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April 21, 2006

Ousted Beacon board members consider legal action

The two Beacon board members bounced by Governor Carcieri are considering taking the governor to court.

George H. Nee and Henry Boeniger told The Journal today that they are weighing their options after the governor sent them letters yesterday notifying them of their removal from the board of the Beacon Mutual Insurance Co., Rhode Island’s dominant worker’s compensation insurer.

Nee is the secretary-treasurer of the Rhode Island AFL-CIO. Boeniger is government relations director of the National Education Association Rhode Island.

Carcieri blasted the pair for voting against firing Beacon CEO Joseph A. Solomon for cause at a marathon meeting that ended early Wednesday morning. According to a Carcieri spokesman, Nee and Boeniger advocated that Solomon be fired without cause, or be allowed to resign, preserving his $3 million severance package. But the board voted, 4-2 with one abstention, to fire Solomon and a vice president for cause.

As a result, Carcieri said that he was acting within his powers by removing Nee and Boeniger from the Beacon board for cause.

``I intend to fight,’’ said Nee. ``This is groundless and politically motivated. The governor is creating an irresponsible atmosphere in which to straighten out our problems.’’

If Nee and Boeniger do go to court, they will have to pay their own legal fees. Bill Fischer, a Beacon spokesman, said that the board’s lawyer has informed them that Beacon won’t pay, and that they would have to hire their own lawyers.

``They as individual board members are going to have to decide how to respond to the governor,’’ said Fischer.

Nee said that he is committed to remaining on a board on which he has served since 1994, and helping to fix problems highlighted by a review that the board commissioned by Giuliani Safety & Security.

While that review, overseen by former Gov. Lincoln Almond, was ``constructive,’’ Nee said that Carcieri has been ``destructive.’’

``I’m looking at a company with an overall record of accomplishment, and I’m proud of my service,’’ said Nee. ``I’m not going to sugar-coat the problems, but we initiated the Giuliani review and while the results didn’t come out as we would’ve liked, we’re committed to going forward.’’

Nee said that he found it particularly ``offensive’’ that Carcieri, a Republican up for re-election this year, has removed the Beacon board’s two labor leaders, both of whom had been appointed, and reappointed, by previous governors.

``Beacon may be the best example in Rhode Island of the cooperation between business and labor,’’ said Nee. ``This governor doesn’t get it. Everything is politically motivated, and based on him looking ahead to November.’’

Boeniger said that he is also considering legal action, but weighing that against the cost and the reality that he would only likely remain on the board for another six months, when his term expires.

``The governor’s no friend to working people, so the chances that he would reappoint me are slim,’’ said Boeniger. ``I get a letter from the governor saying that he’s removing me for cause, because I didn’t vote the way he wanted me to? . . . That doesn’t wash.’’

CORRECTION: An earlier version of this item incorrectly reported the title for Boeniger, who is NEA's government relations director.

Posted by Jack Perry  at 2:13 PM | Permalink

Comments

This just doesn't jive. You always have union leaders slamming corporations that give these rich sweetheart packages to executives. But now, Nee and Boeniger are the only board members that vote TO GIVE a rich sweetheart package to an executive.

Something stinks here. As usual, these union leaders are out for themselves. They are hypocrites and they deserve to get kicked off the board. They shouldn't have been on it in the first place.

Joe Barbera | April 21, 2006 2:25 PM link

Both Messers Boeniger and Nee "don't get it". Well, sirs, here it is, "The party's over". I am in the Rhode Island labor force. Unfortunately, like most, not afiliated with any union, we get it. I have nothing against unions. I am, however, sick to my stomach with gentlemen like this. They can't satisfy their insatiable taste for power. They serve at the pleasure of the Governor. He's displeased with them, and,I may add, with just cause. He has every right to dismiss them. Please, just go away

Philip Edwardo | April 21, 2006 4:38 PM link

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