Major RIF

jennifer jo

A few months ago I was inquiring about a massive reduction in force which I'd heard was going to be implemented by a large company nationwide. In our community, this large company informed several of its employees that they were all being laid off effective in March as their positions were being eliminated. The employees could, however, apply for the "new" positions that were being created. It's amazing how similar the "new" positions are to the "old" positions. What I think will be even more amazing will be to see how many of the "seasoned (more expensive), over 40, building pension fund employees are not offered these "new" jobs. Not only do the employees not know if they will have their jobs (as the company is actively interviewing outside candidates to replace these employees) the employees have also been informed that they will have to inform their customers that they will no longer be calling on them face to face, but that the customer has to call someone on the phone to order product...because the company is all about "excellent customer service". I am truly surprised that a company of this stature has done such a sloppy and unprofessional job of "restructuring". It's these tactics that make me question the ethics of our corporate culture.

NaeNae55

Some people just never get it. Unfortunately, those people often end up in positions of authority. It really stinks to find yourself working for those kinds of people so I really feel for you.

It is quite probable that one or more of the laid off employees will file suit, especially if the positions really are similar and their replacements are younger and/or not yet qualified for the pension plan. I would not want to be working there in HR if that is coming down the road. On the other hand, it is good to know for sure that the people you work for are without integrity. It makes it easier to let go and start looking elsewhere for good employment.

Good luck!

Nae

stilldazed

Is this a legal restructure or a buy out. I've had limited experience with something similar, but the circumstances involved a buy out. All employees of the former company were discharged and invited to apply for their (or other) jobs with the new company. Many of the positions with the new company were also advertised to the general public and open for application, so workers with history/experience with the old company sometimes found themselves competing to be hired. The idea was that employee alliances with the former company would be broken and replaced by alliances with the new company, the 'dead wood' would be weeded out, and the new company would have improved its competitive position. As a business major, I can see that it all may sound good on paper. However, from a personal perspective, it is certainly a situation with tons of opportunity for staffing & benefits decisions that would not otherwise be allowed--generally not a good situation for workers.

best wishes

jennifer jo

Thanks for the comments. Just to be clear, it's not my job that's in jeapordy. It's my friend's job. He has worked for a major beverage company for 18 years and has always received merit increases in his position. In fact, the sales center here has received "Best Sales Center of the Region" the last four times it has been awarded. It is not a buyout and frankly, no one understands the "reasoning" behind this drastic, across the board action. As a business person and an HR professional, I do not understand how this action can be deemed helpful to the company in any way. If there is dead wood that should be eliminated, individual sales center managers should do their jobs and take the steps necessary to clear out dead wood. Based on the fact that the company is targeting every sales center, and instigating mass layoffs, while increasing the number of jobs at the same time, I can only conclude that the objective is to reduce labor costs by replacing senior (more expensive) staff with cheaper less expensive staff. I anticipate a drastic change in the benefit package when all is said and done. Health insurance plans and premiums, pension plan, 401 (k) contributions, etc. will most likely be re-vamped. In any case, the way that this was conducted caused so much ill will that it would probably be in the best interest of the company to not re-hire any of the current staff. I don't think the employees will ever trust the company again or ever truly be engaged. I guess that I'm just surprised that such a large company would use such an archaic, drastic tactic. It also makes me question the stability and viability of the company. All of the staff here who received lay off notices reapplied for their jobs, interviewed two weeks ago and still do not know whether or not they will still have a job at the beginning of March. Tacky. The severance package the company is offering is ok, but of course, he will have to sign a severance agreement. I wonder what would happen if they all lost their jobs, or all chose the severance...who would sell the product?? Thanks for letting me vent!!

NaeNae55

Sometimes even large companies hire boneheads who only look at a problem from one angle. Why else would Radio Shack have laid off so many employees via email? How heartless and stupid was that? Not only did it create ill-will within the company, but the bad press did not help it either. Obviously someone there did not think things through. Sounds like the same thing is happening at your friend's company. It will probably backfire on them, the way it did at Radio Shack. I wish them all luck.

Nae