1. Employees permanently laid off for lack of work, technological improvements, or changes in production methods or processes, including the method of shipping, receiving or handling of materials or products, the closing of a department or plant or part of a department are entitled to a severance allowance in accordance with the following conditions. A permanent layoff within the meaning of this Article is a layoff that is expected to last for a period of at least twelve (12) months.
   
   
2. An employee may, at any time during the layoff, take his/her severance allowance or continue in such status until his/her layoff exceeds twelve (12) months and then take his/her severance pay, but in both cases, he/she ceases to be an employee of the Company when the severance allowance is paid.
   
   
3. Severance payments shall not be made:
   
   
   1. To employees who are discharged for just cause.
   2. To employees who voluntarily resign.
   3. To employees who are retiring on pension.
   
   
4. Severance pay shall be paid as outlined in the following table:

   Seniority                   Days of Pay
   
   1 but less than 2 years      15 days
   2 but less than 3 years      20 days
   3 but less than 4 years      25 days
   4 but less than 5 years      30 days
   5 but less than 6 years      35 days
   6 but less than 7 years      40 days
   Up to 15 years and 85 days.
   
   16 years and up at the rate of 6 days pay per year of seniority.