Page 103 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

The initial attitude of companies towards establishing a transfer company
depends largely on the experience that management and works council
representatives have gained in the past with this instrument, either first-hand in
earlier restructuring projects or through accounts of other firms, as well as on the
quality of the external partners involved. After the creation of an AutoVision-
managed transfer company, feedback from customers is usually positive, since
more and more firms come to see the transfer company as creating a win-win
situation for them and their former employees. The instrument has become quite
popular, and local policy-makers tend to suggest the setting up of a transfer
company if a firm faces redundancies. As a reason for this popularity, AutoVision
considers that transfer companies strain public budgets less than the outcome of
job cuts.
The main messages for other organisations facing restructuring is the need to
establish a framework contract with their transfer services provider, specifying
minimum standards and benchmarks for assessing the extent to which agreed
services have been provided. This is crucial for ensuring quality of guidance,
training and counselling measures, and for providing fast and effective starts.
Further, the company called for more strategic thinking and proactive
behaviour in human resources planning. A sound personnel development
strategy can make restructuring either unnecessary in the first place or alleviate
its impact to a considerable degree.

6.2. BenQ Mobile in Germany (CASE STUDY 2)

6.2.1. Background and context
In 2005, the Taiwanese electronics company BenQ took over Siemens’ mobile
phone branch and merged it with its own, creating BenQ Mobile GmbH & Co.
OHG. This newly formed daughter company continued operations at the former
Siemens establishments in Kamp Lintfort, Bocholt (production) and Munich
(development, sales and distribution, administration). This case study is
concerned only with the Munich establishment.
During the years preceding the takeover, Siemens had failed to adjust to
several upcoming trends on the mobile phone market, so the mobile phone
branch was in a critical state when it was incorporated into the new BenQ Mobile
company. Since failures in strategic orientation were not corrected, product
image deteriorated further following the transition of the brand name from
Siemens to BenQ. Sales figures plunged in 2006, leading the mother company to
stop financial support to BenQ Mobile. Insolvency was declared in September

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