Page 163 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

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this case study ( ) and aims at delivering a rapid response to mitigate the effects
of redundancies.
The Redundancy Action Scheme (ReAct) supports people living in Wales who
are facing dismissal, as well as employers which are downsizing their business.
Funded through a combination of European Social Fund (ESF) and Welsh
Assembly Government funding, ReAct is available to individuals who have been
made redundant within the previous six months, or who are at risk of redundancy,
having been served notice.

6.15.2. Restructuring and job losses
The aim of ReAct is ‘to prevent long-term unemployment by providing pathways
to employment for those recently or about to become unemployed’, with a
specific focus on those aged over 25. The programme offers financial support to
assist individuals through four main funding streams:
(a) a discretionary grant covering 100% of the costs of individual vocational
training requirements up to a maximum of GBP 2 500. Individuals can be
trained while they are job hunting and get the skills they would need, even if
they plan to become self-employed eventually;
(b) an extra support award, up to GBP 1 000, to assist with costs associated
with training, such as travel, accommodation, childcare and books, with the
aim of removing eventual barriers that could stop individuals from getting the
training they need;
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(c) the employer recruitment subsidy, up to GBP 2 080 ( ), is paid directly to
employers as a contribution towards wage costs. This is publicised to
individuals through the ReAct website as follows, ‘if you prefer to find work
first and be retrained “on-the-job” by your employer, we will contribute up to
GBP 2 080 towards your wages’;
(d) The employer training subsidy covers up to 70% of the costs of a new
recruit’s job-related training, up to a maximum of GBP 1 000, paid directly to
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employers ( ).

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( ) For further information see:
http://wales.gov.uk/topics/educationandskills/learners/worklearning/gettingbacktowork/redunda
ncyaction/what/?lang=en [cited 17.5.2010].
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( ) The payment is made over four stages from 13 to 52 weeks after starting, with employer
training subsidy only being available if the employee ‘is still working and making satisfactory
progress towards completing the agreed training’.
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( ) Between October 2008 and mid-November 2009, some 11 285 individuals and 1 063
companies were supported through ReAct. The cost of the vocational training delivered was
over GBP 10 million, with the expenditure on wage subsidies and employer training being
much smaller – just over GBP 649 600 and GBP 39 611 respectively.

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