Subject: Progress report on future layoffs
Introduction
The purpose of this report is to review and suggest ways to arrange layoffs in the future. Management prefer no compulsory layoffs. For staff leaving voluntarily, attractive packages including pension protection, cash payments and retraining will be offered. I have divided the reports into 3 sections: background, findings and recommendations.
Background
Since the company faces strong competition and customers prefer telephone and on-line services nowadays, concentrating operations at a few Operation Centres ( O.C.s) is considered necessary.
Findings
The following matters are not compromised between management and Union
- Union requests to maintain a register of former staff who can be contacted first to fill temporary post. However, it is not accepted by management.
- For the size of retraining budget, Union suggests $6000 per employee but only $4000 is offered by management.
Moreover, 350 branches are needed to be closed over the next five years, and it leads to 10,000 layoffs.
Recommendations
In conclusion, I suggest that the company should consider the following recommendations to improve the arrangement of future layoffs.
- Staff morale should be improved in long term when the new O.C.s start working.
- Implement regulation to control over retraining, i.e. leavers are not allowed to go anywhere on any course.
- Some of the retraining could be done in-company at cheaper cost.
Investigation will be performed and report will be prepared next meeting. Please have a look at the report and let me have your comments.