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 ?
Adam Price, Plaid Cymru's Shadow Cabinet Secretary for Finance and Economy, told the BBC: "I am very concerned at the news of the suspension of the sales process and am deeply disappointed that the Walesled management and worker buyout will not be able to go to the next stage of the process.
He added: "I am very concerned at news of the suspension of the sales process and am deeply disappointed that the Wales-led management and worker buyout will not be able to go to the next stage of the process.
They pursued a worker buyout for moral, symbolic, and perhaps ideological reasons.
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.
worker buyout models as a way of continuing to own their factories.
Thus Brecher analyzes in detail the Seymour Specialty Wire worker buyout and then celebrates the Naugatuck Valley Project's coalition for economic revitalization under local control.
The authors add that worker buyout and participation mechanisms in themselves are not a guarantee of success.
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.
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.
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.
Wales has had a good experience when it comes to worker buyouts, the legendary takeover of Tower Colliery by Tyrone O'Sullivan and his team a particularly good example.