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."
An activist as well as a historian, Lynd advocated a worker buyout, one of several options.
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.
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.
Worker buyouts in Italy took off after the passing of the law, which led to the creation of 257 new employee-owned firms, saving or creating 9300 jobs.
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.
Treasury; hundreds of parts supplier bankruptcies; plant closings and worker buyouts; the cash-for-clunkers program; and increasing production and sales at year's end.