Without the payments, Polaroid faces the prospect of mass worker defections.
The Cambridge, Mass.-based company's "ability to continue rational headcount reduction without provoking mass employee defections is contingent upon its ability to offer employees a reasonable severance program," according to a motion filed in U.S. Bankruptcy Court in Delaware.
The $3.3 million in payments would not exceed the $5.7 million severance limit approved by the court in November, according to the Reuters news agency.
Polaroid wants the court to continue a severance program that already allows the company to pay $2.4 million to about 416 workers to be eliminated between Oct. 20 and Dec. 31.
Polaroid filed for Chapter 11 bankruptcy protection after failing to meet obligations on debt approaching $1 billion. Retirees became furious with Polaroid management after their medical insurance was eliminated just days before the bankruptcy filing.
Later, the retirees learned Polaroid was seeking up to $19.5 million in bonuses and incentive pay for about 45 Polaroid executives. Another $1 million, in part, could go to employees outside that group.
To view the Reuters story, click here.
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tant film and camera maker Polaroid Corp., which filed for bankruptcy in October, is seeking court approval for $3.3 million in severance payments for up to 500 workers whose jobs will be eliminated over the next few months.