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Durango Denies Severance To Some Union Workers

POSTED: 4:54 p.m. EDT October 18, 2002

Durango-Georgia Paper Company has decided not to pay some of its union workers severance pay.

The company told representatives of the Paper, Allied-Industrial, Chemical and Energy Workers International (PACE) union and International Brotherhood of Electrical Workers that they will not be paid after Nov. 15 because their contract doesn't require it.

According to the company, the contract requires severance pay if equipment is moved or new equipment is introduced, but shutdown of the mill is not specifically mentioned.

About 900 employees are being laid off by Durango as the plant prepares to close. Hourly workers were told earlier this month not to return to work, but they are being paid through Nov. 15.

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