Security Pacific Promises Liberal Benefits with Layoffs
SAN FRANCISCO - Security Pacific Corp. employees who are laid off because of the company's proposed merger with BankAmerica Corp. will receive relatively liberal severance benefits, according to an internal company memo.
Employees below the senior vice president level will get three weeks pay for each year of service, provided they have been with the company at least six months, the memo says. The minimum settlement will be three months salary and the maximum 18 months.
Details Still Sketchy
"That's generous," said Sharon Gadferry, president of Transitions Management Group, a San Francisco outplacement firm. "Typically, employees get one or two weeks salary for every year."
The 14-page memo, a copy of which was obtained by the American Banker, was sent to more than 38,000 Security Pacific employees last week.
Outside experts are predicting that 15,000 or more jobs may be lost after the workforces of BankAmerica and Security Pacific are combined.
But Security Pacific employees were given only sketchy details about layoffs.
"It's too soon to be specific" about how many jobs will disappear," according to the memo.
And, the memo noted: "It would be premature to say whether BankAmerica and Security Pacific employees will share job losses equally."
The memo said that jobs cuts will affect both line and staff positions, and should be completed within a year after the merger closes.