Page 107 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

Another distinctive issue was the degree to which Siemens got involved in the
transfer company, although technically it was not responsible for the former
daughter company. The high media attention the BenQ insolvency received may
have influenced this, but it is clear that Siemens recognised a robust social
responsibility towards its former employees. In terms of distinctive innovations
with transferable potential, the peer group activities were effective, through the
motivating character and the fostering of personal networks. The high rate of
participants creating their own business testifies to the relevance of business
start-up training.
The experience of this restructuring process emphasises that intimate
knowledge of the local and regional labour market is crucial for a transfer
company’s success; precise analysis of supply and demand in the specific sector
and use of network connections to potentially employing companies are particular
benefits. Therefore, companies should choose a transfer services provider from
the region where the affected establishment is located. A notion, common to all
interviewees, that was especially emphasised here is the importance of the
transfer services provider being familiar with the local labour market, an aspect
that is apparently often neglected during the preparation of a transfer company.
The success also shows that it can be valuable to use a transfer services
provider which has strong ties not only to educational institutions but also to
employers’ associations.

6.3. EnergoMont, Slovakia (CASE STUDY 3)

6.3.1. Background and context
EnergoMont is a medium-sized company, founded in 1993, producing energy
and industrial construction products and services. It is located in Trnava, western
Slovakia, with annual revenues of EUR 12 million. It operates principally in the
domestic market with limited operations abroad, in the construction and
engineering sector, with key customers from the energy and automotive sectors.
In 2008, the company underwent a downsizing process, closing one of its
production plants and laying off 35 employees. The downsizing was implemented
from February 2008 to April 2008, before the economic recession. Growing
competition in its market segment forced the company to concentrate its
production to achieve higher competitiveness through economies of scale.
EnergoMont (EM) grew significantly since 2003 due to long-term contracts
with its key customers. Economic growth in Slovakia fostered growth of the
energy and construction industry but also saw competition in the market rise

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