A Harsh Reality

Since the likelihood of layoffs appears to be distinct, Mr. Sunbeam would offer the following reminders:

Any severance offered via the layoff route will not be as "generous" as the buyout. The company has not stated what the terms an an "involuntary severance" would be, but four years ago it was one week of pay per year of service up to 15 years and two weeks thereafter up to like 20 to 25 years. The COBRA payment was also less - one month. Given that the buyout offer is not as good as it was in 2006, it wouldnt be out of the realm of possibility for any layoff severance to be less than it was in 2004. And any benefits provided are considered income for tax purposes.

As for unemployment compensation, the amount is low (less than $400 per week), it too is taxable, and payments last a maximum of 26 weeks - provided you jump through the required hoops of documentation on seeking work, etc.

The company has not stated how soon a layoff would occur, but given company statements about wanting to close the books on the buyout in the third quarter of the year (Sept. 30) and how prepared Human Resources was to give out our individualized buyout packets, one can safely assume that plans have been made and a layoff would occur sooner rather than later.

Once again, this is not meant to scare anyone into doing something against your interest. At the same time, consider your own situation carefully before next Wednesday's 5:30 pm deadline.