A Successful Plant Closure, 2002
Planned Layoff of 250 Union Workers & 62 Staff
In mid-2002, in the midst of a severe economic downturn in the San Francisco Bay
Area, a Midwest-based industrial company decided to close their plant near San
Jose. Their plan was to finish building the local plant’s backlog by the end of
the year and to build future orders at their other locations. The local plant,
which had been in existence since the early 1900’s, included over 250 unionized
hourly workers and 62 staff. There were 75 employees with more than 20 years of
service with the company and 32 with more than 30 years.
Tension Created & Sabatoge Feared
While planning the announcement, company management anticipated increased
absenteeism, theft and sabotage. They brought in PowerTransitions to provide
job search assistance and to assist local management in dealing with employee
concerns. The original plan called for PowerTransitions to conduct 2-day Job
Search Workshops and to provide on-site counseling as needed. When the
announcement was made to each shift, there was a great deal of tension.
Security was increased throughout the plant and management feared the union
would reject the best and final contract offer that would mean immediate
closure.
PowerTransitions Provides On-site Workshops
PowerTransitions then proposed that we conduct job search orientation meetings
for every employee and that we be on-site to meet with employees on a regular
basis prior to the union vote. Because the initial reaction to the closure
announcement was so negative, we added an additional day to the planned
workshops to help employees work through the emotional impact of the layoff and
focus on the future. Soon after the union voted to accept the companys offer,
we began offering workshops to the first employees released. We conducted a
total of 37 workshops by the final plant closing in January of 2003.
On-site Career Center Established by PowerTransitions
We established a Career Center inside the facility that was fully staffed for
three shifts through the end of the year. We had over 500 visits to the center
and carried out resume development and counseling sessions for all who came. We
wrote almost 300 resumes for hourly and management staff.
Further Career Search Services Provided
In addition to workshops, counseling and resume preparation, our staff
identified over 900 potential employers in the Bay Area and contacted each by
letter with a follow-up phone call. Through these letters and calls, we found
over 520 open positions. We posted these openings at the plant career center
prior to final closure and listed them on a custom website created for present
and former employees of the company. When potential employers indicated
interest in a broad range of candidates, our job development professional
provided them with a CD containing 220 individual resumes. A total of 141 CDs
were sent to specific individuals at these prospective employers.
The Result: A Smooth Transition
Although this plant closure was an especially painful one, the employees met
their production goals by December 31st, guaranteeing their
retention/productivity bonuses while also allowing the company to successfully
consolidate operations with zero loss of business. By October, the mood in the
plant had changed so significantly that the acting plant manager brought in to
close the plant was able to turn day-to-day management over to the existing
operational managers and the outside security force was reduced to one agent.
Finally, the employees were able to leave this employer and move on to their
next assignments with the satisfaction of completing their assignment on time,
within budget and with dignity, self-respect and honor intact.