Page 104 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

2006 and production ended in December, when it became clear that divestiture of
the company was inevitable.
Siemens had already devoted many resources to in-house outplacement
services and career guidance support well before the mobile phone branch was
sold. When it still belonged to Siemens, individual outplacement measures were
often a component of restructuring schemes. After the takeover, a small
dependent establishment in Ulm was closed. A transfer company was created for
the redundant workers.

6.2.2. Restructuring and job losses
Following the insolvency, 752 workers were made redundant. Most were in their
early thirties, but the number of older employees (up to retirement age) was also
substantial. The workforce’s occupational and qualification characteristics reflect
the functions carried out in Munich, with no unskilled workers; about three
quarters of them were university graduates, predominantly engineers, working
mainly in development. Non-academics were employed mainly in sales and
distribution or administration.
Since the establishment was being shut down, there were no safe
occupations. However, a few highly qualified employees were specifically
targeted by Siemens and were offered re-employment in their former mother
company. Virtually all remaining workers joined a transfer company conducted by
Train from January 2007 onwards.

6.2.3. Restructuring practice and processes
BenQ provided the premises, some HR expertise necessary for the group
outplacement measures, and contacts to closely related companies to place
redundant workers. Further, Siemens felt responsibility for its former workers
and, in its own recruitment, favoured applicants who had lost their jobs due to the
BenQ Mobile insolvency.
All support measures after the shutdown of production in December 2006
were carried out within the transfer company. Siemens bore most of the
employer’s share in the transfer company costs; the remaining funds came from
the bankrupt estate of BenQ Mobile.

6.2.4. Cooperation and external capacity
The transfer services provider Train was contracted to run the transfer company
for BenQ Mobile workers. Specific services were offered in the transfer company:
(a) individual counselling takes place through regular meetings with the
personal adviser. Counselling continues on a voluntary basis for five months

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