Maine State Legislature Augusta, Maine 04333 December 9, 2014 David Paterson, President and Chief Executive Officer Verso Paper Corp. 2 River Road P.O. Box 1200 Bucksport, Maine 04416 Dear Mr. Paterson: We write with deep concer regarding reports from employees that Verso Paper Corp. may delay hard eared severance pay to Bucksport Mill workers. We understand the closing of the mill was a difficult decision for Verso, and it has been truly devastating for the hundreds of workers and families, who depend on the work to put food on the table and to heat their homes. The men and women at the Bucksport Mill are losing their jobs. They earned their severance package every day they showed up to work. Now is not the time to change the rules and further add to their hardship. State law is clear. We hope and expect your company to comply with it. According to Title 26, §625-B, “severance pay to eligible employees shall be in addition to any final wage payment to the employee and shall be paid within one regular pay period after the employee's last full day of work, notwithstanding any other provisions of law.” On November 26, the Department of Labor, in the enclosed letter to Human Resources Manager Charles Welch, notified your company of the intent of the law. As stated, any effort to delay severance pay will be in violation of the above law and will subject Verso and its parent company to full enforcement action under the law. Please be advised that we stand with Governor Paul LePage and the Department of Labor Commissioner Jeanne Paquette in urging you to follow Maine law and ensure the mill workers and their families are treated right at a very difficult time that happens to fall at the holidays and the beginning of another cold Maine winter. They deserve no less for their hard work.Thank you, LE Mark W. Eves ‘Speaker of the House - Lilt lichael D. odeau President of the Senate nate Democratic Leader Kenneth W. Fredette House Republican Leader fan. Pete Kimberly Rosen State Senator Richard H. Campbell State RepresentativeDerarranne oF Lamon 45 STATE HOUSE STATION ore 04333-0045 Pau LePage Panola 0 Megan November 25, 2014 Charles Welch, Manger of Human Resources Verso Paper Corp. 2 River Road P.O. Box 1200 Bucksport, ME 04416 Dear Mr. Welch, Ithas come to our attention that Verso Paper Corp. intends to close its paper plant in Bucksport, Maine, We have received inquiries from numerous employees regarding the payments of severance pay to Verso employees pursuant to 26 M.R.S. § 625-B. In particular, questions have been raised as to the timing of such severance benefits. After internal consultation atid consultation with the Attorney General's Office, we write to set forth the interpretation of the law by the Bureau of Labor Standards, Department of Labor, to avoid misunderstanding and unnecessary litigation. State law expressly sets forth severance pay requirements as follows: ‘Any employer who relocates or terminates a covered establishment shall be liable to his employees for severance pay at the rate of one week's pay for each year of employment by the employee in that establishment. ‘The severance pay to eligible employees shall be in addition to any final ‘wage payment (o the employee and shall be paid within one regular pay period after the employee's last full day of work, notwithstanding any other provisions of law. 26 MRS. § 625-BQ2), Iv is our understanding that the workers will be paid in full, along with all benefits until December 31, 2014, If this understanding is correct, and the employment relationship ceases on December 31, 2014, for all other purposes, then we interpret the law to conclude that the “last full day of work" will be December 31, 2014 for all applicable employees. Based upon the information we have, severance payments will then be due within one regular pay period after this date, which we understand to be January 8.2015, PHONE: (207) 623.2900 TTY USERS CALL MAIKE RELAY 711 PAXE(201) 625.7934Any further delay of severance payment by Verso will be viewed as a violation of the law and will subject Verso and its parent company to an enforcement action for full legal remedies autho- rized by law. Based on the current collective bargaining agreement, Verso may not mitigate its li- ability for severance pursuant to 26 M.R.S. § 625-B(3) unless it first meets the definition set forth in 26 MRS, § 625-B(2), that is, by paying the full amount of severance due to each employee within one regular pay period after the last full day of work, because the agreement does not pro- vide for severance pay that is equal to or greater than the severance pay required by statute. ‘We hope that this letter clatfies the position of the Department of Labor so that you may plan ac- cordingly. If you have any questions, do not hesitate to contact me directly, Sincerely, | fp i Yuna 0 Matepthew) Pamela D. Megathlin Bureau Director cc: Kenny Sawyer, VP Human Resources Verso Paper Corp. 6775 Lenox Center Count, Suite 400 Memphis, TN. 38115 Nancy Macirowski, AAG Maine Attorney General 6 State House Station Augusta, ME 04333