Page 153 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

The situation is still difficult for Volvo and the company continues to run a
deficit. VCC has signed an agreement with the local trade unions to avoid further
redundancies. This agreement obliges all employees to contribute to lowering
personnel costs in the company during 2009. One example is that salary
revisions have been postponed to 2010, without retroactivity. The cost savings
also involve the top management, who have accepted a 5% pay cut from April to
December. No bonuses were paid in 2009 and 2010.

6.12.3. Restructuring practice and processes
Trade unions were consulted as soon as the decision to issue notices of
dismissals was taken ( ). The process was relatively smooth and the unions
58
could take part in the restructuring. The project got its own organisation team to
take care of the negotiations, practical issues and communication aspects, both
internally and externally. It was important to involve top management, so that
employees could see that decisions were part of a long-term strategy.
Information meetings on the process were open to all employees, including
those who would not be made redundant. All employees who lost their jobs were
given the opportunity to leave the office when they wanted, thus helping
redundant employees to start job-search early. In parallel, a large-scale matching
process was set up to relocate as many redundant employees as possible within
the firm. During the reorganisation, many positions remained open and some
became vacant. Also, with 1 250 consultants leaving the firm, many tasks could
be redistributed to other employees. The possibility of placing blue-collars in
white-collar positions was also considered. Competences and skills were the
most important factors in the matching process but, when qualifications were
considered equal, seniority in the firm was the decisive criterion. Trade unions
were invited to take part in the matching process but decided against.

6.12.4. Cooperation and external capacity
Early in the process, before the notice was given, Volvo had informed the
59
60
sectoral labour market agencies (TRR ( ) and the PES ( )) about it, to identify
possible help to handle the situation and help the employees who would lose

58
( ) Trade unions represented at VCC include IF Metall, Unionen, Akademikarna and Lederna.
59
( ) The TRR was founded by the social partners as a supplement to the different educational and
retraining schemes which are organised and financed by the government. The TRR was
established especially to meet the needs of white-collar employees, where the government had
proven insufficient. Later, some groups of blue-collar workers joined. The services are paid for
by the 32 000 affiliated companies like an insurance policy. The contribution is 0.3% of the
company payroll for employees covered by the TRR agreement.
60
( ) Arbetsförmedlingen is the Swedish public employment service.

147