Severance Pay for Greek Local Nationals Employed by the Department of Defense

T-NSIAD-91-28: Published: Apr 24, 1991. Publicly Released: Apr 24, 1991.

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GAO discussed the issue of severance pay for Greek employees at two closed U.S. military facilities in Greece. GAO noted that: (1) the Department of Defense (DOD) and the Department of State determined that severance-pay provisions did not apply to the closures, since the United States decided to close the two bases; (2) in the future, Congress could prohibit the DOD from using any appropriations for severance pay in specific situations; (3) Congress could also, in such cases, conduct an investigation into the circumstances surrounding particular base closures to determine whether severance payments were warranted; (4) the U.S. failure to make severance payments to countries could harm U.S. strategic and political interests, and result in litigation in long-term labor problems; and (5) Air Force officials estimated that severance and incentive payments would total approximately $7.0 million for Greek nationals employed at the two bases.

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