Reduction in Force

I can't believe we have this problem, first for the company in the 16+ years in business but we just lost a major defense contract and will need to cut some employees. We've lost contracts before but have never had to let employees go because of the loss. I was hoping some of you might have some advice.

We will be able to place most of the employees on another contract within the company. That's the good news. The bad news - the team taking most of the employees has 1 person that was hired in early 2012 that has been a less than stellar performer and the manager wants to replace him with a more experiened employee that has been with us for years that otherwise would be part of the layoff. We don't know how to handle the situation because management is afraid of a law suit (this employee has told everyone that his wife was let go from a government job and is suing for race discrimination and the concern is he may also look for a reason to sue). He's a minority and the tenured employee they want to replace him with is not, hence part of the fear based on his wife's situation. I don't know the circumstances of her employment and for all I know she may have a very legit case.

Can we just say we're letting you go and backfilling the position with an employee with more experience? He was disciplined for performance problems a few months ago but the manager doesn't want to make it a performance issue. He was the last one hired for the task he is working on so it would be last in first out. I just can't justify keeping an okay peformer that watches the clock all day and letting a great employee go.

Comments

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  • Unfortunately from what I have seen there is nothing we can do to gurantee an employeewi8ll not retain an attorney and try to sue. As they say in football the best offense is a good defense. In the past I have created a matrix based on 5 or so objective criteria's and rated each employee. The grading was free from opinion and based on factual information that could be proven. I have had our attorney review the matrix prior to initiating the RIF and he is good with the choices that are made as there is no bias in the grading. You may want to as your labor law attorney if there are any sticking points to be aware of. The matrix I put together is not rocket science and can be tailore to anyones needs if they are different than mine are, but if you think it would help I have no problem emailing you a copy of it.
  • The manager losing the contract and the manager taking on the employees sat down with the president and vice president and did just that, they set up a matrix and evaluated each individual employee on both contracts. They were doing this months before we even heard we lost the contract in preparation for the worst. I hope it covers all our bases. We hate to let anyone go and it's never been a problem we've had to face. We've had a lot of firsts in the past 12 months and everyone on the forum has been a tremendous help. Thank you for the input.
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