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CHAPTER 6
Adult learning in socially

responsible restructuring

6.1. Introduction

Restructuring of companies and economic sectors is an unremitting process
that has kept going for decades, as economies are transformed and demand
for certain goods and products flows and ends. Companies are being affected
by the widespread effects of a globalising market, shortening product cycles,
the arrival of new competitors, relentless pressures on cost-efficiency, and
adjustment to new forms of work organisation. Since restructuring plays a role
in the adjustment process by which businesses remain competitive, it can be
argued that the question confronting companies is no longer whether, but how,
to restructure (European Commission, 2005a). The European Commission
defines restructuring as a modification of a company’s workforce in terms of
skills and qualifications required, and the number of jobs, following changes
in the company’s structure, and the evolving nature of work organisation
and production processes (European Commission, 2009a).
While the pace and pressure for change may intensify in recession, large-
scale job losses from both large and smaller employees occur at any time in
the economic cycle (Cedefop, 2010e). Adaptation to change is now a constant
feature in the lives of companies and workers. In the current economic turmoil,
job losses have affected sectors where previous economic crises had have
limited effects on employment, such as the financial and business-service
sectors. Regardless of occupation and educational background, all sorts
of employees may be affected. However, the risk of redundancy is higher
for vulnerable groups, who are less likely to be readily reabsorbed in the
labour market, as a result of skill levels and age.
Although restructuring has been seen as a negative phenomenon, appropriate
policies, support mechanisms and strategic partnerships can reverse negative
impacts and create conditions for growth and local job creation, by developing
new businesses and services that can be more sustainable and provide
higher quality jobs (European Commission, 2005a). Is that potential for growth
realised in the same localities and regions as the declining economies? The
attention attached to the negative consequences of restructuring is due to the