NAFTA Downsizing

mrbill · February 2003

Need Help - Will shortly be in the process of moving a portion of the manufacturing operation to Mexico. Contract is silent on sub-contracting, changing locations, severance payments, etc. We will be permanently laying off a number of high seniority employees. Has anyone been thru this ? Any advice ?

Don D · February 2003

I'm told that our state has lost more jobs to NAFTA than any other. As far as I know, following the requirements of The WARN Act is your major consideration. Severance is not a requirement in any state that I'm aware of, although you know the drill about it being a good idea. And I'm not aware of any NLRA provision that would address your going 'offshore'. Wonder if they know it's primarily because of THEM in the first place? Sorry, just rhetorical. If your contract is silent on it, which I'm sure it is, check with the attorney who's involved in handling the other facets of the relocation and ask him to advise you of any labor law issues.

Blanche · February 2003

One thing you should consider pursuing, in a clear demonstration of acting in your emloyees' best interests, is applying for Transitional Adjustment Assistance. Under NAFTA, displaced workers who see their jobs moved over our borders may be eligible for significant benefits aimed at giving them time and money (such as extended unemployment compensation and greater training funds) to be retrained and marketable with skills less likely to be affected by NAFTA related industry moves.

Certification is granted by the DOL after receiving a qualified petition requesting certification of eligibility under the Trade Act. Contact your local DOL or Rapid Response office for assistance getting this ball rolling!

San Francisco · February 2003

Regarding severance packages, that would be your decision to offer or not. This week we eliminated almost 200 general office positions. Our package offers them one week severance pay for each year of service up to 26 weeks, 90 days paid Cobra if elected, and service of an outplacement company that we contracted with for this purpose. The severance agreement and release must be signed and returned before receiving the package.

In the past when we closed out stores, we would transfer the store manager, assistant manager and senior and pay relocation fees up to and including home closing costs. I don't foresee this happening in the future.

Elizabeth

NAFTA Downsizing

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