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Enron employees fatalistic as Dynegy deal crumbles

Employees of beleaguered energy trading giant Enron Corp took a fatalistic view of events on Wednesday after hearing that rival Dynegy Inc had pulled out of a deal to buy Enron and keep it afloat.

Many of the workers emerging from Enron's downtown Houston headquarters to grab a snack or a quick smoke were smiling and joking, though some were in a more sombre mood as they waited to hear if there would still be a job for them at the company.

Most learned of the Dynegy deal's collapse and downgrades of Enron's credit ratings to junk status from the Internet or television long before they got official word from management.

"Yes, I'm concerned but people go through these things all the time," said Sunjay Arya, 32, who works in the human resources department and has been with Enron for a year and a half.

"I work with people who say this is the third time they've been through something like this. They're still here, so I figure I'll still be here too," he said.

Arya said he had lost a lot of money in his 401(k) retirement account, which was entirely invested in Enron stock, but he could not immediately quantify the loss.

"There are people who have been here a lot longer than I have who I am sure have lost a lot more," he said.

STOCK FALLS TO LESS THAN A DOLLAR

Enron's stock has fallen from a high of over $90 in August 2000 to a close of 61 cents on Wednesday.

According to one lawsuit filed against Enron by employees, the Enron retirement savings plan had assets worth $2.1 billion at the end of last year, including $1.3 billion in Enron stock.

"Some of our pipeline employees who have been with the company a long time were millionaires and they were counting on that money. My heart really goes out to them," said administrative assistant Linda Vargo.

Vargo, 55, said she considered herself fortunate because she has only been working at Enron for just over two years and had not yet joined the 401(k) plan.

"I've had an opportunity to work with some of the most awesome people in the world," Vargo said, adding that she had not had time to think about what she will do if she loses her job.

Many employees declined to speak to reporters and most of those willing to speak did so on condition of anonymity.

"There's a lot of unhappy people here," said one. "I'm too depressed to say any more," he added.

Enron employs some 21,000 people, including 7,000 in Houston where it is the 18th biggest employer. Its eye-catching mirror-glass offices are a downtown landmark and the company's name graces the Houston Astros' new baseball stadium.

SLEEPLESS NIGHTS FOR SOME

Jerry Moore, a manager in Enron's tax department who is approaching his 60th birthday, said he expects Enron to file for bankruptcy and that he also expects to lose his job.

"I'm gone. I have no doubt about that. You can't help but worry about it, but I'm not losing any sleep over it like many people literally are," he said. "There has not been one syllable out of management but we all realise it's coming."

Moore said he has worked for Enron for seven years and has lost about $100,000 in his 401(k) account but is not too worried because he has other investments that have held their value.

"It was paper money, so I never really had it and it's no big deal to me, but I would take it in greenbacks in a New York second," he added.

Several employees voiced respect and sympathy for Enron chairman and chief executive Ken Lay who was unable to prevent the collapse of a company he has built over nearly two decades.

By contrast there were few kind words for Lay's protege Jeff Skilling who took over as chief executive officer in February 2001, then suddenly resigned in August.

"A lot of people are laying the blame on Jeff Skilling," said Vargo. "We started going downhill once he moved uphill."

Lawsuits filed by employees hoping to recover big losses on their 401(k) accounts have been less charitable to Lay, noting that he made millions of dollars in profits by exercising options and selling stock earlier this year, before the shares tanked.

Moore said he was disappointed that senior managers had not been more supportive of employees as the crisis deepened.

"There has been absolutely no word out of the upper floors and everybody has been left wondering what's going on," he said.

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