Laid off Radio Shack Employees to Lose Severance Pay
If you are a Radio Shack employee, the announced closure of many of the company stores were a huge blow at the beginning of 2015. Now knowing that their severance deals have changed has dealt a road block many employees weren't expecting.
Terminated employees at RadioShack used to walk away with a lump sum based on their years of service. Two months before its bankruptcy filing last Thursday, the company changed its severance policy from a lump sum to weekly or biweekly payments until the full amount is reached. According to the Dallas Morning News, the severance package pays a maximum of 20 weeks pay based on the tenure of the employee with the company. Radio Shack lists the new severance plan as a cost cutting measure, along with the company halting all matching in their 401k plan.
The news comes out at the same time that Radio Shack asked a bankruptcy court to approve $3 million in bonuses for 40 "key" employees it says are working to sell off and auction it's 4100 stores.
Locally, Radio Shack plans on closing the store in Harvest Square in Longmont as well as stores in Cheyenne and Laramie.