Page 142 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

(c) internal management and human resources considerations: line managers
responsible for notifying the dismissals have often expressed their difficulties
in firing friends or colleagues with whom they have worked closely. Staff
motivation and prevention of associated sick leave is also a central concern
of the firm.
In spring 2005, a new wave of 600 dismissals was envisaged, and it was
anticipated that an additional 1 000 positions would need to be cut the following
year. Internal reflection started on how to organise such major restructuring
without having to terminate contracts. Although it was criticised by external trade
unions, the idea of a competence pool was debated and gradually gained ground
within the company. Following negotiations between employees’ representatives
and management, it agreed to test out the new system for a limited period of
time. The scheme was presented to the press in November 2005, together with a
confirmation that there would be no more direct termination of contracts. The
competence pool started its activities in January 2006 and was continued in
successive years, though its parameters were adjusted to match changing
conditions. Further, it was felt important to set greater incentives for job search
and to limit the costs of the scheme at a time when fewer job vacancies were
available.

6.10.3. Restructuring practice and processes
The objective of the pool is to help employees at risk of redundancy find new
professional goals. It provides an institutional structure and related financial
support to seek new career opportunities during a period of time which is longer
than the regular period of notice. Indirectly, the pool also helps TSF business
units as it aids outplacement/redeployment of former employees, at the same
time as helping them find new professionals for available positions. The pool was
conceived initially as a temporary, one-year, project in autumn 2005. It functions
as a separate unit, with its own budget, and reports directly to the HR
department. It now employs 10 permanent staff, including HR professionals and
former employees from the pool. The activities are supervised by a steering
group with employees and business representatives.
Since January 2006, all employees at threat of losing their job following the
legal two-month negotiation period with employees’ representatives are
transferred to the pool. The transfer is preceded by an in-depth discussion
between the line manager and the employee concerned, which should already
contribute to a better understanding of the pool’s role and mission. Once in the
pool, the first phase (typically the first month) is often used to adjust to the new
situation. In the second phase (typically the second month), employees are

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