Page 148 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

staff to remain in employment in the remelt business, leaving around 250 to be
given notice of compulsory redundancy.
The severance terms were based on enhanced statutory redundancy terms,
consisting of one month’s pay per year of service; this equates to around four
times the statutory requirement. Follow-up support to supplier organisations that
might be affected by the changes in the company has been offered by local
government where needed.

6.11.3. Restructuring practice and processes
The call for volunteers for redundancy mainly comprised older workers with the
option of retiring early. The severance package on offer was the same for
volunteers and those made compulsorily redundant and this, coupled with the
difficult labour market conditions prevailing at the time and the company’s
comparatively remote location, probably accounted for the relatively low numbers
coming forward. However, there was also the prospect that the company would
be supported by government as it had been 10 years ago and it was not until
after the consultation period that its eventual fate became clear.
At this stage it was then possible to set in train the support for those being
made redundant by engaging outplacement consultants and inviting Careers
Wales on site. The scale of the job losses also meant that the national rapid
response service could be engaged, organised through Jobcentre Plus.

6.11.4. Cooperation and external capacity
The outplacement company chosen was DBM, a private sector firm that
specialises in providing customised support to displaced workers. The company
was selected by a tendering exercise, a requirement of which was that support in
the Welsh language should also be readily available, though in the event there
was little demand for this service.
Careers Wales played a key role in the process. As the national provider of
careers information, advice and guidance for adults and young people, it
operates through a network of area offices. It also gives support to employers
and businesses requiring help and advice on recruitment, training, employee
development, skills and qualifications. Since the private outplacement company
and Careers Wales worked collaboratively, demarcation of activities was
established from an early stage of support provision. The company set up a
temporary careers centre on the site to allow staff to drop in for advice. Initial
individual interviews were all with Careers Wales, allowing those employees, who
so wished to take advantage of funding available through the Redundancy Action
Scheme (ReAct). Employees were then handed on to the outplacement company

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