In Brief: Household Deal Angers Beneficial Workers

Beneficial Corp. employees are once again up in arms over terms of the company's sale to Household International Inc.

Household will not be matching terminated Beneficial employee's contributions to their stock purchase plan if they are not vested, a Household spokesman said.

This is contrary to Beneficial employees' previous understanding, several told American Banker. "There are employees here with more than $100,000 in jeopardy," said one Beneficial employee. Employees that had expected to be let go when the deal with Household closes have reportedly been stashing money in their employee purchase plan.

The original terms of Household's contract with Beneficial never called for terminated employees to receive unvested shares, the Household spokesman said. Additionally, Beneficial's Peapack, N.J., office has been sold to Upjohn Inc., employees there said. The Household spokesman said he could not confirm or deny the sale.