HARRISBURG, Pa. — After a meeting with Rite Aid Corporation, state Reps. Justin Fleming, David Madsen and Patty Kim confirmed that the company has taken action to address the recent dispute in severance payments to laid-off workers.
On Friday, March 8, Rite Aid unexpectedly withdrew severance payments from its laid-off associates. The Philadelphia-based drugstore chain has been closing stores and laying off workers since filing for Chapter 11 bankruptcy protection last fall.
In response to concerns raised by community and state representatives, Rite Aid worked to meet its contractual obligations to provide these payments to affected employees. The lawmakers also said Rite Aid has agreed to implement measures to prevent similar occurrences from happening in the future, ensuring laid-off employees receive the compensation they're owed.
“Corporations need to show an emphasis on treating workers like they are more important than a bottom line, even when the company is troubled,” Kim said. “Rite Aid has recognized that, and I’m happy to report a positive development when there could have been more anguish in the process.
Moving forward, state representatives will continue to monitor the situation closely to ensure ongoing compliance with labor laws and corporate responsibility.
