Canadian HR Reporter

CANADIAN HR REPORTER CANADIAN HR REPORTER April 7, 2014 April 7, 2014 16 FEATURES FEATURES OUTPLACEMENT Mass layoffs no easy task Multi-layered approach helps with transition By Martin Kingston I n April 2010, Automodu- lar — a manufacturer of car parts based in Ajax, Ont. — was given bad news: A ma- jor customer was cancelling its contracts for sub-assembly and sequencing services as of Sep- tember 2010. As a result, the manufacturer would be forc ed to close a facility in Oshawa, Ont., and terminate most of the employees at that location — 70 unionized and 23 non-union workers. Upon learning of the contract cancellation, the 650-employee company invited all employees to attend a town hall meeting where the decision was shared. HR also fi led a notice of mass termination with the Ministry of Labour and subsequently posted the notice at the aff ected plant. Automodular met with the union to fi nalize a closure agree- ment. As it turned out, the cus- tomer that had cancelled signed a new contract with a nearby com- pany and Automodular's union negotiated a continuance of em- ployment for most of the union- ized workers at the new operation beginning in September. But that still left 23 non-union- ized employees out of a job. To keep the remaining em- ployees motivated, the company made sure they were aware of their se verance entitle- ments and other pro- grams, such as awards and incentives for attendance and quality, along with co-chairing an employee adjustment committee for hourly workers and providing outplacement services for salaried employees. In May 2010, Automodular hired Next Steps Canada to ex- ecute a two-stage outplacement and career transition program for the 23 salaried workers. "Due to the size of our com- pany and our commitment to our employees, we felt that it was the least we could do to help them move on. Many of them had been relatively senior and with the company since we started up. ey were employees but all were also vested stakeholders in our company," says John De Souza, director of human resources at Automodular. "Part of our culture was respect for the individual and we could not see how we couldn't do that. It just made sense, it was part of our company's values and it was part of our belief in the people. It was the right thing to do." Challenges, solutions to overcome The employees represented a wide array of working experience and included individuals ranging from a plant manager down to administrative staff . Employment tenure with Automodular ranged from four to 21 years. Automodular was prepared to allow the work- ers significant time away during the regular working day to attend one-on-one advisor meetings and group workshops, as well as complete job interviews. Next Steps devised a logisti- cal plan in concert with the plant manager to accommodate the completion of the program with- out risking the effi ciency of the plant's operation and fulfi llment of required production quotas. Many factors and challenges were taken into consideration including: •long- tenured, senior-le vel employees •distrust between union and se- nior management •a highly competitive job market •staff working full-time while conducting a job search •a stressful work environment as staffi ng numbers decreased while the workload remained constant or increased. Assessment work was critical to employees in gaining a basic sense of key strengths, work styles and career preferences, as was realis- tic goal-setting and monitoring, a need for ongoing motivation and a high level of confi dential- ity and trust. The outplacement program was executed in four main stages: Orientation: Small group ori- entation sessions were conducted at an off site facility and included: •the introduction of outplace- ment advisors and the recruit- ment manager •program and logistical details •a discussion of the employee's expectations •completion of client authoriza- tion forms •a review of the privacy and con- fi dentiality policy. Tier-one program: Each employee was assigned to an advisor, with one-on-one ses- sions covering career transition, self-administered assessments, resumé and letter writing, job search strategies, networking and interviewing. ey also were provided with customized workshops and given access to an online career man- agement system with personal as- sessments, job site tools, company and industry research, and the op- portunity to network job postings with LinkedIn contacts. Recruitment assistance ser- vices: Peer companies involved in the automotive industry and other relevant companies operating in the region were contacted by the outplacement provider. "Anything that would contrib- ute towards an individual being successful in gaining employ- ment was worth looking at," says De Souza. " e greater we could increase the odds of them gaining employ- ment, we were game to do that, within reason." Tier-two program: Those workers who remained in the pro- gram after the plant closing were provided with six additional hours of personal job search review and coaching. Additionally, all participating employees were offered a per- sonal fi nance consultation work- shop, discounts on training and development courses, and busi- ness cards. In the end, 19 of the 23 employ- ees found re-employment oppor- tunities prior to the plant closure and four of them participated in the tier-two program, benefi tting from continuing personalized consultation and career transition guidance with their advisor. Martin Kingston is the Toronto-based managing partner of Next Steps Canada, an outplacement and career transitions fi rm. He can be reached at (416) 479-8208, martink@nextsteps- canada.com or visit www.nextsteps- canada.com for more information. THE MOST COMPLETE DIRECTORY OF ONTARIO LAWYERS, LAW FIRMS, JUDGES AND COURTS With more than 1,400 pages of essential legal references, Ontario Lawyer's Phone Book is your best connection to legal services in Ontario. Subscribers can depend on the credibility, accuracy and currency of this directory year after year. 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They were employees but all were also vested stakeholders." Credit: Higyou/Shutterstock

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