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Socially responsible restructuring
Effective strategies for supporting redundant workers
6.15.3. Restructuring practice
There is a range of ways that ReAct can get to hear of redundancies in
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enterprises. As in other parts of the UK, statutory procedure ( ) require
enterprises to provide advance notification if twenty or more employees are to be
made redundant. Notification is to the Secretary of State for the Department for
Business Innovation and Skills who provides necessary information to Jobcentre
Plus in Wales. In the case of smaller scale redundancies, information is mostly
gained through regular contact with employers (through Business Connect,
Careers Wales employer liaison officers and Department of Economy and
Transport relationship managers).
In line with the partnership approach of ReAct, a range of parties are brought
together to respond to the situation, meeting with employers, offering
presentations to affected employees, individual skills assessments and job-
focused training, if not available through any other source. While other
programmes available in Wales offer assistance in situations in which large scale
redundancies are likely to affect the local labour market, by contrast, ReAct
focuses on the individual, rather than the local labour market. It is accessible in
situations in which one redundancy arises as well as when large numbers are
created, giving equality of opportunity.
Careers Wales is involved in the delivery of ReAct. Alongside the initial
awareness raising and advice given, all applications to vocational training
financial support must have a Careers Wales action plan attached which clearly
identifies the training needed. As well as accessing services face to face,
individuals have access to the Careers Wales help-line and website, and can
undertake research of training provision through an extensive database of
courses.
6.15.4. Impact and effects
In terms of outcomes following participation in ReAct, evaluation data suggests
that just over a third (36%) of individuals were unemployed immediately after the
end of their chosen training course. However, this figure reduces to two in ten
(19%) within six months of completion, with a further 4% entering full-time
training and education. Over two-thirds (69%) of the respondents felt the training
course funded by ReAct had helped them get a job. In terms of the direct impact
on the individual, over three-quarters (78%) felt that it had, at the very least,
made quite a lot of difference. Specific areas in which it was believed being
involved with ReAct had made a difference included gaining a qualification
(68%); added value to a CV (74%); increased individual confidence (53%).
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( ) http://www.insolvency.gov.uk/pdfs/rpforms/hr1.pdf [cited 17.5.2010].
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