Section Fourproduction prior to the plant’s closure. In a study of layoffs in
the steel industry and work related to National Aeronautics and
Space Administration (NASA) programs, researchers found that
less than less than 50 percent of employees had received
advance notice.^66 There is evidence that employers’ concerns
about the dangers of providing advance notice are unfounded
and that there are no associated declines in productivity or
greater instances of sabotage. In contrast, companies actually
benefit by providing advance notice because they are likely to
be perceived more positively by the public.^67 The Worker
Adjustment and Retraining Notification Act (WARN) applies to
companies having 100 or more employees. Under the act,
employers must provide 60 days’ advance notice of plant
closings to employees, unions, and officials at state and local
levels when 50 or more employees will lose their jobs.^68
Additionally, employees tend to receive other benefits from
advance notice. One benefit is that early notification enables
employees to prepare for their departure from the company.^69
Another is that their period of unemployment may be shorter.
Empirical evidence indicates that the period of unemployment
for those receiving advanced notice is shorter than for those
who do not.^70
Those being laid off should receive severance pay and
benefits should be extended. Aside from humanitarian reasons,
providing severance pay may preserve the company’s