Worker Buyout

Worker Buyout

A situation in which an employer pays a (usually large) fee to an employee in exchange for that employee's resignation or retirement. Despite the upfront payout, a worker buyout usually is less expensive over the long term than keeping the employee on staff. As such, worker buyouts are sometimes used in lieu of layoffs.
References in periodicals archive ?
Tyrone O'Sullivan was one of the leading figures 11 years ago in the worker buyout of Tower Colliery when miners each put in pounds 8,000 in redundancy money to buy the pit.
The other version of spontaneous privatization, worker buyout, gives incumbent workers a stake in the new regime, but also generates discontent among the non-working population, thereby diminishing public support for this form of privatization.
From 1989 to early 1990, the strategy of spontaneous nomenklatura (Communist Party managers) or worker buyouts predominated in Hungary and Poland.
A feasibility study conducted for the union by Locker Associates of New York determined that a worker buyout under an Employee Stock Ownership Plan (ESOP) would be viable and that the plant could compete effectively once it emerges from bankruptcy.
Progress on the cost side will be insufficient to offset revenue pressures in 2007 given the extended timetable for cost-reduction actions to be realized (including the hourly worker buyout program), high commodity costs, and the severe stresses in the supply base.
airline, Delta Air Lines (NYSE: DAL) announced plans to trim its capacity by 5% post Labor Day and offered worker buyouts for the first time since 2009.
In fact it means a range of potential providers, including co-operatives and social enterprises as well as private providers, worker buyouts and voluntary sector agencies.