The Finch Formerly Known As Gold

12 March 2004

WorldCom settles

If in the ideal settlement both sides come away with something they wanted, the deal between MCI (previously WorldCom, and before that, um, MCI) and the State of Oklahoma must be pretty spiffy.

According to Attorney General Drew Edmondson, MCI will atone for the misdeeds of its previous management by boosting its employment in Tulsa from the current 1875 to approximately 3400. In addition, the company will assist the state in the prosecution of members of said management.

Tulsans may look askance at this deal — two years ago, WorldCom had a Tulsa payroll of 3000 before a series of layoffs — but, says Edmondson, it's the best deal that could be struck:

If we took the case to trial and won, the company would likely go out of business and we would be stuck in the bankruptcy line. This economic development agreement is restitution in a different form.

The 15 charges filed against the company by the state have been duly dismissed. MCI has ten years to bring its staffing up to the levels specified in the agreement; average pay for the additional positions is reported to be $35,000 a year.

(Update, 13 March, 5:30 pm: Mike Swickey [13 March, 3:08 pm] thinks this is a really bad idea.)

Posted at 1:54 PM to Soonerland

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I only hope they don't qualify for the state's Quality Jobs rebate.

Posted by: Mike at 10:04 PM on 12 March 2004

As I understand it, they will technically meet the qualifications, but the settlement specifies that the state will not have to make any payouts under QJ.

Posted by: CGHill at 10:07 PM on 12 March 2004