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[IWS] ILO: GUIDELINES ON SOCIALLY-SENSITIVE LABOUR FORCE RESTRUCTURING IN SOUTH EASTERN EUROPE [February 2009]

IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau
________________________________________________________________________

International Labour Organization (ILO)

Guidelines on Socially-Sensitive Labour Force Restructuring in South Eastern Europe
by Andrea Broughton
Institute of Employment Studies (IES)
February 2009
ISBN: 978-9-22122-203-3, pp. 76
http://www.employment-studies.co.uk/pubs/report.php?id=ilo0609
or
http://www.employment-studies.co.uk/pdflibrary/ilo0609.pdf
[full-text, 82 pages]

For related studies from the ILO Subregional Office in Budapest, see -- http://www.ilo.org/public/english/region/eurpro/budapest/publ/employ/index.htm

ABSTRACT:
These Guidelines set out the main ways in which organisations can contribute to the socially-sensitive restructuring of the labour force. The report highlights practical considerations such as:

•  The roles that social dialogue can play at national, sectoral and company level.

•  The role of workforce consultation, beginning with how restructuring plans should be announced to the workforce, how the workforce should be informed and consulted about the restructuring, and how negotiations concerning restructuring should be conducted.

•  The measures that can be put into place to lessen the impact of restructuring.

•  If redundancies are inevitable, the range of measures that can be implemented to cushion their impact.

After considering these issues, in connection with the case study examples annexed to these Guidelines, a range of best practices and lessons learned are identified.

Contents
Foreword ............................................................................................................................ 7
Executive Summary ........................................................................................................... 9
Introduction ....................................................................................................................... 13
Current Statistics on Restructuring ............................................................................... 13
Existing Guidance ........................................................................................................ 15
EU Legislative Framework ............................................................................................ 16
Corporate Social Responsibility .................................................................................... 18
The Views of the Social Partners ................................................................................... 18
Sectoral Initiatives ............................................................................................................. 21
Energy Sector ............................................................................................................... 21
Manufacturing ............................................................................................................. 22
The Transport Sector .................................................................................................... 22
Restructuring in Eastern Europe and the Western Balkans .......................................... 25
The Role of Social Dialogue .............................................................................................. 29
National-level Social Dialogue ...................................................................................... 29
Sector-level Social Dialogue .......................................................................................... 30
Company-level Social Dialogue .................................................................................... 31
Role of the State and Other Institutions ......................................................................... 33
The State ...................................................................................................................... 33
State role in Regional Restructuring ............................................................................. 34
Other Public Bodies ..................................................................................................... 35
The Role of Workforce Consultation ............................................................................... 37
Announcing the Restructuring ..................................................................................... 37
Informing the Workforce .............................................................................................. 37
Consulting the Workforce ............................................................................................ 38
Measures to Lessen the Impact of the Restructuring .................................................... 41
Reducing Non-core Staff .............................................................................................. 41
Introduction of Different Working Patterns .................................................................. 42
Cuts in Pay and/or Bonuses .......................................................................................... 43
Internal Redeployment ................................................................................................. 44
External Redeployment within the Sector and Outside the Sector ................................ 44
Training and Other Measures to Increase Employability ............................................... 45
Help with Job Search .................................................................................................... 47
Priority of Rehire .......................................................................................................... 48
Support for Entrepreneurship ....................................................................................... 48
Investment in the Local Economy in Order to Help Regeneration ............................... 49
Measures to Cushion the Impact of Redundancy .......................................................... 51
Downsizing across the Sector ........................................................................................ 51
Spreading Redundancies Evenly across Countries ......................................................... 51
Voluntary Severance ..................................................................................................... 52
Early Retirement .......................................................................................................... 53
Best Practice and Lessons Learned .................................................................................. 55
The Importance of Training and Development ............................................................. 55
Key Role for the State and the EU ................................................................................ 56
The Importance of a Coordinated Response ................................................................. 56
Implementing Redundancy Management ..................................................................... 56
Working with External Organisations ........................................................................... 57
Tailoring the Interventions ........................................................................................... 57
Passive vs Active Measures ............................................................................................ 57
Looking after the Survivors ........................................................................................... 58
Looking to the Longer Term ......................................................................................... 58
Influence of Social Dialogue on Outcomes .................................................................... 61
Annex: The Case Studies ................................................................................................... 63
CROATIA: Restructuring in the Shipbuilding Sector ................................................... 63
CZECH REPUBLIC: Restructuring in the Steel Industry ........................................... 65
MONTENEGRO: Restructuring in the oil Sector ....................................................... 67
SERBIA: Restructuring at the RTB Bor Group ............................................................ 68
SLOVAKIA: Restructuring in the Mechanical Engineering Sector ................................ 70
SLOVENIA: Restructuring in Manufacturing Industry ................................................ 71
Western European Examples ........................................................................................ 73

______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

****************************************
Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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