As with everything with this company it is all a cost/benefit question. I do not know this for a fact that this is their strategy but 6 months severance is enough to keep anyone surplussed from filing state unemployment claims. If they were to pay less, say six weeks there would be unemployment claims against the state. The state’s unemployment tax rate for the company goes up depending on the amount of claims against the company, and the tax % is on those still employed. They save more money by paying the 6 month’s severance than an unemployment tax increase.
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FWIW when I took MVO (2017) and they accepted, everything was the exact same as being involuntary. It was transparent. On notification day I was notified officially as everyone else. By then of course my manger had been told by me that I had volunteered so it was no surprise. Until I told her (prior to notice day) she hadn’t been advised.
IBM has found a way to only offer 1 month of severance, regardless of years of service. If they can do it, ATT can too
Think it through not so smart bunny. The Company runs everything through legal. First Rodeo?
The posters on here who think the company won’t reduce severance are blind or ignorant! This company will do whatever they can to reduce the debt and get Elliott off their back.
"Reducing severance from 26 weeks to 6 weeks is an option they are running past legal. If legal determines it is viable and can not be challenged, it will be announced and implemented. "
I think you made this up...
https://www.dol.gov/general/topic/wages/severancepay
There is no federal legal requirement to provide severance to managers. Non-management severance is part of the contract, subject to bargaining.
If this was true, the company would be advertising the heck out of it to bump the EOY MVO.....
Keep in mind that severance is a benefit offered by the company and is subject to change with no guarantees. Most companies just pink slip you with very little to nothing for compensation. They definitely don’t give you 60days to find a new job within the company.
Here’s what you need to keep in mind regarding speculation whether Severance reductions are in the works. Has HR ever said one thing yet the Company did the opposite? As a Manager, during the year has the measurable metrics graph shown Green light meets yet come December major change shows less than 100%? Have any of you been around in management back in 2000/2001 where Managers Incentive Team Award was reduced to 50% with no notification? Hopefully Management Severance stays at 26 weeks maximum. Do you actually believe the Company won’t change their unwritten commitment they have with Management?
“HR Person clearly answered no to that question stating there is no reduction is severance planned.“
Yes and Jeff McElfresh said in his q1 ATO town hall that the surplus was behind us. So you don’t think that they always are truthful do you? Just because they answered there was no plans doesn’t mean it’s not being explored and it could happen. Or maybe it’s NDA and they are not aware that it’s being looked at. There is no law that says AT&T has to give any severance. Only if you have it in contract like the unions.
So much non-sense people posting their own dreams (I guess) that severance will be reduced to 2 months. It's all garbage. Don't listen. HR person clearly told in last Friday's call for a specific question regarding - If they don't get enough 15% to 20% from MVO announced to ATO on Nov 15, 2019, whether the involuntary option in 1st quarter of 2020, will they reduce severance? HR Person clearly answered no to that question stating there is no reduction is severance planned.
If they reduce severance, I hope they have salaried attorneys instead of contractors or external firms. 6 weeks' pay is not enough to sign a waiver, especially with the glorious age and national origin discrimination they have been doing... Arbitration won't save them from all suits because many of us declined arbitration just in case, as we could already see just how sh&tty SBC was becoming.
"I could see it or else why offer an MVO with exact same severance as what you would get if you were involuntarily surplussed"?
This is not new. It's been done this way at least 3 times in recent memory.
Per very reliable source The Company is exploring all avenues to reduce monetary exit benefits. Reducing severance from 26 weeks to 6 weeks is an option they are running past legal. If legal determines it is viable and can not be challenged, it will be announced and implemented. The Company does not want to pay any more than necessary in force reductions.
I think the only difference between the MVO and the Surplus Package, is not so much around severance, but may be more about where you are on Rule 75, and reaching benefits, you may fair better (maybe not by much) with MVO than Surplus.
No reduction has been communicated; however, that could easily change.
All MVOs in recent years matched the severance of surplus. Max severance has been 6 months since 2011.
I could see it or else why offer an MVO with exact same severance as what you would get if you were involuntarily surplussed?
No