Electrolux tells employees they must ride out sinking ship to get severance pay

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MEMPHIS, Tenn. — Electrolux, which announced its closing its Memphis factory in 2020, has told employees they must stay until closing in order to get severance pay, according to those who work there.

When Electrolux made the announcement, Mayor Jim Strickland put out a statement on his talks with Electrolux officials: “We made our expectation clear that our number one priority was taking care of the employees that will lose their livelihoods.”

But that same day, employees showed us a letter put out by Electrolux management that told employees they must stay until the very end of 2020 when they ultimately plan to close, in order to get any severance.

Employee Michael Clark said that’s unfair.

"If we leave before it closes down, we don’t receive anything," he said.  “It’s not worth staying for a job closing down. They’re telling us not to look for another job until October or November of next year."

In response, Electrolux put out the following statement: "Both parties are negotiating the closure agreement in good faith. Throughout the negotiations, the company's priority is its employees and ensuring the Memphis plant operates within a competitive cost structure from now until the closure."

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