Blunt's severance package called into question

 
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Feb 01, 2008 - 04:05:53 CST
A former agency head of the state's workers' compensation agency was told he would not receive a severance package because it was against the law, despite his successor receiving a package in excess of $150,000.

Brent Edison, the former executive director of Workforce Safety and Insurance, sought the advice of the attorney general's office after learning that his successor, Sandy Blunt, received a sizable severance package from the agency's board of directors.

According to Blunt's severance contract, obtained by the Tribune, Blunt was paid his salary through Aug. 31, 2008, totaling $125,039.70, plus $19,740.23 paid vacation; in addition, he was given an amount totaling $5,454.54 to cover monthly premiums for COBRA, temporary health insurance, beyond Jan. 31, when his state medical coverage was set to expire.

The package totals $150,234.47.

Edison was terminated from the position in 2003; he said, at the time of his termination, WSI legal counsel Jodi Bjornson told him legal counsel Rob Forward had researched the issue of severance packages and determined that it would be illegal for WSIto pay.

"Iknew that WSI had, in the past, paid severance packages,"Edison said. "The implication of that discussion was that shouldn't have been done, either. Their position was that it would be illegal."

Edison said he made an open records request for Forward's analysis, but it was declined because the analysis was considered attorney work product, which is protected.

E-mails obtained by the Tribune indicate that the work product was sent to Blunt, although it seems the sending was accidental.

"Isent you a copy of that attorney work product memo with this document,"legal counsel Tim Wahlin wrote in an e-mail to Blunt. "Ishould not have sent that to you since it is still at issue in Brent's claim."

He then asked Blunt to destroy it.

When he learned of Blunt's package, Edison asked for explanations from both the attorney general's office and the governor's office, but was referred to WSI. WSIwould not comment, again because the analysis is considered work product.

When asked about Forward's analysis, WSI communications executive Mark Armstrong released this statement:"There is not a memo on this matter authored by Rob Forward. To the extent there exists any written records on this issue, these records are protected communications pursuant to N.D.C.C. 44-04-19.1(4), attorney work product, and will not be disclosed."

Edison said he has no interest in suing WSIor the state of NorthDakota, but expressed hope that the decision is revisited.

"I just think that lawyers saying it's illegal back then, and then the board approving it after everything that has happened with Sandy Blunt, is outrageous,"he said.

In fact, an employee of the attorney general's office said the office has "serious reservations as to the justifications for such a large expenditure."

Tag Anderson with the attorney general's office said in an e-mail to Wahlin that North Dakota law prohibits gratuitous severance pay when an employee is dismissed for "good cause."

"Payments made as part of a personnel settlement need to be supported by sufficient consideration, whereby the costs savings or increased agency efficiencies are reasonably commensurate with the expenditure,"he wrote.

Gov. John Hoeven and David Kemnitz, the president of the North Dakota AFL-CIO, also have said Blunt should not get any severance pay.

(Reach reporter Crystal R. Reid at 250-8261 or at crystal.reid@bismarcktribune.com.)
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Blunt's severance package called into question
Comments

diggs wrote on Feb 4, 2008 2:04 PM:

" The latest courtesy of a source....WOW! It just keeps getting better.
Blunt declined to say how much he is seeking, but e-mails suggest the sum is more than $22,000. Attorney General Wayne Stenehjem said he believed the amount was more than $20,000. During negotiations over a $150,234 severance package Blunt received to leave the agency, he insisted on keeping his right to sue the state to recoup his legal fees, e-mail correspondence between Blunt and WSI says. Stenehjem said the state would not pay to defend any employee against criminal charges, and said any lawsuit by Blunt would be vigorously contested. Blunt made it clear that he intends to try to seek state payment of his legal fees, Stenehjem said in a telephone interview.

"

SE Forty wrote on Feb 2, 2008 10:12 AM:

" To be fired and then GIVEN all this money is just wrong! This is what you get with Republicans and their special mentality. Armstrong needs to be fired also. Hoevan could have stopped this and he did NOTHING, remember this in November. There is nothing RIGHT about what is going on Here. "

Barney wrote on Feb 2, 2008 12:08 AM:

" Get a copy of the tape recorded message of the meeting and see just what the motion said. Everyone knows that Mary Marthaller thinks of only her own self importance and has to be front and center in recording and transcribing the meetings, read her minutes they are so vague in content. The only way to get the real message is to listen to the meetings on tape. All meetings are recorded, request the recorded version, get the real motion and see what really happened. "

Dazed wrote on Feb 1, 2008 6:57 PM:

" First of all, Board minutes (or any meeting notes for that matter) - ha! Are you kidding? WSI's practice (can you believe it) internally is known that no meeting notes be taken specifically because of the open records laws and because outsiders reading the notes could "misconstrue" what was in the notes. Is that lame or what! Can't Mary Marthaller figure out how to take meeting notes? Heck, no wonder there is no accountabilty - no one knows what the hell is going on! How do you track projects, etc. without agendas and meeting notes. Oh, that's right, these people are above everyone else! What exactly IS being investigated in regard to WSI - where is everything at? There is so much to keep track of. As far as the severance package, that should never have happened to begin with. Do you think all the employees who were forced out of WSI got such a sendoff? These were good people who were mistreated. They got nothing but a stab in the back and a kick in the teeth from poor managers and supervisors who were weak. Yeah, we should invite National Geographic back all right. They must have a sister corporation who might be interested in this political scandal we've got going on in our little state. The citizens of this state sure aren't getting any help from our legal and political powers that should be cleaning this mess up. Maybe bringing the spotlight on it would cause a needed reaction and make the rats scurry even more. "

Get Real wrote on Feb 1, 2008 6:44 PM:

" To Its Quite Simple, gee your sources aren't exactly unimpeachable are they? Armstrong? Isn't he one of the guys who conspired at a secret meeting to try to get the state's attorney? Isn't he one of the co-conspirators (with Keiser) to write letters supporting WSI but having other citizens sign them? Isn't that a bit juvenile and disingenous? When are you going to learn the WSI-speak when it comes to these disasters. Blunt was fired and has no basis to sue for this sinful severance package. Armstrong is one of his disciples and so was Indvik. They worshipped the wrong guy and he took advantage of them. Both are now as disgraced as Blunt is.
Leave it to the "Perry Mason-like" legal team at WSI to give one ruling for Edison and a different one for Blunt. It kind of fits in with the three stooges type advice they've been giving this entire time. They said they Blunt didn't have to give the 4% raises (they were wrong), they said one board member could legally fulfill two requirements (they were wrong), Jodi has a miraculous recovery of her "independent memory"just in time to save Blunt from jail and she gave him the wrong legal advice once again, then they helped craft the infamous memo from Halvorson telling the staff (or threatening the staff) that they didn't have to cooperate with the highway patrol in an official investigations (they were wrong) and finally who can forget that Forward and Wahlein investigated the internal auditors claims even though some related to THEM!! Whatever these guys are being paid its too much. Get rid of the legal team right along with Armstrong and Halvorson. "

Anti Frank wrote on Feb 1, 2008 6:35 PM:

" Oh my Frank why don't you give it a rest. You say Indvik said Blunt did everything the board asked. First of all is this the same Indvik who is being invesigated for using his vehicle and cell phone for personal use? Isn't that the equivalent of stealing (I believe your budddy Scates says it is)? Nothing Indvik says has any credibility, period. Blunt is an at will employee and can be fired at any time and he WAS fired (read the motion passed by the board). Lawsuit? Let him file the lawsuit and watch the facts come out and embarass him and open him up to civil suits. That's nothing but a idle threat, Chicken Little's warning had a better chance of coming true. This is a dirty shame, the Governor agrees and the attorney general said he had "grave" concerns. Did Blunt offer any severance packages to people he fired? I didn't think so........ "

halatbis wrote on Feb 1, 2008 4:46 PM:

" The investigation of the WSI file/e-mail problem that seemed to trigger this whole sordid affair has not been resolved. Has it? After all the mishandling of information and investigation they let Blunt go (for whatever reason) now some want to renege on the severance package. Is this another lawsuit in the coming? I say let it go--the State will be money ahead. Get it over with! Enough already! "

Dan wrote on Feb 1, 2008 4:34 PM:

" If John McCain were "conservative", why would the New York Times endorse him? Why did he ask John Kerry if he could join his Democratic ticket in 2004 as VP. Why did he consider leaving the party and become an independent in 2001 after losing the Republican Primary?These things are all true. Google them.

Pro-amnesty, anti-tax cut, anti-marriage amentment, Say no to McCain!!! We need Mitt Romney! "

Sick wrote on Feb 1, 2008 3:23 PM:

" This is sick. If an injured worker has a high paying job and gets hurt and has to settle getting 66% of what he was making but if that figure is above the weekly comp rate he doesn't receive the yearly cost of living raise, until the weekly comp rate raises to his 66% pay. He will be punished for having the high paying job. They will keep you on permanent partial as long as they can for the same reasons. I think 22 years to decide if your permanently disabled is beyond excessive. These people in power play dirty right from the get go and have the power to bend the rules to their favor. This organization needs to be held accountable for their actions. Sign that petition!! "

TO Wes Hightower wrote on Feb 1, 2008 2:40 PM:

" " And we wonder why employers complain about high insurance premiums. The figures presented in this article say it all...... "

In just a few words you made an excellent point. Nice Job !
"

Deb wrote on Feb 1, 2008 1:47 PM:

" It's Really Quite that Simple: you still fail to include the actual motion. It included the info on the severence package... but what do the minutes of the meeting say? Did the motion read "Blunt is hereby let go (or fired) and will be given xxxx serverence" or was it worded "the board hereby accepts the resignation of Blunt...." -- you seem to be the detail wonk - what was the motion verbatim? "

Online Editor wrote on Feb 1, 2008 1:42 PM:

" According to an Associated Press story by Dale Wetzel that appeared in the Tribune on Nov. 4, 2006: "At the time of Edison's dismissal from Workforce Safety and insurance, as the agency is formerly known, its board of directors declined to say why he was being fired. Edison's personnel reviews had been largely favorable before he was sacked in October 2003, and Gov. John Hoeven and his predecessor, Ed Schafer, questioned the board's failure to justify the dismissal." "

Percy Jeurvicius wrote on Feb 1, 2008 1:20 PM:

" All this talk about severance packages, permiums, thickening plots....if there's one thing that get's me steaming it's all this. You know what Percy Jeurvicius says at a time like this, someone asks me if I have paid my dues, have you paid your dues Percy?? Yes sir I say, the check is in the mail. "

It is Really Quite Simple wrote on Feb 1, 2008 1:19 PM:

" Slow down the conspiracy theories Deb. As public employees, their performance appraisals are in fact public record and were discussed by the Board publicly in relation to their pay raises. I would hate to be either of them (or a public employee for that matter) and have my whole life tossed out to the world like that, but hey that is the life they chose and so be it. If you want to see them too, just ask for either the Board meeting minutes or copies of each individual’s performance appraisals. As I said, it really is that simple. "

It is Really Quite Simple wrote on Feb 1, 2008 1:10 PM:

" If you want to quote the media, then let’s quote the media. And let’s use the exact statements of the Board Chair not a reporter’s interpretation. As reported by Janell Cole, on Friday, December 07, 2007: ““The motion included offering him nine months of severance pay, health insurance and retirement contributions, and the board chairman called the parting a mutual agreement. “We mutually agreed to separate,” he said. … Indvik said he saw Blunt at the WSI office about a half-hour before the board meeting began at 8:30 a.m. and told him his employment status would be discussed. Blunt said he would agree to step aside, then left the building for good. … A state law prohibits state employees from receiving severance pay, but Armstrong said the board relied on a subsection that allows exceptions “to encourage an employee to retire or resign if the resulting departure will increase agency efficiencies or reduce expenses.” … But Indvik said Blunt did nothing wrong and he “feels terrible” about voting to let him go. He said Blunt had done everything the board had asked of him and that he considers Blunt a friend.” "

oh, please! wrote on Feb 1, 2008 12:26 PM:

" ToThe Pledge, The Turn, The Prestige:
You cannot be serious to split hairs about roughly $20,000 out of a $150,000 -- oops, $130,000 severance package and call it poor reporting. Any severance package was too good for Blunt. As for the $2646.34 he earned in his first week in December, that's more than me and the majority of my peers earn in a month, and certainly way less than any injured worker gets to live on. Pray tell why you have such a vested interest in defending Mr. Blunt's huge, immoral, undeserved and possibly illegal severance package? "

Deb wrote on Feb 1, 2008 12:10 PM:

" to "It is Really Quite Simple" : I believe, as reported by the Tribune, the motion the board voted on was to "fire" Blunt. Not "accept his resignation." I beleive there were 2 dissenting votes, for the sole purpose of disagreeing with the severence package. More importantly, I was under the assumption that personnel files of employees at WSI were not released for public scrutiny. How do you seem to have all the inside knowledge of Edison's & Blunt's performance issues? "

Frank wrote on Feb 1, 2008 12:03 PM:

" I believe Indvik said "Blunt did everything the board asked of him" which means he was not fired for cause. The board asked Blunt to resign, they did not fire him. I know the diehards don't want to believe this but a little fact checking is all it takes. And if you think the severance package is too high, take a guess at what it will cost ND if they take it back. Can you say lawsuit? "

Wes Hightower wrote on Feb 1, 2008 11:55 AM:

" And we wonder why employers complain about high insurance premiums. The figures presented in this article say it all...... "

LJ wrote on Feb 1, 2008 11:51 AM:

" To It is really quite simple. follow this link and then tell us that Blunt resigned. It says he was fired. .www.bismarcktribune.com/articles/2007/12/07/news/topnews/144034.txt "

Corruption is WSI wrote on Feb 1, 2008 10:53 AM:

" Man does this stink. From the Governor to Judges and all in between. What political party is pulling the strings here? Oh yeah-its those republicans. More incompetence. North Dakota is better than this. "

It is Really Quite Simple wrote on Feb 1, 2008 10:41 AM:

" Crystal’s reporting says it all … “Edison was terminated.” In contrast, Blunt resigned. The others who got packages, resigned. Edison as an attorney is quite capable of reading the law and he knows that it states you may not receive a severance package if you are terminated. This is not Forward or Bjornson’s fault, they were correct in their interpretation of the law. Also, please compare Blunt’s reviews to Edison’s –there is no comparison. Edison had documented performance issues well before his release, Blunt never had any performance issues. In fact, except for partisan party politics, Blunt would still be there today and still cleaning his clock. "

Online Editor wrote on Feb 1, 2008 10:34 AM:

" To It is Really Quite Simple: The information you present as "fairly well known" needs attribution to be published. "

Enough Already wrote on Feb 1, 2008 10:31 AM:

" If Blunt wasn't terminated for cause, I don't know how there ever could be a for cause termination. The golden parachute he was given is outrageous. It seems that one set of rules applied for the Democrat, Edison, and another set of rules applied for the Republican, Blunt. Edison was accused of being an ineffective manager and got nothing. Blunt and his posse conspired to violate the law and he gets $150,000. It's time for Governor Hoeven to step in and get the partisan politics and blatant cronyism out of WSI. "

Simple wrote on Feb 1, 2008 9:36 AM:

" Blunt was fired because he performed poorly. I’ve never heard of anyone that did a poor job get compensation for being let go. Let him apply for unemployment just like everyone else. Really makes you wonder....
"

HeyHey wrote on Feb 1, 2008 9:32 AM:

" Edison's coming back out of the woodwork . . . will the third time be the charm? What office will he run for this go-round? Insurance Commissioner? "

leo wrote on Feb 1, 2008 9:05 AM:

" Brent Edison most certainly should be questioning everyone under the sun as to why he can't receive a severance package. Mr. Edison was terminated without good cause while Blunt was. Blunt's severance package stinks to high heaven and the board of directors should be chastised for giving it. Just add this to the list of the comedy of errors WSI management and the board of directors still continue to produce. "

Imagine that wrote on Feb 1, 2008 8:27 AM:

" WSI released documents to one source and then refuse to release the same docs to another individual. That is typical of the way Armstrong works. I don't think he has clue as to what he can an can't release. I know I have personally asked for docs and he has told me they don't exist but when you read depositions and other articles you find out the docs due exist. I think someone needs to SERIOUSLY look into his handling of records. Did WSI all of a sudden realize that was they did was not right after someone else requested the same docs. So to cover their tracks they send out an email to Sandy and ask him to destroy the docs. Are you kidding me. No one is going to destroy those docs. They should have requested him to return them to WSI now that is not saying that he couldn't have copied them before turning them in but at least you would have said the docs were returned. When is someone SERIOUSLY going to take a look at this agency and start it going it in the right direction? When Gov. Hoeven and AG, When will you look at this SERIOUSLY instead of just turning the other cheek. I will tell you this I have voted for you and other Republicans in past elections and guess what. You WON'T get my vote this time around nor will any of the incumbent Republicans in the legislature. You guys have lost all credibility just like management at WSI. "

Here we go again wrote on Feb 1, 2008 8:11 AM:

" Well here we go again with WSI hiding things. The attorneys have learned to say that things are Attorney Work Product so they don't have to release them. Some should ask for the written policy on what constitutes Attorney Work Product. This is the same move the use to keep things out of injured worker's files. "

Dirty old farmer wrote on Feb 1, 2008 8:09 AM:

" hmmm... the plot thickens (again) "

the pledge, the turn, and the prestige wrote on Feb 1, 2008 7:52 AM:

" Crystal notes “despite his successor receiving a package in excess of $150,000” in her article and that is quite misleading. Blunt’s package was written about and the agreement was posted by Patrick Springer awhile ago, and the numbers are all there. He only received $127,847.90 as a settlement and not the “in excess of $150,000” ($150,234 to be exact) which is reported. The remaining payment of $19,740.23 was his accumulated vacation leave that he earned and the 2,646.34 was salary he earned in the first week of work in December. The state was obligated to pay Blunt these amounts regardless of his employment status and are irrelevant to the settlement. How hard is it to get simple numbers in a simple article correct? Makes you wonder just how poor the rest of the reporting is… "

EB wrote on Feb 1, 2008 7:50 AM:

" If this was illegal, would all packages have been? Higher Ed, etc. "

Deb wrote on Feb 1, 2008 7:48 AM:

" Let's see if anyone has the guts to right the wrong. I'll bet they don't. "

NoSeverance wrote on Feb 1, 2008 7:46 AM:

" Blunt was fired so therefore he should not get a severance package. He wasn’t fired because his job was outsourced and he wasn’t fired because they have chosen not to maintain his position in the organization. There is no reason which would justify a severance package. His getting a severance package is an outrage and it should be revoked. "

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