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Socially responsible restructuring
Effective strategies for supporting redundant workers
individual and group basis, as well as financial support to undertake training.
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Some 516 companies had used the R2R service up to September 2009 ( ).
6.14.2. Restructuring practice
Access to R2R can be initiated by either companies making redundancies or,
less frequently, individuals who are being made redundant. The first formal route
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is through statutory notification ( ) procedures whereby companies, making 20 or
more posts redundant, have to inform necessary authorities. Here notification is
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frequently via Jobcentre Plus ( ), although trades unions can also provide early
notice.
The second formal route is via redundancy network groups. In each county in
the Eastern Region, a consortium of institutions provides early warning about
restructuring enterprises and comprises institutions through which support can be
coordinated, such as local authority employment development officers, Business
Link, Jobcentre Plus and Nextstep, information and advice services for adults. A
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third formal route is through skills brokers working with Business Link ( ) who
advise local companies on a daily basis, in synergy with R2R services and other
business support organisations, such as sector skills councils, local chambers of
commerce and the Small Businesses Federation.
In supporting businesses making redundancies, R2R aims, first, at reaching
businesses as quickly as possible, since early intervention is necessary to
manage change adequately and minimise the negative effects on businesses
and their staff. Second, the service aims to engage with those least able or willing
to provide any kind of transition support to their employees, in particular small
and medium-sized enterprises and micro-enterprises.
Contacts with employers are always handled with considerable sensitivity,
depending, for example, on the extent to which information regarding
redundancies is in the public domain. In addition to the formal routes, half of all
the enterprises that receive support use informal information channels; some
have found out about R2R through web-searches, word of mouth contacts and
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( ) In terms of size, about 5% of the companies employ 10 employees or less, 20% employ 11-49
employees, over half (53%) employ 50-249 and 22% employ 250 or more. Reflecting the wide-
ranging nature of the economic downturn in respect to areas of business activity, a quarter
(24%) of companies are (or were) primarily engaged in manufacturing; 13% in professional,
scientific and technical activities; 13% in the wholesale and retail trade; 9% in administration
and support services and 6% in construction. For further details see: http://www.tchc.net. [cited
17.5.2010].
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( ) For further details see: Advisory Conciliation and Arbitration Service (ACAS) good practice
guidance: http://www.acas.org.uk/media/pdf/a/3/B08_1.pdf [cited 17.5.2010].
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( ) For further details see: www.jobcentreplus.gov.uk/JCP/index.html [cited 17.5.2010].
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( ) For further details see: www.businesslink.gov.uk/east [cited 17.5.2010].
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