THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, March 14, 1995                TAG: 9503140018
SECTION: FRONT                    PAGE: A14  EDITION: FINAL 
TYPE: Editorial 
                                             LENGTH: Short :   44 lines

ALLEN RECONSIDERS HIS POSITION: SEVERANCE PAY APPROVED

George Allen came to office promising to make fundamental changes in a conservative direction, and he staked out bold positions. Some were daring and innovative and others were ill-conceived. One of the latter concerned severance pay.

In his zeal to shrink government, Allen proposed harsh treatment for those losing government jobs for no fault of their own and often after years of faithful service. Allen seemed almost a caricature of the heartless employer with a balance sheet for a brain insisting on needlessly drastic measures.

Now, however, moderation has prevailed. The governor worships at the shrine of free enterprise, yet few large private employers advocate termination policies as extreme as the governor was promoting. That may have influenced his thinking.

The measures Allen has approved would provide state government with a consistent severance policy for the first time. Employees terminated as a result of downsizing would receive one to nine months of pay, depending on length of service. The bill also proposes a buyout program for early retirees. Employees over 50 with 10 years or more of service have until March 31 to take a deal that gives them six months' severance pay and a retirement benefit adjusted for years of service.

The severance feature will cost $10 million or more and was originally denounced by Allen as a budget buster. However, it turns out to cost less than it will save and the governor now praises it as a cost-cutting tool. It's customary to jeer at such flip-flops, but Allen deserves credit for admitting error and reversing himself.

``After careful consideration of the long-term impact of the legislation,'' a written statement issued by the governor said, ``I am satisfied that taxpayers will realize a savings.'' Allen might have saved himself and government employees needless agitation by giving the matter careful consideration before weighing in on the issue, but he has now arrived at the proper conclusion. Better late than never. by CNB