The MD of a small engineering company, heavily reliant on the automotive industry, needed advice from Employment Practice and Law relating to redundancy processes to reduce his wages costs to reflect lower sales in the recession. At the same time, he did not want to lose essential skills through redundancy which he might not be able to recover when needed.
As part of the redundancy handling exercise it was necessary to lose one of the sales representatives, but without losing the experience and skills held by some of the shorter service staff.
The fact that employment contracts contained redundancy issues such as lay-off and short time working clauses undoubtedly helped, as did the open consultation process. The final out come of the redundancy handling process was that one sales person lost his position, having been chosen on a combination of relevant qualifications, additional (relevant) skills and length of service.
The works, office staff and the MD, all agreed to a 10% reduction in pay and hours on the basis that sales figures would be shared each month.
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For further information on redundancy, see our 'Handling Redundancy' page.