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This report includes a summary of key changes, including the salary level test and salary basis test.

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December 28, 2001
Polaroid Planning $3.3M in Severance Payments
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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.

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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