Page 147 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

agreement came to an end in September 2009 and negotiations with the Nuclear
Decommissioning Authority failed to reach a satisfactory agreement, affecting the
plant’s viability. Although government financial support was offered, it was
considered to be insufficient to change the decision to close down the smelting
operation, with demand being met from other plants in the UK, principally
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Scotland, and abroad ( ).
The company will continue to operate a small scale ‘remelt’ operation using
the casting facilities on site, though with less than 20% of the original workforce.
This is a very large site in terms of area and the company is also concerned to
bring in new businesses and uses for the location and is working with the Welsh
Development Agency on this. At full strength, the plant employed around 530
staff of whom around two-thirds could be categorised as manual workers with
intermediate and craft skills. Around 40% of the workforce is over 50, many of
who have long service with the company.
The Human Resources Manager (HRM) is the main focus for handling the
restructuring from the personnel perspective, working closely with the HR director
and other operational managers. There is a high level of trade union membership
at the plant with UNITE dominating through two branches representing the
manual and non-manual staff. The trade union has been fully involved in the
consultation process following the announcement of the restructuring. It has been
particularly active in lobbying for government intervention to save the plant.

6.11.2. Restructuring and job losses
The escalating cost of electricity and the failure of the company to secure an
advantageous long-term agreement with the power supplier were the principle
reasons for the closure decision. While the facilities at the plant were perhaps not
as up-to-date as other operations, it was regarded as an efficient operation and
one that was particularly important for this corner of Wales where jobs are hard to
find. Locally there have been a number of significant redundancies and those at
this company would add to the problems piling up in the area.
The recent job losses involved over 400 redundancies and required a three-
month period of consultation. After a call for volunteers for redundancy, around
140 employees came forward to register their interest and were eventually
accepted onto the scheme, the majority leaving to take early retirement. Of the
total employees remaining, the company went through the process of selecting

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( ) The package of support on offer included help under the Welsh Assembly Government’s
ProAct scheme. ProAct broadly offers financial support of up to GBP 2 000 per employee
towards training costs; a wage subsidy of up to GBP 2 000 (at a rate of GBP 50 per day) per
employee while undergoing training; and one-to-one expert advice particularly geared to
providing individual training plans.

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