Erickson seeks judge's OK to pay severance
Early this year Erickson Retirement Communities laid off 260 people, many from its corporate headquarters in Catonsville. Now I'm hearing from people who got laid off that their severance payments have gotten hung up in Erickson's bankruptcy filing. When companies seek protection under the bankruptcy code all payments get suspended unless a judge OKs them. Something similar happened at The Sun a year ago; people who had taken buyouts temporarily stopped getting the twice-weekly payment.
Erickson has asked the judge in its case to approve the payments, but as of Wednesday morning he hadn't done so. Says Erickson spokesman Mel Tansill:
We have filed a motion to allow us to resume making severance payments, but we don't have a date for the court making a decision.This is all we wish to say about the matter.
I had asked him how many people were affected, how much money was involved etc.







Comments
To make matters worse, because of the hang up in court regarding severance, some seperated employees can not apply for unemployment benefits because the EUI requires an end date in which a severance period ended. Because of the court ruling, a definitive severance end date has not been reported by Erickson.
Posted by: Dave | November 5, 2009 7:46 PM
I can tell you there are 60 people on severance whose severance was cut without Erickson notifying the group. This has been extremely difficult as in these times, people live check to check. And we are not receiving unemployment either. No money, no jobs. We are searching for a pro bono attorney to help us as well as help some people recently laid off who never received their accumulated paid time off PTO. Sad times for this group who did nothing wrong and are caught in the middle with little or no communication from their former employer
Posted by: AKA | November 6, 2009 7:31 AM
Where do I start. First let me say my best years working were with Eickson. I was told several months ago I would be laid off but how important it was that I and several more employees were needed and picked to help close out certain departments over those months and we would be very busy as we were taking on several jobs in order to get these departments closed out and ready for what ever Erickson needed to do next. I agree, it was important for us to stay and do what ever it took to help Erickson. Everyone that I know at Erickson was dedicated to the family and the seniors.
So when I say it hurts and is unfair that we worked until the last days knowing that we were getting laidoff and receiving sevrance and would have time to try and get a new job we were more than willing to stick around and make sure the job was done.
Now what ? We have no jobs and no sevrance. Where is Ericksons dedication to the employees that have been dedicated to them for years.
Posted by: Me | November 6, 2009 9:24 AM
It makes me sick to still listen to all of the ex- and current Erickson employees still spouting loyalty to this company. Wake up and realize that you were sucked into a profit maximizing greed vacuum that happened to have a convenient facade as "mission driven for seniors." Be an adult and get yourself a new job and stop whining about Erickson. You got screwed. Deal with it.
Posted by: Grow up and move on | November 9, 2009 7:52 AM
First let me say that I am in agreement with everyone above on some points... Grow up has a point with we have to deal with it. We do. Although I am not sure that it was Erickson intention to have to file Bankruptcy. What company wants that? Especially one named fortune 500 just a year or so ago. Erickson relied on its reputation in the community and I do believe were dedicated to its seniors and employees.
I also was one of the few that was asked to stay and finish a project with the thought that I would have enough time after my lay off to look for another job. My severance lasted a month before it was cut off… I have filed the appropriate papers with the bankruptcy court but am unsure if it will make a difference. Staying to finish the job was ultimately my decision. I did, however, think that maybe Erickson would pull out of this, as they have gone through many changes since I began with them so long ago. I was wrong. We are all dealing with a recession, big company or individual. It makes it rougher since I did rely on getting my severance to hold me over until a job became available. At this juncture there are no jobs, and no severance. We, family included, are stuck and are holding on to the best of our ability.
I think what angers me the most is the first people laid off did not have to deal with this.. They received their severance packages. They had the time to look for other jobs with the comfort of a severance.
I do hope that the judge in the Dallas Bankruptcy court will make a decision very soon. As there are a lot of us out here waiting.
Posted by: Stuck | November 9, 2009 12:56 PM
Can someone explain who at Erickson kept their jobs and how this decision was made? To what extent was it based on the needs of community residents, to what extent on personal connections with upper management?
Posted by: Joe | November 10, 2009 1:51 PM
Update: I talked to human resource yesterday and was told that it didn't look good for the judge to sign the motion about severance or to give any more severance.
I understand that severance people were not put in the original complaint but a separate motion was filed 4 days after the original complaint. Which means.. we were a second thought!
Posted by: Stuck | November 13, 2009 9:59 AM