Interplant Transfer and Terminated Workers: A Case Study

Abstract

Following its decision to close four plants and transfer their operations to a new location, the General Foods Corporation offered jobs in the new plant to all 1,800 affected employees and payment of their transfer expenses. To those electing not to transfer, the Corporation offered severance pay. Less than a fourth of employees transferred to the new location. This study analyzes in detail the characteristics of the movers and nonmovers and the subsequent employment experience of the latter. It concludes that those workers who most needed the job and income protection offered by the transfer plan were least likely to take advantage of the opportunity.