Severance Pay

[RLGarza]

What is the name of your state? I live in Texas.
I work for a corporation, that is shutting down several power plants, including the one I work at as a Control Room Operator.
A couple of years ago, they informed us that they were going to sell our plant and started to pay the employees retention pay in order to keep the emplyees till the plant was sold. Every six months we would get half of the retention pay and half would be "Banked", we were to get the "Banked" amount when the plant sold. A month ago we were told that the plant would no longer be sold but would be "Motheballed", put into long term storage and the employees laid off and that we would be getting severance, but not the "Banked" retention. This would be fine except for that fact they keep changing the lay-off date. It started off being mid November, then it was December 31st, and now maybe not until February. They have told us that we cannot receive the severance until they let us go. My job no longer exists, the plant is not running so there is nothing for me to operate, my hours have been changed and I have been doing laborer type work. Since the annoucement of the sale of the plant I have had several opportunities to take a job elsewhere, but have declined because I did not want to lose the "Banked" retention pay. I know I have a good chance to get a good job outside of San Antonio, but I need my severance pay to help pay for the relocation. The problem is I can't even get a severance date. Is this legal? They have been dangling this carrot in front of us for two years and now it seems that they are trying to get out of paying us. In addition the corporation is in trouble and I'm afraid they may go under before we get our money.

 

[Beth3]

Yes, it's legal. Having been on the management side of a couple of plant closings, I can tell you that the amount of decison-making, confusion, change of plans, change of direction, change of mind, etc., etc. is enormous and on-going. I know it may seem easy to think management can just pick a date and stick to it but outside influences, finances, possible buyers, customers, and so on typically require operating on "best guess" almost up until the end.

The difficulty you are in is taking the sure thing (i.e. job opportunities that have been offered) vs. weathering the storm and hoping the severance and banked monies will still be there when they finally shut down. I'm afraid you're going to have to make the decision whether to opt for the bird in the hand or wait for the two in the bush. Good luck.

 

[Iamupset]

Dude, I am not a lawyer but, that situation you have there is really messed up. My honest opinion is to cut your loses for now and get the hell out of there. It's a real pain having to go after money after that fact (Check out my posting). But you have to do what is best for you and the "Here and now".

Unfortunately, society had MADE this world we live in far too complicated. I am a young guy but, have heard the stories about back in the day, a handshake actually meant something. Today, we have a bunch of people walking around with noses in the air. EVERYONE is a big executive of some sort. Everything is a procedure, nobody has time for their own kids anymore, and COMMON SENSE no longer exists.

It's all way out of control...Look at the stock market. If all of these self proclaimed big executives are so great, then why in the hell is everything in pieces??? I know a girl, 22 years old, got hired right out of college in marketing, making over $100,000....She is a KID!!! How can we toss all this money at kids and expect everything to be a-okay????

 

[RLGarza]

Thanks for your response Beth3 and Iamupset. I'd hate to walk away from the $28,000 severance, when they offered to pay retention to anyone that stayed, the seemed like a contract to me. I held up my end and stayed, now they want to change the contract and say we aren't going to sell we'll just shut you down.
However, I've been burned enough and if the job offer comes thru I will take it.