04/11/2006

Severance packages announced

BY SHERI McWHIRTER

sherimcwhirter@hotmail.com

GAYLORD — A Georgia-Pacific severance package for 167 former union employees is based on seniority and those with the fewest years of service will receive almost nothing.

The particle board factory in Otsego County's Bagley Township employed 210 people, and all lost their jobs when the plant closed on March 6. Federal law requires 60 days of continued pay for unannounced and immediate factory shutdowns, called warn pay.

Hourly workers are unionized, and union leaders negotiated a settlement with company executives that they explained to members over the weekend.

The severance package allows for 20 hours of pay for each year of service up to 15 years, then 40 hours per year from 15 years up to a maximum of 26 years. Those with less than 14 years of service will get nothing because the warn pay is deducted from the severance amount.

Former employees with upwards of four decades at the factory will receive no more than those with 26 years, a limit of 740 hours, minus warn pay.

Gene Van Tongeren of Gaylord had the most seniority at 41 years. He'll receive 260 hours of severance in addition to the warn pay, based on the severance formula.

"You're not happy with what you get, but it could have been nothing," Van Tongeren said.

Terry Jans, local union president, said many union members were unhappy with the settlement.

No early retirement benefits were offered, so pensions are frozen until workers reach age 62. Vacation time will be prorated and paid to laid-off workers, Jans said.

Medical insurance will last through July, plus a $1,000 check afterward. State unemployment benefits do not begin for the former Georgia-Pacific workers until final severance is paid in May.

Company spokesman James C. Malone said "both sides gave up some things," but declined to discuss details.

Brennan Perlinski of Gaylord worked at the plant 15 years. His severance is 40 hours of pay, plus the warn pay.

Perlinski said the company should have warned employees six months ago about the plant's uncertain future, so major purchases and expensive vacations could have been delayed or scrapped, including his recent cruise to Mexico.

"And I know guys with new snowmobiles or trucks," Perlinski said.