Waterworks Employees Await Severance Weeks After Layoffs

Utility promises payments tonight after complaints from former workers left in financial limbo.

Apr. 9, 2026 at 11:03pm

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A minimalist studio still life photograph featuring a stack of unpaid bills, a calculator, and a single car key arranged on a clean, monochromatic background, conceptually representing the financial stress faced by laid-off waterworks employees.The delayed severance payments have left former waterworks employees struggling to make ends meet as bills and other financial obligations mount.Today in Birmingham

Nearly a month after Birmingham's regional water utility laid off 135 workers, representing 23% of its workforce, the former employees have yet to receive their promised severance packages. The utility says the paperwork process was taking too long, but is now processing the payments to be sent out tonight.

Why it matters

The delayed severance payments have left the laid-off workers facing financial crises as they struggle to pay rent, utilities, and other bills. The situation has also raised concerns about the utility's transparency and accountability to the community it serves.

The details

The Central Alabama Water utility eliminated 135 positions as part of a corporate reorganization, but former workers say they had been left in financial limbo without a payment timeline. Utility spokesman John Matson said the paperwork process was taking too long, but they have now decided to go ahead and process the severance payments, with the money leaving their account right now.

  • The utility laid off 135 workers across the system on March 13, 2026.
  • Payments are being processed and sent out tonight, April 9, 2026.

The players

Central Alabama Water

The regional water utility that laid off 135 workers as part of a corporate reorganization.

John Matson

Spokesman for Central Alabama Water who said the utility is now processing the severance payments.

Richard Rice

A Birmingham attorney representing several former Central Alabama Water employees who say they were pressured to sign a release and accept the severance package.

Eric Hall

An organizer with the Southern Workers Assembly who is demanding action and calling for the community to mobilize and unite to ensure their voices are heard.

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What they’re saying

“The paperwork process was taking too long to complete. We made the decision to go ahead and process the payments. The money is leaving our account right now.”

— John Matson, Utility Spokesman

“Now that Central Alabama Water has failed to follow through on that obligation, that's going to further compromise the trust and integrity of the organization.”

— Richard Rice, Birmingham Attorney

“This isn't just about money, it's about survival.”

— Eric Hall, Organizer, Southern Workers Assembly

What’s next

The judge in the case will decide on Tuesday whether or not to allow the former employees to file a class-action lawsuit against Central Alabama Water over the delayed severance payments.

The takeaway

This situation highlights the financial hardship faced by workers who lose their jobs, as well as the importance of timely and transparent communication from employers during corporate restructuring. It also raises questions about the utility's commitment to its community and the need for greater accountability in how it manages its workforce and resources.