Milwaukee-based Briggs & Stratton Corp. has reached an agreement with the Steel Workers Union on severance pay for terminated workers at its Wauwatosa, Wisconsin, plant.
According to a Milwaukee Journal Sentinal article, Briggs & Stratton made a new filing with the agreement in U.S. Bankruptcy Court, where the company is reorganizing under Chapter 11 protection.
The union represents about 330 employees total at the Wauwatosa facility, and its partial closing means Briggs will permanently lay off 185 of those union workers.
The severance pay agreement provides that terminated employees will receive a lump sum payment of between one and eight weeks’ pay, depending on the employee’s years of service. They would also receive pay for unused vacation time.
Altogether, severance and vacation pay is expected to reach about $910,000. The total payment to each employee will range from about $1,700 to $13,300, and most employees will be eligible for less than $5,000 total severance pay.
The agreement needs court approval to proceed. Most employees affected will be terminated by Sept. 30.
Briggs & Stratton filed for bankruptcy protection in July, including plans to sell the company’s assets for about $550 million to KPS Capital Partners LP, New York, a private equity firm.
In June, Briggs announced plans to stop manufacture of lawn mowers, snowblowers and pressure washers at the Wauwatosa plant, with those operations moving to facilities in Sherrill and Munnsville, New York, as well as another unnamed Briggs supplier.
Engine components production and standby generators along with other support areas, will stay at the Wauwatosa facility. The company will sell the Wauwatosa facility and lease back only the southern half to reduce costs.