Page 136 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

measure is still important for employees who want to shift career, as a way to find
out if this work field would be suitable.
Siemens beE is recognised positively in local labour markets, in particular by
the Federal Labour Agency and policy-makers. This is due to the fact that the
transfer company is a comparably effective restructuring tool with successful re-
employment rates up to 80%. Business partners who can hire former Siemens
employees evaluate the services of Siemens beE positively.

6.9. PACE, United Kingdom (CASE STUDY 9)

6.9.1. Background and context
The company requiring assistance is a leading provider in outsourcing and
providing IT managed services. One area of their outsourcing activities for both
private and public organisations is ‘back-office’ facilities, providing a range of
administrative and clerical functions, for financial organisations.

6.9.2. Restructuring and job losses
In October 2008, the outsourcing company and a major bank signed a one-year
extension to a contract to provide continuing delivery of services to the bank. The
extension period involved a major transition project, moving services in-house
while maintaining them on a ‘business-as-usual’ basis. From the 500 employees
who were placed at risk of redundancy, the majority was undertaking
administrative tasks, and only 20 were team leaders or operational managers.
In agreement with the Public and Commercial Services Union (PCS), three
options were available for affected staff: to take redundancy; to seek
redeployment within the outsourcing company, or to join the bank when the
subcontracted tasks would be carried over in-house. The majority decided to take
redundancy on the terms offered; only a few sought redeployment or took jobs
offered within the bank.
Employees leaving were invited to apply for up to GBP 1 500 of funding which
the company was offering as part of the redundancy packages to support training
they wished to undertake, for example, at a local college of further education or
university. Those interested had to make a formal application and a committee
decided whether a training allowance should be granted, using guidelines
provided by the company. Certain employees took the opportunity to make a
career change or to go into higher education.
For employees looking for work, the prospect of searching for jobs elsewhere
was an extremely daunting task, which most employees were ill-prepared for in

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