ACS News
AGS committee examines 13 more layoffs The Committee on Professional Relations, through its Subcommittee on Professional Standards, reports that 13 multiple terminations, involving at least 131 chemical professionals, have occurred since its last report oh' the subject (C&EN, May 8, 1978, page 31). For the first time, information is included on the number of terminées 40 years of age and older. In compiling this information, the committee has continued to follow certain definite policies, two of which are new: • An employee who is given a termination notice and is then offered a transfer to another company location is considered to be a terminée; in the reverse situation—transfer offer before termination—the individual is not counted as a terminée. • Employees who report their early retirement to be involuntary are considered terminées, but those who chose early retirement are not. A multiple termination, as defined by the committee, is a situation in which the employment of three or more chemists and/or chemical engineers is terminated within a six-month period for reasons other than: (1) continuing evidence of previously documented inadequate performance, (2) completion of contract, or (3) cause. These multiple terminations occurred between February 1976 and April 1978 at the following company locations: Addressograph-Multigraph Corp. (Warrensville Heights, Ohio, and Chicago); CPC International (Argo, 111.); Firestone Tire & Rubber Co. (Akron); GAF Corp. (Binghamton, N.Y.); Hercules Inc. (Wilmington, Del.); Hooker Chemical & Plastics Co., division of Occidental Petroleum Corp. (Niagara Falls, N.Y.); Kennecott Copper Corp. (Lexington, Mass.); Picatinny Arsenal (Dover, N.J.); Sun Co. (Philadelphia); Thiokol Corp. (Huntsville, Ala.); U & I Inc. (Moses Lake, Wash.); Union Carbide Corp. (Tarrytown, N.Y., and South Charleston, W.Va.); and Warner-Lambert Research Institute (Morris Plains, N.J.). Officials at CPC, GAF, Hercules, Hooker, Kennecott, Picatinny, Sun, U & I, Union Carbide, and Warner-Lambert supplied the committee with detailed information on their multiple terminations. Officials at Addressograph-Multigraph, Firestone, and Thiokol declined to provide detailed termination information; the data included on these three companies were supplied by the terminées only. The committee compared the conditions of these terminations to the standards outlined in ACS's Professional Employment Guidelines. Overall employer compliance with ACS guidelines appears to have increased over the past year, especially in the areas of advance notice and assistance to the terminées. The percentage of employers who have elected to provide information to the committee also has risen. It is hoped that these trends will continue. Three of the 13 companies covered in this article—Addressograph-Multigraph, Firestone, and Hooker—provided little or no advance notice to some or all of the terminées. CPC provided two weeks' advance notice. Officials at GAF reported that terminées received up to two weeks' pay in lieu of notice. At U & I, terminées received two weeks' pay in lieu of notice. Terminées at Warner-Lambert received one and a half to two weeks' advance notice of separation. Advance notice at Hercules, Kennecott, Picatinny, Sun, Union Carbide, and Thiokol met or exceeded the guideline standard of one month's advance notice. Longer-service employees were terminated from all of the 13 companies except Thiokol. One of the seven respondents from
Employer compliance with ACS guidelines
These employers provided information
CPC International GAFa
b
Hercules Hooker8
c d
Kennecottb Picatinny Arsenalb Sun U & μ, b, c, e
Union Carbide 5 Warner Lambert0 These employers provided no information
Addressograph Multigraph Firestone Thiokol
Employer met guidelines standard Employer did not meet guidelines standard Employer was substantially below guidelines standard This is defined as follows: • Advance notice—less than two weeks. • Severance pay—less than one week per year of service. • Employee service—more than 40% of terminées had more than 10 years of service. • Protection plan—no continuation of protection plans. a Rating on severance pay based on information from terminées, b Rating on rehire privileges based on information from terminées, c Rating on advance notice based on information from terminées, d Rating on employee service based on information from terminées, e Rating on assistance based on information from terminées.
Jan. 22, 1979 C&EN
27
Addressograph-Multigraph had 10 or more years of service. At CPC, 11 of the 13 responding terminées were longer-service employees. All four of the responding terminées from Firestone were longer-service employees. GAF officials reported that six of its 18 terminées were in this category. According to Hercules officials, eight of its 10 terminées had 10 or more years of service. Five of the 10 respondents from Hooker were longer-service employees. Three of 10 terminées at Kennecott and three of 10 at Picatinny were in this category. Two of the four Sun terminées had 10 or more years of service. Nine of the 14 terminées responding from Union Carbide were longer-service employees. Officials at U & I reported that one of its five terminées had 10 or more years of service. At Warner-Lambert, four of the six terminées were in this category. Only Sun met the guideline standard of two weeks' severance pay per year of service. Average severance pay received by Addressograph-Multigraph terminées was 0.9 week's pay per year of service. At CPC, terminées received one week's pay per year of service. Severance pay at GAF was based on age, years of service, and rate of pay, with a minimum of two weeks' pay and a maximum of eight months' pay. The policy at Hercules was to provide one month's salary for the first year of employment and one fourth of a month's salary for each year thereafter. Terminées at Hooker received "bridging pay" based on years of service and age, with a minimum of four weeks' pay and a maximum of 39 weeks' pay. Kennecott terminées received one week's pay per year of service. At Picatinny, terminées received one week's basic pay per year of service up to and including 10 years, and two weeks' basic pay for each year of service over 10 years. In addition, employees over age 40 received an age adjustment allowance. All terminées at Thiokol reported receiving no severance pay. U & I officials stated that company policy is to provide one week's pay per year of service, but the terminées responding, with years of service ranging from one and one half to nine years, reported receiving four weeks' pay or a flat amount in lieu of notice. Union Carbide terminées reported severance pay averaging 1.2 weeks' pay per year of service. At Warner-Lambert, terminées received one month plus one-fourth month's pay per year of service up to six years, and thereafter one-half month's pay per year of service up to 25 years, with a maximum of one year's pay. Terminées 45 or older also received a supplemental payment. At Firestone, two terminées reported receiving no severance pay, one received one week's pay in lieu of notice; all three opted for a vested pension which was discounted 0.4% for each month under 62. A fourth terminée, who did not elect to be fully vested, received 68 weeks' pay plus one week's pay in lieu of notice. Ten of the employers covered in this report—CPC, GAF, Hercules, Hooker, Kennecott, Picatinny, Sun, Union Carbide, Warner-Lambert, and Addressograph-Multigraph—appear to have met the society's guideline for assistance to terminées in finding other employment. All four Firestone terminées stated that they were given no assistance in finding a job, preparing résumés, or retraining. At Thiokol, one terminée reported receiving assistance in finding a job and preparing résumés, but the other two terminées said they were given no assistance. Although officials at U & I said that complete assistance was given to all terminées to relocate them within the organization, and in preparing résumés and finding other employment, two of the three respondents said they were given no assistance. Only one employer, U & I, did not meet the guideline standard for pension vesting, which is full vesting at 10 years of service, regardless of age. At U & I, pensions vest 25% after five years, 50% after 10 years, and 100% after 15 years of service. At Sun and at Warner-Lambert, rehire privileges were explained to the terminées. The majority of terminées responding from the remaining 11 employers stated either that rehire privileges did not exist or that the rehire policy was not explained to them. The committee relies heavily on the assistance of local section 28 C&EN Jan. 22, 1979
committees on professional relations for original information regarding a multiple termination, for suggesting people to contact as employer representatives, and most of all for providing names of local ACS members terminated. Local sections usually assist by circulating termination questionnaires to people involved, sometimes summarizing the responses and transmitting the questionnaires and conclusions to CPR. There are times, however, when publication of multiple terminations is unduly delayed because a few local sections do not gather information from the terminées in an expedient manner. Therefore the committee recently voted that if, after a reasonable period of time, a local section does not respond with information from the terminées, a letter will be sent to the local section chairman informing him or her that if the section does not supply the needed information within one month, a statement will appear under "information from the terminées" in the multiple termination article to the effect that the section involved failed to provide detailed information from the terminées. The Committee on Professional Relations expresses its appreciation to the following local sections for their help in investigating the terminations covered in this report: Akron, Binghamton, Chicago, Delaware, Kanawha Valley, New York, North Jersey, and Northeastern. Copies of all prior C&EN articles providing termination data are available upon request from the Office of Professional Relations, 1155—16th St., N.W., Washington, D.C. 20036. Members of the Subcommittee on Professional are: Dr. Ronald J. Maner, chairman Dr. Henry Bader Dr. Don R. Baker Dr. Eugene Garcia Dr. E. Gerald Meyer Fred F. Rust Dr. Edward A. Walters Dr. F. William Kirsch, ex officio
Standards
Addressograph-Multigraph Corp., Warrensville Heights, Ohio, and Chicago; June to September 1977 The closing of Addressograph-Multigraph's Multigraphics Development Center in Warrensville Heights, Ohio, led to the termination of 11 chemists and chemical engineers from June to September 1977.
Information from the employer Officials at Addressograph-Multigraph Corp. declined to provide detailed information on the terminations.
Information from the terminées Number involved. 11 chemists and chemical engineers were terminated. 6 chemists and 1 chemical engineer responded to the survey. 3 chemists accepted transfers to the Mt. Prospect location, and were terminated within 30 days after making the transfer. 3 of the 7 responding were 40 years of age or older. Advance notice. The terminées responding reported advance notice ranging from no notice to 1 week's notice. Severance pay. The terminées reported receiving severance pay ranging from 3 weeks' pay for a terminée with less than 3 years of service to 7 weeks' pay for a terminée with 8 years of service. The average received, in weeks per year of service, was 0.9.
ACS guidelines Advance notice. Four-week mininum. Severance pay. Minimum is two weeks per year of service. Additional notice may be given, by mutual agreement, in lieu of severance pay. Assistance. Efforts should be made to place terminée in another position within the organization, or terminée should be given assistance to find employment elsewhere. Pension plan vesting. Full vesting after 10 years' service. Employee service. Those with minimum of 10 years5 service should not be terminated except for continued evidence of previously documented inadequate performance or cause. Employee protection plans. Should be extended for one month following termination at same rate of contribution as before. Employee would have additional 31-day grace period. Rehire privileges. Rehire privileges should be carefully explained to terminées. Assistance. 6 of the 7 respondents stated that they received assistance in the preparation of résumés. 2 terminées also received a pamphlet on employment-seeking, and 1 terminée reported assistance in finding another job. Pension plan vesting. 4 terminées stated that the pension is fully vested at 5 years of service, whereas the remaining 3 respondents were under the impression that full vesting occurs after 10 years of service. Employee service. 1 of the 7 terminées responding had more than 10 years of service. Employee protection plans. Responses to this question varied. 2 terminées stated that life and health insurance were continued for 2 months at the company's expense. 2 terminées reported 1 month's continuation of life and health insurance at the company's expense. 1 terminée said that his health insurance continued for 2 months at the company's expense, and 1 terminée reported continuation of life, health, and disability insurance for 1 month at the company's expense. The remaining respondent reported that life and health insurance were continued for 3 weeks at the company's expense. Rehire privileges. 6 of the respondents indicated that rehire privileges were not explained to them. The remaining respondent did not reply to this question.
Moffett Technical Center, CPC International Inc., Argo, III.; February 1978 Information from the employer Number involved. Officials at CPC stated that they prefer not to deal with specific numbers and categories of employees. Advance notice. All salaried employees affected were given 2 weeks' notice. Severance pay. All salaried employees affected were granted salary continuation in accordance with the following schedule: Service During probation (less than 6 months) 6 months to 2 years More than 2 years
Assistance. All units of the domestic corporate organization were advised of the employees affected by the reduction for consideration of any vacancy which existed. Services of an outplacement consultant were available, and all salaried employees affected were invited to add their names to lists indicating their availability for employment. These lists were circulated to other employers. Pension plan vesting. Salaried employees became vested in the noncontributory retirement plan after 10 years of continuous service. Employee service. As indicated above, company officials stated that they prefer not to deal with specific numbers. Employee protection plans. Group insurance plans were continued in full through the period of salary continuation. Rehire privileges. The rehire policy at CPC does not require that those terminated be rehired before new employees are recruited.
Information from the terminées The committee on professional relations of the Chicago Section surveyed the terminées and found the following: Number involved. 21 chemists were identified as terminées; 13 responded to the survey. 8 of the 13 respondents were 40 years of age or older. Advance notice. The majority of the respondents stated that they were given 2 weeks' advance notice of separation. Severance pay. All terminées responding received 1 week's pay per year of service, up to a maximum of 26 weeks. Assistance. All terminées responding indicated that they received assistance in the preparation of résumés. 9 of the 13 were aided in finding another job, and 2 received retraining assistance. Pension plan vesting. The pension is fully vested at 10 years of service. Employee service. 11 of the 13 respondents had 10 or more years of service. Employee protection plans. The majority of the respondents reported that life, health, and disability insurance were continued through the severance pay period. Rehire privileges. All 13 respondents indicated that rehire privileges were not explained or implied to them.
Firestone Tire & Rubber Co., Akron; April 1978 5 chemists and chemical engineers were terminated from Firestone Tire & Rubber Co. in Akron in late April 1978.
Information from the employer 6 chemists and chemical engineers were terminated from Firestone Tire & Rubber Co. in Akron in late April 1978. 4 terminées elected to take early retirement and 2 were terminated under Firestone's reduction-in-force policy. Employees taking a reduction-in-force receive a separation payment in accordance with an established Firestone policy, and benefit programs continue dependent upon the employee's service. For those electing retirement status, their benefit coverage continues in conjunction with their retirement program.
Salary continuation
Information from the terminées
None 2 weeks 1 week per year of service up to a maximum of 26 weeks
The professional activities committee of the Akron Section surveyed the terminées and found the following: Number involved. 5 chemists and chemical engineers were terminated from Firestone. 4 of these responded to the quesJan. 22, 1979 C&EN
29
tionnaire and reported that they considered their terminations to be involuntary retirements. All four were 55 years of age or older. Advance notice. 2 respondents reported receiving no notice, and the remaining 2 reported 1 week's advance notice of termination. Severance pay. 2 terminées reported receiving no severance pay. 1 indicated that he received 1 week's pay in lieu of notice, and the 4th received 68 weeks' pay plus 1 week's pay in lieu of notice. Assistance. All 4 terminées responding stated that they were given no assistance in finding a job, preparing résumés, or retraining. Pension plan vesting. 2 respondents said that the pension was fully vested at 10 years of service. Employee service. All 4 terminées responding had 10 or more years of service. Employee protection plans. 1 terminée reported that his life insurance was continued at 50% for life, health insurance was continued for life, and disability coverage was continued at a reduced rate until expiration. The 2nd respondent stated that life insurance was reduced to one quarter, health insurance was continued, and disability coverage was terminated. All protection plans were continued for 1 year at company expense for the 3rd respondent. The remaining respondent indicated that his insurance plans were continued in accordance with retirement policy. Rehire privileges. All 4 respondents stated that no rehire privileges were explained to them.
GAF Corp., Binghamton, N.Y.; August 1976 to September 1977 Information from the employer Number involved. A total of 26 chemists and chemical engineers were terminated from GAF Corp. in Binghamton, N.Y., from August 1976 to September 1977. 18 of these 26 were terminated in 1977 as a result of GAF's decision to discontinue its consumer photo business. Of these 18, 7 were subsequently placed in other GAF locations, and 2 retired. About 75 chemists and chemical engineers were employed prior to staff reductions. (The following information from the employer pertains to the 18 chemists and chemical engineers separated as a result of the closing of the consumer photo line.) Advance notice. The schedule for advance notice varies with the circumstances. 2 chemists immediately opted for early retirement, others remained on the payroll until all other company operations were canvassed for possible openings. 3 others were terminated and received up to 2 weeks' pay in lieu of notice, plus their severance pay. Severance pay. Severance pay is based on age, years of service, and rate of pay. The minimum is 2 weeks and the maximum is 8 months' full pay and benefits. Assistance. Minirésumés were provided to all company locations, other companies, and employment agencies. Information on jobs was solicited, posted in GAF's employment office, and personally brought to the attention of laid-off employees. A 2-day outplacement workshop was conducted to assist the employee in handling his situation, to search out leads, write résumés, and handle employment interviews. Résumés were printed. Free "positions wanted" ads were also arranged in local papers. Arrangements were made for free interviewing space for recruiters on and off company premises. Various professional societies were contacted. Pension plan vesting. Full vesting occurs with 10 years of service. Time receiving severance pay counts toward vesting. Employee service. 6 of the 18 terminées had 10 or more years of service. Employee protection plans. Those laid off could continue in the 30
C&EN Jan. 22, 1979
group insurance plans for the duration of the severance pay period, plus 2 months. Those who chose early retirement could continue until age 65, when retiree programs take effect. Rehire privileges. Laid-off professional employees are considered for reinstatement within the 1st year and re-employment thereafter. Their performance record as employees is one criterion used. This policy is understood by the terminées.
Information from the terminées The committee on professional relations of the Binghamton Section gathered the following information from the terminées: Number involved. 3 chemists responded to the survey. 2 of these were 40 years of age or older. Advance notice. 1 respondent reported receiving 2 days' advance notice of separation and 1 reported 6 weeks' notice. The 3rd respondent did not reply to this question. Severance pay. The terminée with less than a year of service reported receiving 2 weeks' severance pay. The other 2 terminées reported receiving no more than 1 week per year of service. Assistance. 2 of the 3 respondents indicated that they were given assistance in the preparation of résumés, and 1 of these also reported assistance in the form of a seminar on owning a business. The 3rd respondent stated that no assistance was received. Pension plan vesting. All 3 terminées responding stated that full vesting in the pension plan occurs after 10 years of service. Employee service. 2 of the 3 respondents had more than 10 years of service. Employee protection plans. The terminée with less than a year of service reported that all insurance protection was discontinued at the time of termination. The terminée with 21 years of service stated that life, health, and disability insurance were continued at employer expense until the end of the severance pay period. The 3rd respondent, an early retiree, said that life insurance would be continued at employer expense until death, and health insurance would continue at mutual expense until age 65, at which time retiree medical benefits begin. Rehire privileges. 2 respondents indicated that rehire privileges were not explained to them. The 3rd terminée responding stated that rehire privileges were explained to him, and he was informed that such privileges did not apply in his case.
Hercules Inc., Wilmington, Del.; April 1978 Information from the employer Number involved. 7 chemists and 3 chemical engineers were separated, out of about 500 at the Wilmington location. 5 chose retirement under the company pension plan. Advance notice. Employees were given 4 weeks' notice. Severance pay. The severance pay schedule is 1 month's salary for the first year of employment and 1/4 of a month's salary for each year thereafter. Assistance. Outplacement assistance was offered to all individuals. This included counseling in the job hunting process, and preparation of personal résumés, secretarial support, and use of the telephone and reproduction services. Pension plan vesting. Vested rights in a pension benefit begin at 5 years' service (50%) and increase to 100% in 10 years. Employee service. 8 of the 10 terminées had 10 or more years of service. Employee protection plans. No special provisions were granted to the terminées beyond the normal conversion period. Rehire privileges. The company does not have a rehire policy that stipulates that professional employees receive special rehire privileges after separation.
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Information from the terminées The professional relations committee of the Delaware Section surveyed the terminées and found the following: Number involved. 9 terminées were identified, 6 of whom responded to the survey. 5 of the 6 respondents were 40 years of age or older, and, of these, 4 were 55 years of age or older. Advance notice. All 6 respondents received 4 weeks' advance notice of separation. Severance pay. 1 terminée chose early retirement with full pension benefits for his years of service, but no severance pay. 2 terminées opted for reduced early retirement which provided, for up to 3 months, a supplement equivalent to the difference between the pension and the current monthly salary. 1 respondent reported receiving no severance pay, and the remaining 2 respondents received 8 and 9 weeks' severance pay. Assistance. All respondents indicated that they received assistance in résumé preparation, and 5 of the 6 reported receiving help in finding a job. Pension plan vesting. The pension is fully vested at 10 years of service. Employee service. 5 of the 6 respondents had 10 or more years of service. Employee protection plans. 2 terminées stated that life and health insurance were continued at mutual expense until age 65, but disability coverage was canceled. A 3rd respondent said that only his health insurance was continued for 1 month at employer expense. Of the remaining 3 respondents, 1 said that all protection plans were continued for life, and 2 stated that insurance coverage was continued in accordance with the early retirement policy. Rehire privileges. All respondents stated that no rehire privileges were explained to them.
Hooker Chemical & Plastics Corp., division of Occidental Petroleum Corp., Niagara Falls, N.Y.; February and March 1978 Information from the employer Number involved. 11 chemists and 2 chemical engineers were among those separated in February 1978, at Hooker Petroleum Corp. in Niagara Falls, N.Y. Advance notice. Company officials did not provide this information. Severance pay. The company provided "bridging pay" based upon the employee's years of service and age. Bridging pay ranged from a minimum of 4 weeks to a maximum of 39 weeks. The company reimbursed each separated employee for all unused 1978 vacation upon completion of the bridging pay period. Assistance. The company provided all separated employees with professional outplacement services to assist them in locating other employment. In addition to the professional outplacement services, the company provided an outplacement facility including secretarial service and telephone, library, and copy reproduction privileges. Pension plan vesting. Separated employees with 5 years of service and over 40 years of age or with 10 years of service were fully vested in the company retirement plan. Employee service. Company officials did not provide this information. Employee protection plans. The comprehensive medical and life insurance plans remained in force until 31 days after the bridging pay ended. Each employee received information for converting both plans from corporate to personal plans at the end of the bridging pay period.
Rehire privileges. Company officials did not provide this information.
Information from the terminées Number involved. 10 chemists and chemical engineers responded to the survey. 8 of these were 40 years of age or older. Advance notice. All 10 respondents reported receiving no advance notice of separation. Severance pay. With the exception of 1 terminée who reported receiving no severance pay, all respondents received "bridging pay." The maximum reported was 39 weeks' pay for a terminée with 30 years of service, and the minimum reported was 5 weeks' pay for a terminée with 2 years of service. The average amount reported, in weeks' pay per year of service, was 1.3. Assistance. All 10 respondents indicated that they were given assistance in résumé préparation, and 6 also reported receiving help in finding another job. Pension plan vesting. The pension is fully vested at 5 years of service if over age 40, or at 10 years of service. Employee service. 5 of the 10 terminées responding had 10 or more years of service. Employee protection plans. 4 respondents stated that life and health insurance were continued for 1 month at employer expense. 2 terminées indicated that only health insurance was continued for 1 month at employer expense. 1 respondent reported continuation of life, health, and disability coverages at employer expense until the end of the bridging pay period, and another reported continuation of all 3 coverages for 2 months. The 9th respondent said that his life insurance was extended for 14 weeks. The remaining respondent, a retiree, stated that his life and disability coverages were continued for 1 month, and his health insurance would be continued, at a reduced amount, for the remainder of his life. Rehire privileges. All 10 terminées responding stated that the rehire policy was not explained to them.
Kennecott Copper Corp., Ledgemont Laboratory, Lexington, Mass.; March 1977 Information from the employer Number involved. 12 chemists and chemical engineers were terminated from Kennecott's Ledgemont Laboratory in March 1977, out of about 60 at that location. Advance notice. Company officials stated that official notice is 1 month, but that 2 months' notice was given during this reduction-in-force. Severance pay. Terminated employees received 1 week's pay for each year or fraction of a year of service. Assistance. Terminées were assisted in résumé preparation and typing letters, and were given referrals and advice on interviewing. Pension plan vesting. The pension is fully vested at 10 years' service. 1 employee with 9 plus years was terminated later than the others. Employee service. 3 terminées had 10 or more years of service. Employee protection plans. Protection plans were continued for the duration of the terminal leave period, which consists of deferred vacation, accrued vacation, notice, and separation pay. Actual periods ranged from 2 to 7 months. Rehire privileges. The rehire policy does not require that those terminated be rehired before new employees are recruited. Terminées were told that they were eligible for rehire if appropriate openings developed. Jan. 22, 1979 C&EN 33
Information from the terminées The committee on professional relations of the Northeastern Section surveyed the terminées and found the following: Number involved. 15 terminées were identified. 8 responded to the survey. 5 of the 8 respondents were 40 years of age or older. Advance notice. Notice ranged from 4 to 14 weeks. Severance pay. Severance pay was given, based on 1 week's pay per year of service. Assistance. The company supplied office space, phone service, secretarial service, résumé printing, and postage. Pension plan vesting. Full vesting was achieved with 10 years' service. There were no vested pension rights for less than 10 years' service. Employee service. 2 of the responding terminées had 10 or more years of service. Employee protection plans. Life, health, and disability insurance continued until the end of the severance period at the employer's expense. Rehire privileges. There were no attempts to place terminées in other positions in the company. Rehire privileges in general were not explained to terminées. However, 1 terminée did report that he would be recalled if an opening occurred.
Picatinny Arsenal, U.S. Department of Defense, Dover, N.J.; March 1977 Information from the employer Number involved. 4 chemists, out of about 50 at that location, were separated in the reduction-in-force at Picatinny Arsenal in March 1977. In addition, 20 chemists had their positions changed to a lower grade. Advance notice. A 60-day notice is provided to employees subject to involuntary separation. Severance pay. The computation of severance pay consists of 2 elements: a basic severance allowance and an age adjustment allowance. The basic severance allowance is computed on the basis of 1 week's basic compensation at the rate received immediately before separation for each year of civilian service up to and including 10 years, and 2 weeks' basic compensation at such rate for each year of civilian service beyond 10 years. The age adjustment allowance is computed on the basis of 10% of the total basic severance allowance for each year by which the age of the employee exceeds 40 years at the time of separation. The total severance pay received shall not exceed 1 year's pay at the rate received immediately before separation. Assistance. 3 placement programs were available to employees being terminated: the Department of Defense nationwide priority referral system, the U.S. Civil Service Commission's displaced employee program, and the Department of the Army area placement and re-employment priority system. In addition to these programs, internal placement assistance for chemists and all career Civil Service employees within the parent organization is mandatory. The procedure for determining positions for affected employees is through application of reduction-in-force regulations. The reduction-in-force regulations take into account the alternate positions available, their incumbents, employees' veterans preference eligibility, amount of service, and their specialized skills, knowledge, and abilities. Pension plan vesting. An employee under the Civil Service Retirement Act who is involuntarily separated from the service is entitled to an immediate annuity if: a. He or she has been employed under the act for at least 1 year within the 2-year period immediately preceding the separation on which the annuity is based, and b. He or she meets either of the following minimum requirements: 34
C&EN Jan. 22, 1979
(1) Attainment of age 50 and completion of 20 years of creditable service, including 5 years of civilian service, or (2) Regardless of age, has completed 25 years of creditable service, including 5 years of civilian service. If the retiring employee is under age 55, the basic life annuity rate is reduced 1/6 of 1 % for each full month (2% a year), if any, he is under age 55. The annuity rate so determined will not be increased when the annuitant reaches age 55. Employee service. 3 of the terminées had 10 or more years of service. Employee protection plans. The employees are provided with instructions for converting both health and life insurance plans to nongroup plans. Employees are carried on both plans for 30 days following separation. Rehire privileges. Rehire is accomplished by means of Civil Service reduction-in-force procedures and placement programs described above. Employees received detailed instructions and information regarding retirement, severance pay, grievance and appeal rights, and placement services in the initial letter of reduction-in-force.
Information from the terminées The committee on professional relations of the North Jersey Section gathered the following information from the terminées: Number involved. 4 chemists who were terminated from Picatinny Arsenal during the March 1977 reduction-in-force responded to the survey. 2 of the 4 were rehired prior to the effective date of the termination. 3 of the terminées were 40 years of age or older. In addition, 5 other chemists responded indicating their positions were reduced by 1 to 3 grades. Advance notice. The terminées reported advance notice ranging from 2 to 4 months. Severance pay. 1 terminée received 81/2 weeks' severance pay, and a second terminée received 32 weeks' pay. The remaining 2 terminées, who were rehired, responded that they did not receive severance pay. Assistance. 2 terminées reported receiving assistance in finding a job, and 1 also stated that he was permitted to use photocopy machines. The 3rd terminée said that no assistance was received, and the 4th said he did not seek help but believes it was available. Pension plan vesting. 1 terminée who was rehired said that this question did not apply to him. The 2nd terminée was uncertain about whether he was vested in the pension plan. The 3rd terminée reported that he received only his contribution to the retirement plan. The 4th terminée stated that he was vested in a deferred retirement annuity plan. Employee service. 3 of the terminées had 10 or more years of service. Employee protection plans. 1 terminée reported that life, health, and disability insurance were continued for 31 days. The second terminée stated that life and health insurance were continued for 1 month. The remaining 2 terminées, who were rehired, said that this question did not apply to them. Rehire privileges. 2 terminées said that rehire privileges were not explained to them. 1 terminée stated that rehire privileges were explained, and the 4th stated that he was not entitled to rehire privileges because of his excepted status.
Sun Co. Inc., Philadelphia; summer and fall 1977 Information from the employer Number involved. 4 chemists and chemical engineers, out of 90 working at that location, were terminated from Sun Co. Inc. in Philadelphia. Advance notice. Terminées were given 2 to 6 weeks in which to
choose from among the options of severance pay, employment assistance, or educational assistance. Severance pay. After the date of termination, the employee receives a monthly check for one-half pay, for a number of months equal to the number of years completed, with a maximum of 36 months. Assistance. As an alternative to severance pay, the employee could choose to remain on the company payroll at full pay and benefits while conducting a job search outside the company. Counseling and job finding assistance are provided during this time. The length of job finding assistance time is as follows: Completed years of service 1-5 6-10 11-15 16-20 21 and over
Employment assistance Up to 12 weeks 24 36 48 60
Alternatively, if the employee has 15 years of service, he or she is able to remain on the payroll at half-pay for up to 2 years while attending college or an accredited vocational program. 75% of tuition, books, and general fees will be paid by the company. In addition to the choice of employment assistance, severance pay, or educational assistance, the employee may attend a 1-day vocational testing and counseling program contracted for by Hay Associates. Pension plan vesting. Employee pension rights are vested with 10 years of service. Employee service. 2 of the 4 terminées had 10 or more years of service. Employee protection plans. For those who choose severance pay, medical and life insurance are continued at company expense for 3 months past termination. Full benefits are continued for the duration of the employment assistance period for those who choose this option. Rehire privileges. The company has no rehire policy applicable to terminated employees. Those best qualified are hired for openings.
Information from the terminées Number involved. 4 terminées were identified, 2 of whom responded to the survey. Both of the respondents were 40 years of age or older. Advance notice. 1 of the respondents said that he was given a 60-day grace period to choose from among the options of employment assistance, severance pay, or educational assistance. Severance pay. The terminée who chose this option could receive half-pay per month for a number of months equivalent to his years of service. Assistance. The respondent who chose employment assistance could receive up to 36 weeks' pay while job hunting, and also indicated he was given the use of office space and phone privileges, and assistance in résumé preparation. The 2nd respondent received assistance in résumé preparation, finding a job, and retraining. Pension plan vesting. The pension is fully vested at 10 years of service. Employee service. Both of the terminées responding had more than 10 years of service. Employee protection plans. The terminée who chose to receive half-pay per month for the number of months equivalent to years of service stated that all insurance plans were continued for 3 months at the company's expense. The 2nd respondent chose employment assistance and therefore protection plans were continued throughout the employment assistance period. Rehire privileges. 1 terminée responding was told that there were no rehire privileges. The 2nd respondent was informed that, if he were rehired, his benefits would resume as if there were no break in service, but that no call-back procedure was in effect for professionals.
Thiokol Corp., Huntsville, Ala.; February to May 1976 2 chemists and 1 chemical engineer were terminated between February and May 1976 at the Huntsville, Ala., division of Thiokol Corp.
Information from the employer Officials at Thiokol declined to provide information on the terminations.
Information from the terminées Number involved. 2 chemists and 1 chemical engineer were separated, all of whom responded to the survey. Advance notice. 2 terminées received 4 weeks and 1 received 5 weeks' advance notice of separation. Severance pay. All 3 terminées reported receiving no severance pay. Assistance. 1 terminée indicated receiving assistance in finding a job and in preparing résumés. The other 2 terminées stated that they were given no assistance. Employee service. All of the terminées had less than 10 years of service. Pension plan vesting. The requirement for full vesting in the pension plan is 10 years of service. Employee protection plans. 1 terminée stated that all insurance plans were discontinued at the employee's request. Another indicated that life, health, and disability plans were continued for 90 days at the employee's expense. The 3rd terminée responded that health insurance continued for 3 months at the employer's expense. Rehire privileges. All 3 terminées reported that rehire privileges were not explained to them.
U & I Inc., Moses Lake, Wash.; February 1977 Information from the employer Number involved. 5 chemists and chemical engineers were terminated from U & I Inc. in Moses Lake, Wash., during February 1977. Advance notice. The company schedule for advance notice is 2 weeks' notice. Severance pay. The company provides 1 week's pay per year of service, with a minimum of 2 weeks' pay. Assistance. Complete assistance was given to all terminées to relocate them within the organization. Assistance also was provided in supplying their names to various employment agencies throughout the U.S. and in preparing résumés. Pension plan vesting. Pensions vest 25% after 5 years, 50% after 10 years, 100% after 15 years of service. Employee service. 1 terminée had 10 or more years of service. Employee protection plans. The terminées were allowed to continue in the group insurance plans 30 days following the end of the month in which they were terminated. Rehire privileges. The company rehire policy did not require that those terminated be rehired before new employees were recruited. However, as a practical matter, if those employees were eligible for rehire, they would be considered first. Jan. 22, 1979 C&EN 35
Information from the terminées Number involved. 5 chemists and chemical engineers were terminated from U & I Inc. 3 responded to the survey. Advance notice. All terminées responding reported receiving no advance notice. Severance pay. 2 respondents were given 4 weeks' pay in lieu of notice. The 3rd respondent stated that he received a flat amount in lieu of notice. Assistance. 1 terminée indicated receiving assistance in the preparation of résumés. The remaining respondents said they were given no assistance in finding a job, preparing résumés, or retraining. Pension plan vesting. 1 of the terminées responding stated that the pension is fully vested at 10 years of service. The other 2 respondents did not reply to this question. Employee service. None of the terminées responding had 10 or more years of service. Employee protection plans. 2 respondents stated that life, health, and disability coverages were continued for 1 month at the employer's expense. The 3rd respondent reported that his life and health insurance were continued for 6 months. Rehire privileges. All 3 terminées responding stated that rehire privileges were not explained to them.
Union Carbide Corp., Tarrytown, N.Y., and South Charleston, W.Va.; October 1 9 7 7 April 1978 Information from the employer Number involved. Officials at Union Carbide stated that a total of 14 chemists and 13 chemical engineers, working directly in their educational fields, were terminated because they were surplus, but 5 of these were subsequently rehired. In addition, 6 chemists and 13 chemical engineers, who were working directly in their educational fields, were terminated for less than fully competent work performance. Officials also stated that a few more individuals trained in chemistry or chemical engineering, but not working in that capacity, were separated. Advance notice. Employees separated under this program because of less than fully competent work performance had been through counseling sessions and were given at least 3 months to bring their performance up to acceptable standards. Employees who were surplus in their jobs were so informed and a strong effort was made to place them in another job within the corporation. The internal placement effort was made over a 2-month period. Severance pay. Employees separated because of unacceptable work performance received, as a minimum, pay for the balance of the month in which notice was given, plus pay according to the schedule below. Employees identified as being surplus received 2 months' pay while efforts were made to place them internally. If after the 2-month search effort, they could not be placed within the corporation, they received pay for the balance of that month, plus pay according to the following schedule: Credited service Up to 7 years 7 years and under 10 years 10 years Over 10 years
Payment 11 month's pay 1 /2 months' pay 2 months' pay 2 months' pay, plus 1/4 month's pay for each year of company service credit in excess of 10 years.
Assistance. In addition to internal placement efforts, outplacement assistance was offered on a voluntary basis to all employees who were being terminated. This assistance ranged all the way from résumé preparation, interviewing techniques, etc., to individual employee career counseling, depending upon the employee's service and position with the company. 36 C&EN Jan. 22, 1979
Pension plan vesting. Pensions become vested after 10 years of company service credit. Pension benefits may be matured as early as age 50. Employee service. Union Carbide officials stated that present data were not meaningful because of the small number of employees terminated. They expected no significant difference between the "before" and "after" age-service profiles when the termination program had run its course. Employee protection plans. For employees who were terminated and not eligible for a pension benefit: group life insurance— coverage continued for 1 month after the termination date; hospital and surgical—coverage to the end of the month in which terminated; major medical—canceled as of the date of termination. For employees who were terminated and who became early retirees (at least age 48 and 8 years of service): group life insurance—had the option to continue the full amount of basic group life insurance to age 65 (the retiree would continue to make his or her regular contribution toward the premiums for such coverage) or to immediately take the prescribed reduced amount of coverage at no further cost to the individual, and had the option to continue the full amount of supplemental life insurance to age 65 by making his or her regular contribution for this coverage; hospital and surgical and major medical—had the option to continue coverage for self and all eligible dependents to age 65, by paying 50% of the group-rate premium. Rehire privileges. The rehire policy does not require that terminated former employees are rehired before new employees are recruited. Former employees who have displayed full competence on the job and who possess the necessary background and skills may be considered for rehire.
Information from the terminées The employment and professional relations committee of the New York Section surveyed the terminées from the Tarrytown location and filed the following report: Number involved. At least 13 chemists and chemical engineers were terminated from Union Carbide in Tarrytown, N.Y., between October 1977 and April 1978. 11 terminées responded to the survey. 6 of the 11 respondents were 40 years of age or older. Advance notice. The terminées responding received from 8 to 22 weeks' notice of termination. Severance pay. Severance pay was based on period of service. A terminée with 21/2 years of service received 4 weeks' pay, 1 with 11 years of service received 9 weeks' pay, and 1 with 36 years of service received 81/2 months' pay. Average severance pay received, in weeks' pay per year of service, was 1.25. Assistance. 8 of the terminées received some help in finding a job and in writing résumés. None of the responding terminées received retraining. Pension plan vesting. The pension is fully vested at 10 years of service. Employee service. 7 of the 11 respondents had 10 or more years of service. Employee protection plans. The continued coverage of life, health, and long-term disability insurance appeared to depend on the number of years of service. A terminée with 21/2 years of service received 30 days' continuation of health insurance, but no continuation of life or disability coverage. Most of the terminées did not specify the duration of company-supported coverage. Rehire privileges. Rehire privileges were explained to only 1 of the terminées responding to the questionnaire. The professional relations committee of the Kanawha Valley Section surveyed the terminées from the South Charleston, W.Va., location and found the following: Number involved. 3 chemists who were terminated responded to the survey. 1 of these indicated that he was involuntarily retired. 2 of the respondents were 40 years of age or older.
