Page 166 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

supply, with most production materials sourced from other parts of the company.
As such, the plant closure is unlikely to hit any particular local supplier heavily.

6.16.3. Restructuring practice
The development of the terms of the closure has been largely left to the local
plant to decide. There was no existing agreement setting out redundancy terms
so the conditions of a severance package had to be agreed from scratch with the
main trade union. From these discussions has emerged a severance package
that offers enhancements to the statutory minimum, with length of service being
taken into account, backed up by an agreed set of support measures. The
company initially called for volunteers for redundancy, though there were
restrictions on who would eventually be accepted since production has to be
maintained during the phased closedown.
To manage the provision of support activities, the company has engaged the
services of a private outplacement firm. This firm offers support to staff on what
to do next, as well as help with the individual needs of employees in terms of job
search. It also provides access to its online services, which offers information and
advice to employees. The company also offers what is essentially an internal
recruitment agency that puts firms who are looking for new staff in touch with
those accessing the outplacement services.
On site, the company has set aside a dedicated room with internet access and
relevant literature with open access to staff so that those working on any shift can
use it. However, given the nature of the production process in this firm, most use
of the facilities is likely to be in normal breaks, though managers are expected to
be sympathetic to allowing staff to use the room during any downtime.
The company is also offering various activities to try to consolidate or refresh
the skills and experience of the soon-to-be-displaced staff. For example, there
will be health and safety refresher courses. In addition efforts are being made to
allow all staff to complete a national vocational qualification (NVQ) Level 2 in
manufacturing operations so that they will have a portable, nationally recognised
qualification when they leave that reflects their experience. The NVQ process
allows the accumulation of units towards qualification based on the completion of
a portfolio confirming the knowledge and experience needed; this is a substantial
task for the employees but could have dividends on the external jobs market. The
company IT department is also offering training sessions to all employees who
feel they need basic IT skills or need to refresh their existing ones; this means
they can make full access of the range of online support available.
The company has publicised opportunities for displaced staff to relocate to the
plant, in another EU Member State, that is taking over production but there has

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