Page 128 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

2008 have reintegrated to employment. Currently the situation is less positive: in
about 50% of redundancies in 2009, the former employees have already
reintegrated to employment. In September 2009 unemployment in Latvia was the
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highest in the EU at 19.7% ( ). With or without training, finding work was
expected to be very difficult.
Swedbank recognises that the way downsizing is managed and
communicated may affect the confidence and employability of those made
redundant, as well as the enterprise’s working environment and, in effect, the
need for further downsizing. Therefore, it paid most attention to developing an
appropriate plan, which includes the training of managers on how to deliver the
announcements. First, managers were trained to do both employment termination
talks and discussions with the key employees that the bank wanted to spare from
the uncertainty downsizing brings.
As an alternative practical focus, Swedbank also organised groups of the
redundant employees to help each other find new employment. According to the
HRM Director, people were not very willing to take part in them, most probably
due to the psychological pressure of meeting a group of other unemployed ex-
colleagues. These groups were most popular among IT employees, who met in
an all-Baltic meeting, for whom finding another job was more probable than for
other employees.
Most benefits offered to employees leaving on mutual agreement are indirectly
financial, but this stems from the bank’s core business. Those leasing a car or
with any other loan from Swedbank could keep the special employees’ rates for
the next two years. As a financial incentive to accept the mutual employment
termination agreement, Swedbank offered larger bonuses than prescribed in law.
Employees leaving on mutual agreement did not have to work their notice period
(an additional month) in the bank and could use this month on full pay to start
looking for other employment.
Whenever possible, Swedbank tried to offer other positions within the
company to well-performing employees who lost their positions due to structural
changes. This was comparatively easy in the capital city of Riga, where
employees from one branch could be relocated to another nearby. It proved to be
a significant challenge elsewhere; if the bank closed the only branch in town,
there was no relocation option. The bank offer was not restricted to relocation in
the same position in another branch. Many functions in the organisation were no
longer needed due to significant changes in the business so around 400
employees were retrained for other or additional functions.

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( ) Bīders, Ritvars. Latvijā augstākais bezdarba līmenis ES. 30 October 2009. Web. 27 November
2009. http://www.db.lv/a/2009/10/30/Latvija_augstakais_bezdar [cited 7.5.2010].

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