Ex-WorldCom workers seek better severance deal
As many as 4,000 WorldCom employees who lost their jobs when the telecom giant collapsed are seeking an extra $36m (£23m) in severance pay, according to reports from the US.
The employees have put the request to a federal bankruptcy court which had earlier granted $22m in severance pay to laid-off workers – amounting to $4,650 each.
But employees claim they are entitled to more and yesterday AFL-CIO, the US trade union body, petitioned the court to increase this by $36m.
This follows a request by WorldCom itself to have the grant increased. The fallen telecom is also reported to have canceled severance agreements with 19 executives which would have been paid a total of $900,000 or $47,000 each.
A hearing is scheduled to be held by bankruptcy court judge Arthur Gonzalez on 1 October.
In June, WorldCom filed the biggest-ever Chapter 11 bankrupty as the company collapsed following admission of a $3.9bn accounting fraud.