I will look closely at the sample letters to see whether there is any way to 
avoid the conclusion you have reached, which appears to be the correct one.  
I have a meeting right now, and will focus on it right after that -- I'll 
send another email once I've completed that review early this afternoon.  
Michelle





Hoyt Thomas@ENRON
07/28/2000 11:23 AM
To: Michelle Cash/HOU/ECT@ECT
cc: Jon Chapman/LON/ECT@ECT, David Oxley/HOU/ECT@ECT 
Subject: Confidential  

Michelle, Melissa Laing and I talked to Jon Chapman today, and basically Jon 
deferred to you, since the RW employees in NY are a question for US 
employment law.

Melissa and I do believe that the  RW US-based employees that were given 
UK-style employment letters, such as the sample one I gave you, are our 
employees, because of those letters; they were given "offer letters" by MG 
before the MG/Enron deal went unconditional and in most cases they accepted 
them, so they were MG employees when all MG employees became our employees.  
If it is a fact that they are Enron employees, we have to figure out the 
liability associated with terminating them!  

It appears that on Monday, MG and Enron leadership will decide to exit some 
of the London and New York RW business that MG acquired, and some (minimum 9, 
max 15) of the former RW employees will need to be terminated during 
August.   John Sheriff and Gary Hickerson both want to know the cost of that 
decision.   Right now we are assuming that we are liable for the severance 
periods stated in the offer letters to the people; we would like to be able 
to avoid that cost  (estimated at $700k and $1.5M, depending on who is 
redundant) or reduce it if possible.  However, if it is your recommendation 
that we have to honor those letters, so be it.

If you have any questions, please call Melissa Laing (tie line 8303 6617) in 
the UK and she can find me.  Thanks.

Hoyt



Michelle Cash@ECT
07/28/2000 10:10 AM
To: Hoyt Thomas/NA/Enron@ENRON
cc:  

Subject: Re: RW  

Hoyt, I am convinced that the MG employees are ours.  The RW employees may or 
may not be ours.  It is my understanding that we own the assets of RW, and 
that we decided to hire certain, key personnel from RW.  The remaining RW 
employees do not automatically come with the assets.  I am working on 
obtaining more information on the RW side of things from lawyers here in the 
US.  Key to employment decisions will be provisions of the asset purchase 
agreement, if any are applicable.  You might check with Jon Chapman in the UK 
to see whether he has any more information on this point.  Thanks.  Michelle



Hoyt Thomas@ENRON
07/28/2000 04:12 AM
To: Michelle Cash/HOU/ECT@ECT
cc:  
Subject: RW


	

Justin Boyd said he talked to you, are you convinced that the MG and RW 
employees are now ours?

Assuming that you do:

I will bring copies of all the offer letters MG wrote to RW employees, I 
think there are something like 27 or 28.  They are all very similar to the 
one or two that I have already given you.

I believe that we will not want to keep some of the businesses that are being 
acquired with Rudolph Wolff, particularly the FX business in New York.  
Naturally, some of the people in the potentially discontinued business 
received the onerous letters.  Gary Hickerson has to decide what he is going 
to do with this by August 18, if not sooner.  With the letters that were 
delivered , I would like to get an opinion from you on what we have to do to 
terminate the people associated with the business, assuming that Gary wants 
to shut it down.

Also, MG have 4 to 6 employees in Montreal.  We (HR) are trying to convince 
the business side that we do not want any people in Montreal because of the 
employment laws . . . but it does not appear that we will succeed.  We may 
reduce the size of the office, though, and we may not want to put them on the 
Canadian payroll, particularly is we only keep 1-2 people there.  Do you have 
contacts in Montreal that can advise us on how to terminate any employees 
that we choose to terminate?  What would be the Enron position on having them 
on a separate payroll from Enron Canada?

Thanks
Hoyt