State won’t continue with Beloit Corp. case

By: Associated Press//December 21, 2011//

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Beloit (AP) — The Wisconsin Department of Workforce Development won’t appeal a court ruling denying millions of dollars in severance pay for former Beloit Corp. workers.

About 380 non-union employees have been battling for 11 years over the severance packages they say they were promised when Harnischfeger Industries closed Beloit in 2000. Last month, the U.S. District Court in the District of Delaware ruled against the employees.

The Beloit Daily News reports the state Department of Justice informed the workers that DWD decided not to continue with the case. In 2000, the DWD determined the employees were owed a total of about $4 million in severance pay. In 2001, a bankruptcy court ordered the company to pay the workers about $490,000. The former employees claim they are entitled to one week of severance pay for every year of service, not just two weeks of pay.

Information from: Beloit Daily News

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