Judge to decide if PES refinery can give confidential bonuses to execs while owners muddle through bankruptcy

PHILADELPHIA (KYW Newsradio) — A bankruptcy judge will decide in the next few weeks whether owners of the fire-damaged Philadelphia Energy Solutions refinery can give confidential bonuses to top executives. 

The new perks would come after $4.6 million in bonuses were delivered after a fire shut down the plant in June. Hundreds of workers were let go with little severance and remain jobless.

Federal court documents from Wilmington show PES officers want to give bonuses to top executives, but they want the recipients to be kept confidential, claiming public bonuses will result in competitors poaching employees. 

Ryan O'Callaghan, past president of USW Local 10-1, said that logic is incomprehensible.

"The plant could be running right now. One unit out of 30 units was damaged, and they filed bankruptcy and they are profiting personally from filing bankruptcy," he said. "It's outrageous.

"While we were in effects bargaining, they kept lamenting that they were 'broke, broke, broke, broke,' " he continued. "Well, obviously they are only broke after they stuff their pockets."

The bankruptcy court said responses or objections to the request must be filed by Oct. 11. O'Callaghan hopes the judge denies the request.

"The judge should just disregard that," he added, "and if they are going to get bonuses, it should be known who's getting bonuses."

The refinery closed shortly after an explosion and massive fire in June. It announced bankruptcy shortly thereafter. 

PES did not respond to a request for comment. 

The bankruptcy judge will consider the request for bonuses, and other requests, at a hearing on Oct. 18.