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American Morning
Interview with Former Tyco Employees
Aired September 19, 2002 - 07:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Certainly, what happens on Wall Street hits many Americans right in their pocketbook is so true today. This morning, in our new series, "People and Their Money," we're going to look at how Wall Street has an impact on Main Street.
Today, former Tyco chairman, Dennis Kozlowski, faces a bail hearing on charges he illegally took millions from his company. He may pay for that with jail time effective tomorrow. While he was living lavishly, some Tyco workers suffered, and indeed, they did.
Kathleen Merrill and Linda Gerard (ph) were Tyco employees for almost 16 years before they were laid off this past summer. They are live this morning in Durham, New Hampshire.
Good morning to both of you. We appreciate your time and your thoughts today.
KATHLEEN MERRILL, FORMER TYCO EMPLOYEE: Good morning.
LINDA GERARD (ph), FORMER TYCO EMPLOYEE: Good morning.
HEMMER: Kathleen, let's start with you. Apparently, all employees who had less than 16 years' experience were let go. Both of you had 15-and-a-half. When you were working at Tyco, did you have any indication of the problems that were lying underneath the surface?
MERRILL: We were (AUDIO GAP) had been falling rapidly, and it was just -- we kind of knew, but we were kept in the dark for some time.
HEMMER: What did you think of Dennis Kozlowski, your leader at that point?
MERRILL: Well, I had a lot of faith in him. He had brought Tyco into an international company, and we had a lot of faith in him. And little did we know what he was doing with the millions of dollars that we, as workers, were providing to him.
(CROSSTALK)
HEMMER: Linda, what do you make of a $6,000 shower curtain, a $15,000 umbrella stand?
GERARD (ph): I'm as stunned as to anybody would spend that kind of money on a shower curtain that needs to be washed and thrown away.
(CROSSTALK) HEMMER: How has your life changed, Linda? How has it been this past summer? I know both of you picked up somewhat of a severance package. How has it gone for the past several months?
GERARD (ph): Well, the severance package is done, and I'm in fear of losing my car. I think it's going to be repossessed. I had to rent out my mobile, so that I could survive and keep it, but now, I have to sell that in order to pay off the bills that I have acquired throughout the years.
HEMMER: How about you, Kathleen? How has it gone for you?
MERRILL: Well, my package is also done. We were both laid off at the same time. Of course, I have a very large family, so (AUDIO GAP) a little bit more. And it hasn't been easy for me and my six kids, and it's just -- it's sad. I don't know which direction to go in now.
HEMMER: I know you invested in the retirement plan within the company. How much of that money is still there in the account?
MERRILL: I didn't invest in it. My husband had bought most of the stocks. I wasn't involved in...
(CROSSTALK)
HEMMER: Is that still there, or is that gone?
MERRILL: Oh, that's completely gone. They're not worth anything now.
HEMMER: What do you make of Dennis Kozlowski today, Linda? Do you have -- what sort of feelings do you have, knowing that he faces this bail hearing? He has to post 10 million, and if he does not, it's off to jail.
GERARD (ph): Well, all of his assets are frozen, so he can't even go to an ATM. I feel that he was a good man when he started and did a lot of good. And somehow greed took over, and he basically ripped off a lot of people, not just Tyco employees from Newington, but a lot of Tyco employees worldwide. You know, $36 billion in residual last year down to nothing.
HEMMER: Well, listen, best of luck to both of you.
GERARD (ph): Thank you.
HEMMER: Certainly, you have felt the impact and the effects firsthand as a result of what happened within your former company. Kathleen Merrill and Linda Gerard (ph) live in New Hampshire this morning -- best of luck to you and your families, OK?
MERRILL: Thank you.
GERARD (ph): Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired September 19, 2002 - 07:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Certainly, what happens on Wall Street hits many Americans right in their pocketbook is so true today. This morning, in our new series, "People and Their Money," we're going to look at how Wall Street has an impact on Main Street.
Today, former Tyco chairman, Dennis Kozlowski, faces a bail hearing on charges he illegally took millions from his company. He may pay for that with jail time effective tomorrow. While he was living lavishly, some Tyco workers suffered, and indeed, they did.
Kathleen Merrill and Linda Gerard (ph) were Tyco employees for almost 16 years before they were laid off this past summer. They are live this morning in Durham, New Hampshire.
Good morning to both of you. We appreciate your time and your thoughts today.
KATHLEEN MERRILL, FORMER TYCO EMPLOYEE: Good morning.
LINDA GERARD (ph), FORMER TYCO EMPLOYEE: Good morning.
HEMMER: Kathleen, let's start with you. Apparently, all employees who had less than 16 years' experience were let go. Both of you had 15-and-a-half. When you were working at Tyco, did you have any indication of the problems that were lying underneath the surface?
MERRILL: We were (AUDIO GAP) had been falling rapidly, and it was just -- we kind of knew, but we were kept in the dark for some time.
HEMMER: What did you think of Dennis Kozlowski, your leader at that point?
MERRILL: Well, I had a lot of faith in him. He had brought Tyco into an international company, and we had a lot of faith in him. And little did we know what he was doing with the millions of dollars that we, as workers, were providing to him.
(CROSSTALK)
HEMMER: Linda, what do you make of a $6,000 shower curtain, a $15,000 umbrella stand?
GERARD (ph): I'm as stunned as to anybody would spend that kind of money on a shower curtain that needs to be washed and thrown away.
(CROSSTALK) HEMMER: How has your life changed, Linda? How has it been this past summer? I know both of you picked up somewhat of a severance package. How has it gone for the past several months?
GERARD (ph): Well, the severance package is done, and I'm in fear of losing my car. I think it's going to be repossessed. I had to rent out my mobile, so that I could survive and keep it, but now, I have to sell that in order to pay off the bills that I have acquired throughout the years.
HEMMER: How about you, Kathleen? How has it gone for you?
MERRILL: Well, my package is also done. We were both laid off at the same time. Of course, I have a very large family, so (AUDIO GAP) a little bit more. And it hasn't been easy for me and my six kids, and it's just -- it's sad. I don't know which direction to go in now.
HEMMER: I know you invested in the retirement plan within the company. How much of that money is still there in the account?
MERRILL: I didn't invest in it. My husband had bought most of the stocks. I wasn't involved in...
(CROSSTALK)
HEMMER: Is that still there, or is that gone?
MERRILL: Oh, that's completely gone. They're not worth anything now.
HEMMER: What do you make of Dennis Kozlowski today, Linda? Do you have -- what sort of feelings do you have, knowing that he faces this bail hearing? He has to post 10 million, and if he does not, it's off to jail.
GERARD (ph): Well, all of his assets are frozen, so he can't even go to an ATM. I feel that he was a good man when he started and did a lot of good. And somehow greed took over, and he basically ripped off a lot of people, not just Tyco employees from Newington, but a lot of Tyco employees worldwide. You know, $36 billion in residual last year down to nothing.
HEMMER: Well, listen, best of luck to both of you.
GERARD (ph): Thank you.
HEMMER: Certainly, you have felt the impact and the effects firsthand as a result of what happened within your former company. Kathleen Merrill and Linda Gerard (ph) live in New Hampshire this morning -- best of luck to you and your families, OK?
MERRILL: Thank you.
GERARD (ph): Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
