


                 Public Company Directorships of Enron Directors 
                                    Robert Belfer 
    Westport Resources Corporation 
                                     Norman Blake 
    Comdisco Inc. 
    Owens Corning Corporation 
                                     Ronnie Chan 
    Hang Lung Group 
    Standard Chartered PLC 
    Motorola Inc. 
                                     John Duncan 
    Group 1 Automotive Inc. 
                                     Wendy Gramm 
    AMVESCAP PLC/Invesco Funds Group 
                                   Robert Jaedicke 
    California Water Service Group 
                                     Kenneth Lay 
    NewPower Holdings, Inc. 
                                   John Mendelsohn 
    ImClone Systems, Inc 
                                     Frank Savage 
    Lockheed Martin Corporation 
    Qualcomm Corporation 
    Alliance Capital Management 
                                     John Wakeham 
    Bristol & West PLC 
    Vosper Thornycroft Holding PLC 
    Michael Page International PLC 
    Rothschilds Continuation Holdings AG 
                                   Herbert Winokur 
    NATCO Group, Inc. 
    CCC Information Services Group, Inc. 
    DynCorp 
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           http://tbutton.prnewswire.com/prn/11690X06437314 
  

SOURCE  AFL-CIO  
-0-                             01/25/2002  
/CONTACT:  Kathy Roeder, +1-202-508-6947, or Bill Patterson, 
+1-202-637-3900, both of the AFL-CIO/  
/Web site:  http://www.aflcio.org/  
(ENE)  
CO:  AFL-CIO; Enron 
ST:  District of Columbia 
IN:  FIN OIL 
SU:  LBR  
-0- Jan/25/2002 16:01 GMT
 
 
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