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Pacific Lumber Workers Denied Severance, For Now

Law360 (September 24, 2007, 12:00 AM EDT) -- A bankruptcy court ruled on Friday that Pacific Lumber Co. would not be allowed to pay 63 workers it fired shortly before entering Chapter 11 nearly $950,000 in severance pay before the court confirmed a reorganization plan.

On Dec. 1, 2006, shortly before entering bankruptcy, Pacific Lumber and its subsidiary Scotia Pacific LLP announced that they would fire over 100 employees in an effort to cut costs, effective Jan. 31. 63 of those employees were offered 60 days' wages as severance pay, with additional severance for...
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