Coping with Occupational Transitions: An Empirical Study with Employees Facing Job Loss in Five European Countries (Psychology of Social Inequality)

Thomas Kieselbach Sebastiano Bagnara · Hans De Witte Louis Lemkow · Wilmar Schaufeli (Eds.) Coping with Occupational Transitions

Psychologie sozialer Ungleichheit Band 13 Herausgegeben von Thomas Kieselbach The continuous evolution of the labour market in highly industrialized countries during recent decades has led to the experience of redundancy and unemployment by many people. Coping with career breaks does not inevitably result in a personal crisis including psychological damage for each individual experiencing them. Yet it must be emphasized that such an experience might lead to long-term unemployment especially for members of vulnerable groups, and this situation is often linked to the experience of social exclusion. The series discusses topics that look into the individual, organizational, and social-psychological effects of career transitions and the resulting risks of social exclusion. The focus lies on psychological unemployment research and intends to demonstrate the individual and societal costs of a mass unemployment that, in the meantime, has become widely accepted. Furthermore, the series draws attention to those indirect effects of the labour market crisis which manifest themselves as job insecurity and precarious working conditions. These effects can be characterized as the integration of social features of unemployment into employment itself. In a similar manner, questions of psychological coping with poverty and homelessness are discussed. An important point of reference is the program “Social Equity and Health” which was conceived by the World Health Organization (WHO) in the Eighties. It clarified the inter-relatedness of unemployment and its effect on health, and discussed possibilities of limiting this damaging influence by the application of various approaches to intervention. This program could also demonstrate the 'spread-off effects' that mass unemployment exerts on employees. The contributions to the series show perspectives for making it easier to cope with forced career changes in an increasingly unfathomable working world and thus help to reduce the developments of individual crises. To achieve this, the publications included in the series emphasize that both society and the individual are responsible for adjusting careers in the case of industrial and enterprise restructuring. The series “Psychology of Social Inequality” is directed toward psychologists, sociologists, educators, economists, and social workers who are confronted with the psychological effects of career transitions and social inequality in their scientific and practical work. Independent empirical studies are included as well as literature reviews and conference proceedings. Aside from theoretical discussions, the series also includes practical evaluations that examine the possibilities and limitations of intervention approaches in the areas of unemployment and working conditions.

Thomas Kieselbach Sebastiano Bagnara · Hans De Witte Louis Lemkow · Wilmar Schaufeli (Eds.)

Coping with Occupational Transitions An Empirical Study with Employees Facing Job Loss in Five European Countries

Bibliografische Information der Deutschen Nationalbibliothek Die Deutsche Nationalibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über abrufbar.

1. Auflage 2009 Alle Rechte vorbehalten © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009 Lektorat: Katrin Emmerich / Tanja Köhler / Marianne Schultheis VS Verlag für Sozialwissenschaften ist Teil der Fachverlagsgruppe Springer Science+Business Media. www.vs-verlag.de Das Werk einschließlich aller seiner Teile ist urheberrechtlich geschützt. Jede Verwertung außerhalb der engen Grenzen des Urheberrechtsgesetzes ist ohne Zustimmung des Verlags unzulässig und strafbar. Das gilt insbesondere für Vervielfältigungen, Übersetzungen, Mikroverfilmungen und die Einspeicherung und Verarbeitung in elektronischen Systemen. Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme, dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei zu betrachten wären und daher von jedermann benutzt werden dürften. Umschlaggestaltung: KünkelLopka Medienentwicklung, Heidelberg Angaben zum Titelbild: Aus dem Freskenzyklus „Allegorien der guten und der schlechten Regierung“ (1339) von Ambrogio Lorenzetti; Ausschnitt aus „Gli effetti del buon governo“ (Die Wirkungen der guten Regierung) in der Stadt; Ratssaal der Neun im Palazzo Pubblico in Siena Druck und buchbinderische Verarbeitung: Krips b.v., Meppel Gedruckt auf säurefreiem und chlorfrei gebleichtem Papier Printed in the Netherlands ISBN 978-3-531-15237-0

Contents

Introduction.....................................................................................................

9

Comparative Report WP 2 Job insecurity and successful re-employment: Experiences in five European countries Thomas Kieselbach & Sabine Mader .........................................................................

15

National Reports Job insecurity and successful re-employment: Examples from Belgium Jan Vandoorne & Hans de Witte ................................................................................

79

Job insecurity and successful re-employment: Examples from Germany Thomas Kieselbach, Gert Beelmann & Olaf Wagner ................................................. 115 Job insecurity and successful re-employment: Examples from The Netherlands Ellen Heuven, Wilmar Schaufeli & Arnold Bakker .................................................... 169 Job insecurity and successful re-employment: Examples from Italy Sebastiano Bagnara & Leonardo Bargigli ................................................................. 225 Job insecurity and successful re-employment: Examples from Spain Ramon Sentmartí, Josep Espluga & Louis Lemkow ................................................... 279

References .................................................................................................................. 323 Annex I: Interview schedule “insecure jobs” ............................................................. 328 Annex II: Interview schedule “re-employed” ............................................................. 333

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Annex III: Interview schedule “experts” .................................................................... 337 Annex IV: Onset and end of the cases of outplacement ............................................. 339 Annex V: Number of participants and qualification levels......................................... 342 Annex VI: Major actors involved ............................................................................... 345 Annex VII: Components of the outplacement interventions ...................................... 348 Annex VIII: Re-employment rates ............................................................................. 349 About the authors ....................................................................................................... 351

Contents The National reports WP2 are – with slight differences – structured as follows: 1

Introduction

2

Qualitative study: Description of sample

3 3.1 3.1.1 3.1.2 3.1.2.1 3.1.2.2 3.1.2.3 3.1.3 3.1.3.1 3.1.3.2 3.1.4 3.1.4.1 3.1.4.2 3.1.5 3.1.6 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.3

Qualitative studies: employees in insecure jobs and successfully re-employed Description of results of the subsample “insecure jobs” Situation in the present company Aspects of organisational justice Distributive justice Procedural justice Interactional justice Employability Company offers Individual strategies Organisational vs. individual responsibility Individual responsibility Company responsibility Concrete measures Overall assessment Description of results of the subsample “successfully re-employed” Situation in the former company Aspects of justice Employability Responsibility The outplacement measures Overall assessment Conclusions

4

Cases of good practice: Description of sample

5 5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.2.2 5.2.3 5.3 5.3.1 5.3.2 5.3.3 5.4 5.4.1

Cases of good practice in outplacement/replacement Examples of good practice: GMC Consulting GmbH, Hamburg Characteristics of the company Overview of measures: components and scope Evaluation Examples of good practice: DB Arbeit, Berlin Characteristics of the company Overview of measures: components and scope Evaluation Examples of good practice: Mühlenhoff und Partner GmbH, Düsseldorf Characteristics of the company Overview of measures: components and scope Evaluation Examples of good practice: Stadtwerke Bremen, swb Synor Characteristics of the company

7

8

Contents

5.4.2 5.4.3 5.5

Overview of measures: components and scope Evaluation Conclusion as to what is “good practice”

6

General discussion

Tables Table CR-1: Table CR-2:

Composition of the sub-sample “insecure” ........................................ Composition of the sub-sample “successfully re-employed” ............

31 32

Table GER-3: Sample description............................................................................. 118 Table SP-1: Table SP-2: Table SP-3:

Composition of the subsample “insecure jobs” ................................. 283 Composition of the subsample “successfully re-employed” .............. 283 Creade intervention: Mean ratings on the basis of 41 participants .... 319

Figures Figure CR-1: Development of unemployment rates in selected countries ............... Figure CR-2: Part time employment as a proportion of total employment .............. Figure CR-3: Active and passive labour market policies in relation to gross national products ...................................................................... Figure CR-4: Proportion of companies assorted per size (1996) ............................. Figure CR-5: Selection criteria for the two sub-samples of the qualitative studies ..............................................................................

17 18 23 24 29

Introduction

This volume is one of four book publications1 of the project “Social Convoy and Sustainable Employability: Innovative Strategies for Outplacement/Replacement Counselling“ (SOCOSE). It is supported by the European Commission, DG Research, under the fifth Framework Programme, Key Action “Improving the Socio-Economic Knowledge Base“2 and coordinated by Thomas Kieselbach at the University of Bremen3. Starting point of our research is the increase in occupational transitions (Rodgers & Rodgers, 1989). This is caused by the ongoing globalisation of markets and economies as a whole, but might also be considered the central aspect of globalisation: changes and flexibility which – on the part of the individual employee – means transitions in his or her occupational biography. These phases might include episodes of unemployment as well as training or re-orientation. While transitions increase, employees experience insecurity with regard to their individual employment situation to a much larger degree than in the past. The formal 1

2 3

Kieselbach, T. (Ed.) (2004). Social Convoy in Occupational Transitions: Recommendations for a European Framework in the Context of Enterprise Restructuring. Bremen: University of Bremen, Institute for Psychology of Work, Unemployment and Health (IPG). Kieselbach, T., Beelmann, G., Mader, S. & Wagner, O. (2005). Sozialer Konvoi in beruflichen Transitionen: Individuelle und organisationale Bewältigung der Prekarisierung von Beschäftigung in Deutschland [Social convoy in occupational transitions: Individual and organisational coping with precarisation of jobs]. München: Rainer Hampp. Kieselbach, T. (Ed.) (2005). Social convoy in enterprise restructuring: Concepts, instruments and views of social actors in Europe. München: Rainer Hampp (forthcoming). Contract No. HPSE-CT-1999-00025. Members of the German research team: Thomas Kieselbach, Sabine Mader, Gert Beelmann, Olaf Wagner Members of the Italian research team: Sebastiano Bagnara, Agnes Allansdottir, Leonardo Bargigli Members of the Dutch research team: Wilmar Schaufeli, Arnold Bakker, Ellen Heuven Members of the Belgian research team: Hans De Witte, Jan Vandoorne, Nele De Cuyper, Roel Verlinden Members of the Spanish research team: Louis Lemkow, Ramon Sentmartí, Josep Espluga Associated partners: Rolf Birk, Ronald Jeurissen

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1_1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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Contents

guarantee of a workplace no longer exists, or else only to a lesser degree. Society will have to respond to these changes, as well as research has to redirect its focus. While traditional unemployment research was interested in the individual consequences of losing one’s job and the difficulties of re-entering the labour market, future research now has to put more emphasis on the prevention of unemployment (Kieselbach, 1989; Kieselbach & Klink, 1997). Continuous adaptation to the changing labour market – the so-called employability – describes the new challenge. Yet, the responsibility for the establishment of this new concept or characteristic can not only be placed upon the individual employees; nor should the results of company restructuring merely be borne by society in general. The companies themselves, that dismiss employees or ask for greater flexibility, should be considered responsible to a greater extent than in the past. At the same time, individuals should cease to merely being receivers of help and benefits, but should become active partners in the process of re-orientation and actively develop personal initiative (Frese, 1997). The outlined normalisation of occupational transitions formed the entrance to the scientific evaluation of the SOCOSE project. Two aspects are central in the frame of this new development. On the one hand, these phases of transitions have to be filled meaningfully for the individual, and coping strategies have to be developed. But as the aspect of globalisation cannot merely be regarded as an individual issue, transitions will also have to be framed by company-based or labour administration interventions. On the other hand, the concept of employability points to more than just the filling out of transitions (Gazier, 1998). Adaptation to the continuously changing labour market is a permanent challenge that has to be addressed also in phases of employment, thus easing possible transitions beforehand through anticipation. This, too, cannot merely be regarded an individual responsibility. The SOCOSE project is based on interdisciplinary research. In five countries (Belgium, Germany, Italy, Spain, and The Netherlands), psychologists and social scientists analysed the social convoy in the course of dismissal until successful re-integration into the labour market. Two associated partners from Germany and The Netherlands further contributed from the field of labour law and business ethics, respectively. The approach chosen for the SOCOSE project was inductive in that empirical research was performed exploring: the subjective perspective of employees in insecure jobs (expectations), experiences of successfully re-employed (elements of successful interventions), innovative cases of occupational transition counselling (transferability, suitability to become part of a model concept), and expert knowledge (attitudes and experiences of relevant social actors). In addition, knowledge resulting from psychological research on unemployment, personal initiative, entrepreneurship etc. was systematically added, leading to the following basic assumptions of SOCOSE:

Contents • • •

•

•

• •

11

Job loss and unemployment are capable of exceeding the personal resources necessary for the successful overcoming of these critical life events. Outplacement/replacement is part of a proactive strategy of primary prevention: anticipation of and knowledge about potential psycho-social damages will facilitate the process of coping with occupational transitions. Professional help as a form of social support in the process of the employment transition can alleviate the unemployment stress, allow or facilitate a constructive transition and prevent the development of psycho-social barriers to reemployment, thus reducing periods out of employment. The relationship between the professional as helper and the employee in transition as recipient of help will be more effective if their social interaction and the offer of help are based upon a legitimate claim and not on the self-definition of being in need of help. Effective professional help leading to appropriate re-employment can be experienced in retrospect as a form of retributive justice in the process of dismissal that is viewed by the affected employees as a form of social injustice (in the dimensions of experienced distributive, procedural and interactional justice). The assumption of social responsibility on the part of the dismissing company can contribute to the de-individualization of job loss and can also exert a positive influence on the survivors-of-layoffs. The integration of professional counselling in occupational transitions into a broader framework of sustainable employability including social and individual aspects (interactive employability) could create a more flexible and more competitive workforce that will not experience occupational transitions as a personal failure.

This approach might be seen as an attempt to reconcile economic efficiency with social justice in a specific area. The SOCOSE research is also in line with recent communications from the European Commission on Corporate Social Responsibility and with new topics discussed within the International Labour Organisation (ILO) on socially responsible enterprise restructuring. From July 2000 to January 2004, the project was organised along four phases. Two expert conferences enabled an exchange between practitioners and politicians. Phase 1 •

Interdisciplinary analysis of existing economic and political structures that are decisive for outplacement/replacement and of existing interventions.

Phase 2 • • •

Qualitative field study: interviews with employees in insecure job situations in the course of company restructuring and of employees who have successfully been reemployed after outplacement interventions. Analysis of innovative case studies. Preparation and evaluation of an expert conference with practitioners.

Contents

12 Phase 3 • • •

Comparative analysis of legal and ethical bases of outplacement. Qualitative field study: expert interviews with actors who are responsible in the process of dismissal (personnel and outplacement counsellors). Development of an integrated outplacement/replacement model for guiding occupational transitions.

Phase 4 • •

Integration of results and formulation of policy recommendations in the member states. Dissemination conference with representatives from unions, employers, and political institutions.

The main outcome of the SOCOSE project is a concept which can be used for outlining outplacement/replacement intervention strategies for employees affected by job insecurity within a wide variety of different settings and in different countries. Not only does such a concept integrate the interests of the employee in regard to the working situation with those of the dismissing company, but it also takes into consideration the effects of job insecurity on the quality of life of the affected persons. This means that, as opposed to existing strategies, factors outside the working place are also incorporated and used for such an integrated approach in times of occupational transitions. This volume assembles the background and results of the major part of the empirical research performed in the frame of the SOCOSE project – interviews with employees who are affected by changing work environments (“insecure jobs”) or who had previously lost their jobs and have found new employment through the help of outplacement/replacement counselling (“successfully re-employed”). In total, 250 employees in five European countries were questioned with regard to their experiences and their future job prospects. This part of our research was joined by the analysis of innovative cases (“cases of good practise”) in the field of professionally supporting occupational transitions. For each country, we will present cases where social actors joined in an innovative way, in order to cope with redundancy; where specific strategies were developed, e. g. targeting vulnerable groups; or where employers expressed their responsibility towards dismissed employees in a way that could set an example. The description of this part of our empirical research is structured as follows: For each country, we describe (1) the sample composition and results for those employees described as holding “insecure jobs”, followed by (2) the same procedure for those characterised as “successfully re-employed”. Thereafter, we illustrate the various “cases of good practice”. After these five country-specific reports, we present a comparative description across the five participating countries. This comparative description will highlight the main national commonalities and differences – both among the interviews and the case studies. We will conclude this volume with conclusions from our empirical research as to what could be considered “good practice” in the field of professionally guiding occupational transitions. The annex shows the interview schedules that were used in our research. It also contains some overviews of results that could not be included in the publication itself.

Comparative Report WP 2

Job insecurity and successful re-employment: Experiences in five European countries Thomas Kieselbach & Sabine Mader

Introduction .......................................................................................................

17

The “Renault Law” in Belgium..................................................................... The “cassa integrazione” and the “mobility list” in Italy .............................. The Social Security Code III (“Sozialgesetzbuch”/SGB) in Germany ......... Social plans in The Netherlands .................................................................... Compensation in Spain ................................................................................. Labour market policies in Europe .................................................................

19 20 20 21 22 22

2 Methodology of the overall project .................................................................. 2.1 Interview schedule of the qualitative studies ................................................ 2.1.1 Employees in insecure job situations ............................................................ 2.1.2 Successfully re-employed employees ........................................................... 2.2 Cases of good practice of outplacement/replacement ................................... 2.3 Data analysis .................................................................................................

25 26 26 27 27 28

3 Qualitative studies: Sample criteria ................................................................. 3.1 General criteria.............................................................................................. 3.2 National sample selection .............................................................................

28 29 30

4 Qualitative studies: comparison of results ...................................................... 4.1 Employees in insecure jobs ........................................................................... 4.1.1 Situation in the present company ................................................................. 4.1.1.1 Perception of uncertainty ............................................................................. 4.1.1.2 Superiors ...................................................................................................... 4.1.1.3 Effects on employees ................................................................................... 4.1.1.4 Collective action .......................................................................................... 4.1.1.5 Meaning of work .......................................................................................... 4.1.2 Aspects of justice ......................................................................................... 4.1.2.1 Distributive justice ........................................................................................ 4.1.2.2 Procedural justice .......................................................................................... 4.1.2.3 Interactional justice .......................................................................................

33 33 33 33 35 36 38 39 40 40 41 43

1 1.1 1.2 1.3 1.4 1.5 1.6

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1_2, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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4.1.3 4.1.4 4.1.5 4.2 4.2.1 4.2.2 4.2.2.1 4.2.2.2 4.2.2.3 4.2.3 4.2.4 4.2.5 4.3 4.4

Employability ............................................................................................... Responsibility .............................................................................................. Concrete measures ........................................................................................ Successfully re-employed employees ........................................................... Situation in the former company ................................................................... Aspects of justice ......................................................................................... Distributive justice ........................................................................................ Procedural justice .......................................................................................... Interactional justice ....................................................................................... Employability. ............................................................................................... Responsibility ............................................................................................... The outplacement measures .......................................................................... European comparison of the two sub-samples .............................................. Conclusions ...................................................................................................

44 46 49 50 50 51 51 52 53 54 55 56 59 62

5

Case studies: Sample criteria .....................................................................

62

6 6.1 6.1.1 6.1.2 6.1.3 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.3

Case studies of outplacement/replacement interventions ........................ Description of examples of good practice ..................................................... Characteristics of outplacement agencies and branches ................................ Overview of measures: components and scope............................................. Evaluation of the measures ........................................................................... Conclusion as to what is “good practice”...................................................... Scope and content of intervention ................................................................. Individual vs. collective outplacement .......................................................... Prerequisites .................................................................................................. Innovative elements ...................................................................................... Conclusions ...................................................................................................

63 63 63 65 68 70 70 71 72 72 73

7

General discussion ......................................................................................

74

Comparative analysis of job insecurity and re-employment

1

17

Introduction

The work described in this paper was conducted in the second Work Package (WP) of the SOCOSE project, jointly pursued by researchers in Belgium, Germany, Italy, Spain, and The Netherlands. The first work package served the assembly of information on labour market developments in general and on strategies to combat unemployment. Among these strategies, the knowledge about and implementation of outplacement counselling were key elements. The social and legal prerequisites for both, the dismissal and the implementation of outplacement counselling differ considerably among countries. (As will be described later, the components of the counselling itself are very much the same.) These prerequisites influence the extent to which company re-structuring will include outplacement, as for example they stipulate redundancy payments and/or additional support that has to be granted. These prerequisites are of importance for a comparative discussion. There are also differences as regards the social and economic situation in the different countries. One of these is illustrated in different unemployment rates as presented in figure CR-1. Figure CR-1: Development of unemployment rates in selected countries

30

25

Percentages

20 Belgium Germany 15

Italy Spain The Netherlands

10

5

0 1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

year

Source: OECD Employment Outlook, June 2000, OECD, Paris, 2000, p 202

As can be seen from figure CR-1, the unemployment rate is highest in Spain, though it is decreasing and thus getting closer to the other European countries. There is a clear north-south divide – with The Netherlands showing the lowest unemployment rates that are still declining. These prerequisites are of importance when it comes to re-

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Thomas Kieselbach & Sabine Mader

employment chances for persons being dismissed and for the perceptions of those whose job situation has become insecure (see below). The very low unemployment rates in The Netherlands might be due to an extraordinary high level of part time employment – as is illustrated in figure CR-2. Figure CR-2: Part time employment as a proportion of total employment 35

30

25

Belgium

Percentages

20

Germany Italy Spain The Netherlands

15

European Union United States

10

5

0 1996

1997

1998

1999

Year

Source: OECD Employment Outlook, June 2000, OECD, Paris, 2000, p. 218

Furthermore, it has to be noted that part-time employment is the kind of employment mostly chosen by women. Their share is nearly 80 % in all the countries studied (OECD, 2001) – with the exception of The Netherlands where this share is slightly more than 70 %. As regards the submerged economy (irregular jobs) – another area of employment that ought not be underestimated – no reliable data are available. There are, however, estimates for certain countries: Germany 22 %, Italy 30 - 46 %, Spain 11.5 – 32.3 % (see Schneider, 2000). Against these preconditions, the central aspect of the second Work Package was an assembly of subjective experiences of people who experienced job insecurity in a wide variety of settings. Two different groups of people were of interest: those actually facing an insecure job situation, and those who had participated in counselling after dismissal and were successfully re-employed. In the frame of our research, insecure jobs are defined as jobs being objectively insecure in fields that are about to face considerable dismissals. Often, the situation of the respective companies is discussed in the media and in the general public. The selection of branches or areas of business was performed according to the situation within each country (see chapter 3). It is important for the analysis that these people had not

Comparative analysis of job insecurity and re-employment

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yet been offered outplacement/replacement counselling. They did not necessarily have to feel insecure themselves. On the other hand, those having been successfully re-employed were supposed to have been offered counselling before dismissal and have consequently found new employment. The counselling should have taken place within the previous 12 to 18 months before the interviews. Organisation and financing should have been effected by the dismissing company, an external agency, or with the help of the labour administration. The next step was to find innovative case studies (cases of best practice) in the field of outplacement/replacement counselling. A broad variety of approaches were of interest so as to gain knowledge from the differences within the participating countries (see chapter 5). Hereafter we will first outline some key elements as derived from Work Package (WP) 1. These refer to the labour market situations in the different countries, to support schemes, and to the role of outplacement counselling. Some of these will be referred to again in the following chapters when it comes to the description of personal experiences and concrete cases. The report itself will be divided into two parts: the first describes the approach to employees in insecure job situations and to those having been reemployed; the second refers to the case studies.

1.1 The “Renault Law” in Belgium The Renault Law was established in 1998, following the closure of the Renault factory at Vilvoorde. The law applies to cases of collective dismissal and company closure and is an extension of the Collective Labour Agreement No. 24 (1975). The law specifies comprehensive procedures that have to be followed assuring the consultation of the employees. This consultation must relate to the possibility of preventing and reducing collective dismissal, as well as the possibility of softening its effects, by taking social support measures. In the event of collective dismissal or company closure, employees receive additional premiums on top of their severance pay. Furthermore, negotiations between employer and unions can also lead to additional grants. Outplacement counselling often forms part of the social plan negotiated. Employers are not obliged to offer outplacement except for employees aged 45 or over: A recent policy measure stipulates the right of every employee aged 45 or over to outplacement counselling. If this is incorporated, its scope is regulated by the Collective Labour Agreement No. 51 of the National Labour Council (a body representing both trade unions and employers). Participation in outplacement counselling is voluntary – it will be seen from the cases selected that often more employees qualify for outplacement than actually participate. The costs are regularly covered by the (former) employer. The Belgian situation is further characterised by different legal statutes for bluecollar workers compared to white-collar workers. This different legal statute takes, among others, shape in a considerable discrimination regarding the duration of the term of notice.

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1.2 The “cassa integrazione” and the “mobility list” in Italy The “cassa integrazione guadagni” (best to be translated by “earnings integration fund”1) was created with the aim of preventing temporary, reversible company crises from resulting in actual dismissal. Workers of a company that face difficulties may thus keep their status as employees even though they are not working. The ordinary cassa integrazione finds application in case of temporary difficulties that are not to be ascribed to the employer or company – mostly, for example, due to seasonal fluctuations in business. Yet, only industrial companies, without size limits, have access to this instrument; the areas of agriculture and service are excluded. The application of the extraordinary cassa integrazione – which will appear in some of the cases described – requires a more severe crisis. This might be significant restructuring or re-organisation of production. Again, only industrial companies have access provided they have at least 15 employees. If they want to make use of the extraordinary cassa integrazione they have to draw up a suitable intervention plan for overcoming the crisis and resuming activity. The workers, on the other hand, will have to attend training and accept any socially useful work that is offered to them. In any case, the system of the cassa integrazione only applies to a very limited set of companies thus creating considerable discrimination within the work force as a whole. It turned out that the fund granted by the cassa integrazione was, in fact, drawn upon for longer periods than had been foreseen – it was continued even when there was no chance for the company to resume its business. Therefore, the “mobility list” was introduced. This means that the employment relationship is officially terminated and the employees leave the company. All the workers that would have access to the extraordinary cassa integrazione now receive a payment above usual severance pay.2 In exchange, they have to accept any job offer that is suitable to their qualifications. This arrangement is temporarily limited. Any employer who hires workers which are registered in the mobility list may profit from certain reduction in taxes and social security contributions. Neither cassa integrazione nor mobility list include guidance or counselling, but both regulate the financial background for a number of dismissed employees as were subject to our study.

1.3 The Social Security Code III (“Sozialgesetzbuch”/SGB) in Germany The Social Security Code (“Sozialgesetzbuch” / SGB) forms the basis for various kinds of support and interventions – volume III refers to the area of employment. Among the interventions addressed in this field are retraining and substitutions for re-integration of unemployed people. Crucial to any intervention is its limited duration as it aims at sustainability – that means, employability or re-employment without the need for further 1 2

As there is no suitable translation and the term is well established internationally, we will use the Italian term. Regular unemployment benefit amounts to 30 percent of previous wages and is limited to six months. It can be drawn upon in any case of involuntary unemployment – except for those working in the public administration.

Comparative analysis of job insecurity and re-employment

21

substitution. The SGB III also includes various options for financial support (for training, application, and substitution in the first months of re-employment). One of the two parts of the SGB III most relevant for the cases described is § 175. This regulates structural short-time worker benefit in case of temporary financial problems in a company (for example, seasonal decrease in business). In the frame of comprehensive agreements, this can also be drawn upon in the case of company closure. This prerequisite has been included in the “Social Transfer Concept” which had been concluded between the Federal Employers’ Association of the Chemical Industry and the industrial trade union Mining Chemistry Energy (“Bergbau Chemie Energie”) in June 1998. Redirection of what would otherwise be paid as severance pay is used, for example, for qualification measures – which are usually organised by employment and qualification associations. These provide the employees with new, limited employment. Employees receive structural short-time worker benefit which is usually saved up by the former employer. Within the chemical industry this amounts to 90 %. Usually there are even further benefits, such as support for any necessary move in order to enable reemployment. § 254 was introduced into the SGB III in 1998 and it refers to company closure and the implementation of social plans which aim at support of employees towards reintegration. This is most often realised through the implementation of employment and qualification associations that offer – as mentioned above – regular yet temporary employment. (In most cases, a social plan based on financial compensation only is not an option under the new law.3) During this limited period, employees receive guidance in their job search and opt for further training without being registered as unemployed. It is important to know that these new, limited contracts usually contain written statements as to the active participation of the employees towards their re-integration. The active role of the employees is thus explicit part of the contract. Meanwhile, companies exist which are specialised in the preparation and performance of this kind of social plans (also known as “active social plans”) which incorporate an extensive number of administrative tasks. While the duration of these contracts may be up to 24 months under the conditions of § 175, they are limited to three months according to § 254.

1.4 Social plans in The Netherlands The components included into social plans are probably most developed in The Netherlands (compared to the other countries presented here). What was introduced as the “first generation” of social plans mainly focused on financial aspects; the “second generation” already included outplacement interventions. The “third generation of social plans” now further strengthens this issue. Depending on the specific strategies of the outplacement agency, their measures often incorporate active job search and job placement by an external party (this is indeed regular practice in Belgium and explicitly denied by most of the traditional outplacement companies in Germany, Spain, and also in

3

§ 254 also sets forth the conditions for financial contributions from the Federal Agency for Labour (“Bundesagentur für Arbeit”).

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Thomas Kieselbach & Sabine Mader

The Netherlands4). Participation in outplacement counselling, however, is always voluntary. In many cases, we found joint intervention project where employers, labour unions, the public employment services, the insurance administration, and an outplacement company co-operated successfully. This close co-operation can be regarded as innovative and an example of good practice.

1.5 Compensation in Spain The legal prerequisites in Spain are mostly limited to financial compensation for dismissed employees (“passive social plans”). They On the one hand, they receive an amount which varies according to previous income and duration of service. This has to be paid by the previous employer. In addition, they receive unemployment subsidies for a limited period – in case they have had regular employment and have thus contributed to the social security system for at least six months. The social security system, however, not only provides for financial compensation; there are also several re-employment programmes, among which the Information and Advice for the Search of Employment (IOBE) programme ought to be mentioned. It is mainly financed by the European Social Fund and concrete interventions are developed by the public administration, the trade unions and/or other social actors. Currently, Spanish administrations are preparing new programmes to be integrated in active labour market policies and which come very close to the idea of outplacement (see chapter 6). Up to now, the offer of training or outplacement counselling in case of dismissal is limited to those companies who consider it their responsibility to offer not just financial compensation.

1.6 Labour market policies in Europe As has been outlined above, all over Europe there is continuous concern as regards high unemployment rates (with the exception, however, of The Netherlands; yet also there the rates have recently been increasing again). Despite these common prerequisites, there is considerable variation as regards measures to cope with this situation. Figure CR-3 illustrates the proportions of active vs. passive labour market policies in the SOCOSE countries. The northern European countries have adopted more active labour market strategies than the southern European countries. These are least implemented in Spain – but also the Spanish government is now strengthening its efforts in this direction, as is illustrated in the Spanish National Report (in this volume). The overall proportion of labour market strategies in general is lowest in Italy. This is, however, the only country where active strategies predominate over passive strategies.

4

Most recently, there seem to be changes in this area. For example, Challenger, Gray & Christmas, the oldest outplacement company in the USA, argue that at least an extensive job bank - continuously updated - should be made available to the participants (see Challenger, 1994, p. 38).

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23

Figure CR-3: Active and passive labour market policies in relation to gross national products 3 active

passive

2.5 2 1.5 1 0.5 0 Netherlands

Belgium

Germany

Spain

Italy

Source: OECD (2002). Employment Outlook. Paris: OECD.

The following chapters will sometimes make reference to certain areas or branches of business. Economies are not equally affected by economic changes. Problems are sometimes predominant in certain branches, and larger companies or even multinationals might more readily implement their own intervention schemes. As regards smaller and medium-size companies, most probably forms of association will have to be addressed (sometimes created) in order to regularly implement counselling without too much financial burden being put on one company which is already in difficulty. Consequently, it was difficult to select comparative cases and respondents in each country under study. Figure CR-4 gives an overview of the number of companies of various sizes in the countries of the SOCOSE project in relation to the number of people employed. Large and medium-sized companies, which might be the first to develop guidance and counselling schemes given the number of employees affected by restructuring, are not predominant. A large number of companies in the countries studied are small. This supports the request for more innovative models and extended co-operation in cases of dismissal and transitional guidance to be arranged for. One of these guiding schemes – that is in the centre of our project – is outplacement/replacement counselling. This report addresses this issue by interviewing those directly affected: on the one hand, employees in insecure job situations, and on the other hand, employees who have successfully participated in outplacement/replacement counselling. The first group was, among others, asked for an evaluation of their current situation and for the kind of support they would favour. The second group evaluated the counselling they had received. Furthermore, experts in the area of outplacement counselling contributed their viewpoints and experiences.

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Figure CR-4: Proportion of companies assorted per size (1996) 70 companies without employees small companies (1-49 dependent employees) middle-size companies (50 - 249 dependent employees)

60

larger companies (> 250 dependent employees)

percentage of employment relations

50

40

30

20

10

0 Belgium

Germany

Italy

Spain

the Netherlands

European Union (EU15)

Source: Eurostat Yearbook 2000 – Europe in the view of statistics, Luxembourg, 2000, p. 384

The issue of transition counselling incorporates the broader concept of employability. This concept is attributed to various characteristics – in short, it means a continuous adaptation of employees’ qualifications to changing labour markets (for more extensive definitions, see Gazier, 1991). Given the increased instability of labour markets in general and an associated increase in transitions in individual occupational biographies (see Kieselbach, 1998, forthcoming), counselling and training during job loss is but the least requirement. Employability has to be continuously assured and maintained – through comprehensive educational programmes that formulate a challenge to all the actors involved. Employability cannot solely be regarded an individual characteristic and an individual task. This issue will be referred to again in the empirical parts of this study as well as in the conclusions. Apart from this, special emphasis is placed on the issue of responsibility: considering the increasing demand for job flexibility and an increase in occupational transitions in certain areas – who is judged responsible for the structuring and cushioning of these processes? This also refers to the concept of employability. Whose task is it to ensure permanent adaptation to labour market demands – and is this a topic in the field of employment? In the final chapter (chapter 7) we will try to give some preliminary answers – which will also have to be linked to the prerequisites outlined above.

Comparative analysis of job insecurity and re-employment

2

25

Methodology of the overall project

The method chosen within the SOCOSE consortium for carrying out the qualitative studies is the so-called Problem-Focused Interview (PFI) which was developed at the University of Bremen, Germany, already in the 1980s (Witzel, 1985, 1996, 2000). Since then the PFI has been applied to different research settings – also in the field of occupational transitions – leading to the further elaboration and adaptation of the method (Heinz, Krüger, Rettke, Wachtveitl & Witzel, 1987; Kieselbach, van Heeringen, La Rosa, Lemkow, Sokou & Starrin, 2001; Mönnich & Witzel, 1994). The basic reason for the invention of the PFI both for conducting and analysing qualitative interviews can be traced back to the already long-standing debate between the two main approaches within qualitative research (see Witzel, 1987): on the one hand the standardised methods working with pre-defined theoretical concepts through which a high comparability of research results is ensured, but which at the same time often seem to be rather inflexible with regard to the specific experiences of the research subject (normative paradigm); and on the other hand the process-oriented methodologies (interpretative paradigm) with their plea for a paradigmatic shift within qualitative research towards: (1) openness – allowing for an adaptation of the method to the perspective of the interviewee; (2) communication – in the sense of understanding the interview as a co-operation between interviewee and interviewer; and (3) context-orientation – stressing that the interview cannot be understood without considering the individual and societal context within which it was conducted. It is obvious that the latter approaches give a high importance to the research subjects, but their demands of active integration easily lead to a loss of comparability of the research results. Looking closely at these two – only at first sight conflicting – paradigmatic points of view, the question immediately comes into focus whether it is possible to develop a methodology using the strengths inherent in both of them, while avoiding their criticised weaknesses. Exactly this thinking is reflected within the PFI which can be understood as a pragmatic qualitative research approach applicable to a variety of different research questions. The adaptation and combination of methods (use of interview schedule vs. interview guide vs. free-response; use of research hypothesis in the interview process; question of comparability; role of interviewer; choice of interviewees) allows the PFI to put its main focus on the exploration of the subjective experiences, the individual course of actions and the interpretations given by the interviewee (interpretative paradigm). At the same time, it is not denied that the interviewer enters the interview process with pregiven knowledge and usually also a theoretical hypothesis regarding the research subject (normative paradigm). Bringing this together, the PFI demands in its application that an openness has to exist with regard to the knowledge of both actors within the interview process in order to guarantee that an understanding of the evolution of the problems and ideas of the interviewee can take place. The Personal Data Sheet gives the interviewer basic information about the interviewee at the beginning of the interview. This type of check-list enables an easier and more personal start to the interview, and helps to formulate additional questions which are of importance with regard to the interviewees biography. These mainly sociodemographic variables also ensure the basic comparability of the interviews.

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The core material of the PFI is the Interview Schedule which is developed on the basis of the respective research hypothesis. It includes a limited amount of thematic fields each of which consists of a key question (KQ), additional questions and a certain amount of short remarks (in the form of bullet points). Due to reasons of comparability, the KQs are always asked exactly in the way they have been formulated when introducing a new thematic field. They serve as the general framework and orientation for the interview. As opposed to the use of the KQs, the formulation and the moment the additional questions are brought forward depends upon the individual interview process. The short remarks are only meant as an information for the interviewer and can help to get further ideas to deepen the discussion and to formulate additional questions. This combination of a rather formal introduction of each thematic field through the KQs, the flexible use of additional questions, and the possibility of integrating new themes into the interview shows how account is taken of both the perspective of the interviewee and that of the interviewer, and the demanded openness of the interview process.

2.1 Interview schedule of the qualitative studies Two kinds of interviews were performed during Workpackage 2 – requiring different interview schedules. On the one hand, interviews were performed with employees in insecure job situations, and on the other hand with employees who had successfully been re-employed after participation in outplacement counselling. This part is referred to as “qualitative studies”. A separate set of interviews was performed with experts in the field of outplacement counselling – those responsible for the execution of such interventions; these are termed “case studies”. Hereafter we will present an overview of the interview schedules as used for the different interviews. We will list the key questions and some of the additional aspects that were to be covered as to the specific situation in the interviews. Each interview lasted approximately one hour. The interviews for the qualitative studies were fully transcribed – see chapter 2.2. The interview schedules that were developed are included in Annex 1 to 3.

2.1.1 Employees in insecure job situations The questions served to explore the actual situation in the company (1), the perception and possible consequences of job insecurity for the interviewee (2, 3, 4), the process of downsizing or restructuring in case it had already started (5), and the responsibilities of the company and the individual employees during downsizing as perceived by the latter (6, 7, 8). The following key questions were presented to the interviewees in this subsample (for selection criteria see chapter 3). 1. 2. 3. 4.

Are there plans to reduce personnel in your company/rumours about future dismissals? Do you personally feel that you might be dismissed/lose your job? How does it make you feel? In the branch of your company, jobs are no longer as secure as they were in the past. How do you react to this? Does this influence your behaviour?

Comparative analysis of job insecurity and re-employment 5. 6. 7. 8.

27

Could you tell me more about these plans and about the introduction of these plans to the employees? What do you think should be the responsibility of the company when laying-off personnel? Which concrete aspects have perhaps already been realised in your company? What do you think should be the responsibility of the individual when confronted with the possibility of a dismissal?

As has been outlined above, each key question was followed by a number of aspects, and the questionnaire also explored basic demographic data.

2.1.2 Successfully re-employed employees The questions served to explore the process of downsizing in the previous company and the responsibilities of the company and individual employees during downsizing or restructuring (1, 2), and the evaluation of the outplacement/replacement counselling that had been implemented (3, 4). Thus, the sequence of questions differed from that chosen for the first sub-sample – given the different situations the respondents were facing – but the very same elements were covered. The following key questions were presented to all the interviewees in this sub-sample (for selection criteria see chapter 3). 1.

2. 3.

4.

Can you describe the situation during the time when your previous company planned to dismiss employees? That means, we are going back in time, before the start of the outplacement counselling. What do you think should be the responsibility of the individual when confronted with the possibility of a dismissal? Please describe what kind of support you received on the part of the outplacement/replacement agencies or other institutions with regard to your occupational reintegration? If you consider the whole process of dismissal and the treatment from the previous company, what do you think about it?

As has been outlined above, also in this sub-sample, each key question was followed by a number of aspects, and the questionnaire also explored basic demographic data.

2.2 Cases of good practice of outplacement/replacement The interview schedule for these case studies differed from the previous two since here the interest was not primarily with the personal situation of the respondents. The topics covered here all referred to a concrete example of outplacement counselling that was considered to be innovative (for further details on sample criteria see chapter 3). In this case, no key questions as in the concept above were used. The questions should, more generally, collect information about the institution and a description of the intervention (framework and content). Furthermore, respondents were asked for their evaluation of the transferability of the elements of the measure and future perspectives for the institution and the particular intervention.

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2.3 Data analysis All the interviews were tape-recorded. Those belonging to the “qualitative studies” were transcribed word-by-word and analysed with the help of a specific software for qualitative data analysis. In general, computer-supported text analysis is increasingly used within qualitative research projects. Experience has shown that access to the high amount of data is facilitated through the application of this method. Aditionally, a faster control of the complex patterns including their interconnectedness can be secured (e.g., Kühn & Witzel, 2000). The software not only allows for a more precise way of analysing the material, but also for verifying interpretations and retracing conclusions drawn from side of the researchers (Kuckartz, 1999; Tesch, 1990, 1992). The software programme winMAX (Kuckartz, 1999) was chosen for the analysis of the material within the SOCOSE project due to the fact that many experiences had already existed with the use of this programme in combination with the ProblemFocused Interview (PFI) at the University of Bremen (for an overview see e.g. Kluge, 2000; see also Kieselbach, van Heeringen, La Rosa, Lemkow, Sokou, & Starrin, 2001). In addition, when compared to other software programmes, the fairly simple structure makes this programme especially attractive for an international, comparative research project. As a first step, the transcribed interviews were coded, following the thematic fields as defined within the interview schedule. This thematical coding allows to structure the interviews. Printouts for each code are made upon which the descriptive analysis and the subsequent case interpretations are based. The descriptive analysis of the cases is done along the codings. In the beginning of the text a short summary is given of the socio-demographic data of the interviewee based upon the personal data sheet. Then, the codings are summarised on a descriptive level. Comments are added indicating the most important quotations from the original interview. Based upon the descriptive analysis, a short case interpretation is developed. These individual case interpretations are summarised under the headings as contained in the table of contents of the National Reports in this volume. The interviews for the case studies were analysed on the basis of the elements contained in the questionnaire which are represented in the sequence of the table of contents. An elaborated strategy like the one described for the qualitative studies was not necessary, given the limited number of interviews in the case studies (see also chapter 3). The researchers in the different national teams received intensive training as to the use of the software and the procedures for analysis.

3

Qualitative studies: Sample criteria

It is obvious, that the different target groups described in chapter 2 required different sample selection criteria. The general considerations are stated hereafter – as far as the qualitative studies are concerned. We will illustrate some specific aspects that had to be considered in the different countries. The details referring to the case studies are addressed in chapter 5.

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3.1 General criteria The two groups (“insecure jobs” and “successfully re-employed”) each were to consist of 25 interviews in every country. As regards the criteria of "objective insecurity" (see chapter 1), the “insecure” respondents should, in general, not be employed in fixed-term jobs. Furthermore, we aimed at a fairly equal distribution of males and females as well as blue and white collar workers. The age of the respondents should be between 25 and 50 years. Figure CR-5 shows the most important elements of the sample distribution. It has to be pointed out again, that “insecure” ought to refer to the objective situation of the branch or company. This must not necessarily be reflected by feelings of insecurity among employees. The selection of branches or areas of business had to be performed according to the situation within each country. The persons selected for the interviews must not have been offered outplacement counselling at the time of interview performance. As regards the “successfully re-employed”, they ought to have been offered counselling prior to dismissal which should have been financed by their former employers. In this respect, it was of no importance whether the counselling had been performed by members of the company itself or by an external agency or else with the help of the labour administration. It had to be a comprehensive measure, and the intervention must have lead to re-employment. In any case, respondents should not stem from the management level but from intermediate or lower qualification levels. On the other hand, figure 5 would not lead to an equal distribution of, e.g. “female white collar workers” as opposed to “male white collar workers” or “female blue collar workers”. These details would depend on the branches or specific situations within the different countries. An equal distribution might thus not be considered suitable in any case (see, e.g. construction or coal industry in Germany, clearly affected by insecurity and characterised by fairly low qualification levels – but predominated by male employees). It was agreed that further details for the selection of interviewees should be based on personal access and suitability within each country. Figure CR-5:

Selection criteria for the two sub-samples of the qualitative studies

Insecure jobs (25 interviews in each country)

Fixed jobs

Permanent jobs

Successfully re-employed (25 interviews in each country)

50% each • male/female • blue/white collar

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Thomas Kieselbach & Sabine Mader

3.2 National sample selection As has been outlined, further to the above general selection criteria, each national research team applied further criteria as to, e.g., selection of relevant branches. These are elaborated in the National Reports in this volume. Hereafter, we will present a short overview. In Belgium the food industry was chosen where the requirements to increase competitiveness have lead to a number of restructuring processes; smaller companies have been taken over by multinationals. The airline and automobile sectors are further branches that were chosen, as well as banks. Among the branches selected in Germany were railway, construction, chemical industry and also banks. As regards the industrial sectors, female respondents were underrepresented in the sample. Branches facing crises in Italy were food industry, chemical industry, textile and construction. The selection turned out to be more difficult for the re-employed sub-sample, as outplacement counselling is not implemented equally in all the branches. Especially as regards the “re-employed”, respondents in Spain mainly came from multinational companies as these are, so far, the only companies that make use of outplacement counselling for those being dismissed. Finally, because of the favourable labour market situation in The Netherlands at the time of the interviews, no clear distinction could be detected between different branches. Table CR-1 gives an overview on the interviews performed in each country with regards to the subgroup “insecure jobs”, age composition and branches as well as qualification levels selected. In Germany, ten of the employees interviewed had been employed at the same company for a period of 10 to 19 years, five persons for more than 30 years, and only 5 persons (of which three came from the IT sector) for less than 5 years. In Italy, the average tenure of the interviewees with their present company was 14 years. In Spain, most interviewees had worked at the same company for many years; only the younger workers had experienced a more complex working life, esp. in the service sector (here we find mostly women and younger persons). Thus, there is a tendency – this is also confirmed for Belgium and The Netherlands – that a considerable number of employees who are currently facing insecurity with regard to their companies’ situation have been working there for quite a long time – sometimes, as will appear in the National Reports, for more than just one generation. A shorter job duration is mostly found within the sector of information technology (see, e.g. National Reports Germany as well as Italy) where job transitions are normal and people are used to switching jobs whenever there is a better perspective or payment. Table CR-2 gives an overview on the interviews performed in each country with regards to the subgroup “successfully re-employed”, age composition and branches as well as qualification levels selected. In most countries under study, the situation resembles that of the first sub-sample in the sense that a longer duration of employment within the previous company was predominant. In Italy, however, the average tenure had only been two years.

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Table CR-1: Composition of the sub-sample “insecures” Country

Age in years average 39.2

Sex / family situation 16 male / 9 female; mostly married and with children

Branches

Qualification

food industry; airlines; car industry; banking sector

almost equally blueand white-collar workers (almost all with low or medium level of education)

Germany (N = 25)

26 to 51

21 male / 4 female

construction industry; energy and IT sectors; banking; Deutsche Bahn AG (German Railways)

predominantly workers (18) and lower staff (7)

Italy (N = 25)

25 to 53 (majority over 40)

14 male / 11 female; mostly married and with children

mainly industry, e.g. electronics and computers (6), textiles (4), mechanics (3), and service (5)

medium to high; mostly high school degrees; 14 whitecollar and 11 bluecollar workers

Spain (N = 25)

28 to 53 (average 40.5)

13 male / 12 female; some married, majority with children

primary sector: mining industry; secondary sector: car and home appliance manufacturing, telecommunication; tertiary sector: commerce, private education, media activities, public institutions

predominant level of academic qualifications are secondary studies

The Netherlands (N = 25)

28 to 53 (average 41)

11 male / 14 female; about half with resp. without children; 17 currently married

banking (2), ministry of defence (1), reintegration (6), industrial manufacturing (3), technical manufacturing (1), telecom (2), publishing (3), transport (2), health care (1), education (2), automobile industry (3)

predominantly skilled workers from various job levels

Belgium (N = 25)

Remark: The entries in the table differ across countries as there were no pre-set categories for these characteristics.

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Thomas Kieselbach & Sabine Mader

Table CR-2: Composition of the sub-sample “successfully re-employed” Country

Age in years average 39 (two third younger than 40)

Sex / family situation 15 female / 10 male; almost all married, with mostly 2 children

Branches

Qualification

very large variety

two third white collar

Germany (N = 25)

25 to 52

16 male / 9 female

building sector; Deutsche Bahn AG (German Railways); energy suppliers; chemical industry; banking; merchant wholesalers

primarily white- or bluecollar workers (lower hierarchy) vocational qualification (accompanied by targeted professional consulting)

Italy (N = 25)

30 to 54 (majority over 40)

15 male / 10 female; mostly married and with children

concentrated in electronics and computers (6), food sector (3), and services (9) multinational and small-size firms

medium to high; mostly high school degrees; 15 blue- and 10 whitecollar workers*

Spain (N = 25)

28 to 53; (average 41.2)

12 male / 13 female;

mostly secondary sector (pharmaceutical + chemical industry; manufacturing; food industry); tertiary sector: areas of computer, communication, insurance, commerce, finance, law**

predominant level of academic qualifications is secondary education

The Netherlands (N = 27)

30 to 60 (average 44; majority over 40)

14 male / 13 female; mostly married and with children

education; welfare; insurance; agriculture; chemical industry; semigovernmental; police; reintegration; technical industry

predominantly skilled workers from different job levels

Belgium (N = 25)

Remarks: The indications differ among countries as there were no pre-set categories for these characteristics. * This distribution mirrored the greater diffusion of outplacement counselling within white collar workers. ** This selection represents the limited dissemination of outplacement in Spain.

Comparative analysis of job insecurity and re-employment

4

33

Qualitative studies: comparison of results

This chapter will give a systematic overview on the answers that were obtained in the interviews. We will focus, on the one hand, on those elements that are common in most countries – sometimes much to our surprise given, e.g., the diverging stage of implementation of outplacement counselling or else the various degrees of informal labour contracts. On the other hand, we will outline the differences most important in the frame of the evaluation of outplacement concepts. We will first describe the sub-sample of those employees who are working in insecure branches or job situations (hereafter referred to as “insecures” or “insecure jobs”); thereafter we will outline the results of those who have successfully participated in outplacement counselling (hereafter referred to as “successfully re-employed” or only “re-employed”). In general, we start each of the descriptions with the northern European countries where outplacement counselling is more advanced or implemented to a broader degree. The sequence chosen is Belgium – Germany – The Netherlands – Italy – Spain. The Netherlands with the most elaborated models thus form the transition between north and south.

4.1 Employees in insecure jobs The following sub-chapters follow more or less the sequence of questions as they were included in the questionnaire.

4.1.1 Situation in the present company The situation in the present company is evaluated with regard to present or previous dismissals and changes in the working atmosphere. We will analyse to what extent the persons interviewed experience insecurity with regard to their job situation and how they cope with this (whether there is collective action or more individualised coping or resignation).

4.1.1.1 Perception of uncertainty The selection criterion for this sub-group was an objective situation of uncertainty affecting a company or a branch at a whole. However, employees experience considerable uncertainty also with regard to their individual situation – sometimes to varying degrees but more or less expressed in most interviews. In Belgium, a restructuring or downsizing process had been announced in most of the cases but had proceeded to various stages. Even in cases where there were only rumours, employees were frightened (see National Report Belgium). Feelings of insecurity and distrust towards the company were strongest in cases where there was a lack of clarity in company communication. In other cases, however, employees seemed to neglect obvious signs that their jobs were not so secure anymore. In Germany, worry and uncertainty among employees about further job cuts were predominant. Those affected live in fear of breaking even minor rules and making a negative impression, thus jeopardising their jobs (see National Report Germany). The situation is further heightened by the practice of transferring employees at short notice

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to other departments without previous communication. Employees experience a lack of care and interest of the firm. Uncertainty is explicitly named as the element that worsens the situation. “If they would say now, such and such is the case, that’s definite, that’s a fact, then you can somehow prepare yourself for it, but this uncertainty, that’s the worst part” (GER-IJ-16; 555-561). There is a lack of information as regards dismissals being planned or else company strategies on the whole. The situation intensifies subjectively for the remaining employees due to the phenomenon of increasing voluntary leave. Employees, who prefer to take an active strategy of coping, leave the firm as soon as they find a possibility of vocational transition, which puts even more psychological stress and pressure on those employees remaining at the firm. We could also observe some kind of “resigned adaptation” – based on extended experience of insecurity and continuous dismissals in the company (see National Report Germany). “If I’m the next, well then I’m the next. …But there’s always a way to get through life” (GER-IJ-3; 380-384). “Adaptation” can also be a sign of one’s feeling to be qualified to meet the requirements of the labour market; furthermore, prior job transitions may lead to the feeling that the situation is more calculable. The report from The Netherlands gives a very detailed description of each interviewee’s situation (see National Report The Netherlands). To sum up, the interviewees most often report of restructuring which is accompanied by a considerable number of internal re-placements. In some cases, the employees affected did not understand the reasons behind these processes as the company was still making profit; only sometimes, reorganisation was considered to finally clarifying the situation and thus being a relief. The selection criteria for individual dismissals were often not explicitly known at time of interview; where these were known, usually the criterion of seniority was used (NLIJ-18, NL-IJ-19, NL-IJ-20). Interestingly, also permanent contracts did not automatically provide employees with a sense of security (see National Report The Netherlands). The fear of being dismissed proved to be independent of age and years of tenure. Especially in those cases in which the company was still making profit, respondents clearly did not understand why the organisational changes, with such far-reaching personal consequences as dismissal, were necessary, and perceived the situation as very unfair (see also chapter 4.1.2). Given the favourable situation on the Dutch labour market, most respondents were quite confident about finding another job. However, they felt more insecure about finding a suitable job on the right level, with good working conditions. Elderly workers generally felt highly insecure about their possibilities on the labour market compared to the young respondents. Especially the young respondents who had never developed the idea of lifetime employment with their current employer proved to be more convinced about the possibilities of finding another suitable job. In Italy, most of the interviewees reported having had experiences with dismissals in the past. The actual uncertainties were mostly caused by privatisation of state companies or restructuring following market difficulties, acquisitions or mergers. In general, there is a strong fear not to find new employment which is, however, moderated by age, sex, and level of qualification (see National Report Italy). Some general tendencies can be observed. For example, having a (dependent) family was associated with greater stress with respect to the possible job loss; older respondents expressed little faith in

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being able to be re-employed; persons who had always worked for the same company showed less capacity for initiative and a lesser acquaintance with the labour market (see National Report Italy). In Spain, the employees interviewed were actually facing the risk of dismissal; some had already received a letter informing them about the termination of their labour contracts. The reasons behind these dismissals were: restructuring at a global level, privatisation, joint ventures, mergers, relocation to other areas, decrease in production. There were, however, considerable differences depending on the sector of business. The tertiary sector, for example (esp. the area of telecommunication), was effected either by privatisation or by mergers. In this sector, restructuring mainly aims at making the workforce more flexible by increasing the proportion of temporary workers and decreasing the number of permanently contracted workers (see National Report Spain). The majority of people interviewed who worked in this sector (private education, advertising, post office and public administration) had temporary contracts and tended to have a feeling of job insecurity which was very personal and not collective. Employees working in this sector strongly reject any intention to make the labour force more flexible – perceived by workers as a worsening in labour conditions. In the previous years, many companies had divided the workforce into two groups: on one side the older workers with permanent contracts, and on the other, newly hired workers with temporary contracts. Both groups have different working conditions, a fact which has weakened their capacity to negotiate. While the temporary workers have more precarious work conditions, the permanent workers are pressurised to accept changes in their work conditions (timetables, work tasks, etc.) or even to leave the company (through early retirement or redundancy incentives; see National Report Spain). People who work for a large company with a strong union presence have a certain amount of power they can use to induce companies to negotiate; however, people who work for small companies or without union presence have less margin to manoeuvre in order to face the processes of change and have to accept more precarious working conditions or more indiscriminate redundancies (see National Report Spain). To sum up, it can be stated that most of the persons interviewed were in a situation of company restructuring or downsizing. In many cases, they were not – or not sufficiently – informed about the reasons behind this. Some doubted explicitly that there was a need on the side of the company. They felt being treated unfair, given the extended years of tenure most of them had within their particular company. There was considerable insecurity as regards the situation as a whole and also as regards one’s personal occupational future. The lack of company-based communication lead to increasing rumours which, in turn, increased the feeling of insecurity. People tried to cope with this either through an increase in activity and job performance hoping that this might avoid their being dismissed. Others showed some kind of resigned adaptation and “wait-andsee” attitude supported by the feeling that they have no influence anyway and will find some way to adapt to whatever new situation comes up.

4.1.1.2 Superiors In some of the countries, changes are reported that do not only relate to the employees affected but to their superiors and even the management. It is reported that in Belgium, the situation in the work places might remain quite good (probably also due to well

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established social plans that always include some kind of guidance). However, the relationships between employees and their superiors might deteriorate as there is an increase in control and supervision (see National Report Belgium). In Germany, communication declined both among those affected and also between them and their supervisors. Furthermore, the changes in job atmosphere also affected the management. The situation of job insecurity resulted in a change of attitude toward one’s superiors, who were assumed to have participated in the selection of the colleagues to be dismissed. It can be seen that in some countries there is particular change as regards behaviour of superiors or the relationship between them and the employees they are responsible for. Especially in Italy there seems to be increased control – it has to be assured that workers perform their tasks until final closure of the company. In general, superiors are partly held responsible for the changes; they might at least be involved in selection of those colleagues who are going to be dismissed. Their role, on the other hand, might also have changed as some of them might be directly affected by downsizing plans, thus facing insecurity themselves. Consequently, superiors are in a difficult situation too, which adds to the insecurity on the side of the employees.

4.1.1.3 Effects on employees The Belgian report describes an interesting sequence in the changes that occur in the workplace atmosphere (see National Report Belgium). Upon announcement of downsizing, confidence in management is lost while relations between employees might still remain good. After this initial shock, the atmosphere might even improve or calm down. But “peace” in the workplace might also merely reflect some kind of apathy on the side of employees. If, however, the process is prolonged, the workplace atmosphere might change again which is experienced as a deterioration. Some employees have already found a new job, thus increasing the workload on those who still remain. Conflicts among fellow workers come up which lead to a decrease in motivation and also in solidarity. In Germany, most of those affected spoke of a change in their relationships to fellow employees, which was expressed in sharpened competition: “So in the end everybody tries to save his own skin, everyone was on edge” (GER-IJ-23; 133-134). Collegial support for fellow workers with lower performance was on the decline (see National Report Germany). Communication deteriorated, as did solidarity which was replaced by an individualistic approach of coping with job insecurity. An atmosphere of mutual mistrust dominated – worry and uncertainty about further job cuts were mentioned. In this situation colleagues try to avoid making mistakes and breaking any rules. Furthermore, they make an effort to stand out from their colleagues by taking on more responsibilities to enhance their personal profile. “Nobody wants to let himself be seen as owing something...that would definitely be noticed” (GER-IJ-20; 144-145; see National Report Germany). A notable decrease in cases of sickness is reported5. All in all, insufficient information leads to a worsening of the workplace atmosphere and to increased anxiety among colleagues. The motivation of the affected employees strongly suffers from the tense atmosphere; a previously high degree of job orientation tips in favour of 5

As will be illustrated in the following paragraphs, Germany forms an exception in this respect. In the other four countries, whenever there was a change in sickness leave, this was an increase!

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an orientation to leisure time. “Well, to be honest, I really don’t feel like going into work in the morning” (GER-IJ-2; 534-525). In The Netherlands, the general observations also were negative work atmosphere and dissatisfaction, as well as loss of motivation was reported. In some cases respondents developed a closer bond to their colleagues, while others reported on an increased sense of competition vis-à-vis their colleagues. Several respondents indicated that previous reorganisations, in which employees were replaced to different locations, have resulted in a greater distance between colleagues in the present situation (see National Report The Netherlands). In most cases, there was an increase in sick-leave percentage, more rivalry and competition. Problems with sleeping, concentration, fatigue and stressrelated complaints were often reported. Elderly workers showed more health complaints in reaction to the reorganisation than younger respondents. In Italy, there is growing competitiveness and disagreement among workers and increased selfishness. They experience frustration and a lack of trust which leads to uncontrolled fear. Specific competitiveness is observed between generations (National Report Italy). In one particular case, it was left to the older workers to decide whether or not to be put on the mobility list. These, in turn, felt pressure from younger colleagues and especially those with families to leave the company. So the company obtained “voluntary leave” from those whom they would otherwise have tried to dismiss. In general (as is also described in the National Reports from Belgium and Germany) there was increased commitment in order not to be selected for dismissal. In most cases reported from Spain, the announcement of restructuring also resulted in a change in work atmosphere – increasing rumours, stress, and in some cases a clear increase in sick-leave (see National Report Spain). One employee from the secondary sector reported that the situation of job insecurity made him so ill he could not go to work “however, the medical service at the company put me through a stringent medical check up, they rang my home at any time of the day and night, they came to see me and made me go to the doctor continually, and this made me even more ill” (SP-IJ-10; 274-281). Increased competition and absenteeism seemed most prevalent in the tertiary sector where most of the employees hold temporary contracts. Only in companies where the employees react collectively the situation was perceived as less stressful. Divorced or separated women with children are, perhaps, those who see the situation in the most negative light. It seems that men do not perceive the situation as critical – or at least do not express it that explicitly. Employees in more precarious jobs or with temporary contracts seemed to be more active when having to face changes while those who had been in the same company for many years had problems to adopt to the new situation. All in all, a mixed picture emerges – though the situation in the company clearly affects all the respondents. Some report about increased sickness leave, others point to increased commitment in order to possibly avoid dismissal. There seems to be considerable disorientation – caused not only by the insecure situation itself but also by a lack of information on the part of the management. This deteriorates the situation of the individuals who mostly report of a number of health complaints or at least of negative effects on their general well-being.

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4.1.1.4 Collective action The predominant attitude of the workers could be summarised as individualisation: insecurity was dealt with on an individual level. Through increased commitment, people tried to prevent dismissal – others reacted with apathy and withdrawal. Only in some countries, collective action was reported in order to react to the restructuring or to prevent dismissal. In Italy, conflict between different generations emerged also with regard to collective action and union request. “The older colleagues utilise the union. ... They would like the younger workers to put themselves on the front line. But, obviously, this doesn’t work because each one of us protects his own job, because we can’t live without a job” (IT-IJ5; 40-42). In general, however, distrust towards unions was observed which can partly be attributed to hostile policies implemented by the firms. In Spain, there is strong union presence in the primary sector (in this case, in the mining industry). As companies usually do not enable workers to participate in the decision making process, the workers reacted with strong mobilisations (strikes, demonstrations, etc.) which even involved local politicians, through which they managed to get the companies to reconsider layoff decisions. Also in the secondary sector (care and home appliance manufacturing industries) the union presence was quite strong, although it seems that the part the unions had to play was not always valued by the people interviewed (in some cases the unions were accused of working for the company and against the workers). Some interviewees commented that in some cases the unions had agreed to certain working conditions without really taking into account the demands of the workers. Collective action was also prevalent in the area of telecommunication. The greatest difference is seen between those companies where the unions are united and those where the unions are divided. In general, the higher qualified employees (especially those with university education) view the whole process from a more isolated position and do not rely on union support. In The Netherlands, there was mostly no collective action at all – people didn’t believe that any action could have changed the situation. However, in cases where action was undertaken, it was valued positively (“We have undertaken all kinds of actions together. It has strengthened the team to be together in difficulty”; NL-IJ-15; 33-35). All in all, it can be stated that collective action was not predominant in any of the countries – with the exception of Spain. The whole process of restructuring – and the rumours and uncertainties that accompanied it – lead to a strong individualisation either towards apathy or towards increased commitment. Sometimes people do not believe that anything could be changed, sometimes unions are simply not considered suitable and are accused of working for the company instead of fighting for the employees’ interests. Often there is strong distrust against any need for company restructuring. Any attempt on the part of the unions to cushion dismissal (through a social plan) might be viewed as being against the interest of keeping one’s job. The situation in The Netherlands might be somewhat different given the favourable situation on the Dutch labour market. The predominant fear of these employees is not to find new employment but rather to find suitable new employment – so that these people clearly value adequate social plans.

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4.1.1.5 Meaning of work In order to understand the different reactions of persons who have to face possible unemployment, it is not sufficient to have a look at labour market conditions. The personal meaning of work – though not equally addressed in all the interviews – will also have to be considered. Belgian respondents sometimes report having developed strong ties to their company and point to the good relationship among colleagues. Consequently, work means more than merely earning money. However, these thoughts are not further developed. As regards the situation in Germany, for all those interviewed, work was seen as being very important for a well-ordered life. Work is part of “daily life”. While “securing one's existence” (GER-IJ-25; 588) is the primary aim, work should also be enjoyable, offer possibilities for personal development and self-identification. Work provides a temporal structure and is said to stabilise mental health. Replacing the time spent at work with another meaningful activity would require a long period of acquisition. Thus, fears are expressed with regard to the psycho-social aspects of health. Also in The Netherlands all respondents claim that work is very important to them. Securing an income, being involved in social contacts with colleagues, having a sense of belonging to society, obtaining a sense of independence vis-à-vis the partner, and being offered possibilities for personal development were the aspects that were most often mentioned. Those respondents who could also depend on a partner for their financial means underlined the importance of work enabling them to be independent from their partner. For some respondents, the financial revenues of work proved to be less important than other aspects. Also in Italy, the non-material value of work as a component of personal identity in all spheres of life is emphasised. It also turns out that work is especially important for women. “I like my job, it’s something that I’ve considered mine for many years … it makes me feel alive in some way. Leaving in the morning, changing clothes … even if, however that may be, it’s hard work: you leave the house. You get used to it, you don’t neglect yourself” (IT-IJ-8; 163-170). Job satisfaction is important for the workers, though they feel they have lost it and having a job becomes more important than having a job that one enjoys (see National Report Italy). Finally, Spain confirms that beyond the economic consequences of (the risk of) being dismissed, most of the interviewees also emphasised the social and psychological consequences of losing their job. For many of them, the risk of dismissal also brings with it the risk of breaking personal friendships, a certain way of life as well as social recognition. On the whole it is worth mentioning that work is more than just the security of an income. Though in many countries losing one’s job clearly is an economic threat, it has to be noted that the psychological consequences will be even more severe given the broad variety of aspects that are attributed to work and that cannot be substituted easily by any other activity. Thus, adequate financial compensation for job loss should, of course, be a legal prerequisite in every industrialised country. But this is not enough. Compensation has to refer to the other aspects ascribed to occupation, too. These are the elements that make people suffer.

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4.1.2 Aspects of justice The issue of justice is one of the major topics of our research. As has been outlined previously (Kieselbach, 2001), persons cope better with changes when the underlying decisions and the processes applied are perceived as fair. The question here is which (if any) of the elements in the concrete cases were perceived as fair – and what is the basis for this evaluation. After some global estimates, this will be analysed separately for the three elements of justice: distributive, procedural, and interactional justice. (Definitions of these concepts are given below in the respective sub-chapters.)

4.1.2.1 Distributive justice Distributive justice is established when employees consider the selection criteria for dismissal as fair (irrespective of how they were established). In Belgium, the criterion of seniority is often used to select those employees that are going to be dismissed. If there is such a selection criteria – and if it is communicated openly – then the persons interviewed perceived themselves as having been treated fairly. Yet, sometimes they would vote in favour of other criteria (e.g. performance or motivation). However, often no clear criteria were used or else these were not communicated which lead to distrust towards the management. People seemed to be willing to accept that changes cannot be avoided – but they expect to be treated fairly and they expect the company to be honest and open. Also in Germany, almost all respondents were in favour of a distribution rule which sets general guidelines for the criteria employed for selecting those to be dismissed. However, a large number of respondents were convinced that justice is difficult to achieve, if not impossible (see National Report Germany). Systems of employee assessment were generally evaluated quite positively in the framework of redundancy selection, but from the view of those affected they also provide opportunities for subjective judgements based on personal preferences. Works councils are generally assumed a position of trust and frequently provide information to the employees concerning the rules used to decide on dismissals. However, it is also stated that decisions concerning staff cuts are frequently made by the top management according to criteria which are often not known to the employees. In The Netherlands, in those cases in which a social plan had already been established, respondents were generally satisfied with the financial arrangements, training and support in searching for another job (see National Report The Netherlands). Respondents were more positive about the outcome of the decision-making if they had been allowed to give their own input with regard to personal consequences of the reorganisation. In those companies in which employees were dismissed despite the favourable economic situation of the organisation, respondents demanded more extensive compensation for their situation than did respondents working for companies who needed to cut down on staff in order to survive. Respondents proved to be more positive about the decision of dismissing employees if alternative options, such as internal replacement and reduction of working hours, had been carefully considered. In most cases for which the selection criteria had already been established at time of interviewing these were based on seniority. Many of the respondents did not approve

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of this criterion as is does not adequately reward motivated, qualified employees (see National Report The Netherlands). As regards Italy, in most interviews selection criteria had not yet been communicated, had perhaps not yet been decided upon. Where known, several criteria were realised depending on the functional areas where someone had worked or attributable to personal characteristics. Where depersonalised criteria were used or criteria not open to communication with the workers, the interviewees expressed strong dissatisfaction and felt treated unfairly (see National Report Italy). In some cases only women were affected by dismissal without any public or merely union notice. The adoption of such strategies led to a decrease in initiative and self-confidence. In the primary sector in Spain, respondents felt being treated unfairly in the first place because the management had not tried to increase production or maintain jobs, and they had suspended any investment that might have been necessary for the functioning of the company. The workers interviewed considered that after having worked for these companies for so many years they did not deserve such a poor treatment. Due to the many temporary contracts in the tertiary sector most persons here, too, considered their position very unfair; they took for granted the fact that they could well be made redundant in the future (see National Report Spain). In other cases, also Spanish respondents somehow agreed to the selection criterion of seniority without really perceiving of it as fair. In comparison, it can be stated that the selection criterion most often chosen in case of restructuring was seniority. Respondents agreed that some criterion has to be referred to – but neither criterion will ultimately be judged “fair” from their point of view as it will always discriminate against certain employees (e.g., those with many children or those with better performance). What is more, in many cases, selection criteria were not openly communicated which adds to the distrust and insecurity already described.

4.1.2.2 Procedural justice Procedural justice is established when employees consider the procedures implemented as fair (including possible chances for participation). In Belgium, employees were generally not involved in the downsizing process (see National Report Belgium) though they feel that they themselves could contribute relevant knowledge which might even have led to a better outcome. The unions are sidelined as much as possible by the company management. Employees rely on their assistance (not so much on that of the works council) but sometimes unions dispose of too little information in order to inform the staffs adequately. So problems of employees are mostly individualised. In Germany, employees often did not feel capable of judging the decisions associated with restructuring – consequently they consider any option for increased participation useless. Furthermore, it is considered a hurdle that the colleagues to be dismissed are personally known. The overall picture of the situation in Germany is disparate: On the one hand, most of the respondents are not satisfied with the result of the redundancy selection, on the other hand, many of those affected decline to participate actively in the

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decision-making process of the redundancy selection. Also the influence of the works council is perceived to be very limited. The role of the trade unions is seen in a critical light. Subjectively, the works council and the trade unions are perceived as being two separate institutions, and they should undertake still greater efforts to make their influence felt in negotiations with management. In The Netherlands, many respondents reported that their company did not involve employees sufficiently in the reorganisation process. Those respondents who were given the opportunity to exert influence over the selection criteria, alternatives for dismissals, the social plan and the personal consequences of the reorganisation, were clearly more positive about their situation than respondents who could not give their input. Respondents generally indicated to understand that especially in large organisations not each individual employee could give his or her input, and that decision-making on the reorganisation plan and the social plan should be left to representatives of the works council and the labour unions. However, with regard to the personal consequences, respondents generally claimed that they should and could have been more involved (see National Report The Netherlands). There were diverging statements as to the involvement of the works council and the unions in the decision making process. Many respondents did not know about the actual contribution of the works council. In some cases the works council was not involved at all. Respondents working in large organisations claim that there exists a large distance between the works council and the unions on the one hand and the employees on the work floor on the other. Also in Italy, participation in the restructuring process was evaluated as low by all those interviewed. Decisions became known at stages where no further changes were possible – not even unions could exert any influence. In some cases, employees came up with suggestions which were, however, rejected by the companies. Thus, a strong sense of impotence was manifested which also involved the unions; the firm was therefore perceived as an omnipotent and hostile entity which took little care of the needs and expectations of its employees. In Spain, dissatisfaction with regard to the procedures applied is very openly expressed. As regards the primary sector (mining), the company management was accused of having authoritarian attitudes. The workers felt cheated because the company had tried to hide the real intentions which has led to a feeling of mistrust towards these large companies in general. In the secondary sector the majority of workers also felt cheated. Companies sometimes wanted to negotiate with permanent workers only (see National Report Spain). One person reports that the workers became aware of the sale of the company through the press, and that the company had always presented redundancy plans during the holidays. So there was neither information nor participation. The workers in the tertiary sector tended to be the most vulnerable when it comes to changes imposed by the companies. The information they were given was minimal, and the opportunity to participate in the process was nil. This means that they often had to defend themselves through the courts. Employees in all countries involved claim having not been sufficiently involved in the restructuring process and in dismissal decisions. While some of the respondents feel they could have contributed to a better outcome of the whole process, others doubt that

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they would have been capable of offering alternative solutions – and they would not want to decide upon dismissal of colleagues. However, the results from The Netherlands show that those who could contribute their ideas were more satisfied with the results. As especially in larger companies participation of each individual is not possible, unions and works councils should engage more actively. This could reduce negative consequences of individualised coping, both on the side of employees (physical illness and psychological problems) as well as companies (legal steps taken by the employees). The most severe obstacle towards the implementation of procedural justice is getting to know of changes or dismissal through the public media – instead of through more personalised procedures.

4.1.2.3 Interactional justice Interactional justice is established when the internal and external communication about the decision and the procedures is considered fair. In Belgium, this was the dimension most often referred to when there was a call for fair treatment (see National Report Belgium). Clear and open communication was required – which seemed to have been neglected by most companies. Respondents assumed that open and early information would have enabled them to cope better with the changes. The perceived lack of communication, on the other hand, led to suspicion, feelings of uncertainty and decreased motivation. Also in Germany information was a central category in assessing fairness but was often lacking for many reasons. Employees’ councils in the construction industry were frequently unable to participate in informational meetings and were therefore cut off from many phases of information flow (see National Report Germany). On the one hand, respondents would like a more comprehensive and transparent information policy in their firm, on the other hand, they are afraid of this. Information is often released sporadically without being followed up. This type of information policy heightens the level of rumours and existing insecurity. It is felt that it is the duty of trade unions to pass on information on intended lay-offs since they have more information, but do not share it with their members. There seems to be less criticism towards communication in The Netherlands. In those cases where the company had communicated in a transparent and personal manner with employees about the situation, the respondents were clearly less insecure about their future, and had less complaints with regard to their health and well-being. Also, they were more motivated and committed towards their employer (see National Report The Netherlands). The requests towards adequate communication were, however, very specific. Many interviewees emphasised the importance of personal, face-to-face, tailored communication as opposed to general, global information about the company’s strategy. Especially respondents with extended years of tenure expected a personal approach from the company. Many respondents indicated that they would have preferred a less thorough study of the plans by the works council in favour of reducing the uncertainty and being informed as quickly as possible about personal consequences. Despite the very favourable

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social plans in The Netherlands, considerable criticism was still addressed toward those responsible for communicating the changes that intended. In the majority of interviews performed in Italy there seems to be a complete absence of communication strategies (see National Report Italy). In many cases, the firm simply seemed uninterested in or incapable of controlling the flows of information, with serious consequences both for its own organisational set-up and for the well-being of its employees. In the few cases in which communication was sufficiently clear, it was offered in an aseptic manner which did not satisfy the workers’ desire to interact. The main consequence of these ways of communicating was a decrease in commitment and personal initiative on the job, with a strong tendency of feeling alienated. From the interviews performed in Spain it appears that companies did not value communication at all. Companies often did not act in the ways that had previously been announced (see National Report Spain). Some respondents even talked of “blackmail” when companies announced viability plans but then made use of the holidays in order to prepare the closure. Respondents did not expect employees to be involved and, consequently, at least in the primary sector often reacted with mobilisation and strikes. In all countries, interactional justice was central in the establishment of overall fairness. For quite a number of respondents, it is difficult to accept the idea of changes per se. Yet, unclear and incomplete communication leads to an overall judgement that is extremely unfavourable. Communication should not only be open and complete – it should be personal and also in time, leaving sufficient time for re-orientation and perhaps already addressing future perspectives. In most countries, there are considerable shortcomings in the ways management communicates with employees. This is extremely critical in cases where changes have to be faced that will most probably include dismissals – while others will remain and will have to continue their work. Interestingly enough, all countries report cases where the employees affected had to learn about the changes from the media – sometimes without any person within the company to whom they could address for confirmation or any further information.

4.1.3 Employability Employability, in general, is the continuous adaptation of qualification and skills to labour market demands. It may be regarded as both a characteristic of and a demand towards employees. However, in the frame of this research we try to point out that it is as well a requirement to be addressed to by companies and the educational system. Given the increased need for flexibility, the securing of sustainable employability has to be a mutual concern and challenge. This is not yet common practice in the countries studied. In general this issue is addressed mostly with regard to the situation of dismissal and assistance towards reorientation or re-employment. Thus, interventions are described that are to further the employee’s transition – or the lack of such efforts is complained about. With very few exceptions (Germany, The Netherlands) the notion of employability often does not refer to a more general attitude, continuous training, etc. As far as Belgium is concerned, there is little effort on the part of employers to prepare their employees for future jobs or to broaden their knowledge base (see National Report Belgium). If training is offered, it is limited to the particular tasks re-

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quired. Other respondents report that there is little chance for practising newly acquired skills. However, in some companies, job rotation seems common practice. On the other hand, employees themselves show little effort in furthering their employability or engaging in vocational training. Also in view of being dismissed, there is little initiative towards active job search; most respondents rather adopt a “wait-and-see” attitude. Older employees think along the lines of early retirement. In Germany, the promotion of employees varies widely. While in the building sector there is little or no tradition of employee promotion, the service industries (in particular the IT-sector) often dispose of constant programmes for further education and advanced training. Common to all branches is “learning on the job” (see National Report Germany). The operating scale of small and medium-sized companies represents a barrier for advanced training schemes. But in the wake of the crisis affecting the building sector, even larger companies are increasingly cutting back on advanced training programmes for their employees in order to economise. Firms of German Railway (“Deutsche Bahn AG”) and in the energy sector stand out in that they make use of incompany job exchanges. These meet with a variety of responses on the part of employees. As in Belgium, there was no evidence of individual strategies in a large portion of the respondents. The group most willing to pursue advanced training seems to be the group of persons who have between 10 and 19 years of work experience. One explanation for this pattern could be that young workers still profit from their first course of vocational training and see no current need for further qualification. The group of older employees with 20 years or more of work experience is at an age where, subjectively, further training does no longer seem sensible. Much to the contrary, in The Netherlands, especially the larger organisations, such as the bank, the telecom company, the reintegration organisation and the editorial enterprise, all dispose of a very active employability policy, aimed at enlarging the opportunities of employees both within the company and on the labour market, by offering job rotation both within and between departments as well as training. Consequently, there was also active support when it came to lay-offs. There is considerable variation as to active participation in further training, and participation is mostly up to the employees. Those employees who had actively invested in training in the past felt more confident towards job search once dismissals were announced. Elderly employees, however, with extended years of tenure clearly felt less secure about their position on the labour market, and subsequently proved to be less active and confident in searching for another job. In some cases, these elderly workers followed the strategy of trying to remain within the company until the age of early retirement. The respondents interviewed in Italy only mentioned instruments that were implemented for managing restructuring which generally do not resort to the notion of employability or supporting re-employment of those being dismissed. The instruments were few in general, and almost never integrated into a coherent framework. The greatest importance was attributed – both by the firms and by the workers – to economic incentives. In several cases, however, not even concession of the severance bonus could be completely taken for granted. In only four of the interviews, the employees mentioned training courses offered to employees being laid-off by the firm. These were

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short and were often centred on basic computer skills which rarely satisfied the workers. The offer of re-placement services was relatively more widespread. Here too, individuals themselves seemed not to be capable of activating requalification or re-employment strategies. Very often, there was only little knowledge of actual demands of the labour market and criteria for further training options were mainly derived from commonplaces (see National Report Italy). Interestingly, there was no relation between level of education and engagement in employability, nor did age play a significant role. The situation in Spain further confirmed that many of the interviewees did not take any decisive action to improve their employability. They preferred to wait and see how the labour situation evolved at the company. The primary concern was to try to keep one’s present job instead of broadening one’s future options (see National Report Spain). At the same time, there were almost no activities on the part of the companies to further their employees’ employability or to support transfer into new employment. People who had experienced few labour transitions, who had worked at the same company or in the same sector for many years tended to be more anxious when faced with changes. Within the tertiary sector, most respondents had a competitive curriculum as they had worked in several companies and institutions during their working life, and they were normally highly qualified and skilled. These might be the persons with sufficient resources to allow them to find another job, but these resources had been obtained through individual strategies rather than through offers from the institutions and companies where they worked. In all countries, a mixed picture emerges with regard to the promotion of employability. Training offers on the part of companies that go beyond actual requirements can hardly be found. Only in The Netherlands, companies dispose of active employability strategies and, e.g., require job-rotation also from those employees who would not want to change jobs. On the other hand, active engagement in training and further education on the part of employees is low. In Germany, employees claim that the operating scales of their companies form a barrier to further training. Italian respondents point to the necessity of further education without actively seeking it – or without having a clear picture of what would indeed further their employability. Thus, it has to be concluded that the concept of employability and the need for a continuous adaptation to labour market demands are still not central concerns of either employers or employees.

4.1.4 Responsibility The question of responsibility elaborates the employees’ view as to who should perform what tasks in the course of restructuring or dismissal. Mostly, this is elaborated separately as regards responsibility of the company as opposed to responsibility of the employees. The general notion is that the company’s responsibility is – in the first place – to communicate openly and completely about any foreseen changes and about the reasons for these. Furthermore, it is often stated that companies should first look for internal replacement of those made redundant – and only in the second place assist their employees in finding new employment. Here again, it is confirmed that employees would

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not accept being informed about the restructuring by the media. The employees themselves, on the other hand, cannot be held solely responsible for finding a new job on their own. In Belgium, information is expected from direct superiors and in a personal manner. Furthermore, people want to be involved in any stage of the process (see National Report Belgium). Respondents also expect financial compensation and the offer of early retirement to the older colleagues. While many interviewees also expect guidance towards new employment, some argue that they best know how to proceed. The individuals’ task, on the other hand, is to be receptive to any guidance offered and to actively engage in job search. Some stated explicitly that it is the individuals’ responsibility not to engage in rumours. In Germany, a clear majority of the respondents rated personal responsibility higher than company responsibility. They felt that it was the task of employees to increase their personal job performance in order to help their firm out of the crisis or to keep the crisis from occurring in the first place (see National Report Germany). Younger employees put a greater emphasis on individual responsibility than older employees, who felt that responsibility lies with the employer or government bodies such as the employment office. Older employees more readily rejected applications for other jobs. Those affected often expressed the obligation of the individual to react flexibly to the demands of the job market. It is striking that this readiness, which is called for by the interviewees so unanimously, was hardly put into practice by themselves. Most of them took an attentive and were lacking concrete goals. There is a general agreement among those threatened by unemployment concerning company responsibility in the case of business-based dismissals. Appropriate severance pay has to be granted, as well as psychological support and training. Companies should make use of their networks for easier re-employment. A more active role of the trade unions and works councils was requested as well as problem solving in a socially fair manner. In The Netherlands, the majority of the respondents indicated that employees had a personal responsibility in both actively searching for solutions in case of dismissals, and in furthering their own employability in order to be better protected in situations of job insecurity. However, the respondents greatly varied in their opinions of how farreaching this individual responsibility should be. In searching for another job, the majority of the respondents argued that employees should have an active attitude in the search for both internal and external vacancies, in thinking about future career possibilities and reorientation, and in providing ideas about alternatives for dismissals. Furthering employability, in general, should be a shared responsibility between the individual employee and the employer. The most important responsibility of a company in reorganisation is to communicate with the employees in an open and clear manner. Employees should be extensively informed about the exact reasons for the reorganisation. This should be effected in a personal manner, preferably by the direct superior. Several respondents claimed that particularly companies that want to “hire and fire” their employees in a flexible way, and will not guarantee job security, should take responsibility in furthering the careers of their employees and support them in retaining a good position on the labour market.

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In Italy, individual responsibility was considered primary, basically due to the experience that no one else would care (see National Report Italy). Since it was not possible to trust what the firms communicated, nor that they were interested in their employees’ well-being, it was necessary for each person to be always on the alert and to take over responsibility. He or she had to consider carefully the past and be prepared for the changes. Individual responsibility even comprises acceptance of the challenge of a new environment and the risks that the reconstruction of a complex ensemble of social relations in the work place involves. However, this seemed to be a very abstract evaluation. Evaluations regarding the possibility of assuming the initiative varied considerably, depending on the personal characteristics and competencies of the workers. In some cases, these difficulties led to a complete personal refusal of the change. In general, young workers seemed to be better prepared for the changes, and a negative attitude emerged towards the older colleagues. Responsibility on the part of the companies was addressed in the form of wishes or desires – and these reached quite far. Several interviewees requested very innovative solutions, such as that of choosing a “preventive approach” in which crises can be managed with agreed-upon times and means and with sufficient anticipation. The general indication that emerged from the interviews was not directed towards a particular type of support – financial compensation, outplacement, training, etc. – but rather towards the request for a greater consideration of the individual needs and expectations of the workers. Much to the contrary, the respondents from Spain commented that the principal responsibility rests with the company that wants to introduce the changes (see National Report Spain). Interviewees here, like in Germany, expressed some kind of a sequence of responsibilities – both company-based and individual – depending on how the situation develops. The company should, firstly, avoid redundancies. If this fails, responsibility falls onto individuals which means fighting to keep their jobs and getting as much compensation as possible. Support for re-employment was not requested from companies, rather public administration and political leaders were addressed. In the primary sector, interviewees further expressed responsibility of local authorities in the area where a company is situated. The resource that they are exploiting (mining) is limited so that closure seems natural. Whereas most workers in the primary and secondary sector pointed to “fighting for one’s job” as the most important individual responsibility, workers who had experienced many job transitions and were highly qualified argued that the principal responsibility of the individual was to try and negotiate for as much compensation as possible and find another job as soon as possible. To sum up, the primary responsibility ascribed to companies is to avoid job cuts and to ensure the correct functioning of the company. If changes turn out to be unavoidable, it is the responsibility of the company to provide information (early, complete, supportive) – and to limit the negative effects as much as possible through economic compensation as well as psychological support and counselling. Prior to this, companies should look for alternative work places within their networks. As regards individual responsibility, considerable differences can be observed.

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4.1.5 Concrete measures Compared to the preceding chapters, there is little to be reported here. The reasons might be two-fold. Firstly, most of the interviews were held when restructuring had been announced but respondents did not yet know whether they were going to be dismissed. Consequently, also measures might not yet have been developed or communicated. Secondly – as has already been outlined in chapter 4.1.3 – in some countries there is no tradition of offering comprehensive support to employees. The report from Belgium does not contain information on concrete measures. This might be due to the first statement above – the procedures had not yet been developed that far. The system of compensation – both financial and consultative – is, however, very well developed here and is a legal prerequisite. In two cases reported from Germany, there was no support besides severance pay. The strategy most readily applied was to offer early retirement. Within one construction firm, outside employment was offered and a qualification company was established in order to manage the job cuts. The German Railways, on the other hand, founded an internal company which targeted specific groups; co-operation was sought with employment and qualification companies. Except for a few cases, in The Netherlands, in general a social plan was established for the interviewees. However, most of them did not dispose of complete information on it. It seems that most of them started their own activities towards job search before the social plan was finally put into practice. The core elements that were included in most of the social plans were financial compensation, replacement, training and support in finding another job. These elements were accessible to all employees. All social plans provided for special arrangements for elderly workers. Support in finding another job was either offered by means of outplacement counselling or by means of the services of the internal mobility centre. All the large organisations that were included in the sample disposed of a mobility centre that would support redundant employees in their job search both within and outside the company. Many respondents proved to be quite negative about the quality of this support and would prefer to be supported by external consultants or an outplacement agency. Finally, several respondents indicated that the companies they worked for would actively deploy their networks in order to support redundant employees in finding another job in a similar organisation. Only a minority of the companies in Italy offered support to their dismissed employees. Training courses, if offered, were short and not very well developed. Some companies offered direct replacement through individual contacts with other firms. Also in Spain, support measures were scarce. The compensation most often offered was voluntary redundancy with slightly higher compensation than stipulated by labour law, or early retirement (sometimes below the age 55). In some cases the company offered training courses, and there is one case from the primary sector where a company proposed a re-employment plan. This, however, was rejected by the workers as they did not trust its efficiency. In the secondary sector, some companies offered, as an alternative to redundancy, the possibility of working for the company as selfemployed. However, according to many of the interviewees this was considered to be

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counterproductive. “They became self-employed and now they are even more exploited than when they were with the company” (SP-IJ-20; 388-391). A comparison of measures adopted or implemented is difficult due to the moment of interview performance. There might be cases where interventions were intended but not yet known to the respondents. Even in The Netherlands, were social plans are routine, employees did not dispose of complete information. Apart from The Netherlands and Belgium, comprehensive counselling is not yet regularly offered to the employees. In Italy and Spain, offers that do exist are considered insufficient by the respondents.

4.2 Successfully re-employed employees Contrary to the persons interviewed in the first sub-group who were still in an insecure job situation, the “successfully re-employed” respondents had to recall a period in the past. As our results show, this was mostly characterised by the same aspects that have been outlined above in chapter 4.1. Therefore, the illustration here will be less comprehensive. We will, however, report any deviation that we observed between the two groups. These might be due to actual differences. Yet, there is reason to assume that the experience of guidance received and a successful transfer into new employment might influence the retrospective evaluation of the situation that had caused these changes.

4.2.1 Situation in the former company In the case of collective dismissal in Belgium, employers and unions usually negotiate on a social plan. This mostly focuses on financial compensation. Outplacement counselling is more often offered by larger companies mainly due to the high costs involved. In such cases, outplacement is subcontracted to a counselling company. According to the interviews performed, after announcement of dismissals, outplacement counselling was set in motion – while production had to be continued until final closure of the company. There was some kind of mutual support insofar all the employees affected were in the same situation and experienced the announcement of dismissals as a shock. Others tried to stand out in order to improve their situation. When remembering the previous situation, respondents in Germany reported increased insecurity and significant changes in the work atmosphere after layoffs had been announced. Rumours instead of clear information further added to this. There seemed to have been mutual support in coping with the situation – increased competition was only rarely reported. Employees were offered either severance pay or entry into a transfer company. About half of the employees had expected more support and considered the offers inappropriate. However – in all the cases studied, the occupational transition finally was successful. Individual influence in restructuring or dismissal decisions was judged low, and the role of the unions was viewed critically. Employees made a clear distinction with regard to the works councils – who were felt to have submitted early and useful information. Collective action occurred only in a few cases. The reorganisations that were reported by the respondents from The Netherlands had a number of different causes, but in each case there were significant effects towards the atmosphere at the workplaces. Negative atmospheres were reported as being the consequence of preceding labour conflicts, while in other cases solidarity increased.

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Most respondents were offered financial compensation and outplacement counselling according to the social plan arrangements. Predominance was given to internal replacement, and most respondents stated that the various offers were supportive. The role of the unions was perceived as quite limited – only sometimes they were involved in the negotiations or offered direct counselling. In Italy, the situation was characterised by increased competition – at least as long as concrete dismissals had not yet been announced – and resembled the results of the first sub-group. In those cases where entire departments were closed, neither competition nor co-operation dominated – rather were people simply dismayed and showed resignation (see National Report Italy). Any offers from the side of the company, financial incentives as well as counselling, were judged insufficient as employees had not been offered a chance for internal replacement. In the interviews performed in Spain, the restructuring generally affected the whole workforce, but low skilled employees suffered most. Sometimes former workers were replaced by new personnel with temporary contracts which increased tension among employees (see National report Spain). Direct superiors and managers were perceived as being victims of the process, too, which seemed to ease the whole process and a previously good working atmosphere could be maintained until closure. Those interviewees who had experienced more job transitions in the past seemed better prepared, but still they perceived the situation quite negatively. In all countries involved, the situation in the former company was not elaborated in such detail as in the first sub-sample that reported about the actual situation. Changes in the work atmosphere and feelings of insecurity due to a lack of information were reported. There was an increase in competition and sometimes in illness. Low skilled employees and those with longer tenure suffered more – lacking experience with job transitions and perceiving their chances in the labour market as very low.

4.2.2 Aspects of justice With regard to this second sub-group, two assumptions preceded the study. Employees who perceive having been treated fairly in the context of company changes might cope better with these and might more actively engage in the counselling that had been offered to them. On the other hand, successful transfer into new employment (and in this sense successful counselling) might in retrospect lead to a positive evaluation of the process as a whole. This chapter will therefore evaluate various aspects of justice from the side of the respondents. (For a definition of the three dimensions of justice, please see chapters 4.1.2.1 to 4.1.2.3 above.)

4.2.2.1 Distributive justice In general, employees in Belgium felt treated fairly by their companies – however, they felt cheated by the closure decision itself. That means, the decision per se was considered unfair. It was the respondents’ impression that management had done too little in order to avoid closure (see National Report Belgium). The evaluation of “fair treatment” was based on the financial compensation received and the guidance offered – that means, on the compensation level. Adequate compensation could thus serve to reestablish fairness.

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In Germany, mostly social selection criteria were used for dismissal (family situation, age, years of tenure). However, most of the respondents did not understand the necessity of the criteria chosen and thus felt treated unfairly (see National Report Germany). What is more, respondents often stated that the selection criteria chosen were not applied consistently. In the frame of the interviews performed in The Netherlands, the reasons behind restructuring were mostly viewed understandable, but at the same time were attributed to mismanagement and thus leading to feelings of injustice (see National Report The Netherlands). Dismissal selection was mainly effected according to seniority. Again, this was not always valued positively, and many respondents claimed that the company had not sufficiently sought options for internal replacement. The offer of outplacement counselling was finally perceived as re-establishing justice. Those employees with extended years of tenure more often stated that company efforts had been insufficient. There was no clear propensity for any selection criterion in Italy. Social criteria were generally more accepted by employees. However, often they did not know which criteria had been chosen and felt that their personal needs had not been taken into consideration (see National Report Italy). Furthermore, their primary desire was not to be dismissed at all. In Spain, it was mainly respondents from multinationals that perceived the reasons behind dismissals as unjustified or insufficient. Sometimes the company or else the branch was perceived as profitable so that the changes seemed completely unfair – being made by company management abroad who did not know or was not interested in the actual situation of the local unit. Skilled workers more often agreed that the changes were unavoidable and that the companies were basically acting fairly – even if the result was negative for the respondents themselves. The overall picture shows that the dismissal decision itself was considered unfair – with various selection criteria applied. From the side of the employees, there seemed to be no need for dismissal or else these could have been avoided. Dutch respondents claimed that companies had not sufficiently elaborated chances for internal replacement. Their feelings of having been treated unfairly were, however, later changed by the offer of counselling.

4.2.2.2 Procedural justice As has been stated in chapter 4.1 above, employees in Belgium consider it the unions’ task to negotiate with employers and to defend the employees’ interests. However, it is difficult for the unions to consider each individual’s needs. Consequently, a number of the respondents claimed not having been sufficiently involved (see National Report Belgium). Union influence was considered low in Germany (see National Report Germany). Sometimes the work of the works council was valued more positively though it was ascribed little influence. Individual participation was minor – those who could express their views felt that this was merely to give employees the feeling that they could participate without any real influence – in the sense of a symbolic participation. Some respondents from The Netherlands claimed that procedures had not been adequately adhered to, others stated that strictly adhering to procedures made the whole process inhuman (see National Report The Netherlands). Sometimes a support commis-

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sion was installed in order to help respondents defend their interests. Yet, many stated that the required procedures were not always followed correctly and personal interests were not sufficiently taken into account. Criteria that had previously been chosen were often not followed in Italy. Communication was insufficient and almost never in time. Companies seemed not to pay any attention to the effects this way of communication caused among the workers (rumours, increased sickness-leave, decreased motivation). In Spain, respondents complained about the way the restructuring process had been carried out and stated there would have been ways to avoid closure. Furthermore, there was no chance to participate in any of the decisions leading to dismissal. In principal, those who accepted the decisions still complained that the whole procedure had taken too much time, and that counselling started too late. Though overall complaint was lower than in the first sub-sample (see chapter 4.1.2.3), criticism was addressed to the ways the restructuring processes were carried out. Respondents often claimed that selection criteria chosen were not applied consistently. There was a lack of employee involvement and individual needs were not considered sufficiently. Some said that the counselling had started too late, others claimed that the procedures agreed upon had not been adhered to. Unions were regarded as not having sufficiently played their role in the course of the process.

4.2.2.3 Interactional justice In Belgium, the first announcements of the restructuring plans were done formally and by the company management. The further proceedings were then mainly communicated by the unions. However, often these did not hold all the relevant information – as has already been outlined in chapter 4.1. In general, information received through the management was judged negatively, was regarded as incomplete and sometimes misleading. Most respondents in Germany stated having been informed completely, yet not early enough (see National Report Germany) – though there might be good reason on the part of the company not to come up with results before everything is definite. Some said that early information would have enabled employees to develop alternative solutions that might have avoided dismissals. Others argue, early information in itself is no help as long as there is no offer of further support. Communication proved to be of crucial importance in the evaluation of having been treated fairly in The Netherlands as actual support (both financial as guiding) is well developed here. Good communication might reduce stress and anxiety (see National Report The Netherlands) and thus contributed positively to the whole process. Apart from more general information, a need for personal, face-to-face communication was expressed. In Italy, respondents also stated that their involvement as well as that of other colleagues in any decision was very limited. Many employees would have favoured extensive participation. Unions, on the other hand, were considerably involved in the negotiations but were accused of not having considered employee’s needs sufficiently. The primary task ascribed to them was that of fighting to keep jobs and thus avoiding dismissals. In Spain, respondents also mostly complained about the ways employees had been informed of the redundancy. There was a clear lack of information and companies tried

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to avoid any interaction. Some employees would have preferred the chance to leave the company voluntarily instead of being dismissed (see National Report Spain). The overall picture again confirms that communication was crucial in the judgment of fairness. When looking back, some respondents stated that better communication could have avoided stress and anxiety. Unions were mentioned but it was generally supposed that they did not have complete information themselves.6 So, on the one hand, overall information was considered insufficient; yet, on the other hand, respondents would have requested more personal information and reference to their personal needs and wishes.

4.2.3 Employability In cases of collective dismissal in Belgium, compensation and premiums have to be paid; in most cases, social plan negotiations will also contain outplacement guidance. In the cases studied, some employees had already started to actively search for a new job before the outplacement counselling started. They would, however, follow that guidance too, in order to get further information and support. In Germany as well, some of the respondents reported having adopted active strategies when dismissals became evident in their previous company. These strategies were not always successful, but – as in Belgium – were considered important for the personal self-esteem. Having found new employment after counselling, some were convinced that their employability had increased. A number of them, however, continued to engage in vocational training (about half of the respondents had already taken that chance during their previous employment). Another group of people had been dissatisfied with their previous employment, and the changes together with adequate guidance were a chance for them to become self-employed. Due to the favourable situation on the Dutch labour market, knowledge of how to approach companies and self-efficacy seemed more important for the respondents from The Netherlands than actual levels of qualification. However, elderly workers with extended tenure within one company felt less confident. Most of the respondents had undergone training in their previous jobs that was not always certified but nevertheless had increased employability. Outplacement counselling, too, was considered to further employability through a broad variety of skills. In general, it was confirmed here that those respondents who felt having been treated fairly could cope much better with the changes. After the whole process, respondents felt much more capable of planning their future career steps. As has already been pointed out in the frame of the first sub-sample, companies in Italy usually do not take employability into consideration – and also the offer of outplacement counselling is mostly limited to multinational companies. Based on the results of our studies, it seems that in the case of dismissal, both employees and employers focus on financial incentives. If training was offered, this was not meeting the employees’ demands. After having found new employment, those interviewed felt quite satisfied and showed no interest in further training.

6

Interestingly enough, in the first sub-sample ("insecure employees") unions were thought to have more information but did not share it with the employees.

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In Spain also, companies usually offered financial compensation in case of dismissal, and the respondents had not known of outplacement before. Some perceived of it very sceptical. The counsellors were present while employees were still negotiating and thus they were perceived as working for the company. Some respondents had tried to receive money instead of counselling which was denied (see National Report Spain). In general, older women with low qualification perceived their chances on the labour market as lower than the others while older employees in general felt not prepared for the changes. As in the other countries, personal initiative seemed vital both for active job search and for engagement in counselling. The comparison confirms that there is still little reference to employability both on the side of employers and employees. Employees adopt active strategies only in the case of possible dismissal. However, they view these personal strategies as important. Again, The Netherlands stand out in that respondents were well experienced in further training. They also considered outplacement counselling a chance to further their employability through a broad variety of skills. Interestingly enough, some Dutch respondents were of the opinion that employability is primarily a question of self-efficacy – not of particular skills.

4.2.4 Responsibility The results obtained in Belgium resembled those of the first sub-group. In case of dismissal, it is the responsibility of the company to provide sufficient financial compensation and to support re-employment. Outplacement should even become compulsory. The individual responsibility lies in engaging actively in the outplacement counselling – which will not automatically provide for a new job. Sometimes it was argued that employees themselves know best which jobs are most suitable for them. Similar to this, respondents in Germany also reported a close link between individual and company responsibility (see National Report Germany). Employees have to be aware of the situation on the labour market and have to engage in vocational training. Management should anticipate changes also in “good times” and give priority to internal solutions. In any case, employees should be offered sufficient time when it comes to reorientation. In The Netherlands, individuals were considered responsible for active job search in case of dismissal and for maintaining their employability (through training and mobility). Companies, on the other hand, should invest in their employees’ employability prior to any reorganisation and offer preventive counselling. Their utmost responsibility is to be open and clear in communication. In case of restructuring, they should first offer internal replacement, and if this is not possible, offer sufficient financial compensation and guidance. The primary responsibility ascribed to companies in Italy was clear communication (see National Report Italy). Employees should be given sufficient time in order to cope with the changes. Outplacement counselling was deemed necessary by almost half of the respondents – though it would not really compensate the loss. Many of the interviewees, however, said that the primary responsibility of the company is to offer alternatives to dismissal. The individual’s responsibility, on the other hand, is to actively look for new employment – this was equally expressed by those who might face more

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difficulties due to age or low qualification. Respondents pointed to the importance of continuous training – which they were usually not engaged in, however. The higher qualified respondents from Spain and those who held responsible positions pointed to individual responsibility for being prepared for changes and looking for alternatives. The others also stated that individuals have to be prepared and qualified, but they pointed to collective action and often accused the unions of not having done enough. A certain work ethic and positive thinking were also named as individual responsibilities. The overall comparison as regards responsibility differs less than in the first subsample. Those who had successfully been re-employed mostly pointed to a shared responsibility between employers and employees. Employees have to be aware of labour market requirements and changes and actively engage in job search if it becomes necessary. Employers, on the other hand, have to provide adequate information and financial compensation as well as counselling in cases of re-structuring and dismissal. German respondents emphasized that management should anticipate changes in order to be better prepared – and in order to better prepare employees. Dutch respondents again would give priority to internal replacement and consequently introduced “internal employability”. Further training was considered necessary not only for finding new jobs outside, but also inside companies.

4.2.5 The outplacement measures The general concept of outplacement counselling has already been outlined in chapter 1. As regards the cases studied in the five countries, the components of the interventions were more or less the same: • • • •

introductory sessions, introducing the counsellors and the programme group counselling, enabling exchange on application techniques, curricula vitae and labour market prospects individual counselling, establishing individual profiles and exploring strengths and weaknesses practical training, referring to interview situations.

Outplacement counselling aims at establishing a solid basis for the job search which also requires to come to terms with the previous employer and with the dismissal situation. After this thorough preparation, it is the participants’ task to undertake the job search – while they may still address to their counsellors for further guidance. As far as these elements and objectives are concerned, we will not repeat them in any country description. We will rather point to those elements that differed or proved to be problematic – before evaluating the interventions, also from the participants’ points of view. Interestingly enough, in most countries, employees had not heard of outplacement prior to these actual cases, many were critical towards the concept – yet, most would later state that it has proven helpful; exceptions to this will also be reported. In Belgium, participation in outplacement counselling was strictly voluntary. The practical parts in the form of role-playing were mostly supported by video equipment. Participants could address their individual counsellors whenever necessary, also in order

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to talk about personal problems. The trust relationship between the two of them was extremely important. Some participants had initially been sceptical as to what kind of support could be helpful in job search, while others were disappointed that outplacement would not directly provide them with jobs. In the end, however, almost all the respondents were confident with the intervention. The elements valued most were application techniques and the offer to prepare an individual profile – sometimes for the first time in their lives. The personal relationship with the counsellor was also emphasized, which increased the motivation of those dismissed. Some respondents had changed their employers several times since the end of the counselling – as their first occupation was of a fixed duration or they were still looking for a more suitable job. In some cases, the financial situation had deteriorated, but this was outweighed by better working conditions in the new occupation. In some of the cases reported from Germany, direct placement could be achieved before the outplacement counselling officially started – sometimes, however, requiring increased mobility. Sometimes there was an opportunity for temporary employment in order to bridge the time until final re-employment. Individual guidance in coping with the situation was also emphasized. Traditional outplacement companies focused more on individual guidance whereas there were a number of institutions (mostly in the frame of qualification companies) who had adopted this kind of service and incorporated group elements in the way described above. In general, respondents were highly satisfied with the counselling they had received. Temporary employment was given a critical assessment in particular from older employees. For others, this was a welcomed experience. In general, sufficient time for reorientation was valued positively, and for some respondents this was a chance to become self-employed7. A personal approach increased self-confidence and personal initiative. Almost all respondents indicated that the successful occupational transition and the qualifications that they could obtain had improved their chances on the labour market beyond the actual intervention. Most of them also expressed great satisfaction and motivation in their new jobs. Respondents from The Netherlands stated that they had all received tailored guidance – as per the specific goals that they had defined. Psychological support as well as skills training were valued positively. Most respondents received a mixture of individual and group counselling. In all cases, counselling was effected through traditional companies8. Individual tailoring was probably what made the interventions most successful. The element that came out to be most important for all of them was networking. And all the participants benefited from the possibility of exchange with other persons affected. Yet, two elements were often criticised: the lack of active job search on the part of the counsellors, as well as the lack of instruments to evaluate the quality of the counsellors. 7 8

This option was generally rejected by the respondents from the other countries - though in the frame of all the outplacement programmes, counselling would also have comprised transfer into selfemployment. In The Netherlands, a broad variety of institutions offer this kind of service - see chapter 1.

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The most important effect pointed out by the respondents was an increase in employability and a shift in self-image and self-awareness. They did not only point to increased skills, but a better knowledge of how to gain from their capacities. Many of them still felt having been treated unfairly, but the counselling helped them to reorientate towards their vocational future. Their orientation had shifted from “lifetimeemployment” to “lifetime-employability” and from a focus on salary and status towards pleasure in work. Consequently, respondents reported greater satisfaction with their current occupation and would recommend this kind of guidance to other employees too. In Italy, some of the counsellors actively engaged in establishing contacts between participants and companies in the frame of the intervention. In other cases, this was expected by the participants but was not part of the programme, which led to disappointment. In general, respondents stressed the psychological support and the resulting increase in self-confidence. They also valued positively the possibility to reconsider their career and possible future options. However, almost half of the respondents expressed dissatisfaction for various reasons – mostly because they felt that their personal needs were not considered. Some disappointment might stem from the fact that they still would have preferred if dismissals could have been avoided. The majority of the respondents stated to be highly satisfied with their new job – even more than they had been with the previous one. Sometimes this resulted from being self-employed and thus independent. In other cases, respondents claimed an economic deterioration. This is most probably due to the fact that the previous employer had been a multinational, while the new employer was a small or medium enterprise. Respondents from Spain usually valued the outplacement counselling positively, though they felt it might not have been the key factor leading to re-employment. They pointed to the psychological effects both of the counselling itself and of the chance of having a place to go and other people to talk to, which increased their self-confidence. Nobody was forced to leave the programme if he or she had not yet found a job after the period foreseen. It was even possible to interrupt the programme and join again after a certain period. Like in Italy, we could often see a decrease in labour status which was due to differences in the kind of company compared to the previous one. In general, none of the participants had had clear expectations of outplacement counselling before the actual intervention. To sum up, it can be stated that all the elements traditionally incorporated in outplacement counselling are useful provided that they are adapted to personal needs – which mostly was the case. The concept was still widely unknown – both among employers and employees, and often the latter expected active job hunt from the counsellors which lead to disappointment. Some respondents were very sceptical towards the counselling. Yet, having passed the counselling, the evaluation was then mostly quite positive, though some respondents stated it may not be necessary for every dismissed employee. The elements most often valued positively were: the systematic approach; the mixture of individual and group counselling; psychological support as well as acquisition of skills and knowledge; a period in which one does not have to become active in job search right away.

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4.3 European comparison of the two sub-samples In the preceding chapters, we illustrated core results obtained from the two sub-samples – employees in insecure job-situations and employees having successfully been reemployed after outplacement counselling following dismissal. The two samples from each country were not representative – in the given context, we had to rely on voluntary participation and access to interviewees established through personal contacts. Nevertheless, a broad variety of branches, companies and occupations were covered, thus leading to a comprehensive and detailed picture of the situation. We are now focusing on a comparison elaborating the situation of employees in the participating countries from a broader perspective. As has been outlined in chapter 1, company closure, downsizing and restructuring are no exceptions in European economies. However, it turned out that none of the persons interviewed had been prepared for such changes. Most of them had been working at the very same company for years and had taken lifetime employment for granted. Thus, having to face dismissal is, firstly, a shock in itself. Secondly, this experience was further influenced negatively by insufficient information strategies on the side of the companies. While management might have had good reason not to release information as long as decisions were not yet definite, the consequences on the employee’s side were considerable: They experienced increased insecurity, often engaged in competitive behaviour hoping to save their jobs, and a decrease in motivation – above all, they were upset if they learned about the changes from the media instead of from company management or their superiors. This might not be the rule but such cases were reported from each country. While criticism towards information strategies was most explicitly expressed in Italy, in no country respondents were satisfied with this aspect of the situation. Consequently, there were two main responsibilities that respondents ascribed to their companies: The first is to try to avoid dismissals or provide for internal replacement; the second is to be open in communication and to show concern for those affected – also by offering financial compensation and counselling. The desire “to keep one’s job” is more directly expressed in the southern countries – perhaps due to the particular importance of stable social contexts (also at the workplace) there. However, this attitude is common in the other countries too. In most countries, there was no tradition of continuous training or updating one’s capabilities and skills. In The Netherlands, this was offered by most employers – but participation was voluntary and some respondents stated that they had never done so. Training was also quite widespread in Germany, yet generally oriented towards specific skills needed for certain jobs. One of the central questions thus is how to ensure employability. As many of the respondents were oriented towards life-time employment within their companies, they surely felt no need for continuous vocational training other than that requested for their specific jobs. Companies (or management) on the other hand will most probably hold a broader perspective that also includes the anticipation of changes – and necessary reduction of personnel. It would therefore be their task to promote further training. As this idea is fairly well established in The Netherlands, Dutch respondents mostly considered

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outplacement counselling as an expression of fair treatment and as a measure to further their employability. Afterwards, most respondents stated that they would more readily continue to engage in further training in order to further support their employability. However, they also expressed this to be the responsibility of the employer. While respondents in Italy also stated that they should engage in training, this was rarely put into practise. On the other hand, they did not expect any such offer or concern from their companies. They rather stated that nobody else would care for them – except they themselves. This did not point to collective action – which was only reported from Spain from the more traditional branches of industry. Interestingly enough, both in Italy and in The Netherlands respondents often doubted that there had been a need for company closure or restructuring. From the side of the employees, things were going well and changes were absolutely unexpected. This fairly negative image is also reported from those who had successfully been re-employed after outplacement counselling. When looking back at the previous situation, they stated the same shock and disappointment – and they confirmed the deficiencies in communication strategies. Thus, having succeeded in re-employment did not lead to a completely reversed perception of the initial situation. Employees had not felt treated fairly and had not been prepared for changes. If respondents had felt treated unfairly, this could mostly not be compensated for by the counselling. Rather was it perceived as a means to “get rid of employees” more easily. Especially in Italy respondents stated that the counselling did not consider personal needs, and training offered was insufficient and sometimes even useless. Yet, also in The Netherlands respondents sometimes stated that their personal interests were not considered to a sufficient degree – though they positively evaluated the counselling in general. Most innovative concepts are reported from Germany. Some interventions offered intermediary solutions – through loan work outside one’s company while one remained employed there. This helped in broadening one’s experience while gaining time in order to become acquainted with losing one’s job. On the other hand, counselling could indeed start prior to actual dismissal – enabling re-orientation without any kind of pressure or need. This led to voluntary leave of a number of employees – with thorough preparation and guidance offering them a sustainable perspective, sometimes as selfemployed. A preliminary evaluation would come to the conclusion that any intervention was successful – given the fact that all those interviewed arrived at re-employment. However, there are some aspects that deserve further elaboration. To some extent, the Dutch and Belgian respondents considered outplacement counselling an act of justice. If dismissals were unavoidable, this was what a company owed its employees. The situation prior to the onset of counselling had – in most cases – been characterised by insecurity and disappointment. Rumours were predominant, reliable information from the side of the company was mostly missing. In Belgium and in The Netherlands, counselling was part of the social plan negotiations. In the other countries, employees’ representatives also contributed to the offer of counselling. However, the individuals concerned did not know what to expect – they would have rather preferred to keep their jobs. In Spain, counsellors arrived even before the negotiations which led to the impression that they were representing the company’s interests. In

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Italy, counselling was not effected within a coherent frame in order to assist employees in their occupational transition – rather was it experienced as a means to get rid of employees more easily. Most respondents were quite satisfied with the counselling and the support received. However, a number of them – especially in Italy and Belgium – stated that reemployment was their very own success for which they would not have needed the support. The Italian respondents were most dissatisfied as they perceived the offers as insufficient. Despite this, most of the interviewees in the five countries appreciated the chance to have had someone who helped them to overcome the frustration and who gave them a chance to talk about what had happened. Furthermore, most respondents stated that for the first time in their lives they had the opportunity and the time to carefully consider their strengths and weaknesses, their occupational career and possible future options. In The Netherlands and in Spain, people pointed to the fact that persons might be in need of different kinds of counselling and support, and this should be taken into consideration thoroughly. Some persons might not need counselling at all, and these should not be forced to make use of it. The possible success of outplacement counselling is sometimes limited by economic circumstances. In the south of Italy, for example, regular employment is scarce. Thus, many respondents had to accept lower wages and were now working in smaller companies. Also some of the Spanish respondents reported of a deterioration in the working environment. In Germany, on the contrary, better working conditions and higher wages were reported following the counselling. Spanish respondents reported of former colleagues who did not arrive at new employment despite the counselling. It appears thus that there are groups that might not arrive at re-employment as easily as others. These are, on the one hand, older workers with lower qualifications – the situation is particularly difficult if these are female. On the other hand, the situation seems to be more difficult for women in general. They often express family obligations that limit reorientation on the labour market. Yet, in particular the interviews from Germany did contain such “difficult cases” and point to the fact that adequate counselling can, indeed, also support these (provided there are no economic restrictions such as in the south of Italy). Respondents also stated that certain elements of the counselling were particularly helpful. Through mock interviews and a thorough analysis of their curriculum vitae and potential perspectives, they gained self-confidence and many felt that this might also help them in the future. There is one estimation that remains despite the counselling – and this is the initial disappointment and anger towards the way the previous company had treated the persons interviewed. Though they all successfully arrived at re-employment, many of them still experienced the negative feelings when looking back. Some Dutch respondents stated, e.g., it was “logical” that they were dismissed – and thus “fair” from a certain perspective (given the fact that some selection criterion had to be used). Nevertheless, under another perspective, dismissal could never be considered “fair” by those affected (there might always be other criteria which would have avoided dismissal in particular cases). Therefore it seems that counselling is needed within companies to a considerable

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extent in order to implement the idea of changes – and to motivate employees to become active instead of “suffering” from decisions.

4.4 Conclusions Restructuring and dismissals were perceived unfair in themselves. People expected that, in the first place, companies try to avoid changes that affect them negatively. In this context, they mostly complained about insufficient communication – which increased pressure and insecurity. It was perceived an offence if they had to learn about such changes from the media – rather than from their superiors and managers; an experience which was reported from all countries. In insecure job situations, most respondents lacked adequate strategies. The longer the tenure was, the greater were the difficulties. As long as people were employed, fostering their employability was not among their primary concerns – with the companies in northern Europe adopting or offering more strategies in that direction. However, training was often limited to actual demands of workplaces. Those interviewed who did find new employment after counselling mostly evaluated the counselling positively. Predominantly those from Italy claimed that the counselling was insufficient and was lacking quality – its aim being to calm down people instead of really supporting them. Spanish respondents, on the other hand, reported of a considerable number of fellow participants who did not find new employment. Thus, counselling could contribute to softening the psychological effects of dismissal and many respondents pointed to elements that had proven helpful – they clearly valued the systematic approach that was offered. However, even successful counselling and reemployment had no influence on the evaluation of procedures prior to dismissal. While the above considerations were based on the expectations and experiences of employees affected by company restructuring, another source of information was established through looking for innovative cases of outplacement counselling that could be regarded as “best practice” and would thus serve as a model in this field. This part of the research is presented in the following chapters.

5

Case studies: Sample criteria

The first aim of the research addressed in this chapter was to find examples of good practice in the field of outplacement counselling. The selection of cases was based, on the one hand, on interviews performed with persons who had participated in this kind of counselling and had successfully been re-employed (see previous chapters). On the other hand, there were theoretical considerations as to the scope of the intervention (comprehensive counselling and support); and the counselling had to be initiated and at least partly financed by the companies that were going to dismiss employees – either due to restructuring or else the closure of a plant.9 Some of the interventions were not

9

As will be seen, it was later decided to include cases with different kinds of financial contributions in order to broaden the scope and to be able to focus on more aspects of innovation.

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officially termed outplacement but were comparable with regard to the elements and procedures they made use of and will thus contribute to our further discussions. Access to this field was effected through outplacement companies directly, and also through unions or other contacts established in the course of the qualitative studies described above. A broad variety of approaches were selected in order to gain an overview on the various interventions (financed, at least partly, by the dismissing companies; organised by themselves or through co-operation with other actors; implemented in the course of restructuring or company closure). Consequently, they differed in a number of aspects, such as company size, number of participants, onset and duration of counselling. These elements are described in detail in the individual National Reports. In order to give an overview, some are presented as tables in the annex. From the discussion of cases, we will then draw more theoretical and global conclusions as to what ought to be good practice in general, thus formulating requirements that any outplacement/replacement counselling should fulfil.

6

Case studies of outplacement/replacement interventions

The basis for this elaboration are 37 interviews performed in five countries with experts in the field of outplacement counselling. These were mainly those persons that were in charge of or participated in the counselling. In some cases (Spain and The Netherlands), information was also gathered from other parties that were involved in the processes.

6.1 Description of examples of good practice The description of the case studies will be divided into three parts: the characteristics of the outplacement agencies or other parties concerned as well as the respective branches and companies in which the intervention took place; an overview of the interventions, their components and scopes; and finally the evaluation as far as such information could be obtained during the interviews. (For more details see the five National Reports.)

6.1.1 Characteristics of outplacement agencies and branches There are, of course, a number of companies that have been offering outplacement counselling world-wide. Many of them originate from the USA and have a long history of guiding organisational development as well as individual careers. Part of their work could already have been described as “outplacement” even before that term became widely known. Meanwhile they are mostly known as “outplacement agencies” though they are still operating in other fields, such as career management. These companies have developed very detailed and proven schemes for individual as well as collective outplacement counselling. This is predominantly illustrated by the case studies chosen in Spain. Apart from these traditional approaches – either individuals or companies will approach the outplacement counsellor for guidance – numerous interventions and model concepts have been developed and implemented that are not always named “outplacement” but come very close to it, in terms of approach and scope of intervention. Among

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the cases chosen in Italy, for example, we find concepts that address themselves to unemployed persons but go far beyond any intervention that is usually offered to the unemployed. In Germany, there is one model concept implemented within a company that addresses itself to all its employees – not in the view of a concrete transition but to introduce the idea of possible changes and to motivate and guide people towards reorientation on a voluntary basis. The social security code in Germany prescribes guidance for employees in case of company re-structuring or closure – but this is not necessarily termed outplacement, as is the case in Dutch social plans. In Belgium, we often find that the outplacement is organised and/or co-ordinated by re-employment cells (REC) implemented within the company with representatives of all parties concerned. Depending on the individual case, additional support is sought from professional outplacement companies. In The Netherlands, social plans do not only contain counselling but often also active search for vacancies from the side of the counsellors (depending on the philosophy of the outplacement agency that is in charge of the intervention) – an element that can also be found regularly in Belgium, and in some cases in Italy10. In The Netherlands, there are many outplacement companies that are closely related to or include employment agencies. Performance of the intervention is often co-ordinated by a joint committee. Both in Belgium and in The Netherlands we found close participation of unions – in negotiations and in the supervision of the processes. In Germany, participation of unions is mostly realised through collective wage agreements – which sometimes incorporate outplacement counselling instead of merely financial incentives in case of dismissal. As has been pointed out earlier, outplacement counselling is least developed in Spain where it is limited to multinational companies who consider it their responsibility to offer guidance to those being dismissed. Only very recently have local administrations and authorities become aware of the benefits of these or similar active measures. Consequently, there is a broad range of companies and branches that were chosen as background for the description of cases of outplacement counselling. The general tendency is two-fold. Certain cases gain importance as the interventions described therein are taken from areas of business that are affected by re-structuring to a considerable degree – beyond the concrete intervention chosen as an example. In these cases, fairly large numbers of employees lost their jobs and had to be supported in their reorientation. This sometimes included re-training and the preparation for jobs with different profiles and in other branches. Throughout all countries, we found companies that had existed for decades, where employees had never thought of becoming unemployed. Another aspect is introduced through multinational companies. Sometimes these have to face closure not due to economic circumstances within the specific plant concerned but on the basis of a global re-structuring of the mother company. Here too, we found a large number of employees who had always been working for this company (as may have former generations) and thus faced very specific problems when it came to reorientation. Many of them had taken life-time employment within their former company for granted. Considerable changes of this situation could be observed throughout all areas of business. 10

In Germany, this is not regularly included. Yet, we found it in one example (Quotac, see 5.1) which, however, explicitly focuses on job transfer and not on comprehensive career counselling.

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The second issue that will appear quite often is a lack of employability. Most of the working conditions behind the cases described were quite monotonous and did not require constant learning and training – which would have increased the extent of employability on the side of the employees. Given the difficult labour market conditions in most European countries, this formed an obstacle in almost all the cases described – though it often could be overcome successfully by the outplacement programmes initiated.

6.1.2 Overview of measures: components and scope This chapter will address the details of the concrete interventions. We will illustrate the country-specific aspects that contributed to the various procedures and that will have to be taken into consideration when it comes to the formulation of general recommendations as to what is “good practice” on a European level. Again, we will only point to the innovative or illustrative cases or aspects. More details are contained in the different National Reports; some aspects are presented in the annex for easier comparison. As has been pointed out earlier, there is some kind of a common outplacement scheme underlying most of the cases described – at least those that are explicitly called outplacement. First, there is psychological counselling in overcoming the situation of being laid-off and having to face re-orientation. This first episode will also serve the establishment of a trust relationship between counsellors and participants and a general introduction into what outplacement means. Then there is the issue of establishing personal preferences as well as qualifications and arriving at some match of the two. Furthermore, there are elements of really practical benefit: assembly of CV, writing application, communication and interview training. Apart from these technical aspects, there is the aspect of approaching the labour market – looking for and selecting vacancies and adaptation of one’s application strategy. The guidance of these steps is the central element of outplacement. It gives the participants the chance to elaborate their wishes and desires as well as their abilities – in a supportive environment and with the help of experienced counsellors. But it also requests initiative from their side. Traditional outplacement strongly emphasizes the active role of the participants. They have to become active, they will have to elaborate their chances, they will have to establish contacts. Outplacement usually does not include training besides the aspects listed above. However, any need for additional training will be explored together with the participants and in most cases, they will get the chance for further training – outside the outplacement process but with the possibility to still stay in contact with a counsellor. Most outplacement agencies also hold contact to former participants, at least during a fixed period after successful re-employment. Though usually the duration is fixed in advance, this will not lead to abrupt cessation of counselling in case someone could not find re-employment within this period. Within collective outplacement, counsellors will also hold individual meetings and offer individual guidance throughout the job search process. In general, the scope of this personal counselling will depend on the individual needs of the participants. Group meetings will be held whenever the assembly of groups may be supportive – or else for practical reasons. It may, for example, be useful to explore the labour market in groups

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– the participants can thus exchange information and assist each other. Also role playing – for job interviews – can be held in groups, and input is not only given by the counsellor but also by the other participants. In case of collective dismissal, chance is given to retain previous relationships. Individual outplacement will primarily start from a co-operation between one counsellor and one participant. However, many of the larger companies also compose groups of candidates (for certain parts of the programme) that are otherwise dealt with individually. Here too, it is argued that exchange of knowledge and experience is very helpful and the successes of others will motivate participants. The most prominent case described in Belgium is the closure of the Renault plant in Vilvoorde which led to the implementation of the “Renault-Law” described above (B - case 111). This was a rather comprehensive intervention scheme, lasting for two years, and incorporating a specific possibility that was made available in Belgium: In case of economic necessity, the employment contracts may have been suspended during a certain period. Thus, periods of unemployment (in this case 13 weeks each, with a bonus paid by the company) alternated with periods of employment, and in these latter phases employees received outplacement counselling. The intervention itself was not carried out by an external outplacement company but was organised within Renault by a “reemployment cell” (REC) and in co-operation with the public employment services. A very specific obstacle occurred in one case describing restructuring in a company that had no experience with such processes (B - case 3). Here, priority was given to internal re-placement. This means that employees were guided and options were sought to re-employ them in different positions than before but within the same company. Apart from the traditional concept of outplacement, active job search from the part of the counsellors or re-employment cells was often established (see B - case 2 and case 5). (When outplacement companies are involved, this is more explicitly a task of the participants.) Psychological support was emphasized and the need to overcome the negative emotions associated with the dismissal. This seemed extremely important as in most cases employees had been working with the same company for many years and were not familiar with job changes or application procedures. While the Renault Law strengthens the information to and consultation of the employees, it was, however, also perceived as an obstacle. Extensive discussion with employees – which have to precede the intervention – often lead to a long evaluation period before counselling could be initiated. For the employees, this turned into a long period of insecurity which should rather be avoided. The examples chosen from Germany are not primarily traditional outplacement, but they illustrate innovative concepts and there are also initiatives within certain companies to implement their own kind of guidance. The case of the German railway – who have established their own institution for the transfer of employees that become redundant – may be exceptional due to its scope (GER - case 4). No single outplacement company might have been capable of organizing and accompanying this process. Nevertheless, it illustrates that tailored solutions are possible that incorporate large-scale co-operative efforts and administrative tasks. 11

The description of cases see Annex IV.

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Even more innovative seems the idea of implementing re-orientation into the daily routine of the business (GER - case 8). Within one German company an office was established where employees could address the issue of re-orientation, further training and employability without an actual need for concrete dismissals. As nobody was forced to leave, there was no stigmatization when employees actually sought this kind of information or even support. Nevertheless, this was indeed outplacement as it led to reorientation and some people left the company. Others are now more familiar with the idea of job changes which might be an advantage in future. Large-scale dismissal in Germany is often subject to the implementations of the social security code which limits the duration (24 months, or 3 months – as outlined above; GER - case 1 case 2) and sometimes also the scope of any intervention. Active participation, however, is a formal part of the contract that employees are offered within the employment and qualification associations. As has already been pointed out in chapter 1.4, outplacement counselling has a long tradition in The Netherlands. Yet, due to the very favourable situation on the labour market, the need for outplacement was reduced as there were almost no large-scale dismissals. Thus, most of the outplacement agencies changed their focus towards individual career management. Only recently has this situation been changing again. Social plans have already had the tradition of including outplacement counselling, thus the traditional concept is well known in The Netherlands. Nowadays, some outplacement companies who act in the frame of social plans even incorporate active job search and re-placement (NL - cases 1, 2, 4, and 5) – similar to Belgium where this also is regular practice. The focus still lies on the establishment of personal needs and a solution that fits both the employee’s abilities and personal wishes. A very specific element is introduced in the co-operation with temporary employment agencies (see NL - case 1). While the employees’ incomes are regulated in the social plan negotiations, any additional earning in the frame of this temporary employment on the side of the agency is added to the amount available for counselling and training. Thus, the costs for the whole intervention are reduced while its scope is extended. In Italy, whenever an outplacement intervention is performed solely by an outplacement agency, it follows a common outline that comes close to the traditional approach. Usually there is a mixture of personal consulting/interviews and group meetings. Though there is a standard scheme for outplacement interventions that is well established in Italy, almost all the concrete cases presented put special emphasis on an “individual approach” or “individual tailoring” of their offer. In some cases counsellors actively searched for vacancies themselves (e.g., IT - case 1 and case 7). An interesting extension can be found in a case where factories all over Italy were affected by a large-scale re-structuring (IT - case 1). No single outplacement company would have been able to completely perform the intervention. Thus, operative centres were established in each factory which received support from professional counsellors and the outplacement company worked as co-ordinator. Here, job search and the onset of concrete contacts were specific tasks of the operative centres. This was owed to the specific circumstances in the south of Italy. It had to be assured that the new job con-

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tracts fulfil the legal requirements that can usually be expected and thus have a reliable and sustainable basis. In the area of Mugello in Tuscany which faces a severe economic crisis, a cooperative intervention was established that offered counselling to every person officially registered in the mobility list (IT - case 5; see also chapter 1.2). The intervention consisted of the traditional outplacement elements and was financed by the regional government. Yet, there was a highly motivated committee of all parties engaged (chamber of commerce, entrepreneurial associations, unions, and many others), and the various partners extended their offers beyond what was paid for by the government. This case is a good example for extensive regional co-operation and possible successes. The cases selected in Spain followed most closely the traditional scheme of outplacement counselling. This means, that in general no training was offered beyond the boarders of the original outplacement guidance. Yet, such offers were sought when considered necessary or recommendable. All the elements of the traditional approach could be found here – sometimes with a special focus on the grieving process, that means on the inner separation from the former company and the need to overcome frustration and anger. Only thereafter were people thought to be prepared for re-orientation. In three of the cases presented, the counselling started while the company was still operating and the employees were dismissed in groups (SP - cases 1, 2, and 4). At the beginning, locations and facilities of the dismissing company were used. After closure, the intervention was moved to new locations where it was continued. The participants were regularly offered guidance beyond the intervention itself and the counsellors stayed in close contact. On this basis, the intervention was continuously adapted to the individual development and further needs. One case deserves additional comments (SP - case 1). Here, the first task of the counselling company was to collect information on the area where a production plant was going to move. They elaborated living and schooling facilities, and there was comprehensive support in case someone was willing to move (stimulated by extra payments and assistance). The results of this search were presented to the employees, but the offer was rejected. Leaving familiar surroundings, friends and families could not be compensated for from their perspective.

6.1.3 Evaluation of the measures In general, there is no systematic evaluation of outplacement interventions independent of the actors (e.g. the outplacement agencies). In Germany, written statements have to be assembled under the social security code mainly because of the financial contributions. In Spain, the traditional outplacement companies assemble detailed schedules for each participant which are often sent to the dismissing companies (and in some cases, to other actors involved). Nevertheless, scientific evaluation was missing, and often we had no access to the internal evaluation reports. However, the interviewees were willing to illustrate the elements that contributed to the success as well as possible problems and limits according to their experience. Elements that have proven important in Belgium were, for example, the personal choice of a counsellor which facilitated the establishment of a trust relationship. Comprehensive individual files were set up (which is also common in Spain) which greatly

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facilitated follow-up and adaptation of the intervention. New jobs were most effectively acquired through networking – whether initiated through the participants themselves or through the counsellors. In Belgium, unions were involved in almost all outplacement interventions – as these followed negotiations. This was also seen as an element contributing to success, as they helped motivating the dismissed employees to actively participate. Communication was always a major issue. Yet, many companies lacked favourable communication strategies. Some did not want to communicate re-structuring and dismissal, others were simply not experienced. Often there was no tradition to communicate. The financial situations of unemployed persons differ considerably across countries. It is rather favourable in Belgium and in The Netherlands. This is also true for Italy as regards the cassa integrazione and the mobility list which apply only to the industrial sector. Partly this also applies to Spain. It may also be true for Germany given some very favourable social plans. Yet, the longer someone remains in this status, the less favourable are the chances on the labour market. Thus, for example, financial incentives for quick transfer seem desirable – provided they incorporate adequate counselling to ensure sustainable re-employment. The qualifications of the counsellors vary considerably. In most countries, they have a background in economics or stem from the area of human resources. In Spain, many of them are psychologists. Within the traditional companies in The Netherlands, most counsellors are certified. In a number of German cases the need for constant training – on the side of the counsellors – was emphasized. It remains unclear who might suit best for performing the counselling – and this also counts for the best location. In Belgium, Germany, Spain, and The Netherlands we found cases where counselling was performed – or started – at the premises of the company. This may facilitate access, as the employees remained within their familiar surrounding and could seek interaction with their (former) colleagues. However, when there is a need to separate from the company, this may considerably hinder the inner separation and re-orientation. Furthermore, obligations towards the employer and engagement in counselling might prove to be conflicting aims. The periods of interventions varied considerably. However, given intensive personal guidance, it seems that six months are a reasonable period within which replacement can be obtained. Re-employment rates were fairly high throughout all countries and interventions. The average seems to be around 75 or 85 %. They are slightly lower only in Spain and in the south of Italy. But – of course – the overview presented here is not representative. The rates seem to be very high – given the mostly unfavourable conditions on the labour market in the participating countries. Yet, most companies emphasize that the process – guidance, re-orientation, personal and tailored approach – is the key issue. Only in Italy and in The Netherlands re-employment is itself sometimes explicitly said to be the main criterion for success. In the Italian cases it was observed that participants could only fully overcome the psychological consequences of the prior dismissal after their transfer to new employment. Even in very successful interventions, persons remained that were not transferred into new employment. In all the countries, these were mostly women. They either took dismissal as a chance to have children or concentrate on other family activities. Others

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simply found no chance to adapt their time schedule to the new requirements: different working hours or longer distances to the workplace. In case there was a husband who earned money, this further supported the withdrawal of women from the labour market. This leads to some conclusive remarks on the situation in The Netherlands. Here we find a number of very favourable working conditions and job contracts, support of part-time work and many others. Though there are legal prerequisites, it seems that especially here we find a tradition of employers who consider it their responsibility to care for their employees – whether they will stay within the company will leave. This is best illustrated by one case where internal re-placement was possible for a small number of employees who had been made redundant. The company chose to offer internal replacement to those who were considered to be least employable. Another aspect that appeared throughout countries and cases is limited mobility on the side of employees. Whatever re-orientation they managed to realize, most of them objected to moving to other areas or locations. In the end, this mostly did not present an obstacle to successful re-employment. Yet, it should be avoided to merely blame employees for this “lack” of mobility. There is reason to assume that they simply do not trust in the sustainability of company decisions or development. Given the risk for new unemployment in the future, the price seems too high: leaving behind friends, families and familiar surroundings – that fulfil an important role of buffering unemployment as well (Kieselbach, 1997).12 A corresponding legal basis would be needed – also in order to overcome existent discrimination: favourable contracts only in certain branches (Germany, Italy), even completely different strategies with regard to blue and white collar workers (Belgium) – or introduction of counselling merely on the basis of a specific company philosophy (Spain).

6.2 Conclusion as to what is “good practice” As has already been mentioned, systematic evaluation is missing in most cases of outplacement counselling. Furthermore, no independent data is available from other kinds of counselling which could form the basis for a comparison. However, sometimes extensive individual files exist, and the persons interviewed have considerable experience. Therefore we will base our conclusions on the experience of the persons interviewed – which seems reasonable given the broad range of cases studied.

6.2.1 Scope and content of intervention In general, a period of six months seems to be recommendable in order to cover all the aspects, issues and tasks outplacement counselling is composed of. In most cases, successful re-placement was reached within this period. An extension should be granted for persons with extremely low employability. Yet, extension will have to be based on systematic evaluation of the contents and progress of the previous period. While shorter periods might simply be insufficient, longer periods also present obstacles. A period of, for example, two years may create the illusion of security – while employees are, in fact, in transition. Their active engagement and participation might be 12

Language barriers might create further obstacles - even within countries.

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reduced. Similar problems might arouse in case of fairly long-term unemployment benefits without any obligation to actively engage in job search. This too, can create the illusion of security and reduce personal initiative. However, chances for re-employment decrease the longer a person participates in any intervention (or the longer he or she remains unemployed). Financial reward for early transfer proves to be helpful only if there is close guidance and counselling in order to ensure that the choice is based on a thorough analysis of the situation and the participant. It has to be emphasised that this is by no ways an argument towards limiting any justified demands for adequate financial substitution – which is still insufficient in many countries. Quite to the contrary, it addresses the issue as to what is sufficient or adequate and it points to the need for counselling – in addition to financial incentives; this should form a mutual obligation and responsibility. It is recommended that counselling starts as early as possible, preferably prior to actual dismissal. In case of large-scale re-structuring, professional counsellors should already participate in the communication of changes to the employees. It is extremely important to reduce insecurity, avoid rumours, and support motivation for later counselling as far as possible. Unions or works councils should be involved in the preparation and conceptualisation of interventions. This would ensure that employees’ rights are adequately referred to during the whole process of occupational transition. The elements of the traditional outplacement approach – which have been described in chapter 2.1 – seem reasonable and they have proven successful in a comprehensive number of cases. These include systematic preparation – before the actual onset of the job search. This is a prerequisite for a thorough re-orientation and is essential to ensure sustainable re-employment. Psychological support in coping with dismissal and re-orientation will certainly also be a crucial element. We have not – however – arrived at a recommendation as regards the issue of direct placement or active job hunt on the part of the counsellors. Any outplacement intervention should stimulate the participants’ personal initiative, their active role – an attitude that will also be of advantage for their occupational future beyond the intervention. Therefore, those affected should have an essential part in the job search. Experience through temporary jobs might prove helpful, provided they clearly serve as experience and not predominantly as a final solution. The same applies to any further training. Training options have to consider the specific needs of the individual participant – and they have to suit labour market demands.

6.2.2 Individual vs. collective outplacement It seems to us that the distinction between individual and group outplacement is not always kept when we consider concrete cases. The general tendency is to offer individual counselling to managers and to refer to group outplacement within lower levels of hierarchy. This might be due to financial reasons. In the case of company closure or restructuring, a large number of employees are made redundant – most of them from lower levels – and it might be difficult to deal with all of them on an individual basis. Thus there are organisational arguments behind this too. However, also in cases of group outplacement we find personalised elements which are important and should not be left out. A thorough analysis of individual needs

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and demands might require this approach. On the other hand, considerable input may derive out of group counselling: exchange of information, mutual support and motivation, and previous relationships can be maintained for a while.Thus, there is good reason to offer both kinds of counselling.

6.2.3 Prerequisites There are a number of prerequisites that have to be addressed – on the part of the participants as well as of the systems of which they form parts. Voluntary participation is often mentioned as a crucial element. Participants might not engage actively when they are (or would be) forced to participate. In some countries, participation in outplacement counselling is absolutely voluntary, and dismissed employees might well participate only partly or else solely refer to other kinds of reimbursement. In Germany, however, certain forms of reimbursement – which include outplacement – require a self-commitment from the side of the employees and the tasks of both counsellors and participants will form a contractual basis (see chapters 1.3 and 2.1). Thus, there is no external “force” but engagement in the process of outplacement counselling does involve a personal commitment.13 On the other hand, companies should consider this kind of guidance as their duty. Outplacement counselling should not solely rely on any company’s philosophy or on influential trade unions. It should form part of employers’ legal obligations – just as any kind of financial reimbursement. For smaller companies, comprehensive offers to those who have to be dismissed will probably be beyond their options. However, some sort of collective financing – similar to unemployment benefits – seems recommendable, limiting access to public funds as much as possible. The Austrian Labour Foundations – either with regional or industrial sector scope (“Arbeitsstiftungen”) – might well serve as an example. This also addresses the issue of knowledge about the concept of outplacement. In many countries, it is still widely unknown among employers and employees. And – thus – in most countries there is no established way of accreditation – whether for the outplacement companies or for the individual counsellors.

6.2.4 Innovative elements Some innovative elements and cases have been presented that could serve as an example that goes beyond actual outplacement counselling. On the one hand, there is extensive co-operation from various actors on the labour market in order to deal with unemployment. In the long run, any single strategy might not be sufficient. At the moment practitioners claim that there are many offers to employees and to unemployed persons, but they are not related to each other and often it is unclear whether they really contribute to an increase of employability. Innovation, here, would mean to integrate the various offers and actors into creative networks and to arrive at some kind of synergy.

13

It should be noted here that the cases from The Netherlands showed that probably not every dismissed person might be in need of counselling. This may be due to a favourable labour market situation; however, the offer of such counselling should be carefully considered in any case of dismissal. (It might well lead towards re-orientation to other areas of business that fit better the personal profile.)

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The other aspect addresses employability. Outplacement starts at or around the moment of dismissal. Yet, sustainable adaptation to the present labour market changes requires earlier strategies. This does not only include training. Strategies will have to be developed that enable people to adapt to changes – prior to questions of dismissal. A thorough employability policy of companies can reduce the need for outplacement counselling in the case of actual dismissal. Research results thus also emphasize the need for support systems that are helpful in coping with occupational transitions. Outplacement counselling is an important first step, company philosophy that further addresses the issue of employability is crucial. Beyond the individuals and the companies, social systems in the area of education and training as well as school systems face a challenge and will have to address the issue of occupational transitions to a larger extent than at present.

6.3 Conclusions The concept of outplacement counselling is gaining importance – in some countries it is already well established and is incorporated, e.g. in social plans. There is considerable agreement as to what elements outplacement counselling should be composed of. These are quite comprehensive and try to support personal initiative as much as possible. Sometimes active job search and placement seem more suitable. Psychological guidance proves useful in dealing with the transition itself and in arriving at re-orientation. At present, there is still discrimination within and across countries: Outplacement counselling is not equally offered to all kinds of employees and in all areas or branches. This will probably require innovative ways of financing which will have to take into consideration the different social systems of the European countries. Two main tasks arise from the research results. Firstly, employees will indeed have to accept diminished stability of their occupational situations in general. This includes active engagement in these transitions once they occur and once adequate counselling is offered. Unions might also have to come to some reorientation – besides justified demands for sustaining jobs and granting of financial compensation schemes. Secondly, companies and employers have to consider counselling an adequate and suitable form of reimbursement – and an expression of Corporate Social Responsibility. They will have to be responsible for their employees beyond actual dismissal, and financial incentives must not be viewed as an easier solution. Yet, assuring and sustaining employability will remain a challenge beyond situations of dismissal. This could, for example, be realised through company-related training that refers to more than just actual requirements of concrete work places. Thirdly, it has proven that even adequate counselling, financial incentives and active participation might not be sufficient. Fundamentelly, there seems to be a special kind of distrust. Re-orientation will be hindered as long as the new orientation seems to incorporate just as much insecurity as the situation left behind. On the one hand, there might be a lack of flexibility in general, having its origin in past experiences and a very specific history of employment. On the other hand, flexibility can not be called for without limits. Social systems serve as support and buffer in various difficult situations – including occupational transitions. Rather, it is worth considering how social support

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systems will have to be designed in order to provide for some kind of security and stable support.

7

General discussion

This report has compared the results of empirical studies performed jointly in the five contributing countries (Belgium, Germany, Italy, Spain, The Netherlands). These included employees in insecure job situations, employees who had found new employment after outplacement counselling, and cases of good practice in the field of outplacement counselling. Thus, a comprehensive picture was obtained of the experience of job transitions from the point of view of those affected as well as of their expectancies, and also on good practices in the field of transition guidance and counselling. Spain and The Netherlands probably represent two extremes as regards some of the above aspects. In Spain, labour market problems are still being “solved” mainly with financial means; unemployment and coping with it are regarded individual problems. (Only recently have there been signs of change). In The Netherlands, collective wage agreements have incorporated career guidance for quite some time already – thus emphasizing the preventive aspect. Social plans would regularly include outplacement counselling, while the concept is still widely unknown in Spain. In general, it can be stated that the concept of outplacement counselling is gaining increasing importance – while there still may be problems in the conceptualisation particularly in Italy. In any case, outplacement counselling is not always regarded as “fair treatment” by those affected. Interestingly, all countries report considerable deficiencies in the information strategies of companies in phases of restructuring. Rumours add to the stress employees experience, mistrust develops – and these cannot be regarded as adequate prerequisites for coping with the transition and engaging in the counselling. Consequently, though most employees interviewed value this counselling positively, they still hold negative feelings toward their (former) employers which sometimes leads to distrust towards the new job situation as well. The most congruently expressed responsibility of employers was “avoidance of dismissal”. It can thus be concluded that most employees regard job transitions as a threat and they would like to avoid it. They often react with increased competitiveness or else increased commitment – hoping that dismissal might be avoided in their particular cases. Selection criteria, if finally announced, are often regarded as unfair and not sufficient, considering their individual situations. While a small number of employees start looking for new jobs immediately (not even waiting for the moment dismissals are announced), especially those with extended years of tenure face difficulties – having lost contact to the labour market and often having limited or specialized skills and knowledge only. The concept of outplacement counselling was not known to most of the interviewees in the five countries. As many felt having been treated unfairly, the initial part of the counselling was composed of psychological support in overcoming the dismissal situation. This might not always have been successful – given the fact that, e.g., Italian respondents had experienced the counselling as a means of the company “to get rid of

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them”. On the other hand, Dutch respondents clearly valued this offer – once dismissal was unavoidable and, in particular, if the whole process was experienced as fair. Nevertheless, many respondents argue that dismissal could have been avoided; the arguments given for company closure were not clear to them. The overall picture that emerges is, firstly, that outplacement can indeed cushion the job transition considerably – given high quality and thorough conceptualisation. However, outplacement should be part of a broader concept, ascribing responsibility to all the social actors involved. For example, public bodies should request objective proofs for dismissals deemed unavoidable and – in the affirmative – for adequate strategies to support those affected. This will, of course, include financial incentives – but attention will have to be paid to more comprehensive support: counselling and guidance through and beyond the transition. Employers will also have to be held responsible – not only for financial compensation and guidance in case of dismissal. Rather – as is already being practised in The Netherlands – they will have to develop concepts in order to support and maintain employability of their staff. This would considerably facilitate any job transition. Those affected would feel more confident from the very beginning – which would reduce stress and anxiety and would positively influence motivation towards and successful participation in transition counselling. This also addresses a challenge to unions who must play an important part in the conceptualization of transition counselling and thus in a new understanding of job transitions in general. Models as to how these should be designed – as curative as well as preventive approaches – have been outlined in the National Reports and should serve as examples as they address a variety of countries, regions, branches, social and economic prerequisites.

National Reports

Job insecurity and successful re-employment: Examples from Belgium Jan Vandoorne & Hans de Witte

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Introduction .................................................................................................

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2 2.1 2.2

Qualitative study: Description of sample .................................................. Insecure employees ....................................................................................... Successfully re-employed individuals...........................................................

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3 3.1 3.1.1 3.1.2 3.1.2.1 3.1.2.2 3.1.2.3 3.1.3 3.1.3.1 3.1.3.2 3.1.4 3.1.4.1 3.1.4.2 3.1.5 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.3

Qualitative studies: employees in insecure jobs and successfully re-employed ................................................................................................. Description of results of the subsample “insecure jobs” ............................... Situation in the present company .................................................................. Aspects of organisational justice ................................................................... Distributive justice ........................................................................................ Procedural justice .......................................................................................... Interactional justice ....................................................................................... Organisational vs. individual responsibility... ............................................... Company responsibility ................................................................................ Individual responsibility ............................................................................... Employability and concrete measures ........................................................... Company offers ............................................................................................. Individual strategies ...................................................................................... Overall assessment ........................................................................................ Description of results of the subsample “successfully re-employed” ........... Situation in the former company ................................................................... Aspects of justice .......................................................................................... Employability ................................................................................................ Responsibility ............................................................................................... The outplacement measures .......................................................................... Overall assessment ........................................................................................ Conclusions ...................................................................................................

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Cases of good practice: Description of sample .........................................

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T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1_3, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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5 5.1 5.1.1 5.1.2 5.1.2.1 5.1.2.2 5.1.3 5.2 5.2.1 5.2.2 5.2.2.1 5.2.2.2 5.2.3 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.3.6 5.3.7

Cases of good practice in outplacement/replacement .............................. Examples of good practice: Renault Vilvoorde ............................................ Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Framework of the intervention ...................................................................... Contents of the intervention .......................................................................... Evaluation ..................................................................................................... Examples of good practice: Levi Strauss ...................................................... Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Framework of the intervention ...................................................................... Contents of the intervention .......................................................................... Evaluation ..................................................................................................... Conclusion as to what is “good practice”...................................................... Preparation .................................................................................................... Emphasis on internal re-employment ............................................................ Communication ............................................................................................. Elements constituting the intervention .......................................................... Supporting measures ..................................................................................... The task of the trade unions ......................................................................... Striving for durable employability ................................................................

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General discussion....................................................................................... 112

Empirical analysis of job insecurity and re-employment in Belgium

1

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Introduction

Outplacement is a method of finding another job in the labour market. Active techniques are used to help find other employment: for instance, interview training, counselling and an analysis of personal strengths and weaknesses. Outplacement was introduced in Belgium during the recession at the beginning of the eighties. During this period, several methods of career guidance were used: career breaks, part-time employment, early retirement, etc. Outplacement constitutes a different way of organising a career, namely a specific approach which allows the employee to leave the company under more favourable circumstances (Denolf et al., 1999). Outplacement is not restricted to periods of recession when many businesses face difficulties or go bankrupt. It may also be perfectly suitable in other market conditions. Since the end of the 1980s, this type of service has expanded, although it stagnated during the 1990s techniques and target groups are also subject to change (‘Financieel Economische Tijd’, 19 July 1996). Originally, outplacement was meant for managers experiencing problems in adapting to the labour market in view of their particular role within the company. At present, outplacement techniques can be adapted to suit all categories of employees in the form of collective outplacement (Arbeidsblad, 1994). In Belgium, outplacement is an integral part of collective bargaining between the trade unions and employers. In Collective Agreement No.51 of the National Labour Council (NAR), a body representing both the trade unions and employers, outplacement is defined as “a cluster of supportive services and recommendations carried out by a third party (in this case: the outplacement office) paid for by the employer, extended to an individual or a group, in order to enable the employee to find a job as soon as possible with a new employer, or to develop a new career as a self-employed person” (Denolf & Denys, 1999). In this definition, outplacement is recognised as a service, whether it is organised for individuals or on a collective basis. Many professional people nevertheless consider the practice to be an individual arrangement between a consultant and a job-seeker after redundancy. Although outplacement is, strictly speaking (according to the NARdefinition), designed for redundant employees and hence of a remedial nature, an increasing number of outplacement agencies are developing initiatives to give in-service career guidance to individuals or groups. These support schemes are rather of a preventative nature. Companies can request inplacement from outplacement agencies for the benefit of employees moving to different jobs within the same company (ibid.). Collective outplacement or group outplacement is mostly designed for a group of employees made collectively redundant through company liquidation, or in the course of a large restructuring programme. In this case, the outplacement agency adopts largely the same approach as with individual outplacement. Some of the training and counselling sessions are carried out in small groups. Group outplacement is most often carried out over a limited period of time. Individual outplacement is less time restricted (Collective Agreement No.51 foresees a period of two years) and the agencies offer a guarantee: they will resume their task if the employee loses his new job within a set time (usually one year). Group outplacement, on the other hand, is subject to time constraints. It is usually carried out within a period of six months. The assistance given by outplacement agencies to redundant employees, both when organised individually or collectively, contains three elements (ibid.):

82 1. 2.

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Jan Vandoorne & Hans de Witte Emotional support for the redundant employee. The employee receives counselling to cope with the redundancy; Logistical support with the search for a new job. This may cover secretarial work, such as typing or communicating messages, the use of office space with phone, fax and modem facilities, the use of a photocopier, a reading room where papers and specialised press items can be consulted, as well as trade journals and databases; Personal support from a consultant, who will guide the job-seeker through the various stages in his search for a new job.

The most important elements of the outplacement programme consist of the following three steps: 1.

2.

3.

2

An assessment of the job-seeker’s strengths and weaknesses, e.g. leadership skills, communication skills, etc. The assessment is based on the candidate’s past, future expectations, preferences and interests. As a result, a career plan can be mapped out; An approach to the job market: jobs are selected in keeping with the career plan mapped out during the previous stage, potential employers are approached, and a communication strategy designed to that effect (e.g. training in interview techniques, telephone manners, etc.); Evaluation of job offers, assistance with negotiating working conditions with employers, and support during the placement and integration into the new work environment.

Qualitative study: Description of sample

This part of the project involved conducting qualitative interviews with employees in different types of companies during (or after) the process of downsizing. Two groups are of interest here: those currently facing an insecure job situation, and those having been re-employed successfully. In order to develop meaningful intervention strategies for individuals in occupational transition, in-depth knowledge of subjective job insecurity experiences in a wide variety of settings is of central importance. This will allow for new insights into the impact of unemployment, and with regard to job and work-place attitudes. In addition, these interviews will also help to find access to and to analyse innovative intervention strategies which assist employees in coping with occupational transitions. The second group is composed of successfully re-employed individuals having found a new job as a result of outplacement/replacement counselling from their previous employer. A semi-structured or problem focused type interview was used as a research method, covering such areas as own company evaluation, work significance, recent career changes, assessment of the company’s social responsibility in the downsizing/ restructuring process, and attitudes towards unemployment.

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2.1 Insecure employees The sample selection of insecure employees was done according to the criterion that jobs are objectively insecure. Insecure employees can be defined as working for a company where extensive dismissals are about to take place, whose situation is discussed in the media and by the general public. The reference is not to a subjective/personal feeling of insecurity. The selection of companies or branches was made according to each country’s specific situation. In Belgium, four branches in the process of restructuring and downsizing were selected. Profit-seeking in the food industry has led to certain restructuring processes. Smaller companies which have been taken over by multinational companies are particular targets of downsizing. In Belgium, one of the biscuit company LU’s factories will be closed by the Danone Group. The factory’s closure was announced in March 2001. 412 employees are to lose their jobs. 2001 was a dramatic year for the national airline company, SABENA. The company had been in a state of bankruptcy for a long time, but in October 2001 it went into compulsory liquidation. Thousands of employees are going to be dismissed. The car industry is another one of the selected branches. Following a decline in the demand for trucks, VOLVO Europa Truck announced the dismissal of 207 temporary workers. The last selection was made from the banking sector, where major mergers have taken place during the preceding decade, creating the expectancy of a drop in employment. In March 2001, BACOB Bank and DEXIA Bank signed a co-operation treaty, thus becoming the second largest bank in Belgium. The merger probably poses a threat to 800 jobs. Within Belgium’s largest bank, Fortis, created by the merger of Generale Bank and ASLK, the restructuring process is in full operation. Trade unions fear a job loss of 3000 people. Co-operation was obtained from the trade unions to approach insecure employees as they are most familiar with the company situation and have access to the employees involved. By means of this procedure 25 interviews were successfully conducted with insecure employees from the four selected branches. About 2/3 of the interviewees (n = 16) were male, and one third (n = 9) was female. They were on average 39.2 years old. Approximately half of them were 40 years old or below (n = 14), the other half (n = 11) was over 40 years old. Almost all were married, with mostly two children (n = 20). Three respondents were single, and two of them were divorced. They were split into almost equal parts as far as their occupational level is concerned: 12 of them worked as blue-collar workers, and 13 were white-collar workers (almost all with a low or medium level of education).

2.2 Successfully re-employed individuals The criteria for the sample selection of the successfully re-employed individuals were: having received outplacement/replacement counselling before dismissal and being successfully re-employed. The counselling should have taken place during the preceding 12 months and be financed and organised by the company, an external agency, or with the help of the labour administration. Note that there normally is a time lag between the moment of dismissal and actual unemployment, due to the period of notice. Employees have to be informed about their redundancy some weeks before actually losing their job. As a consequence, some respondents were following outplacement during their period of notice, thus while they were officially still employed by their previous company.

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In order to approach these individuals, we obtained the co-operation of a few outplacement agencies who were very willing to locate suitable interviewees who had been counselled during the previous years. This procedure enabled us to conduct interviews with 25 successfully re-employed people. This sample contains slightly more women (60% or n = 15) than men (40% or n = 10). They were on average 39 years old. About 2/3 were 40 years old or younger (n = 17), and the other third was over 40 years old (n = 8). Almost all were married (n = 21), with mostly two children. Only two among them were single, and two others were divorced (with children). Their occupation was slightly ‘higher’ than the previous sample: about 2/3 (n = 17) were white-collar workers, and one third (n = 8) were blue-collar workers. They worked in a very large variety of branches.

3

Qualitative studies: employees in insecure jobs and successfully re-employed

3.1 Description of results of the subsample “insecure jobs” 3.1.1 Situation in the present company This section consists of a discussion of insecure employees’ present situation within the company. The following pertinent questions were asked: what are the company’s intentions, has there been an atmosphere change in the work-place, what is the interviewee’s reaction to that, what are his feelings, does he/she feel insecure?

The restructuring process In most of the cases, a restructuring or downsizing process had been announced. Differences occurred with regard to the phase of the process. In some cases, there were only rumours about a possible company closure. In one case, there was only a newspaper article quoting well-informed circles, as saying that a discussion about possible restructuring of company in question was taking place. The company itself denied all rumours and stated that nothing was wrong. However, trade unions were alarmed and employees were frightened. It would seem that feelings of insecurity concerning one’s job and distrust of the company are strongest in cases where there is a lack of clarity and where only rumours abide. This is especially true when there are no signs of company difficulties or stagnating production. Even if no closure or mass dismissal is expected, it may create feelings of job insecurity. In other cases, the restructuring/downsizing process had already progressed to the next stage. A decision had been made but not yet implemented, and some concrete facts were still unknown. In one case, the decision to close the company had been made, but the closure would have taken place within two years. Employees were promised employment for this period, but this could not remove all feelings of insecurity. In certain cases, employees neglect ‘obvious’ signs that their job is not so secure anymore. This may be interpreted as a kind of ‘displacement mechanism’. The atmosphere in the workplace appears to start deteriorating soon after the restructuring/ downsizing process has been announced. In some cases, the atmosphere in the workplace had already started degenerating even before the announcement of the downsizing process. Downsizing often takes the rationalisation process a step further.

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Some interviewees indicate a change in management, with the new management already taking steps to raise production, resulting in an increase in time pressure and a decline in atmosphere in the workplace. When downsizing is announced in a situation of this nature, confidence in management is completely lost. Relations between employees may be good, whereas relations between employees and management may not. There is an increase in control and supervision. After the initial ‘shock’ the atmosphere in the workplace seems to improve. Life and work go on. In most cases, dismissals have not yet been implemented. During this phase employees indicate more apathy. If, however, the process is prolonged, the atmosphere in the workplace can once again start deteriorating. In some cases, good workers have already found a new job, and the same amount of work has to be done with fewer people. For those remaining, stress in the workplace increases. The atmosphere in the workplace appears to worsen when competent fellowworkers leave the company because they have found a new job. Although the work-load remains the same, it has to be done by fewer or less experienced employees. Because of a lack of time to train these fellow-workers, the workload of those employees remaining in the company increases, which in turn affects production. It also causes conflicts between fellow-workers, lack of motivation and decrease in solidarity between employees.

Feelings of job insecurity Although all interviewees find themselves in an objective state of job insecurity, not everyone reports a subjective feeling of job insecurity. Feelings of job insecurity seem to accompany the downsizing phase. An individual seems to cope with the stressful event if it persists. Once the first shock of the news is over, there follows a period during which employees seem to wait for further explanations. Instead of panicking, they are prepared to ‘wait and see’. Employees refuse to anticipate problems before having the real facts. They seem to remain realistic. But as the moment of when the decision will be announced draws closer, feelings of insecurity become predominant. Older employees view possible dismissal as an opportunity for early retirement. Others think that they won’t have too much trouble finding another job. However, they are aware that their circumstances of employment will probably be different, that they will earn less, and will have to make an effort to adapt to their new work environment. Some also believe that they themselves will not be the ones to be dismissed in the downsizing process. On the one hand, there are senior employees who think that they will not be dismissed, because the costs involved in the dismissal of a senior employee would be much too high for the company. In turn, younger employees hope that, thanks to a financially advantageous early retirement scheme, the much older employees will be the first to be dismissed. The middle-aged employees seem to be at greatest risk for feelings of job insecurity, as has been found in a recent survey as well (De Witte & Vandoorne, 2002). The greatest fear in the case of job loss appears to be adapting to a new job environment (new colleagues) and eventual financial loss. Well-being Intense restructuring and the threat of dismissal have adverse effects on the professional as well as individual well-being of many interviewees. In many cases, job insecurity leads to feelings of anguish about the future. People worry about what will happen to

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them, about whether they will survive financially. However, the dominant feeling with most people is one of anticipation. They try as much as possible to separate their job from their private life. Not everyone succeeds in doing so. Some interviewees note that it was difficult to deal with the problems at work and that it resulted in conflict at home. In a few cases, mention of the consequences for their physical health due to higher pressure at work is made: back problems, inflammation of the intestines, allergies, and hair loss occurred. Feelings of job insecurity often lead to a change in attitude as far as work is concerned. With many employees, the dominant feelings are those of a lack of motivation and low job satisfaction. In most cases, this does not seem to lead to a low productivity rate. People continue doing their job the way it has always been done. Many people rely strongly on the fact that the job contents remain interesting, or on colleagues, or on continuing client assistance.

3.1.2 Aspects of organisational justice Aspects of organizational justice are relevant in order to understand the work force’s expectations regarding job security, lay-offs and outplacement. Organisational justice pertains to decisions made by organisations concerning their employees and the procedures followed to make these decisions. When employees consider the decisions and/or procedures implemented to be fair, they accept the consequences of these decisions more readily and generally co-operate more easily with authority. Three aspects of organisational justice have been put to scrutiny: in the context of layoffs, distributive justice deals with the selection of individuals being made redundant and having access to outplacement counselling. People generally consider outcome decisions to be fair when equity is applied, i.e. when people are rewarded according to their contribution. Another aspect is that of procedural justice, a dimension involving the use of procedures to evaluate employees’ performance and determine layoff decisions. Interactional justice refers to the type of interpersonal treatment experienced by people involved in lay-off decisions. The issue here is the way in which certain information is communicated.

3.1.2.1 Distributive justice Employees feel that they have been treated fairly when they know that the decision has been made on the basis of objective criteria. This does not mean that they necessarily agree with these criteria. In most companies the ‘last-in, first-out’ principle is used, but this is no legal obligation. Some companies select the employees they will dismiss on the basis of competence. However not everyone knows the real reasons or the criteria used for downsizing, resulting in people’s impression of not having been treated honestly. Thus, it also has a lot to do with the dimension of interactional justice. In some cases, not known objective criteria have been used. This causes true distrust of management. Some interviewees point to the fact that they were not valued as persons. Most interviewees understand that a company has to change or to grow, and why certain decisions are made. However, they expect the company to be honest and to explain the reasons for their decisions.

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3.1.2.2 Procedural justice This aspect of justice involves employees’ involvement in the downsizing process. In most cases, there was almost no involvement from the side of the employees. Their opinion was not asked, although they often knew best how to improve certain points regarding job organisation. It is seen as the unions’ responsibility to see to it that the staff’s voice is heard in the process. The unions are represented in the works council, but mostly the unions themselves are sidelined as much as possible by management. Although the unions do appear to play a role in the distribution of information, they sometimes dispose of too little information to be able to inform staff clearly and correctly. Unions thus find it difficult to fulfil this task, which is a source of reproach. Almost everybody thus relied on the unions to serve staff involvement and interest, but discovered that the unions could not perform their task adequately, as they were too often excluded by the employer1. In some companies, efforts were made to improve staff participation. Working groups were created to direct the fusion process on a positive course. In other cases, a web site was created where employees could ask the questions they had. But the answers to these questions were very general and not sufficient. Union representatives are also not so fond of this technique because they were excluded in this process. Problems of employees were individualised in this manner. 3.1.2.3 Interactional justice The most important dimension of justice seems to be the interactional one. This dimension is emphasized most when there is a call for fair treatment. This also seems to be the dimension most neglected by companies. Most companies appear to communicate inadequately with their staff. Clear, honest information constitutes the most important element when it comes to the feeling that one has been treated honestly. Employees want to be respected as adults. They also indicated that the impression of having been informed clearly and honestly would have enabled them to back the changes with more enthusiasm. Most interviewees were not informed about the restructuring by their own company, but via the press or gossip. For many people it is a sign that the company does not treat them seriously. Lack of communication creates suspicion amongst the staff, heightens feelings of uncertainty and may affect employees’ well-being and motivation.

3.1.3 Organisational vs. individual responsibility Under this heading we will discuss employees’ expectations as regards company and personal responsibilities in the event of restructuring or dismissal within their own company.

3.1.3.1 Company responsibility The first important expectation concerning company responsibility regards communication. Interviewees expect a clear, open and honest communication policy from the com1

Note that we are dealing with the perception of the respondents. In reality, unions could have been involved, even though respondents frequently state that management is trying to minimise the involvement and influence of unions. Note also that the ‘Renault law’ only applies when collective dismissals are at stake.

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pany. They want to be considered as full partners. Even when certain matters cannot yet be made public for strategic reasons, employees consider having the right to an explanation why certain matters cannot be expressed. In the paragraph on interactional justice it emerged that according to many interviewees their company’s communication image had left much to be desired. The recurring complaint was that information came too late, that it was not clear and sometimes not even correct. For the employees concerned, dismissal means breaking a psychological contract. Most employees have worked several years for the company, which creates strong ties. These ties cannot simply be broken without leading to a confidence crisis. By means of honest and open communication the company can try to curb the crisis. The one thing employees do not tolerate and which comes across as extremely painful, is the fact of reading about the closure or re-organisation in the press. They expect to be informed of such decisions by the appointed works council. The works council is seen as the appropriate channel to communicate with the employees via the unions. Most companies (at least in the banking sector) have their own internal, electronic communication channel. Even this channel is not used in some cases, while employees consider it to be a good means by which to be kept abreast of developments, and a great improvement to reading it in the press. Some interviewees are personally informed of their possible dismissal by their direct superiors. This is experienced as something positive. As these people know one another, it seems easier to put the message across. The fact that the message is communicated personally and not anonymously is appreciated. Apart from communication, staff involvement is also important. People who have spent years working in a company also want to feel involved when changes are in the air. Some of them plead for direct involvement. But not everyone thinks of it as being possible to involve everybody in the process. It is thought that, in this way, only very verbal people are heard. Blue-collar workers especially point out that the union has a role to play in improving staff involvement. Once dismissals have been announced, the interviewees have clear expectancies from their company. The older (the ones which are old enough to go on early retirement) as well as the younger employees agree that the former should be given the possibility of taking early retirement. In Belgium, early retirement is a strategy which is often used when a company is experiencing difficulties. However, criticism of this strategy is growing because of the costs involved. The interviewees seem to support it, though. It should also be accompanied by generous financial compensation. Apart from the legal provisions, people expect the payment of additional premiums. These premiums must limit the financial loss of those groups in the job market who are most vulnerable (the older employees). For younger employees the option is rather guidance to another job. Outplacement is still unknown to most interviewees, but they support the principle. Some indicate that especially those over 35 are finding it difficult to get a job, and that the employer should offer guidance to these employees especially. Recent legislation in Belgium has made it compulsory for employers to offer outplacement to employees over 45. For some interviewees the company should do more than just to offer guidance; it should in effect offer a new job. However, not everyone shares this view. It is pointed out that the individual employee knows best what the most suitable job for him or her could be. The company’s

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responsibility must thus be shared with that of the individual, when the latter is confronted with dismissal.

3.1.3.2 Individual responsibility Interviewees are in agreement that the individual employee cannot be held fully responsible for finding a new job. They thus expect the company to take the initiative in providing guidance. The individual employee should, however, take the responsibility of being receptive to different types of guidance. Some interviewees indicate that the individual employee will eventually have to find his or her own job, but that he or she should be guided and supported in this. The general expectancy seems to be that individuals should take their own initiatives to find another job, but that the company should provide guidance. These employee expectancies are quite in keeping with current practice handled by outplacement offices in Belgium. Apart from the individual’s responsibility at the time of dismissal, some interviewees point out that the individual also needs to take responsibility when the situation is still uncertain. Consequently, a positive attitude towards changes within the company can only occur when employees are fully involved in the process and are communicated to in an honest way.

3.1.4 Employability and concrete measures Under this heading we will discuss items regarding concrete measures taken by the company or the individual employee, that will improve chances of finding another job.

3.1.4.1 Company offers Companies can increase their employees’ employability particularly by offering to train them. Rapidly changing technology and production processes require permanent retraining of the employee population. It fits into the life long learning framework. From the interviewees’ account, it is apparent that little effort was made to maintain the employability level. Although training is provided, it is only for that specific job. There is little training in preparation for future jobs or for broadening the base. Blue-collar workers particularly find that there is a lack of similar training. They do receive specific training for the machine they are handling, but generally they are not able to handle other machines. Some of them experience this as a shortcoming. Yet, some blue-collar workers were engaged in a rotation system. This system not only has advantages for developing competencies, but also provides better motivation and less ‘soul-destroying’ work. White-collar workers usually report that they could have undergone more training. Every time a type of training was to be intended for enabling them to improve the handling of their current job, once the training was completed, there were few possibilities for further training. A few, however, report that their company invested generously in its staff, thus ensuring a good quality staff level. Training can improve staff competency, thus bettering their chances on the job market. Apart from providing training, the company can broaden and increase its staff competency through career planning. No single blue-collar worker ever had any form of career planning. With white-collar workers, things are somewhat different. Particularly those employees who are somewhat older report having had the chance to improve their position in the company. People who report of a similar company training policy are

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very satisfied with it and think that they have an advantage in case they have to start looking for work again. Still, it is only a minority which have received training.

3.1.4.2 Individual strategies Apart from the company’s offer to increase its staff employability, individuals themselves can also make efforts to find another job, and to further their employability in general. Only few insecure employees indicate having effectively begun looking for another job. Rather, they seem to be waiting for something to happen. Often, there is little information available and many hope that things will not go as far as dismissal. Moreover, there is not one single interviewee who indicates that he or she was momentarily following courses which could prepare him or her for a future job. However, most people indicate being prepared to undergo training if it should be required for a new job. Only few take the initiative themselves. Some interviewees have already applied for jobs and have also effectively received offers from other companies. They are, however, waiting for more clarity on the part of their company, before they actually take the step to a new job. On the one hand, they still hope that they can continue working in the company, on the other hand, it is a financial question; if they resign, they have no claim to dismissal compensation and premiums. One person reports of momentarily running two jobs at the same time. On the one hand, the current, uncertain job. On the other, she has accepted a part-time job as a saleslady. Having these two jobs, in the event of dismissal, she would not be totally unemployed. This combination of two jobs, though, is very difficult and hard to bear. Older employees indicate that they are not going to exert themselves to finding another job. Rather, they think along the lines of early retirement. Moreover, some interviewees indicate that they no longer have the ambition to doing a similar job. They prefer the choice of downshifting to a less demanding or eventually part-time job.

3.1.5 Overall assessment Employees who are working in a company or branch where jobs are no longer secure, do not report high levels of job insecurity. Instead, these employees adopt an expectant attitude: they won’t worry too early. Supposedly, this is a kind of individual, psychological protective reaction. Feelings of uncertainty seem to be highest soon after the announcement of the dismissal. Dismissals are often a further step in an ongoing restructuring process. Even before dismissals are announced, the work atmosphere is already deteriorated. The deterioration of the work atmosphere is a result of the increased work load, partly due to competent fellow workers leaving the company. The same work has to be done by fewer and less experienced employees. This whole process affects the health of the employees. A number of employees report a deterioration of their psychological health, and in some cases even their physical health. Employees feel that they have been treated fairly when they know that the decision has been made on the basis of objective criteria. Though, not everyone knows the reasons or the criteria used for downsizing. This can result in people’s impressions of not having been treated honestly. Most employees are not involved in the process, anyway. Participation in the process of decision-making is considered a task of the unions. The most important dimension of justice seems to be the interactional one. Clear and honest

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information constitutes the most important element concerning the feeling of having been treated honestly. However, this seems to be the most neglected element in a restructuring process. Clear, open and honest communication is one of the most important responsibilities of the company. Besides that, the company must accompany the dismissal with a generous financial compensation and guidance. Yet, the individual must also be willing to assume his/her responsibility and should be receptive to different types of guidance. Most employees report that they are not well ‘prepared’ for finding a new job. Their level of employability is not high enough. Those employees, though, who have received training in their company, feel that they have better chances on the labour market.

3.2 Description of results of the subsample “successfully re-employed” This chapter contains an analysis of interviews with the ‘successfully re-employed’ group. In the interviews, special emphasis is laid on outplacement guidance: its concrete elements and means of evaluation. Other dimensions discussed in more depth regarding the insecure employees group are also reviewed.

3.2.1 Situation in the former company Company situation In the case of collective dismissal in Belgium, employers and unions usually negotiate on a social plan. In the course of social negotiations of this kind the main issue is financial compensation for the dismissed employees. In some cases outplacement guidance is also provided. Outplacement is subcontracted to an outplacement agency, fully paid by the employer. Because of the high costs of outplacement, it is particularly implemented in larger multinational companies. In an effort to maximise profits, less profitable companies or departments are shut down. In order to make profit maximising socially more acceptable, outplacement is applied in these cases. Almost all the interviewees were dismissed and were offered the possibility of outplacement as part of collective dismissal and company closure. In most cases, these closures were the result of a recent take-over by a multinational. Some interviewees expected that the restructuring would result in dismissal. Therefore, it came as a complete surprise to many of them that the company would shut down completely. For a few interviewees collective dismissal was not a topic, but rather the restructuring or merging of different services, which rendered certain (especially executive) functions superfluous. We also discovered one specific outplacement case: one interviewee could rely on outplacement guidance after having had an accident at work, which made it impossible for him to carry out the same work (in the building sector) again. Atmosphere at work In most cases, the announcement of collective dismissal comes as a complete surprise. The initial reaction amongst employees is one of despair and shock. However, as the actual closure of the company may take a few months, production simply has to continue. During this period, outplacement guidance is usually set in motion. The interviewees indicate that it is a difficult period. Sometimes there is still a lot of work to be

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done, but there is no real motivation left. The atmosphere amongst colleagues may be influenced in different ways. In most cases, relations between colleagues do not change much. It appears, that the pain of collective dismissal can be eased by the fact that everyone finds him- or herself in the same situation. They all share the same fate, and one can expect a lot of support from the other employees. However, this is not always the case: when only some of the employees are dismissed, the atmosphere between the employees is not as positive. Some employees try to make a better impression on company management, to improve their chances of remaining in the company. As such a behaviour is made at the cost of the other employees, it influences the atmosphere at work negatively.

Individual aspects The first reaction of interviewees when their dismissal was announced was shock and disbelief. In some cases, it did not come as a complete surprise, whereby people didn’t really know what to expect. Even when expected, the announcement of a closure is traumatic for many employees, as they do not know what to do. The future is totally uncertain. After some time people realize that they will have to start looking for a new job. There is also the awareness that nothing will ever be the same again, and that they will not see their colleagues again. In some cases, there is also relief once the dismissal has been announced. When the company is doing badly and when there has been an uncertain situation for some time, the announcement can finally end the period of uncertainty. The employees know where they stand, and that there is no hope for recovery. For most interviewees the dismissal announcement does not mean becoming unemployed overnight. In most cases, work continues for another few months. The interviewees look back on this period with mixed feelings. On the one hand, the motivation to go to work had dropped considerably. On the other hand, nothing else could be done but to continue working. In some cases, pressure at work even increased, leaving employees with little time to fret about their situation. Other employees need time to wind down, once the actual dismissal has taken place. They explicitly choose not to start working again immediately, but to come to terms with their experience. The fact that they became officially unemployed, gives them the possibility to do so for a (short) while. Especially those interviewees who enjoyed working for their previous company, indicate that it was very difficult to part with the company and their colleagues.

3.2.2 Aspects of justice Distributive justice In general most interviewees indicate having been treated fairly by their company. However, that statement needs to be qualified. Many people felt cheated by the closure decision. It was their impression that management had done little to avoid a closure. Some also felt that management had not been completely open about the future plans. The Renault Law makes it impossible to simply announce the closure of a company. There has to be a staff consultation period, allowing for alternatives to be examined. Sometimes, this led to the company expressing the intention to close, when no take-over candidate could be found. Employees thus got the impression that everything would

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eventually work out, while management was actually pressing for a closure without saying it openly2. The feeling of having been treated fairly resulted especially from the financial compensation and the social guidance provided by the company. The decision per se is viewed as unfair by everyone. Most interviewees find that they have been treated fairly on a compensation level. This is not the case with interviewees who were individually dismissed. They felt as if they were targeted and had been made a scapegoat.

Procedural justice The involvement of employees in the negotiation process is seen by the interviewees as being the task of the unions. In most cases, employee participation was also taken care of by the unions. In the case of collective dismissal or a company closure it is usually the union who negotiates with the employer. It appears from the interviews that the unions had a difficult task defending the interests of all the employees. Some interviewees complain about not having been sufficiently involved in the negotiations, or about not having received sufficient clarification concerning concrete union demands. Yet, some of the interviews clearly state that the possibility of giving employees sufficient say in the negotiation process does exist. Some interviewees even had the chance of choosing their own staff representatives, who also sat at the negotiation table. The general understanding seems to have been that procedural justice or employee involvement was the task of the union. People trusted the union to listen to employees’ expectations, e.g. by expressing their thoughts to union activists on the workplace. Interactional justice The fairness dimension refers to the communication channels to the employees and the ways in which they were informed. Most interviewees were informed by management about plans to close or about collective dismissal, during a specially called staff meeting. The announcement was usually quite short and happened in a chaotic environment. In a few cases, the announcement was made during a works council meeting with union representatives. The first announcement of the plans was thus done formally by management. As the process unfolded, little information came through via management. It was the union in particular, which shouldered the task of informing employees about the course of closure and the negotiations associated with it. Like we saw in the description of insecure employees, though, unions do not always have much information themselves. Some interviewees indicate having first heard about the closure via the media. In general, communication by the company is judged negatively. This negative judgement especially refers to unclear communications. Management shrouded decisions in wordings and intentions of a general nature. Thus, employees did not always know what was intended and this caused uncertainty. In some cases, it was announced that the company was in pursuit of a take-over, but in most cases, it ended in a closure. This went off badly with employees; they felt deceived and lied to, and as if they had been left dangling, and hence lost confidence in the company’s management. Interviewees also indicate that communication has to be clear and honest from the start, in order to know what is in store for them. Giving false hope leads to greater frus2

Note that, according to the Renault Law, employees can examine and propose solutions to avoid dismissals. Management is obliged to analyse these proposals.

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tration afterwards, when it becomes apparent that management cannot keep the promises.

3.2.3 Employability In this chapter we look at compensation provided by the company for the dismissal of employees. As indicated above, most interviewees were dismissed when their company closed down. This entailed that employers and unions negotiated a social agreement regarding compensations provided by the company. In the case of the interviewees, outplacement guidance was accompanied by financial compensations. For companies dismissing collectively, specific rules apply with regard to the financial compensation they are obliged to pay. Apart from the usual dismissal compensation required by law, the company has to pay extra closure premiums. In most cases, these are supplemented by extra premiums. These compensations are most of the times calculated on the basis of the number of service years. In some cases the ‘Claeys’ formula is also applied. This is a valid formula for calculating dismissal compensation, especially for white-collar workers on a higher salary scale. However, the application of this formula is not mandatory according to law. When determining dismissal compensation, a distinction is made between white-collar workers and blue-collar workers. Because white-collar workers and blue-collar workers have a different juridical statute, negotiations concerning their social plan usually takes place separately. Blue-collar workers’ dismissal- and closure compensation allowance is much smaller. Most interviewees do not complain about the financial compensation they received from the company. Thanks to financial compensation, the dismissed employees did not need to fall back on unemployment compensation directly after their dismissal. This enabled them to come to terms with their dismissal and provided them with sufficient time to look for another, durable job. Mobilising the outplacement guidance is also part of the social plan. In some cases it is on the employer’s initiative, in other cases the demand comes from the unions. Outplacement guidance is given over and above the extra financial compensation. Apart from company compensation, which aims at curbing the financial effects of dismissal and getting dismissed employees working again, individual employees themselves can also develop initiatives to find another job. Some interviewees indicate having looked for another job on their own initiative, even before outplacement guidance started. Individually, they had already started looking for vacancies and applying to other companies. In a few cases employees took the initiative to start with career training. Even before the commencement of outplacement guidance, some interviewees had already started looking for another job. They opted for following outplacement guidance nonetheless, in order to get more application tips, as they might be useful in the future.

3.2.4 Responsibility The results in this chapter corresponded largely with the ones of the ‘insecure jobs’ group. Interviewees indicate that it is the company which is responsible for its employees. Apart from providing sufficient financial compensation, the company should see to the re-employment of their employees. They find it natural that all interviewees have

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received outplacement guidance. Some hold that outplacement guidance offered by the company should become compulsory upon dismissal. Special emphasis is thus put on company responsibility. This does not mean that individual employees have no responsibility of their own. Many interviewees point out that outplacement guidance did not automatically provide a new job. The individual employee still has to look for a job on his own, although accompaniment and support would be provided by the outplacement body. They also point out, that outplacement guidance only has a chance to succeed if employees go into it with a positive attitude. A few interviewees indicate that it is a good thing to make an effort to find a job for oneself, as it gives greater satisfaction and because oneself knows better which job is most suitable. As we will see in the next chapters, one of the core elements of the outplacement intervention is to teach the participants to find out what specific job is most suitable for them.

3.2.5 The outplacement measures One of the core elements of the interview with the ‘successfully re-employed’ group was the outplacement guidance itself, with its components and their evaluation.

Outplacement components “First there was a general meeting where explanations about what we could expect were given and why they thought they could help us. Then one could enroll to participate in the guidance. The guidance took place during work hours. Group sessions about ‘how to apply’ according to a manual. They also provided a room with computers where you could check the vacancies. For individual guidance you could always make an appointment. Practice application conversations with a consultant. ... During the individual guidance an individual file was opened: ‘get to know yourself’, ‘who am I?’, ‘what do I want?’, ‘what are my further expectations?.” (B-SR-23; 171-182) The above-mentioned quote is a concise summary of what the contents of standard outplacement guidance entails. This standard guidance was given to almost all the interviewees. Participation in outplacement guidance is voluntary. During the first information session the outplacement office is presented to the employees and information is given about the concept of outplacement and about what may be expected. Afterwards, outplacement guidance starts as soon as possible with the interested candidates. In most cases it starts with a group session. Using a manual, participants must examine their strong and weak points, their expectations of a future job, and such like. This must enable participants to form a better image of themselves and to determine the specific job they are looking for. During the guidance, special emphasis is laid on self-management. The intention is that participants should find out for themselves who they are and what their needs are. The guidance counsellor’s task is to teach techniques that enable the participants to do this type of self-evaluation. During these group sessions the more practical aspects of job applications are dealt with: how to put a CV together, how to write a letter of application, how to make a good impression during the job interview, etc.. Participants are also made familiar with different ways of searching for vacancies: vacancy publications, newspapers, data banks, and the Internet. In order to be able to use all these channels effectively, outplacement

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guidance provides logistical support, with or without company support. A separate room is provided, where various application channels such as computers may be consulted, in order to check vacancies on the Internet or to type letters of application. Furthermore, participants in outplacement guidance also have telephones and fax machines at their disposal and may use paper, stamps and the like. Offering this logistical support can be of great help for participants. Usually, participants do not have the necessary infrastructure at home. Furthermore, it may be very demanding applying for a job in an efficient way from home. Some types of guidance specially emphasize developing one’s own network. After all, research has shown that one’s social network is one of the most important and most successful application channel (see e.g. Doyen, G. & Lamberts, M., 2001). A few outplacement offices exploit this by teaching specific techniques for developing one’s own social network and using it to find a new job. In most cases, a job interview was prepared by role playing. In a few cases, it was recorded on video, for subsequent group or individual discussion. Besides this rather practical side of outplacement guidance, individual guidance is also dealt with3. Participants could make an appointment for an individual discussion with the consultant. In these talks, profile description is reviewed in depth or job application discussions are practiced and evaluated. During individual guidance room is given for personal problems, when searching for another job. The consultant plays an important role here. There should be a bond of trust between consultant and participant. These individual discussions also aim to provide participants with enough confidence and motivation to keep searching, even in the case of setbacks.

Evaluation Almost none of the interiewees had heard about outplacement before. Thus, they could not really imagine what it would be like. We did notice different expectations concerning outplacement guidance. Some interviewees had no concrete expectations. They participated because they had been given the chance and considered that it could do no harm to participate. Other interviewees were sceptical about similar guidance. They did not know what outplacement entailed or found that they would not really learn something new. They considered that looking for a job was an individual task and that someone else could not really help them with this. This skepticism changed after the guidance had started; as we will see almost everybody was very satisfied with the counselling. Lastly, there were interviewees who did have very high expectations of outplacement. This group does in fact form a small minority. These people considered that outplacement would offer them a concrete job. At the start of the guidance sessions these people soon realised that this was not the aim of outplacement. Particularly the knowledge acquired on application techniques is evaluated very positively. Most interviewees had little experience in applying for a job and did not know to begin. Concrete tips about writing a letter of application and conducting a job interview was instructive and valuable for most interviewees. They gradually became

3

Not all respondents were involved in collective outplacement. Some attended individual outplacement, even though these interventions were sometimes combined with group sessions in which employees from other companies were involved (e.g. training in application).

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convinced of the need of learning about these techniques, even though – at first – they did not think that these techniques were necessary. Besides the practical knowledge on job application offered by outplacement guidance, interviewees also appreciated the fact that they first had to prepare a profile by oneself. The interviewees thought of it as a good thing not to start with job applications immediately, but to spend time on questions as who they were and what they wanted. This encouraged people to start the application process with confidence and self-knowledge. All things considered, the consultant plays a decisive role. Participants are vulnerable and unsure of themselves, as they have not yet practiced their job application skills. Furthermore, it is important that a bond of confidence with the consultant is developed. This requires specific skills on part of the consultant. A few interviewees have less appreciation for the personal guidance, because trust in the consultant was lacking. These interviewees find that the consultant paid too little attention to what they really wanted. Only a few interviewees indicate that outplacement has not helped them much. They do have another job now, but they are of the opinion that it is thanks to themselves and not on the account of the guidance. These interviewees are all young people who have not been working long. These people probably had more recent experience with applying for a job, and job application training did not add much. However, these people are convinced that offering outplacement guidance is a good thing. They think that it is especially useful for the somewhat older employees, who have more problems finding a new job. The general picture is, however, very positive. Outplacement is really helpful when it comes to searching for a new job. Especially the motivational aspect of actually looking for a job you really want, appears to be one of the most important aspects. Outplacement stimulates participants not to think that they will not find a suitable job again and will have to take the first job that comes along. Even those who initially stated that they knew how and where to look for jobs, equally valued the outplacement positively, since the outplacement experience confirmed their presupposition that ‘they already knew all there was to know in advance’. A negative element, indicated by a few interviewees, is the fact that they often had to cover a great distance to follow the guidance. In some cases, guidance took place within the company itself. In other cases, though, participants had to go to the offices of the outplacement company.

Effects All the persons interviewed were working again at the time of the interview. This may of course be responsible for some misrepresentation when it comes to outplacement evaluation. Most people were not unemployed for long and found a new job almost immediately after the outplacement guidance ended. Different interviewees do indicate, however, that in the meantime they have changed jobs several times. For the greater part, this had to do with the fact that their job was of a fixed duration and that the

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contract had not been new prolonged4. Others made it their own choice to start looking for another or to keep looking for a more suitable job. A striking feature is that most interviewees are quite content with their present job situation. A few people were even able to find a better job than their previous one. In retrospect, they are quite satisfied that everything turned out well. However, for most people it is not an improvement all along the line. Quite a few interviewees indicate difficulties adapting to a new company culture and new colleagues. Others, in contrast, could deal better with the loss of colleagues and were able to create good ties with new colleagues in their new job situation. There is, however, one group whose financial situation got worse. This fact does not get a very negative evaluation, though, as it is accompanied by more positive elements such as less responsibility, stress, and physical pressure. All in all, most people feel satisfied with their present job. Some even see it as an improvement on all levels. For most of them, however, the new job brought advantages as well as disadvantages.

3.2.6 Overall assessment Most of the outplacement guidances followed the ‘traditional’ scheme: intensive application training, combined with individual guidance. The application training seems to be the core element of the outplacement counselling. Yet, it is only effective, when it is combined with an extensive individual coaching. There should be a bond of trust between consultant and participant. Besides, logistical support also seems to be of great importance. The knowledge acquired about application techniques is evaluated very positively. Concrete tips about writing a letter of application and conducting a job interview were instructive and valuable to most interviewees. In addition, interviewees also appreciated the fact that one first had to prepare a profile by oneself. The interviewees found it a good thing not to start with job applications immediately, but that time was spent on questions as who they were and what they wanted. This encouraged people to start the application process with confidence and self-knowledge. The general picture is thus very positive. Outplacement seems to be really helpful when it comes to looking for a new job. Especially the motivational aspect about actually searching for a job one really wants, appears to be one of the most important facets. Most interviewees are quite content with their present job situation. Some people were even able to find a better job than their previous one. For most people the new job has both, advantages just as well as disadvantages compared to their previous job. Especially the loss of the fellow workers seems to complicate the adaptation to the new job.

3.3 Conclusions Employees in objectively insecure job situation do not generally feel insecure themselves. It seems that they suffer most immediately after the announcement of dismissal and that they are then adopting a “wait-and-see” attitude. This might be some kind of 4

Most outplacement agencies stimulate the search for permanent contracts. However, since these contracts can not always be found, jobs with a fixed term contract are sometimes chosen, since such jobs could become a first step towards a permanent position.

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self-protection, but it might also be due to the fact that the work atmosphere had already started to deteriorate long before the announcement of concrete dismissals. These are just the last steps in a process of restructuring. The work load might, e.g., have increased due to fellow workers leaving the company. Employees do not primarily complain about the dismissal decisions in general, but rather about unknown criteria and insufficient communication. Consequently, employees feel having been treated fairly when communication was clear and open and participation of the unions was assured. Many of the insecure employees do not feel prepared for job search. While they do regard this their primary responsibility, they also expect guidance and financial compensation from the side of the company. Those employees who participate in such guidance and counselling value it very favourably. They appreciate having sufficient time for re-orientation and a thorough preparation for the job search. The outplacement guidance (which mostly followed the traditional scheme) was thus very successful – combining effectively group and personal support. Most respondents are quite content with their new employment but still regret the loss of fellow workers. The next chapters will illustrate outplacement guidance from the perspective of those who have carried out respective interventions.

4

Cases of good practice: Description of sample

In this part we report on two case-studies that are typical for the ‘Belgium case’. We selected these out of our rather heterogeneous sample of cases, in order to represent the complexity and variety of the situation in Belgium in a condensed way. Both cases are already a few years old and cover a different economic sector: the auto and the textile industries. Both of them imply large-scale restructuring. The amount of redundancies, however, varies between the two cases. The criteria for selection also included the specific policy of the organisation, and the celebrity of the case (e.g. the case of Renault, that was the origin of a new legislation in this issue). The cases discussed are: Renault Vilvoorde and Levi Strauss.

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Cases of good practice in outplacement/replacement

5.1 Examples of good practice: Renault Vilvoorde 5.1.1 Characteristics of the company The closure of Renault Industrie België was announced on 27 February 1997. Renault Industrie België is a branch of Renault, the French car manufacturer. Amongst other models, the Vilvoorde assembly factory also manufactured the Mégane. At the time of the announcement, 3,097 employees were working in the branch. The announcement was followed by a violent social and legal battle. The closure could not, however, be prevented. Drawn-out negotiations finally resulted in the signing of a social plan for the 463 white-collar workers members on 15 July 1997, and for the 2,634 blue-collar workers on 22 July 1997. The social plan was based on 4 pillars:

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Jan Vandoorne & Hans de Witte A financial concession, with the possibility of early retirement from age 48 onwards. RIB400: retaining a strongly reduced production section for approximately 400 5 co-workers . Renovil: searching for new activities in the newly available manufacturing space, 6 resulting in the creation of 389 new jobs . The establishment of a re-employment cell (REC).

The REC was specifically aimed at employees of Renault Industrie België. The REC started in September 1997 and terminated at the end of August 1999. During this period, employees remained on Renaults payroll. The system in use was that of temporary unemployment: 13 weeks of unemployment alternated with 1 working week. During the working week, employees were given outplacement guidance7.

5.1.2 Overview of measures: components and scope 5.1.2.1 Framework of the intervention The REC´s general aim, which was established in the social agreement, was to offer everyone the best possible long-term solution. The measure thus applied to all employees. Moreover, re-employment in itself was not sufficient; the new job had to offer prospects of a fixed contract and comply with the employees wishes. The REC´s co-ordination was handled by the company itself. The composition of the compliance commission was based on equal representation: both employees (and their representatives) and the employer were jointly represented in the commission8. The unions were thus closely involved in the project. In the initial phase, the REC was manned by 19 RIB consultants and 8 VDAB9 consultants. The RIB (Renault Industrie Belgium) consultants were Renault co-workers with executive abilities and sufficient social skills, qualifying for the early retirement plan. These co-workers were given application technique training. Besides, a logistic cell made up of 18 employees was established, vouching for secretariat support and the vacancy cell. 5 6

7

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RIB400 was established after the closure. It does not assemble cars, but is a supply company for smaller car components for the other car assembling plants of Renault. Renovil is a specific cell (under the authority of the CEO of Renault Industry Belgium and with collaboration of several public bodies) which promoted new industrial activities at the Renault site in Vilvoorde. Renault agreed to put the buildings and installation at the disposal of the new companies at very low expenses. In case of economic necessity, the system of temporary unemployment can be utilised in Belgium. This means that the employment contract will be suspended during a certain period. Periods of unemployment alternate with periods of employment. Renault used the system of 13 weeks unemployment (workers received unemployment benefit with a bonus from Renault of pr. 248 euro) alternated with one week of employment (during which counselling was received and paid as normal employment performance). So, Renault remained responsible for their workers until the end of the process. The full cost of the counselling was also paid by Renault. Collective Agreement n°51 (on outplacement) stipulates that the workers council must agree upon certain conditions of the implementation of outplacement (e.g. duration and choice of agency). However, there is no legal obligation to form a compliance commission. Also the equal representation of social partners within such a commission is an element of the culture of collective bargaining, rather than a legal obligation. VDAB: Public Employment Service (PES).

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The re-employment cell (REC) was mainly aimed at the blue-collar worker population. Employee guidance took place via outplacement activity, set up in collaboration with ADV Consult. ADV Consult is an outplacement agency specialised in group outplacement for blue- and white-collar workers. They were permitted to use the reemployment cell´s facilities. The REC participant population consisted of the 3.097 employees in service on 27 February 1997. The 463 white-collar workers participated in separate outplacement guidance, organised by ADV Consult. The guidance of the 2,634 blue-collar workers was organised by the REC. Of the 2,634 employees in service on 27/02/97, 152 had already found other employment before the signing of the social plan on 22/07/97 and 537 workers opted for early retirement. That brought the re-classified population to a total of 1,945 workers. For the most part, these blue-collar workers were not highly skilled (a lower secondary school certificate was the highest qualification of 75% of them) and had worked as assemblers (55%) or as middle technical staff (40%); 97.5% were men between 31 and 45 years of age; 37% had between 7 and 13 years length of service; 35% had between 19 and 25 years length of service. Renault had a low turnover and a high length of service. Recruitment often took place through family ties. This resulted in only few blue-collar workers having experience in applying for jobs.

5.1.2.2 Contents of the intervention The REC´s activity rests on three pillars: guidance by consultants, the vacancy cell and training offer. Four main phases of guidance may be distinguished in the REC´s activities: 1. 2. 3. 4.

Preparatory steps (vetting, file development), the emphasis being laid on the ability to manage for oneself (Sept 97 - Jan 98) Group guidance (Feb 98) Tailor-made solutions via a gradual transition to individual guidance Integral counselling

The REC came into operation in September 1997. A first important step was organising the information sessions. During these sessions, each employee was provided with the general lines of the social plan and the functioning of the employment cell, along with an individualised overview of the social plan´s financial consequences. These information sessions were followed by vetting conversations between the employee and a consultant of his choice. The aim of these conversations was to give vent to emotions, initiating the first discussion on profile and competencies, and determining employment preferences as well as eventual training. All employees were recorded in computerised files with staff particulars, desires and expectancies, previous job experiences, hobbies, other qualities, mobility possibilities and the like. During this phase, emphasis was laid on the ability to cope for oneself. Application training was provided and theme days were organised. Application training was given during a period of 2 days and was attended by 631 workers. Amongst other things, the theme days dealt with establishing oneself as self-employed, the job offer at the nearby VW factory or working in the transport sector. In November 1997, a gradual transition to group guidance was initiated. Group guidance started formally on 2 February 1998. At that moment, some 600 workers were

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still receiving counselling. The group guidance consisted of testimonies of “success stories”. Bringing practical examples of successfully concluded applications of excolleagues into the group stimulated group discussions, during which experiences about application methods were exchanged. Furthermore, application techniques were practised using role-playing. This methodology was of great assistance to many workers. One year later, the population receiving guidance had been greatly reduced, but some 500 workers were still unemployed. The target group now consisted of an even greater number of high-seniority unskilled blue-collar workers. A combination of factors increased the difficulty of finding work: application barriers, the barrier of following training, the mobility barrier, and fear of being put to work in a different social climate. Evaluation of activities up to that point clearly indicated that personal guidance should be intensified. The preceding phases also showed that a more central position should be given to a holistic approach. In this phase, tailor-made solutions were central: individual guidance placed even greater emphasis on the individual client. This phase was developed into an integral counselling process. Furthermore, a course was traced in consultation with the job seeker and a consultant. The consultants mediated directly between potential employers and job seekers. In some cases, workers received guidance during application discussions. The task of the REC´s vacancy cell was to vet and classify all available vacancies. At first, the vacancy data bank was defined as broadly as possible, in order to make the consultants and job seekers a liberal and topical offer. In time, the number of job seekers was reduced and the demand for jobs became more specific. Gradually, the vacancy cell started entering into direct communication with companies, analysing and selecting existing vacancies on the basis of specific expectations. In total, 882 companies offered 5,367 concrete job opportunities. Alltogether, 642 of these job opportunities were taken up by ex-Renault employees. One of the REC´s important components was the training package. To improve the workers´ chances on the job market, they could follow one or more types of training. In conjunction with their consultant, workers themselves could determine which training they wanted to follow. The basic rule was that choices should be directed at job market possibilities and at the job seeker´s competencies and future expectancies. The barrier of these training sessions was kept as low as possible. The training sessions were paid for by Renault and registration was done by the REC´s training services. Most of the training sessions were organised in the regional VDAB centres. Some training sessions were organised internally. In total, 660 workers followed training, with an average of 235 training hours. Three quarters of this training was of occupational nature (e.g. obtaining driving licenses, learning to drive a fork-left truck, construction work and the like). A quarter of the training was of general nature (such as introduction to the use of personal computers).

5.1.3 Evaluation When the employment cell ended its activities on 25 August 1999, 86 workers had found no solution to their employment problem. 84 of them declined guidance, even after a home visit by a consultant. 344 workers were able to remain at the RIB400 branch (the reduced company), 66 workers were employed by the people who took over

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the buildings on site (the newly established company on the Renault site: Renovil). For 1,449 workers a solution was found outside RIB. After the REC had functioned for 18 months, a questionnaire had been sent to the 1,601 workers (unable to remain at RIB400) counselled by the REC. After 4 months, 52% of the workers were employed again; after 18 months the number had risen to 78%. In the meantime, 25% had already changed jobs again. The majority (85%) are reemployed as blue-collar workers, 8% of them are employed as white-collar workers, 4% as civil servants and 3% have chosen to establish themselves as self-employed. The social network was the most successful channel of application. 80% of them are satisfied with their present pay, 42% are even more satisfied with their present job compared to their previous job with Renault, 28% are less satisfied. 65% have a contract of indefinite duration, 25% of fixed duration and 8% are interim workers. Whether or not successful re-employment can be achieved, also depends upon some background aspects on part of the workers. Having had a high function level at Renault and a certificate improved chances of finding employment. Young people and respondents with low seniority displayed a high level of activity. Training resulted in positive employment consequences, especially on a quantitative level. Certain assemblers, skilled blue-collar workers and moderately motivated respondents found employment by following additional training. Qualitative effects were mostly negligible. Only small differences in job characteristics were detected between respondents having followed additional training and those who had not. The REC´s activity was then adjusted according to the results of this questionnaire. It emerged amongst other things, that job seekers´ own social network and the REC´s vacancies constituted an important channel of application. These elements were further exploited by the REC. There were few obstacles to the workings of the REC. Initially, there were emotions around the closure and the intense social battle which ensued. Furthermore, the magnitude of the reclassifying process created organisational problems. No single employment agency was prepared for an intervention of such scope. No co-operation between different employment agencies was possible. Finally, due to a lack of alternatives, the REC was organised on the account of the Renault staff, in close co-operation with the VDAB. In the end, this solution proved to be a success factor. At the beginning, there were some organisational problems with regard to the offers of training: VDAB Training could not handle the inlux of participants. Within short, however, these problems proved not to be insurmountable. Furthermore, it was assumed that the location (the Renault buildings) would probably be a hurdle to participation, which, however, turned out not to be the case. Only the lack of experience with redundancies remained an important impediment throughout the process. In order to solve this, Renault Industrie België made an appeal to a specialised cell within the mother industry responsible for redundancy counselling. Co-operation with the VDAB further contributed solving this problem. Different factors contributed to the REC´s success: the training offer, the vacancy cell, the intensive individual guidance, the logistical support, the personal control of

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activities and the financial compensations10. The first three factors were already discussed above. Activity control was responsible for the fact that Renault remained responsible for operations. Also, employees remained in service for 2 years. It was thus in Renault´s interest that the ex-employees be accommodated elsewhere as quickly as possible. Furthermore, working with one´s own co-workers also had its advantages. Renault´s own consultants were better acquainted with its business culture and were complemented by the VDAB advisors´ professionalism. The logistic support also contributed to the REC´s good performance. From the start, individual files were opened on PC. This enabled the REC to follow up and evaluate operations on a daily basis. With the closure of the branch on 31/07/1997, the workers received a once-off moral compensation (‘a golden handshake’, see footnote 13), along with the legal discharge premiums. Jobless employees were also given a monthly premium of 248 euro. This sum was a compensation for loss of income. For some people, this compensation somewhat reduced the need for re-employment, because the financial consequences of unemployment were softened to a certain extent. For most people, this system provided a more comfortable (financial) position. They could give their professional career a new direction, in a calm and well thought-out way, and invest in training. It would probably have been better to give extra compensation to those who found a new job rapidly, and to establish a degressive system for the unemployed: the longer the period of unemployment, the lower the premium. Sources: -

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10

Interview with Roland Rotter, Personnel Manager of Renault Industries, Belgium (24/10/01) Final report, Re-employment cell Report: workers, questionnaire, 02/99 Meersseman, E (1999), Het verloop en de gevolgen van een bedrijfssluiting. Een casestudie bij Renault-Vilvoorde (Development and consequences of a company closure: case study Renault Vilvoorde), Social Sciences Faculty, Sociology Department, KULeuven, thesis. Denolf, L & Denys, J (1998), Outplacement bij de Renault-bedienden (Outplacement for Renault white-collar workers), research commissioned by ADV-Consult, HIVAKULeuven. Vacature (24/04/1999), Er is leven na Renault. België´s grootste tewerkstellingsproject ooit boekt succes. (There is life after Renault. Belgium’s greatest re-employment programme is successful.) De Standaard (24/08/1999), Ex-Renault-arbeiders bijna allemaal onder dak. (Almost all exRenault employees found another job.)

The financial compensation is a rather complex and technical issue. It contains several principles: (1) A ‘golden handshake’ between 3700 euro and 8700 euro according to seniority. (2) During the financial support period (length of the period according to seniority) a bonus of 248 euro/month is given to unemployed workers. (3) The term of notice will be paid out at the end of the employment contract.

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5.2 Examples of good practice: Levi Strauss 5.2.1 Characteristics of the company In September 1998, the European management of the jeans manufacturer Levi Strauss gave notice of the closure of three production units in Flanders (Deurne, Gits and Wervik). The actual closure took place on 31 December 1998. About one thousand employees were in danger of losing their jobs. On account of the different legal status of blue-collar workers and white-collar workers in Belgium, separate social plans were developed for both groups. In this case, we will only discuss the social plan for the bluecollar workers. Both the employer and the trade unions aimed at a social plan that would guarantee maximum re-employment. Of the total closing budget of nearly 23 million euro, 25% was reserved for the social component. The social component consisted mainly of outplacement, but provision was also made for a retraining budget11. The follow-up of the social cover took the form of a social fund12, jointly set up by the employer and the trade unions. The fund was responsible for the supervision of the outplacement and the granting of premiums to stimulate participation in training. In the first year after the closure, the outplacement guidance was organised by Curriculum Plus. Thereafter, the follow-up and support of the remaining group was taken over by the VDAB. Curriculum Plus was established in 1986 and specifically aimed at the outplacement of blue-collar workers and white-collar workers. The VDAB is the Public Employment Service of the Flemish Region. Its objective is to steer job seekers to suitable employment. The VDAB also has its own outplacement service: VDAB Outplacement. This agency offers services similar to those of most other outplacement agencies.

5.2.2 Overview of measures: components and scope 5.2.2.1 Framework of the intervention Both the employer and the unions strove for maximum re-employment of the affected employees. This re-employment took the form of outplacement guidance, coupled with premiums for retraining. In the first year after the close-down, the guidance was organised by Curriculum Plus. Thereafter, affected parties could fall back on the VDAB for 6 months. Later, they could fall back on the standard guidance of the ‘regular’ services of the VDAB. Re-employment efforts were stimulated faster by financial stimuli. Redundant blue-collar workers received a bonus if they found alternative work. Levi Strauss wanted to encourage workers to seek further employment rather than awarding them golden handshakes, as this made further employment financially unattractive and could result in workers settling into the unemployment system. Therefore, the social plan provided staged incentives to encourage workers to seek re-employment as quickly as possible. If employees found work within four months of the plant closure, they received a bonus of approximately 3,700 Euros; within eight months, they received a bonus of approximately 2,500 Euros; and within 14 months, they received a bonus of approximately 1,900 Euros. 11 12

In Belgium, (vocational or professional) training is not part of the normal outplacement routine. A cell of representatives from employer and unions was established in order to administer the money that Levi’s reserved for the dismissal process.

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The co-ordination of the project took place in a co-ordination cell where, together with the employer and the unions, the VDAB, Curriculum Plus and the sector fund of the textile industry were also represented. This co-ordination cell followed up the daily activities. Thereafter, co-operation was sought with other players in the labour market: e.g. Antwerpen Werkt en Vitamine W. 850 workers were employed in the three production centres. Of these, 764 qualified for outplacement guidance. The overwhelming majority (80%) of the workers were women. Approximately 33% were younger than 30 years, 43% were between 30 and 40 years old and 23% were older than 40. More than half of them had primary education, nearly 40% had received technical training. About 28% had fewer than 5 years’ seniority in the industry, similarly 28% had between 5 and 10 years’ seniority, and nearly 40% had more than 10 years’ seniority.

5.2.2.2 Contents of the intervention Given the profile of the participants and the fact that the jobs in the textile sector in the region decreased year after year, it was a specific objective to motivate employees to also go and seek work outside the textile sector. This implied that arrangements were to be made for retraining. In the social fund, money was made available for the payment of premiums to people who wished to undergo training. The guidance itself could be divided into two phases. In a first phase from January 1999, to February 2000, people could undergo outplacement guidance with Curriculum Plus. After the first year the guidance was taken over by (the regular services of) the VDAB, with priority given to the remaining group who had not yet found work. The Guidance provided by Curriculum Plus In the first information session, the aim of the guidance programme and the role of Curriculum Plus were explained. At this meeting, attempts were also made to defuse the tensions inherent in the situation. At the end of the meeting those concerned were given the opportunity to register for the programme and to make an appointment for an individual discussion. In total, 471 people registered out of the 764 who qualified13. The second phase of the programme consisted of individual discussions. During these discussions, closer contact was made with the individuals concerned and the information gathered was assessed in accordance with the expectations of each participant. On the basis of this information, a base profile of each participant was drawn up. At the same time the discussion was important as a basis for the trust relationship which was built up. On the administrative level, an individual file was opened on computer for each participant. These computerised files enabled a more efficient individual follow-up of the different actions and improved general reporting processes to the co-ordination cell. Alltogether, 414 individual interviews took place14. In the framework of the project a labour market scan for job opportunities was undertaken in regions where those concerned could be re-employed. The aim of the scan was to detect as many vacant posts as possible. 2,045 businesses were identified. This

13 14

There were no criteria for inclusion: everyone could participate. Those who did not register had already found a new job, attended a training course, or simply chose not to participate, since outplacement was not obligatory. Some employees were not interviewed, since they immediately started to attend an application training course.

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operation was undertaken in co-operation with the regional offices of the VDAB. The scan eventually yielded 393 vacancies. The application training was undertaken in small groups of about 15 people. Over a one-month period these small groups would come together 7 times, for half a day of training. Besides theoretical training, the employees had to carry out ‘practical’ tasks on their own (e.g. analyse their own expectations, their strengths and weaknesses,…). The participants also received a manual. The purpose of this training for each participant was to formulate his/her own professional aim and to compose a curriculum vitae as well as a number of sample letters. During this training, the following aspects were dealt with: 1. 2. 3. 4. 5. 6. 7.

Approaching the labour market: the structure, the gathering of information, legislation, sectors and regions. Analysis of skills, drawing up a personal situation statement and a professional profile, setting the objective. Designing a curriculum vitae corresponding to the profile and the personality. Composing letters with attention to presentation and content. Verbal communication: preparation for a job application interview, logical and coherent presentation of arguments, efficient telephonic communication skills. Assessment of psycho-technical tests. Organisation and planning the job application campaign.

The participants dealt with the following application methods: replying to advertisements, despatching spontaneous applications, relation building with interim offices, relying on their own relations network, registering as a job seeker with the VDAB, and reacting to the vacancies identified via the labour market scanning operation. With a view to the smooth operation of the project, all the participants were individually guided and followed up. Thereafter, co-operation with third parties was envisaged. Participants were oriented towards training which could enhance their profile. To that end, various training possibilities were examined and the participants were prepared for and motivated to take part. By the end of February 2000, of the 471 people who had enrolled for the programme, 63% were back at work, 7% had found a personal solution (e.g. to withdraw from the labour market), 5% were in training, 21% were actively engaged in seeking work and 5% were passively looking for a new job. Of those working, 44% had employment of unlimited duration (permanent contract), 17% had a job of limited duration (fixed term contract) and 39% had found employment through a temp agency. Nearly half of those working earned less in their present job, for 18% the salary was the same and 30% received a higher salary. 80% of the ex-Levi’s workers with a new job were in employment of a completely different nature, for 13% the job content was more or less the same and for only 4% the job content was identical to that of their former job.

The guidance provided by VDAB After one year the guidance was taken over by VDAB. The arrangement ran for 6 months and provided for the engagement of 4 consultants from the VDAB to undertake the guidance of the Levi’s workers. In the beginning of the assignment, the group of ex-

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Levi’s workers with a VDAB file consisted of 630 people15. The priority of the VDAB lay within the unemployed group of job seekers. This group comprised 231 persons at the end of February. In addition to this, the VDAB also took care of the continued follow-up of the other ex-workers, some of whom, after a short time of employment, found themselves without a job once more. A specific problem for the Deurne establishment was the fact that almost half of the target group consisted of women of foreign origin. This gave rise to specific problems in the course of the guidance assignment, given the reluctance of certain businesses to engage migrants. The first contact step consisted of an individual contact between the consultant and the employee. During the discussion the job seeker would be screened and his/her individual file would be further completed (professional history, professional aspirations, mobility, dependent children, etc.). In the course of the following 6 months, the non-working job seekers were invited at least once a month for an interview with the consultant. The consultants made a daily selection of suitable job offers. Moreover, visits to businesses and companies according to well-established vacancies and profiles were undertaken. Persons who had no immediate job offers in view could do training or undergo the job application training of the Jobclub of the VDAB. There were a total of 74 training modules that were successfully completed within the six months’ guidance provided by the VDAB. These training courses were matched to the profile definition of the candidate on the basis of skills and attitudes. In the six months of VDAB guidance, 407 of the 603 ex-workers had personal contact with the VDAB. On 15 November 2000, 113 ex-workers were still jobless.

5.2.3 Evaluation Levi Strauss has an internal company policy that in the case of closure or collective retrenchment, an important part of the budget must go to re-employment and retraining. As far back as 1984, with the closure of a production establishment in Belgium, collective outplacement had been applied which at that time was still relatively new. This internal company policy has to do with Levi Strauss’s striving towards the “good corporate citizen” status: even in times of retrenchment the company must accept its social responsibility. When, as a company, you have created a particular type of employment in a given region, you cannot simply withdraw. You have to do your utmost to minimise the impact on the people involved and on the region. Notwithstanding the difficult target group (not-so-young women with primary education and a narrow specialisation in the clothing industry) Levi’s regarded the guidance as a relative success: the majority of the ex-employees who genuinely wanted to return to work were employed again. Levi’s was the first large company to announce restructuring after the introduction of the Renault Law. It was also a bit of a challenge to the unions as to how the procedure now had to be applied. The Renault Law prescribes a protracted consultation period according to which the employees must be informed about the plans, to allow them to formulate alternative proposals. The European Industrial Relations Director of Levi Strauss Europe, Paul Scheltens, finds that it is essentially a good thing that the employ15

Note that not all of them were unemployed, as the VDAB offers its services to the employed and the unemployed.

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ees be consulted on important issues. “On the other hand”, he finds, “it is a fact that if a company like Levi Strauss comes with a proposal to close factories on account of overcapacity, it will only do so after all alternatives have been studied. The chance that unions will come up with workable alternatives is, therefore, nil. In practice it thus means a long consultation period which will not necessarily culminate in a solution. For a number of months employees find themselves in a gnawing uncertainty and for the company this type of situation is also very difficult.” Paul Scheltens would therefore rather see that, if the company submits a detailed economic report wherein the nature of the problem is clearly set out and all the alternatives have been studied, negotiations about a social plan can proceed immediately. The job premiums were degressive. The sooner one found work, the higher the premium. The risk of a golden handshake is that people settle into unemployment indefinitely, which in turn reduces the chances of finding new work. A job premium therefore helps the re-employment guidance programme as an added incentive to find work. Another success factor is the fact that after the first year’s outplacement guidance by Curriculum Plus the programme is pursued by the VDAB. The advantage of the VDAB is that it organises training itself, thereby ensuring that the through-put after training proceeds more smoothly. The good co-operation with the trade unions and the fact that the employer and the unions were on the same wave length regarding the importance of investing in reemployment was crucial to the realisation of the social plan. Sources: -

Interview with Paul Scheltens, European Director Industrial Relations Levi Strauss & Co Europe NV, 22/10/01 Final Report on outplacement guidance for the workers of Levi Strauss & Co Europe N.V., January 1999 – February 2000, Curriculum Plus EIRR 305, Made to measure: restructuring at Levi Strauss, June 1999 Final Evaluation Outplacement assignment VDAB-Levi’s employment cell Vacature, 18/08/2000, Why Levi’s turned out differently from Renault Conclusion of the case-studies: hints for “good practice”

5.3 Conclusion as to what is “good practice” The case studies reported above provide some general conclusions about the innovative elements ensuring the success of an outplacement intervention. Our conclusion refer, however, also to other cases that are not presented in this volume but were reported only in the national technical reports on this workpackage.

5.3.1 Preparation The first point concerns the preparation of the intervention. As most of the companies showed steady growth, it resulted in the HR-departments being unfamiliar with the process of collective dismissal. Some companies used specialised agencies to drive the process.

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Janssen Pharmacautica employed an outside agency specialising in the counselling of companies in the midst of restructuring. Renault and Levi’s were able to enlist the services of the parent company’s internal departments. The case studies have shown that a thorough preparation of the intervention facilitates the process and that external advice in that is necessary.

5.3.2 Emphasis on internal re-employment Some companies placed strong emphasis on internal re-employment, a prominent characteristic of the KBC Bank intervention, for example. Janssen Pharmaceutica also stressed the point that efforts should be made to find new jobs for employees within the company, resulting in the organisation of an internal labour market. KBC Bank and Janssen Pharmaceutica both used a new departmental blue-print as a point of departure. At first, this blue-print had to guarantee the new organisation’s viability. On the basis of this blue-print it was decided which fellow-workers could stay in the organisation. The stress on internal re-employment was going together with great efforts for retraining the employees. At Glaverbel and Renault, a small percentage of fellow-workers were also allowed to stay on. At Glaverbel, more or less 40 workers, selected on a competence basis, were re-employed in the new production department. At Renault, more or less 400 workers, selected on the basis of their age and seniority, were re-employed in RIB400.

5.3.3 Communication It is important for an intervention to begin with fair and clear communication; employees should understand the reasons why their company is being restructured. Belgium’s Renault Law obliges companies to inform employees of restructuring plans. Moreover, employees should be given the opportunity of examining alternative solutions. This law compels companies not to trifle with decisions to proceed with collective dismissal, to justify their decision and to examine alternative solutions. On the other hand, the law may cause delays of a few months before re-employment schemes can get under way, resulting in prolonged insecurity. Communication about the outplacement programme itself should be done with the outmost care. Most employees don’t know what outplacement is about or have wrong expectations. Most dismissed employees are very sceptical about the concept. In all cases, the outplacement programme started with an information session in which clear explanations were given of the outplacement programme. Glaverbel’s communication process was particularly innovative: it was decided to involve the dismissed employees´ families from the beginning. The dismissal is a blow to the family, who thus have the right to be informed. Even more important is the fact that the dismissed employee’s partner or family can be an important source of assistance and motivation to participate actively in the outplacement programme.

5.3.4 Elements constituting the intervention Every outplacement intervention contains three important elements: psychological respite, training and personal guidance. The first important step is that of psychological respite, in order to defuse the situation. The employee should be made to feel that this is a great opportunity to find a new job, and that they will not be alone in searching for it.

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In the first phase, most programmes emphasise the ability to manage for oneself: the dismissed employee himself must become actively involved in searching for a new job, although supported by a consultant. Integral counselling, active participation by the consultant in the search process, may be used in a subsequent phase. The Renault and Levi’s cases have shown that integral counselling is needed for a specific target group of older, lower-educated bluecollar workers, which are at a high risk of becoming unemployed if they are not guided intensively. For some people an extensive logistical support is needed. In Gates, for example, a full-time secretary, specially trained for the job, was at the disposal of the participants. The most widespread training is that of application, of which an important element is the participant’s drawing up of his own profile (an analysis of his strengths and weaknesses). To find durable and satisfying employment, the participant should determine his own desires, expectations and competencies. Shortcomings in the profile may be supplemented by additional training. Training in application techniques is the core-activity of many outplacement interventions. Different methods can be used: video simulation, group discussion, roleplaying. The REC of Renault used testimonies of success stories. Practical examples of successfully concluded applications of ex-colleagues were brought into the group. This stimulated group discussions during which experiences about application methods were exchanged. In some cases, much attention is given to additional training, which is indispensable for blue-collar production workers with lower qualifications. The social plan of Renault, Levi’s and Glaverbel includes special budgets, reserved for training. In the case of Levi’s, particular emphasis was laid on re-employment in another branch, as job opportunities in the textile industry are scarce. In every outplacement intervention, an analysis is made of the regional labour market. The consultant should know the different companies in the region and those companies where additional staff are being recruited. The Public Employment Service (PES) can play an important role in establishing those functions for which there is a demand, being an important aspect of the training. The PES is involved in employmentfinding as well as in vocational training, and is therefore particularly suited for involvement in an outplacement intervention or re-employment cell. At Renault and Levi’s, the PES was actively involved in the intervention, which led to productive results. In many cases an internal database of vacancies was created. Personal guidance is an important element in the whole process. As the consultant is very actively involved in assisting especially blue-collar workers, the competencies required of the consultant are high. In all cases, the services of a professional consultant in the service of an outplacement agency were engaged. At Renault, company staff were also recruited. These fellow-workers were selected on the basis of certain psychological traits and received special training. The most important characteristic of an outplacement consultant seems to be his capacity for empathy. The relationship between the participant and the consultant, based on mutual trust, is very important for the outplacement guidance’s success.

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5.3.5 Supporting measures Some of the measures in the social agreement can stimulate the outplacement intervention’s success. At Levi’s and Glaverbel, re-employment was stimulated by ‘activating’ social agreements. Workers who had found a new job within a short time-span, were given a bonus, thus stimulating the search for re-employment. Logistic support for outplacement intervention or the re-employment cell is also important. Renault invested much in the creation of computerised personal files, thus facilitating the guidance process.

5.3.6 The task of the trade unions In the majority of cases, the trade unions were involved in the re-employment cell, the co-ordination of the outplacement intervention being done by a commission which included delegates from management, the outplacement organisation and the trade unions. Informing and involving the trade unions is of prime importance, as they play an important role in informing dismissed employees, removing their skepticism and stimulating them to participate in counselling.

5.3.7 Striving for durable employability In some of the cases, mere re-employment was not enough. The new job had to offer fixed contract prospects and comply with the employee’s wishes. Participants who were able to start working for a temp agency were advised to do so only in the case of a perspective of long-term employment. After re-employment, most participants were still allowed to return to the outplacement agency for additional advice or counselling.

6

General discussion

In this general discussion, we will not repeat the conclusions of the separate parts of this work package, as these conclusions can be found in the previous parts of this report, when discussing the results of the qualitative interviews and the case-studies. We will, however, stress some overall comments that refer to the results of both parts of our research (interviews and case-studies). One of the most striking findings of the qualitative interviews was the strong emphasis on participation and communication. First of all, the interviewees (both the insecure workers and the successfully re-employed) were strongly in need of more information concerning the restructuring or downsizing process. The interviews clearly showed that a lack of information worsened their situation: it created an additional stream of rumours, which in turn increased their feeling of insecurity and diminished their wellbeing, motivation and job satisfaction. This emphasis on communication from the company concerning the restructuring process and its consequences underlines the importance of interactional justice. Of the three kinds of justice discussed above (distributive, procedural and interactional), the interactional dimension clearly seemed to be the most relevant one. Respondents who were given enough information felt treated more fairly, and felt respected by the management of their companies. Those who received little information felt uncertain and became rather suspicious: they did not trust the management anymore.

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Next to information, also the possibility of participation seemed relevant. Only few interviewees reported that they were offered the possibility to participate in the restructuring process. Most were unable to influence the decisions and the consequences of this process. The possibility of participation is part of the procedural dimension of justice, which demonstrates that this dimension is also important in the downsizing process. Trade unions can play a role in expanding the possibilities of getting access to information and participation. Allowing representatives of trade unions to participate in the restructuring process will give employees the possibility to influence this process. At the same time, their participation will allow the unions to better inform the employees, concerning the decisions and the consequences of the restructuring or downsizing. This clearly has some important advantages for the employer as well, since insecurity undermines the morale and the work atmosphere of the workers involved. The emphasis on the importance of the inclusion of trade unions in the whole process brings us to a second important conclusion. The case studies demonstrate that the best way to deal with the issue of mass dismissals seems to be the creation of an ‘employment cell’ in which all possible partners are involved. With all possible partners, we refer to partners within as well as outside the company. Important, of course, is to include all relevant partners inside the company: the employers (e.g. HRM), since they are the initiators of the process, but also the trade unions, as they will create additional possibilities for the involvement and participation of workers. They equally constitute an additional channel for communication with and from employees. Next to these parties, parties from outside the company also need to be included. Two obvious parties are highlighted in the case studies. First of all, outplacement agencies need to be involved, since they are experts in this field and because they have the knowledge needed for the guidance of the employees. Next, employment services from the government should also be included, as these services (e.g. the VDAB or Public Employment Service (PES) in Flanders) equally gained lot of knowledge in the field, and also because they know the local labour market very well. The results of the case studies presented above, demonstrated that the most successful initiatives were those in which employment cells were formed that included both of these partners. A third remark relates to the issue of premiums. In various settings, premiums were used or proposed. Premiums, however, recommend some caution. Some of the results, first of all, highlight that one should avoid that workers rush to a decision when accepting a job. Our interviews showed that many employees need some time to ‘digest’ the dismissal and to re-orientate themselves. People clearly need some time to ‘come to terms’ with problematic experiences, such as a dismissal. Next to this, one needs to avoid that workers accept ‘just any job’ in order to escape from unemployment. A long-term policy should aim at durable employment of good quality, instead of ‘the first job available’, especially when its quality is low. There is no gain for society when the re-employed lose their job after a short while, or when the quality of their work is worse than before (e.g. lower pay, worse working conditions, etc.). A second reason for caution is that we also have to take the (local) labour market into account. The possibilities of finding a new job depend heavily upon the amount of jobs available in the environment of the job seeker. Some live in a region where jobs are manifold, whereas others live in a region where jobs are scarce. As a consequence, premiums need to take the regional labour market into account: it seems highly unjust to

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‘punish’ workers that are unable to find work, simply because they happen to live in a region where jobs are scarce. In such a context, limiting their premium in order to activate them would mean frustration instead of activating them. Finally, the results of this study also show that both companies and workers share some responsibility in the restructuring or downsizing process. The individual is, of course, ultimately responsible for finding a (new) job. This implies an active attitude and the wish to strengthen aspects of his or her employability. The interviews show that most interviewees agree with this. The interviewees, however, also stress the responsibility of the company. According to them, the company has to give information concerning the process and should provide opportunities for participation, as mentioned above. The company should also provide guidance and outplacement. The individuals are willing to ‘do their share’, but expect some help from the companies in order to find a new employment. The results of the case studies supplement these findings. First of all, it seemed successful in institutionalising the link between workers and their company, by keeping them on the pay-roll during the outplacement process. In doing so, the company felt responsible for the employee during the outplacement process, and this increased the chance for success in finding a new job. Next, the study suggested that the best results were obtained in companies that stressed aspects of social responsibility in their organisational culture. These findings indicate that there are ample opportunities for companies to increase the success of initiatives for the out- or replacement of their employees.

Job insecurity and successful re-employment: Examples from Germany Thomas Kieselbach, Gert Beelmann & Olaf Wagner

1

Introduction ................................................................................................. 117

2

Qualitative study: Description of sample .................................................. 118

3 3.1 3.1.1 3.1.2 3.1.2.1 3.1.2.2 3.1.2.3 3.1.3 3.1.3.1 3.1.3.2 3.1.4 3.1.4.1 3.1.4.2 3.1.5 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.3

Qualitative studies: employees in insecure jobs and successfully re-employed ................................................................................................. Description of results of the subsample “insecure jobs” ............................... Situation in the present company .................................................................. Aspects of organisational justice ................................................................... Distributive justice ........................................................................................ Procedural justice .......................................................................................... Interactional justice ....................................................................................... Employability ................................................................................................ Company offers ............................................................................................. Individual strategies ...................................................................................... Organisational vs. individual responsibility .................................................. Individual responsibility ............................................................................... Company responsibility ................................................................................ Overall assessment ........................................................................................ Description of results of the subsample “successfully re-employed” ........... Aspects of justice .......................................................................................... Employability ................................................................................................ Responsibility ............................................................................................... The outplacement measures .......................................................................... Overall assessment ........................................................................................ Conclusions ...................................................................................................

4

Cases of good practice: Description of sample ......................................... 148

5 5.1 5.1.1

Cases of good practice in outplacement/replacement .............................. 149 Examples of good practice: Quotac GmbH, Achim ...................................... 149 Characteristics of the company ..................................................................... 149

119 119 119 123 123 124 126 127 127 128 129 129 131 132 133 133 137 139 140 146 147

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1_4, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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5.2.1 5.2.2 5.2.3 5.3 5.3.1 5.3.2 5.3.3 5.4 5.4.1 5.4.2 5.4.3 5.5

Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: the job-placement concept of DB Vermittlung GmbH, Berlin...................... Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: Mühlenhoff und Partner GmbH, Düsseldorf .... Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: Stadtwerke Bremen, swb Synor........................ Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Conclusions as to what is “good practice” ....................................................

150 151

6

General discussion....................................................................................... 165

152 152 154 155 156 156 157 158 159 159 160 161 162

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117

Introduction

The outplacement consulting market in Germany had a volume of € 30.68 million in the year 2000, which is 0.25% of the overall volume of € 12.2 billion in the German consulting market. Consulting services were provided to 1,250 clients in individual outplacement measures and to 11,500 in group outplacement measures (BDU, 2000, p.3). This represents a doubling of this branch’s turnover volume since 1996, while the turnover volume for the overall consulting sector increased by 50% over the same period. This strong growth, also seen in management consulting, which in recent years has consistently shown rates of growth that outstripped those of the overall economy, indicates the increasingly high importance attached by firms to severing employees. At the same time, these growth rates reflect the globalisation of business. Global competition results in firms having to make adjustment measures which frequently entail layoffs of personnel. In cases of dismissal through no fault of one’s own, qualified employees and those higher up in the company hierarchy are today being offered outplacement consulting by their old employer on an increasing basis. The persons we interviewed are employed in branches which are regarded as being particularly insecure, being forced to taking on restructuring measures and making layoffs due to economic reasons. In the case of Germany, the construction industry should first be considered, which suffers from overcapacities and slackening orders. From 1991 to 1997 solely the national figure of insolvencies and debt composition proceedings rose from 1,730 to 7,788, with no signs of a reverse trend in sight (Bundeszentrale für politische Bildung, 1999). A similar picture can be seen in the banking sector. Profitability problems with private customers and restructurings have resulted in massive layoffs of less qualified personnel. This trend is also expected to continue in the future. The chemical sector is an industrial branch that is globally oriented. Numerous mergers have been made in this branch with the result that even qualified personnel had to be dismissed. Due to the liberalisation of the EU energy markets, energy suppliers are subjected to increasing competition, as local suppliers now have to face international competitors. In order to adapt their competitive strength to these new structures, this sector will also see job cuts over the medium-term. Another example of market deregulation is shown by Deutsche Bahn AG. In recent years it has been transformed from a government authority to a private enterprise which is eventually expected to function without any public subsidies. To this end it was split up into various stock corporations, which are now meant to lead the group into the profit zone by cost-saving measures, including personnel cuts. The example provided by the wholesale trade clearly shows how unsuccessful corporate policy can lead to the loss of sales markets and threaten the viability of companies, which in turn can result in layoffs and ultimately in the insolvency of the company itself. A development distinct from those above can be seen in the New Economy. In recent years this young branch has exhibited a breathtaking growth rate, which came to an abrupt end with the collapse of the expectations that were tied to this new economic sector. Consequently, many firms had to cut staff in order to avoid bankruptcy. What this study considers distinct about this branch are the specific conditions that exist with respect to the many cases of unconsolidated company structure, the overly-high work

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loads put on its employees and the lack of collective wage agreements. This branch is highly competitive and performance-oriented. From these branches the sample of insecure employees (n=25) as well as the sample of successfully reemployed workers (n=25) were recruited. Here, we deliberately restricted the samples to blue-collar and white-collar workers, who according to our definition also included decision makers from middle management. The fate of these individuals is highly dependent on the fluctuation of supply and demand in the job market. For the most part, they receive minimal severance settlements and only in very limited cases do they have access to measures which facilitate occupational transition, such as outplacement consulting.

2

Qualitative study: Description of sample

A total of N=50 interviews were held, N=25 each for the insecure employees and the successfully re-employed groups. Table 1 provides a survey of age, sex and vocational branch of the respondents. Table GER-1: Sample description

Sample size Age (in years) 25-34 35-44 45-52 Sex Male Female Branches Railway Construction Energy Banks chemical industry Computer wholesale trade

successfully re-employed (SR) N=25

insecure jobs (IJ)

Total

N=25

N=50

4 11 10

10 6 9

14 17 19

16 9

21 4

37 13

3 4 4 4 6 2 2

9 8 3 2

12 12 7 6 6 5 2

3

The age distribution of the two samples differs only to the extent, that the average age of the group of the successfully re-employed people was slightly higher (41 vs. 38.6 years old). In terms of gender, females are clearly underrepresented. A total of 13 women only (4 in the group of insecure employees and 9 in the group of successfully re-employed) could be found for the interview. This over proportion of male respondents can be explained by the fact that men represent the majority of employees in the selected branches. At the same time, however, these branches also exhibit a high degree of job insecurity. Interview partners were particularly recruited from the construction industry and from the craftsmen occupations at the railway firm Deutsche Bahn AG. These two branches on their own represent almost half of the sample of the study.

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119

Qualtitative studies: employees in insecure jobs and successfully re-employed

3.1 Description of results of the subsample “insecure jobs” The sample consisted of N=25 employees (21 males, 4 females) who are employed in branches where jobs are insecure. These include the construction industry, the energy and IT sectors, banking, and Deutsche Bahn AG (German Railways). The age of the respondents ranged from 26 to 51. The employees were predominantly labourers (18) and lower staff (7). This chapter deals with the change in work atmosphere and individual perceptions of job insecurity. The main focus lies on the following questions: what are the effects of job insecurity, how do employees cope with it in the phase immediately before job cuts are made, and what effects does this insecurity have on those affected in their relationships to each other at work and to those they interact with socially outside their place of work, such as family and friends? An analysis was also made of the personal cognitive perception of the events and of stress factors. As this report proceeds, attention will be given as to what kind of assistance employees can expect from their companies when staff is reduced. In the sample there were two primary reasons given for company layoffs: the economic situation in the particular branch and restructuring measures.

3.1.1 Situation in the present company The effects of job insecurity shall first be examined in the context of work environment. Here all respondents noticed a clear change in the atmosphere at work when the firm announced staff cuts. Most of those affected speak of a change in their relationship to fellow employees, which is expressed in sharpened competition: “So in the end everybody tries to save his own skin, everyone was on edge” (GER-IJ23, 133-134). It is said that the group spirit among employees used to be stronger: “Now people think more in terms of competition “ (GER-IJ19, 161-165). Collegial support for fellow workers with lower performance is on the decline: “Everybody tries to get the best deal possible or to take the best position. And I would say that people who used to slip through or be pushed through no longer do so, that nobody is willing to do their job anymore, or to support them or whatever.” (GER-IJ10, 308-314). On the whole, colleagues are less willing to support each other: “It used to be much more welded together, the whole situation. Nowadays, everybody seems to be just fighting for himself. ... everyone shuts his front door and that’s just about it. And before, man, everybody knew each other and all, now it’s as if everybody is pulling back more and more” (GER-IJ3, 400-422). Communication between all participants has deteriorated. Communication declined not only among those affected, but also between them and their supervisors. Although an occasional increase of exchange has been reported among colleagues, in general, however, solidarity among employees increasingly broke down and was replaced by an individualistic approach to coping with job insecurity. This was seen in small details in the daily routine, for example that lunch breaks were no longer taken together, but also in attempts to develop personal strategies without telling other colleagues about it beforehand. This led to changes in the former “relaxed” job atmosphere, a tension which not only affected the employees concerned, but also managers: “Naturally people were a little tense, everyone in the firm. I mean really, from top man-

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agement down to the sales assistant. So in this respect everyone was affected” (GERIJ21, 184-186). Mr Voller adds: “So a little bit of a certain relaxed atmosphere has been lost. That was definitely different before” (GER-IJ22, 271-273). On the whole an atmosphere of mutual mistrust dominated, “because everybody probably had the fear of something like: if I now tell too much...then the other person might latch onto it and take it further” (GER-IJ14, 460-463). The atmosphere at the firm was just like being “at a funeral” (GER-IJ16, 420-421). Worry and uncertainty among employees about further job cuts is something Mr Staben fears: “We are just waiting from hour to hour...[that other dismissals will follow, ed. note]” (GER-IJ19, 171-172). Some of the respondents report that the atmosphere at work eases again after dismissals are made: “actually, the atmosphere is quite good again” (GER-IJ23, 103-104). In most cases, though, the risk of job loss remains latent, which is expressed in that “it’s not fun to work here anymore” (GER-IJ23, 269). The situation of job insecurity results in a change of attitude towards one’s superiors. These are assumed to have participated in the selection of the colleagues to be dismissed. Those affected live in constant fear of breaking even minor rules or making a negative impression, thus jeopardising their job. In this situation, colleagues try to avoid making mistakes and breaking any rules. Furthermore, they make an effort to stand out from their colleagues by taking on more responsibilities to enhance their personal profile. Extra work (e.g. working on weekends), which formerly would have elicited employee protest, is now done without complaining, since the aim is to protect oneself against dismissal: “Nobody wants to let themselves be seen as owing something...that would definitely be noticed” (GER-IJ20, 144-145). Fears are frequently suppressed, with threatened employees putting on a relaxed attitude to make the fear of losing their job more tolerable: “Put it like this, you don’t have that much influence on things anyway, so there is no point in worrying about it all day long” (GER-IJ24, 373-376). Or work is compared with being on holiday: “Think of going on holiday: naturally you are supposed to enjoy your holiday and not think about having to go back to work in three weeks” (GER-IJ24, 425-428). But the fear of losing one’s job is generally something which cannot be suppressed so easily. Even in their leisure time only a few of those affected were capable of evading this stress. The lack of information concerning dismissals being planned by company management as well as by the works council increases the sense of insecurity felt by the respondents. Since no concrete information is available, rumours about other colleagues abound and this further heightens the sense of insecurity, since such rumours remain unfounded. “One person says this, the other person says that, somebody else hears half of what is being said and fills in the rest, or what not, you know. And that doesn’t help much in the way of feeling calm and secure” (GER-IJ14, 620-624). The situation is further heightened by the practice of transferring employees at short notice to other departments without previous communication: “Well that’s sometimes done very callously. We once had a colleague here and he was ready to show up for his evening or night shift and was ruthlessly told: you can go home now. Starting tomorrow you’re supposed to be there…” (GER-IJ14, 299-303). Such incidents are discussed among colleagues and seen as an insult. The respect of the company toward its employees is questioned, thus intensifying subjective job insecurity, since employees personally sense a lack of care and interest of the firm. Workers feel cheated: “And naturally it’s sad, after so many years of faithful work, and then, like they say, you are given the axe

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like a dog, as they say. Dogs are sometimes more faithful than men or people. And then you’re given the axe like a mad dog…You’re just fired, that’s it, period” (GER-IJ15, 201-206). Insecurity is further heightened in particular by the company’s lack of information policy. “Yeah, it’s a bloody awful feeling, that is. Because most of all you don’t know anything specific… If they would say now, such and such is the case, that’s definite, that’s a fact, then you can somehow prepare yourself for it, but this uncertainty, that’s the worst part” (GER-IJ16, 555-561). All in all, insufficient information leads to a worsening of the workplace atmosphere and to increased anxiety among colleagues. The situation intensifies subjectively for the remaining employees due to the phenomenon of increasing voluntary dismissals. Employees who prefer to take an active strategy of coping leave the firm as soon as they find a possibility of occupational transition, which puts even more psychological stress and pressure on those employees remaining at the firm. Mr Lehmann thus describes his own insecurity due to the fact that some colleagues have already quit on their own: “So naturally you notice it when at every turn, every few weeks, someone just leaves all of a sudden, turns in his tools and says, I got something else” (GER-IJ12, 242-245). Differences can be found in statements relating to personal assessment of job insecurity between younger and older employees. Mr Zimmermann, for example, states that younger employees do not take the situation “quite as seriously” as the older ones, since at their age they perceive their chances on the job market as being good (GERIJ25, 754-760). Signs of adapting to permanent job insecurity in the firm are demonstrated in part by those who have had to endure this situation over a lengthier period of time and have come to (resigned) terms with it. The job market holds no vocational perspectives for them, as is the case with Mr Carstens. He does not feel (any more) that job insecurity interferes with his sense of well-being. He says that he is now used to the continuous dismissals at his company; which is why in his view they ”are not so tragic anymore” for his well-being, taking the fatalistic attitude that ”you just got to take it as it comes. If I’m the next, well then I’m the next. …But there’s always a way to get through life” (GER-IJ3, 380-384). However, signs of adaptation are not necessarily connected to feelings of resignation. A feeling of unconcern can also result from the feeling that one is qualified to meet the requirements of the job market and can therefore easily find a new position, or from experiences already made with job transition. In the same branch they always exhibit the same mechanisms and thus, with increasing frequency, are subjectively considered to be more calculable. Up to now, attention has been given to the effects of job insecurity in the context of company environment and the personal attempts made by those affected to cope with this. In the following, we shall consider the effects of a changed atmosphere at work on the motivation of those affected. Here, three essential aspects can be ascertained as reported by those affected: the effects on job satisfaction, on the sense of belonging to a particular firm and on the quality of daily work. When one’s job is threatened, the motivation of the affected employee strongly suffers from the tense atmosphere. A previously high degree of job orientation tips in favour of an orientation to leisure time, as is the case with Mrs Wegner. She has suffered much from the previous dismissals and the resulting situation at the firm. Work has always been a very important focal point in her life (GER-IJ23, 294). She switched jobs whenever she saw that there were no longer any perspectives for her further voca-

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tional development or if her work was no longer any fun: “Yes, I have to prove to myself that I can do it. To myself and my family … And it should be fun, that is also very important to me” (GER-IJ23, 320-323). Nowadays Mrs Wegner often wakes up and thinks “I don’t want to go to work” (GER-IJ23, 340). She generally finds that “after work is now more important than working used to be” (GER-IJ23, 288-289). Feelings of being proud of working at a particular firm have changed into feelings among employees of being just a number, and of not being perceived by the firm as a real human being. In their perception, the firm no longer takes any interest in its employees on an individual basis. The decision-making process of sorting out is perceived as inhumane: “...they talk like we are at war, we’re sending 10,000 soldiers against the western flank, 5,000 will fall but we’ll make it through anyway. But that there might be personal concerns behind this is something I don’t believe anyone is interested in. Why should they?” (GER-IJ19, 729-733). Mr Ott says that a general climate has arisen where he feels abandoned by company management: “They don’t care about us at all, we’re not even a number” (GER-IJ15, 179-180). In the view of those affected, vocational qualification is diminished by continued layoffs in the plants, something which has a negative effect on job satisfaction. Specialised skills are not demanded (any longer), jobs are not filled according to qualification but to the volume of work as it arises. Mr Staben, who is 47 years old and has completed advanced training as a polisher, expresses it as follows: “If there is a job opening somewhere, then you go there right away; they no longer ask what you can do, or if you enjoy it, or anything like that. The main thing is that the vacancy has been filled, period. Business keeps running smoothly” (GER-IJ19, 342-345). This subjectively perceived devaluation of one’s qualification is particularly strong in the Eastern German construction industry. In addition to this, compared to the situation existing during the GDR period, an industrialisation and streamlining of working conditions has taken place in itself which, from the point of view of those affected, has devalued their qualifications and weakened social bonds in the firm’s workforce. For all those interviewed, work is seen as being very important for a well-ordered life. Work is part of “daily life” (GER-IJ25, 588); it secures one’s existence and provides the day with a temporal structure: “...if I can’t go to work…then I can’t buy bread, or the clock doesn’t tick, I mean, something just isn’t quite right” (GER-IJ25, 588-591). Replacing the time spent at work with another meaningful activity would require a long period of acclimatisation. Another significant feature of work is the pride in the results of one’s job, something particularly common in the crafts trades: “Otherwise you could just as well dig a hole, fill it in, and then dig it out again” (GER-IJ24, 525-527). Furthermore, work should be enjoyable and offer the possibility of vocational and personal development. Working with other people confirms one’s sense of personal esteem and offers possibilities of self-identification: “Working and communicating with other people, that’s very important for me” (GER-IJ6, 485-486). Work contributes to the stability of the employee’s mental health: “I would be sick if I stayed home, I am sure of that” (GER-IJ6, 451-452) and maintains a standard of living one has achieved. By acquiring a certain status, work allows one to position oneself within the social framework. The loss of one’s job also means the loss of these functions and results in an existential anxiety among those affected. These fears affect psycho-social health. During this time acute physical complaints are rarely reported, but may appear after a certain period of latency. Expressed

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quite frequently are statements such as that made by Mr Zimmermann, who says that the insecure situation was “oppressive” and “frightening” (GER-IJ25, 577-582); Mr Tiemann describes the situation as giving him a “bad feeling” (GER-IJ20, 233-240). Such discontent in this phase is directed primarily at keeping one’s job or at the prospects of finding new work. The situation of job insecurity is characterised by the fact that those affected are unable to relax during their leisure time. Their thoughts revolve around the situation at work. “I can’t turn it off. Like I said, above all, at times like this, I mean with this big change and all, well you – or least I do – have a hell of a lot to chew on” (GER-IJ14, 436-439). Mr Voller reports that he spends more and more time thinking about the situation and finds it harder to think about other things. Despite this situation, most of those affected report a notable decrease in cases of sickness. For example, at the plant where Mr Staben works, the number of such cases has dropped “dramatically” due to fears of losing one’s job (GER-IJ19, 459-469). “Where you used to call in sick because of minor sniffles or a cough, that’s not done anymore, nobody would dare to do that now” (GER-IJ19, 462-464). To sum up, it can be stated that the risk of losing their jobs activates a process of individualisation among the insecure workers. They generally feel abandoned by their colleagues and the firm, a feeling which has negative repercussions on motivation and job satisfaction. This is followed by turning to other partners of social interaction, such as family or friends outside of work. Orientation towards one’s job shifts to orientation toward leisure activities. Employees who take an active role in coping with this threat, intensify the psychological pressure of job insecurity felt by those employees remaining at the firm. Lack of information increases the psychological pressure on employees, in particular with the group of 45 to 55 year-olds and their families, suffering from job insecurity since they reckon that they have poor chances on the job market for finding new employment. In addition, the firm is also threatened by a “brain drain”, i.e. firms lose the specialised knowledge of their employees as soon as the latter have to leave the firm. Job insecurity not only exerts stress on the employees concerned but also on their social surroundings, in particular their families: “My wife is sick and tired of hearing about it. So there are a lot of things which I no longer bring up because there’s no point in it anymore. There’s no point because it changes from day to day, on a daily basis. And that’s exactly what, the way I see it, the thing that really wrecks you” (GER-IJ11, 557-562). Conversations with close relations or friends provide support for those affected in coping with their situation.

3.1.2 Aspects of organisational justice Aspects of justice play an overwhelming role in the perception of all persons involved, in comparison to other aspects of the survey. In their situation of job insecurity the affected persons are intensively occupied with questions of justice.

3.1.2.1 Distributive justice Distributive justice is primarily concerned with redundancy selection in the framework of a (possible) redundancy plan. Those affected in the situation of acute insecurity have an ambivalent experience with the concept of justice. On the one hand, almost all respondents are in favour of a distribution rule, which sets general guidelines in the criteria employed for selecting those to be dismissed. However, a large number of respondents are convinced that justice is difficult to achieve, if not impossible. For example,

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Mr Zimmermann feels that distributive justice is achieved only to a limited degree: as an example of an unjust selection he points out the dismissal of a young father of a family with three children (financial consequences for the family) and that of a 55-yearold colleague (poor chances in the job market) (GER-IJ25, 286-311). Systems of employee assessment were generally evaluated quite positively in the framework of redundancy selection, but from the view of those affected they also provide opportunities for subjective judgements based on personal likes or dislikes “...they also get assessments which are miserable – from the polishers or the site supervisors – just because they stand them or whatever. I feel the same way sometimes…that’s not humane. These people lack leadership and compassion” (GER-IJ25, 271-276). Mrs Wegner also suspects that the selection of the colleagues to be dismissed is also based on subjective feelings: “Those who are in good with the man [decision maker from management, ed. note] they get to stay“ (GER-IJ23, 687-688). The employees’ council is the central contact for employees experiencing job insecurity. It assumes a position of trust and frequently provides information to them concerning the rules used to decide on dismissals. In companies which have no employees’ council, such as the IT firms in our study, information about the criteria of decision-making is poorer and the result of the process of reaching a decision is more vague than in those cases involving a dedicated employees’ council, such as the case of a firm connected to DB-Vermittlung. Thus, trade unions and employees’ councils should undertake greater efforts making their influence felt in negotiations with management.

3.1.2.2 Procedural justice Decisions concerning staff cuts are frequently made by top management according to a method which is often unclear to employees. Nevertheless, streamlining measures are often regarded by those affected as being necessary for business reasons and considered understandable. Mrs Fischer, for example, understands that management introduces rationalisation measures at her company not on its own accord but because it has no other choice in the face of economic constraints. Although she occasionally doubts the correctness of corporate decisions, she feels that she ultimately is not capable of evaluating them. “But by and large I can’t see the whole picture of course, the decisions, I can’t say in general that one is right or wrong. But sometimes I do have my doubts, sure” (GER-IJ6, 589-592). She feels that increased participation by employees is useless: only management is competent enough to make decisions. One frequently declines to participate in decision-making processes because one’s own competence is insufficient for this. A firm’s strict hierarchy also makes it hard to imagine sharing decisionmaking processes with employees: “Yes, I think so [that he is treated fairly] because I think we won’t get to the point of making such disgraceful changes if that would be based on a mutual decision. Because it clearly involves a conflict of interests. One is a set of very clear rationalisation measures which are introduced there. But the interest of employees is broader and tends to say that they don’t want to accept any other vocational paths or other jobs. So in this area you cannot accomplish anything by saying, first we’ll ask all employees how far they will go along with such changes and then let the majority decide. We have a quite different hierarchy which is very pointed at the top” (GER-IJ9, 833-846). Respondents therefore judge their participation in the redundancy selection as being unrealistic because decisions on layoffs have already been made by the time the information gets to the workforce. This would ultimately make

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any further influence impossible. Also mentioned with increasing frequency as a hurdle for participation is that the colleagues to be dismissed are personally known. The overall picture that emerges is a disparate one: on the one hand, most of the respondents are not satisfied with the result of the redundancy selection, on the other hand, many of those affected decline to participate actively in the decision-making process of the redundancy selection. Here the dilemma of achieving justice seems to play a major role in refusing to be personally active in the decision-making process. ”It will never be just. It does not matter whether a 30-year-old has to go or a 50-year-old, each person will ask himself, why me?” (GER-IJ11, 1004-1006). Mr Peters makes a similar note: “for this person or that it will always be unjust, but I think that the simplest or best solution is to adhere strictly to these points” (GER-IJ16, 1179-1182) and not to the “look of someone's face” (GER-IJ16, 1119). Due to the aforementioned considerations, workers feel sufficiently represented by the employees’ council, which is elected in a democratic process and has the corresponding legitimacy: “I’ve never gone to the trouble to find out how all of that is managed. As I said, I really don’t want to get caught up in it. I just think that the employees’ council will do the right thing…” (GER-IJ16, 1167-1172). However, criticism is voiced concerning the influence the employees’ councils actually have in decision-making: “Whether they [council representatives, ed.] really have an influence is something I tend to doubt” (GER-IJ8, 913). The role of trade unions is generally seen in a critical light. Several respondents are sympathetic toward trade unions, which for their part are constrained in their own freedom of action, but of which most were seen as sticking to the status quo and making demands which damaged their credibility. It was felt that they should examine their stance and take a new position in order to keep or build on their credibility with employees. There is also the subjective construction of the participants that the employees’ council and the trade unions are two separate institutions. From the viewpoint of employees, unions do not make their presence sufficiently felt at the plant site and are not concerned enough about the needs of their members. Very graphic criticism was made by Mr Exner, for example, who is a union member out of conviction and describes the problem of trade unions succinctly: “Some people from the union came and said, we’re going to fight for these jobs and if we have to, we’ll chain ourselves to the construction machines” (GER-IJ24, 274-278). “So the lay-offs are announced even if you are chained to something” (GER-IJ24, 289-290). In the eyes of those affected, trade unions have lost a considerable amount of influence in society; Mr Exner attributes this to dwindling solidarity and an increase in passivity on the part of workers: “And then you also have a helpless union, which is nothing more than a paper tiger, says smart things, tries to look combative, but no longer has any weapons because the weapons of a trade union are its members. And if they fall asleep, then you can do what you want with them” (GER-IJ24, 321-326). Complaints are often directed toward management’s lack of tact and personal contact in the process of selecting and delivering notices of dismissal. Only in very few cases, the dismissal notice is delivered personally by the superior, usually they are sent by mail. Respondents would like to see a procedure which includes those being fired as well as the survivors of layoff. Here, laid-off colleagues would be told which reasons were decisive in the individual’s dismissal. At the same time, management should tell those staying that “those are the points which we concentrated on and that is why they

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[those to be dismissed, ed. note] have to go. That at least a few reasons are stated. But there was just nothing” (GER-IJ23, 534-541). Regarding the view of the IT branch where trade unions are hardly represented, Mr Uhl describes his wishes for increasing overall fairness: “Well OK, I mean, if you have a works’ council or a trade union, then you have a different, let’s say, or other platform for negotiating with management on how to structure certain redundancy schemes so people aren’t kicked out on the street right away but instead have a softer transition. Such as having them officially still belong to the company on paper but that they have really already been dismissed. Still get wages but are no longer working, giving them a time to find the same sort of job, to look around for the right one” (GERIJ21, 712-722). Employees are willing to view dismissals not as an unfair cruelty, but as acceptable, if they recognise that it is part of a fair process.

3.1.2.3 Interactional justice Information is a central category in assessing fairness, but is often quite lacking for many reasons. Especially for construction workers it seems to be that the flow of information does not work its way down to the respondents, but breaks off at the foreman level (polishers). Complaints are made about the unsatisfactory work of the trade union and employees’ council, which in part is due to the work itself (work at alternating outlying construction sites and changing the composition of teams in the building industry). Works councillors are frequently unable to participate in informational meetings and are therefore cut off from many phases of information flow. On the one hand, the respondents would like a more comprehensive and transparent information policy in their firm, on the other hand, they are afraid of this. It has been reported that contradictory information often circulates in the company. Rumours are often the only source of information: “That was all just hearsay, ... you just try to piece it together” (GER-IJ23, 613-615). Employees at large firms often learn of information from the media instead of from their supervisor; a condition which the respondents criticise unanimously. “Because lots of times it’s that you get more from the media than from the board itself…That’s what it’s already come to so far. But I think it also depends on their uncertainty. They don’t really have a clue themselves” (GER-IJ24, 11391144). Information is often released sporadically without being followed up. This information policy heightens the level of rumours and existing insecurity. Therefore the respondents frequently make a plea that they should be informed on a timely basis, since the phase of insecurity is perceived by all as being very stressful. At the same time, those affected do not wish to be presented with finished facts. It is felt that it is the duty of trade unions to pass on information on upcoming lay-offs, since they have more information, but do not share it. “It is like, you know, top secret, as if it was something that was really secret. But I don’t know why. After all, we are not children, we’re members. And a member of an organisation like the trade union here has a right to be informed, doesn’t he?” (GER-IJ15, 820-825). In interactional justice a distinction can be seen according to the branch of work concerned. In service companies (banks, IT) employees are informed by their superiors about business goals which have to be achieved in a certain period of time. Added to this information is that jobs might have to be cut if these targets are not met. For craftsmen and labourers, the information provided by the firm to its employees is not consistent. They often fail to be informed adequately on the economic situation of the firm they work for, which increases their feeling of insecurity to a considerable degree.

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3.1.3 Employability 3.1.3.1 Company offers Promotion of employees varies widely among the firms of this study. Here, differences could be seen according to the branch of business and thus to the kind of work involved. While the building sector cultivates little or no tradition as far as employee promotion is concerned, a constant programme of further education and advanced training is quite normal in service industries stressing consulting activity such as the IT sector. On the one hand, business activity is based on expertise, on the other hand this branch exhibits a particularly rapid rate of decline of knowledge. Company success can only be ensured by a high level of employee competence. For this reason, there is a continual offer of further education programmes tailored to individual needs. Common to all branches is “learning on the job”. This can also be seen in the building sector since work there requires workers to rotate tasks, so that after some time in the company almost all workers can do them. This manner of work has a positive effect on the occupational skills of the employees. In the construction industry, it is primarily the business cycle which makes it difficult to change jobs within this branch. The training profile of employees is strictly limited to the building sector and closely related fields, all of which have been struggling for quite some time with lack of orders and job layoffs. A lack of alternatives is also noticed by Mr Staben: “Yeah, otherwise, I mean, it’s a pretty tight field, the building sector” (GER-IJ19, 531-532). Systematic offers of advanced training in construction firms are primarily limited to training to become a master craftsman. In addition, there is advanced training in certain technical skills and machine operation (e.g. crane operator’s licence). Training courses for master craftsman are bound with the contractual obligation of the employee to remain in the firm for a minimum period of time so that it can profit from his newly acquired knowledge and realise a profit from its investment in human resources. Employees, likewise, recognise the importance of advanced training programmes: Mr Brandt regards advanced training as a necessity, “if you want to stay in the same kind of job, that you’re well trained if something new comes along. I think that’s the only possibility for the firm” (GER-IJ2, 1095-1096). Except for the rotating construction site tasks common to the branch, he has not yet received any such offers from his firm. The operating scale of small and mid-sized companies represents a hurdle for advanced training schemes. One example of this is the firm where Mr Carstens works. “If you’re able to do so then it’s alright, but we don’t have that possibility available to us in the first place. First, because we are way too small, we only have two fields [facades, masonry]. Larger companies can just do a lot more” (GER-IJ3, 989-1041). Larger construction firms put far much more emphasis on employee promotion. However, in the wake of the crisis affecting the building sector, even larger companies are increasingly cutting back on advanced training programmes for their employees, in order to economise. “... I’ve noticed it for sure, there’s been a great big cutback in training courses, further education seminars, etc. So I think that’s the situation here, jobs are frozen for the time being, for the present time. As long as nothing new comes along and business is no longer booming, things will stay the way they are at the moment.” (GRIJ19, 493-499). A change of employer in the building branch entails a series of problems related to the social position and the status achieved over the many years of affiliation within the company. Mr Staben, who is 47 years old and has been employed at the same building

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firm for 27 of those, describes the problems of changing jobs from his point of view: “At the moment it’s totally unthinkable [making switch to another construction firm due to the crisis in the branch and the current threat to his own job, ed. note], I would have to start all over again. I am a definite name at my firm, they know what I can do, they will certainly contract me in line with my qualifications. But with the other firm…well, why should I switch, first I got the social benefits, and my firm is really not that bad. OK, why should I drop my company pension. So I don’t see any other perspective, I would have been able to do so ten years ago, that’s for sure. But now, in my job, in another firm, no – I couldn’t imagine that “ (GER-IJ19, 476-486). All of the construction firms we studied were primarily occupied with crisis management; further training was carried out according to present needs and on the job. Firms of Deutsche Bahn AG and in the energy sector stand out in that they make use of in-company job exchanges. These meet with a variety of responses on the part of employees. The necessary mobility, which is nation-wide in the case of Deutsche Bahn AG, makes it hard for many employees to take advantage of this offer. They often have strong ties to their area for family reasons (spouse also works) and their circle of friends, and decline to commute over long distances. This attitude tends to block the process of job transition. Employees in the building sector would like to have such an offer but the firms do not supply it.

3.1.3.2 Individual strategies There is no evidence of individual strategies in a large portion of the respondents. Although some had pursued further education or advanced training sometime in their vocational biographies, at the time of the survey only three of those interviewed (of which two were from the IT sector) were currently engaged in advanced training or were planning to do so. 15 persons stated that at the present they had no plans for continued education. A few of them took computer courses in their free time to acquire some beginner’s skills, which, however, were primarily for private use. The reasons given for not pursuing further vocational education were diverse: two of the respondents said that their wishes for further education were not shared by their company, one person felt a lack of orientation, but was still willing to attend a training programme. One of the respondents saw no chances of further qualifying measures in his branch, another one stated that continued education was out of the question, since his company had filled all desirable positions for the foreseeable future and for that reason would not provide any support for further training. Only one person had consistently continued his training over many years, but when questioned about this stated that this continued education had occurred more or less by chance. 15 of those interviewed have not attempted to take any advanced training. Here it was striking that seven persons in this group (of ten) had at least 20 years of work experience and three (of 5 persons) less than 10 years of work experience. Thus, the group most willing to pursue advanced training seems to be the group of persons who have between 10 and 19 years of work experience. The 15 respondents not pursuing any advanced training measures give various reasons for this. Here, the advance age associated with longer work experience can play a role. A majority of this group expresses being satisfied with what they have already achieved, or that, due to their age (6 of the 7 persons were older than 45, the seventh an unskilled worker), further qualification makes no sense for furthering their vocational development or for switching to another vocational field. The comments made by Mr

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Carstens are typical for this group: “At that my age, when you still, I mean, if you can’t find anything after all, then you have to look for alternatives and maybe do some retraining or whatever. But I’m not sure whether there is any point in it at my age. If one were now 10 or 15 years younger, then the situation would be totally different. And as a young person, I think, I would not stay in construction” (GER-IJ3, 531-538). Many persons in this group work with computers in their free time and claim having acquired an additional qualification (mostly self-taught) which they think, combined with their vocational training, would improve their chances in the job market. Intrinsic motives for participating in further training are exhibited primarily by employees with 10 to 20 years of vocational experience. They put their hopes on improving their own vocational position and job security. In this respect, further vocational training is coupled with one’s personal biography and can be broken down into the phases of vocational entry (up to ten working years), the phase of advancement or consolidation by taking advantage of initial training, advanced training and continued education (up to 20 working years), and the phase of safeguarding what one has achieved (over 20 working years). To sum up, it can be stated that the objective of sustainable employability among the employees has not (yet) been achieved to date. The reasons for this can, on the one hand, be found in the companies for often failing to provide adequate support, and on the other hand, in the people themselves. Above all, employees with long work experience and therefore in an older age bracket no longer participate in further training because from their point of view there is no correlation between it and improved chances on the job market. Mr Zimmermann is a good example of this. At the age of 51, he looks back at 31 years of employment in the building branch: for him a change of vocational branch represents neither a viable chance (“Yeah, I wouldn’t know where else I should go”, GER-IJ25, 688) nor improved job opportunities (“And even others, it doesn’t matter, Opel, or whatever…all they talk about are the thousands which will have to be laid off”, GER-IJ25, 692-694).

3.1.4 Organisational vs. individual responsibility 3.1.4.1 Individual responsibility In assessing successful transition, a clear majority of the respondents rate personal responsibility higher than company responsibility. They feel that it is the task of employees to increase their personal job performance, in order to help their firm out of the crisis or to keep the crisis from occurring in the first place. Thus, it is necessary to be dedicated to one’s firm and to provide good performance. This view is shared by Mr Zimmermann, for instance: “Everybody who gets paid or whatever, should at least ask himself when he goes home in the evening: did I do enough to deserve this or didn’t I? Of course there are many who are ready to knock off even before noon” (GER-IJ25, 1157-1161). In addition, it is necessary to be told the reasons for one’s own dismissal in order to find some orientation to the reasons which led to it. “Sure he [the dismissed employee, ed. note] is going to think about it, why, why did they sack me of all people. After all, I acted as normal as anybody else, did my job and got the work right. Somewhere there’s a hitch. I mean, when there are 100 men and they pick twenty and I’m the 18th, I have to wonder, don’t I, why I was picked and what not. Didn’t I do my job right, should I have done more?” (GER-IJ25, 1205-1212).

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Younger employees put a higher premium on individual responsibility than older employees, who feel that responsibility lies with the employer or government bodies, such as the employment office. Older employees in the study often have a resigned note in their accounts. They tend to maintain the position they have achieved in the firm and with it their status, an attitude which is strengthened by rejected applications for other jobs. In the view of older employees, the job market in Germany gives them hardly any chance for finding new work. The experience made by Mr Albrecht, a 50-year-old engineer, is characteristic for many employees of his age: “I’ve scouted the job market over the last three years, pretty carefully, but the results were disastrous, to put it briefly” (GER-IJ1, 453-455). In our interviews, those affected often express the obligation of the individual to react flexibly to the demands of the job market. In this context, flexibility includes elements of mobility in where one lives, mobility between different vocational branches, an ongoing readiness to learn new skills and taking active steps to finding a new job. It is striking that this readiness, which is called for by the interviewees so unanimously, is hardly put into practice by them. Most of them take a wait-and-see attitude. Lack of goal with respect to occupational transitions is the main cause of this behaviour. This is further strengthened by considerable deficits in information with respect to possible support on the part of the employment office and other agents for the job market. Most of the respondents feel that personal advanced training is an appropriate instrument for maintaining one’s employability. However, there are a number of problems facing this. Mr Müller (37 years old, unskilled, employed at the same firm for 21 years) sees it as the task of the employee to pursue further training on his own in order to improve his chances in the job market (GER-IJ13, 1459-1470), but assumes that for many it is hard to motivate themselves. One barrier he points out in particular is shift work: “What’s a person to do?! You have to concentrate on courses, maybe those offered by the adult education centre…most people say, I have my job, why should I take continuing education or training courses. And especially if you’re doing swing shifts… you’re happy just to finish work each day. Or you have a day off and don’t have to do something else. Like go to another school or whatever else. That’s just the way it is with shift work…we’re always on the job…And then to make the effort to further your skills is naturally pretty difficult…” (GER-IJ13, 1474-1492). Maintaining employability entails lifelong learning in order to stay on top of one’s occupation. This is appreciated by the interviewees to one degree or another. It is recognised particularly in the IT sector, where new knowledge must be acquired at relatively short intervals, and is a vital prerequisite for working in this field. Mr Voller puts this attitude very precisely: “Lifelong learning is very vital to us. I can't assume that I can attend a few courses which will last me for life, I constantly have to adapt to new products, our products are constantly changing and I always have to learn again and again what they involve” (GER-IJ22, 236-241). Success in this endeavour, however, assumes certain work attitudes and specific personal traits: “It is also a certain way of finding your place in the overall job. For you can basically get so engaged in it that it is no longer work in the routine sense. We have no set working hours, no set routines or fixed rules, it all depends on yourself. And that’s actually its great advantage, this individuality, it’s extremely attractive” (GER-IJ22, 212-218).

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3.1.4.2 Company responsibility Although the firms of those concerned are relatively heterogeneous (large and small companies, those operating on a (multi)national scale vs. local firms, various branches), there is a general agreement among those threatened by unemployment, concerning company responsibility in the case of business-based dismissals. According to those concerned, the first responsibility is for companies to pursue a market oriented business strategy, which keeps the company from sliding into the crisis. If layoffs are unavoidable, this should be carried out by long-term measures, such as taking advantage of the natural fluctuation of employees or the use of preliminary pension schemes. In this connection, those affected also feel a role is played in this regard by company information policy with respect to its employees. Respondents, regardless of their branch of work, all agree that companies have a duty to provide information to their employees as soon as possible (cf. 3.1.2.3; interactional justice). Such information would have positive effects on the atmosphere at work, since keeping rumours to a minimum helps to improve the work atmosphere, the motivation of employees and their psycho-social state. The period of unemployment could be shortened, since employees would be in a position to start looking for a new job at an early date. This would also shorten the period of insecure employment on the whole. The active participation of the firm in placing their soon to be redundant employees within the scope of its network is a demand which also is repeatedly raised in the comments of insecure employees. They believe it is part of its social welfare obligation because “with us it [the firm, ed. note] developed to its present size and naturally earned money” (GER-IJ19, 832-834). Here, the opportunity presents itself for an early co-operation between management, trade unions and job employment. The social obligation of the employer should also be reflected in the payment of appropriate severance money and in its offer of consulting and support, as is called for by some of the respondents, such as Mr Staben: “Good that at least by now things have been won, there are certain ground rules, so much for each working year, but, although financially that is not all that decisive, I don’t think. I mean…the company has to make sure that when people are in a bad way that, when it can, they don’t get ruined, also in a humane sense. That they have the feeling, you weren’t bad at all, but that’s just the way it is. So chin up, we’ll give you a hand, we’ll support you” (GER-IJ19, 902-914). From the point of view of those affected, the firm is obligated to provide opportunities for further training of its employees, if necessary, it must take the initiative and request the employees to participate in the corresponding measures for securing their employability. The respondents see the main problem in the overall scanty offers of advanced training made by their employers, in the overly bureaucratic advanced training in their companies and their inability to adapt flexibly to the needs of employees. Also to be taken into account are operational factors, such as shift work, which prevents participation in continuing education courses. Trade unions and employees’ councils should take a more active role in implementing these proposals and demands in the interest of employees. Problems of dismissal are expected to be solved in a socially just manner in order to sustain the motivation of the remaining employees. For solving the problem of pending dismissals in this sense, discussions among employees would be an appropriate instrument for sharing in the selection process, since management “doesn’t know the

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people at all [those up for dismissal] …so people could get a better picture of things” (GER-IJ23, 683-694).

3.1.5 Overall assessment How do people cope with uncertainty? In attempting to sum up the results, one can state that social relationships suffer from insecurity at the workplace. Group solidarity between colleagues declines and in the face of job insecurity a tendency to find individual solutions to these problems emerges. Mutual mistrust between colleagues themselves and of their superiors increases. Individual strategies are preferred in such a situation. The atmosphere at work is regarded as stressful and suffers considerably. Employees try to immunise themselves against dismissal in that each person does everything in this situation to keep from being the potential target of criticism. Sick leave is avoided, overtime is accepted without complaint, etc. White-collar workers try to enhance their image by taking on increased work loads in order to secure their jobs. Job motivation drops due to insecurity and worry about whether one’s job can be kept or if a lay-off is being planned. In contrast, the private sphere becomes more important. Noticeable in many employees is their attempt to suppress the situation. Employees are unable to relax in their leisure time, their thoughts continue to revolve around their threatened job and the potential consequences of losing it. The psycho-social situation is extremely unstable. Families also suffer in such situations as being victims by proxy of those affected. The employees themselves react with various personal strategies. Suppressing the situation is very widespread, as is the (weak) hope of keeping their jobs. An active strategy in the sense of looking for a new job or pursing (further or advanced) qualification over the course of years was lacking in the case of many employees. The exception here are employees in the IT sector, who regard further education on a continual basis as a prerequisite for keeping up with their work. This is supported by firms, as it is an investment in human resources and thus in their production means. Consequently it is imperative for them to do so. A minority in this group showed signs of adaptation to job insecurity, as they had been in similar situations previously. Signs of adaptation are also reported by persons who had been in insecure job positions in the building sector over a number of years. The significance of job insecurity seems to become more acute with increasing age, as the chances for being placed in a new job decline proportionately. What do people expect from organisations? One of the most important aspects expected by the employees affected was an improvement in interactional justice. Information from the firm concerning planned job cuts should be made earlier and in a greater scope, so that employees can start looking for a new job. Improvement in the transparency of the decision-making process (procedural justice) makes it easier for employees to accept the result of the decision (distributive justice). Increased acceptance is also ensured by a clear decision-making process in redundancy selection, which rules out any subjective selection criteria and is completely transparent. However, the primary task of the company, according to insecure employees, is to try to avoid dismissals in the first place. If that is not possible, the company should assume more responsibility for problem groups, such as older employees. This might be done through a company job exchange, for example, in which the company initiates inhouse job placement for all employees threatened by dismissals. Here is where the

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company should make use of its contacts with customers and suppliers, i.e. the company network. From the employees’ point of view, job placement has priority over advanced training, especially for older employees. Trade unions should strengthen their activities in the firm and participate more actively in negotiations, in order to contribute a greater level of expertise in situations threatened by job cuts. Many of those affected by job insecurity, also those who have been at the same company for many years, lack the necessary skills for re-orientation in the job market. They do not know how to cope with the situation on their own. Here is where consulting and coaching should be provided by the company for facilitating the occupational transition for those affected. In terms of long-term measures, employees put priority on the improvement of their employability. Advanced training measures should not be limited to short-term, often product-specific training, as was the case in almost all firms, but should present a systematic, all-encompassing improvement of employee skills. In addition to professional qualifications, this also includes a strengthening of competence in processing and human resources, since competence in areas outside of one’s own field will take on increasing importance in the future for employability. At the same time, the system of continued training within the firm must be made more flexible in order to respond to individual training needs and to adjust to organisational demands, such as shift work. Therefore, this involves the improvement of individual competence.

3.2 Description of results of the subsample “successfully re-employed” The sample of those successfully re-employed comprised n=25 persons between 25 and 52 years of age, with 16 male and nine female employees being interviewed. The respondents were primarily white-collar or blue-collar workers positioned in the lower hierarchy of their company; only six persons had intermediate decision-making powers, and two of those interviewed were self-employed. In general, these persons came from sectors of the economy which could be considered economically insecure, as increased layoffs were to be expected there in the coming years for a variety of reasons. Among the selected economic sectors are the building sector, the railway company Deutsche Bahn AG, energy suppliers, the chemical industry, banking and merchant wholesalers. All respondents had vocational qualification which had been accompanied by targeted professional consulting. The consulting measures involved were either those offered and structured by the company itself or by services offered by outside consulting firms. The impetus for occupational transition was quite varied among the respondents. Business-related layoffs were one reason, i.e. firms having to dismiss employees due to a sustained drop in orders. This can lead to measures involving rationalisation, restructuring or streamlining. Another cause for layoffs is posed by mergers and business relocation. Companies or company divisions are merged or transferred. Finally, insolvency is one special case where practically all workers lose their job.

3.2.1 Aspects of justice When assessing aspects of justice, it is assumed that the quality of success of an outplacement consulting is a decisive factor for whether those people concerned feel as if they have been treated fairly or less fairly in an occupational transition. Here, the actual

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reason for the layoffs must be taken into account, or the circumstances under which employees were offered an outplacement measure. The comments of the 25 respondents concerning aspects of justice vary with respect to the assessment of individual dimensions and with respect to the personal success of consulting. All respondents had passed a consulting process which led to vocational reintegration. Thus, their thoughts on questions of justice could be seen as being skewed since in retrospect some of them could consider unfair treatment as being less unjust. However, this assumption cannot be clarified without a multiple series of interviews. Yet, it is still important to take this aspect into account in the analysis of aspects of justice.

Distributive justice In most cases, the decision as to which persons were to leave the company or firm was based on criteria of social redundancy selection, i.e. factors such as length of company employment, family situation and age, in order to make a socially responsible decision. A family father with three children and 20 years of company experience would therefore have greater chances of not being affected by layoffs, while a young unmarried woman with no children and very little company experience would be more threatened by dismissal. Some companies employed technical and social criteria in equal measure, with a catalogue of criteria often being established in advance for determining the dismissals. Many of the respondents were critical of the dismissal criteria and felt treated unfairly. The main problem was that they may have not understood the necessity of the established criteria and this created the impression of arbitrariness. Here the charge was made that personal reasons, based on who was more likeable, were decisive in selecting those to be dismissed. In the opinion of most of the respondents, finally it was the boss’s own decision to dismiss people. Mrs Hoffmann raises the issue of whether fairness should be a criterion at all in the selection process. (“I never would have been able to name anyone who I could say, oh, he’s just an old bum, hasn’t done anything for years, he should be the first to go”, GER-SR8, 1077-1080). She does not agree with the principle of social redundancy selection and characterises this screening process as being unjust, since professional criteria are not given priority. (“And the other colleague had the better cards: he was a man, older and had been with the railroad longer and was in the employees’ council. And that was it. Otherwise he might have been cut instead”, GER-SR8, 477-480). On the other hand, Mrs Bauer is of the view that it is possible to apply justice in making decisions for necessary dismissals, although those affected will naturally not feel the right decision had been made (“If you are affected you never feel it is right. But in another way I have to say, I have no children to feed and was not tied down in that respect (...). Yes, I think it is actually fair to the others. If I had been in the situation where I had a family, children, I would have somehow expected the same thing” (GER-SR2, 835838; 863-866). The 40-year-old Mrs Walter has other ideas on how to make the selection, namely exclusively according to the time already spent in the company (“And I don’t think it's right that someone who’s been here seven years has to go, and someone else, who’s been here three years, can stay just because he has children”, GER-SR23, 889-892). Some respondents express doubts as to whether the process of social redundancy selection was applied consistently in each case. Mr Isebrecht is convinced that his boss had a decisive influence on his dismissal, despite the social criteria in his favour (fam-

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ily, low wage group) (“…it was controlled by my immediate superior. He probably made it look like that I wanted to go”, GER-SR9, 1158-1161). Mr Jakob also confirms that social selection criteria were not always applied, as in the case of the dismissal of a 50 year-old man (“somehow you felt a little sorry when they took someone out of the laboratory who was well over 50, you really didn’t understand it any more”, GERSR10, 1213-1216). Many of the respondents express general criticism of social redundancy criteria as preventing equal treatment of all employees and discriminating against long-time employees with no children. In many cases, according to the 35-year-old female clerk of a credit institute, the decision on who is to stay on and who is to go is made according to the judgement of the superior. She feels this is arbitrary: “Of course it’s not a nice thing when you hear that there’s a chessboard and everyone stands around stupidly and now I decide who belongs there and who doesn’t”, GER-SR15, 794-797). Positive comments on issues of distributive justice are made by those employees who were encouraged at an early date to leave the company because it would have had to cut back staff in the long run anyway. Incentives were created to make the decision to leave the company easier for employees. This was particularly the case for younger employees, where the voluntary principle was given top priority (cf. Chapter 4.5 “Active in the Future” project of swb AG). On the whole, the topic of distributive justice is controversial among the respondents. The dominant instrument of selection in dismissals is social redundancy selection. The respondents are of differing opinions, as to whether such a procedure is just. Established criteria contribute to the transparency of the procedure but often arise the impression in employees that the personal decision-making freedom of the superior also plays a role in dismissals. On the one hand, many employees can understand when older employees with family and more company experience are preferred to stay on over younger single employees, on the other hand, the discretionary scope of the superior is seen as being so heavily weighted that he is able to ignore the established criteria.

Procedural justice Procedural justice primarily concerns employee assessment of company policy after dismissals have been announced. This includes possibilities of participation on the part of employees, trade unions and employees’ council, but at the same time the action of the company is evaluated as a whole. The influence of the trade union is rated low by many respondents. Mr Dorn, a 40year-old master electrician, is dissatisfied with union support. He feels that it should have informed him earlier and made alternative proposals to the employees (“…they just approved what the board put in front of them and accepted it (...) the union always ranted against that but ultimately hasn’t achieved anything” (GER-SR4, 229-233). Mr Isebrecht was so dissatisfied with the trade union that he withdrew his membership. He increasingly doubts the necessity of trade unions (“If you look at the way politics is run, then either it works or it doesn’t. And I start to wonder whether it is an instrument which is out of date”, GER-SR9, 599-602). But he sees the employees’ council as being the main problem in asserting oneself against management in the restructuring process. (“And that is the imbalance, I think that when you confront an employee representative with such problems, well, you see there are lawyers there too. And a former fitter is now chairman of the employees’ council and has to make sure that the staff doesn’t get the bad end of a deal”, GER-SR9, 553-559).

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In general the work of the employees’ council is seen in a more positive light than that of the trade union. In many cases the employees’ council is praised for its good work and dedication, although its influence is seen as relatively weak. However, it is admitted that the employees in the employees’ council have done everything possible to achieve a good deal for the workforce (e.g. the on-site availability of vocational consulting or negotiating severance pay settlements). Here too, employees distinguish between support on the part of the trade union and the work of the employees’ council. It may be that the local presence of company representatives was decisive for the employees’ council assuming greater responsibility for the workforce and that employees view the trade union as a more remote and higher organisation, which they experience as being less decisive in taking action in the concrete situation. Employee participation was evident in a few individual cases, but in the opinion of Mr Clausen this only had the psychological function of giving employees the feeling of participating in the restructuring process. Taking all respondents into account, such participation was minor and was in part regarded as being impossible or useless. There are a number of very different positions taken in the assessment of how firms proceeded in the dismissal process. The procedure is highly valued in those firms which offered employees comprehensive support. Of special note were the firms whose company policy was to establish contact points where professional consulting could be accessed. Mr Dorn feels that the company’s treatment of employees was fair and above all he considers the financial support as something which is not a matter of course. (“...that is very generous. And it goes way beyond the compensation scheme. That is very generous of the firm”, GER-SR4, 757-758). On the other hand, Mr Unger from the IT branch sees serious problems in the way his old firm handled the dismissal process. Apart from the period of interim financial help, there was no possibility for employees to exert influence, nor were the employees treated fairly at any time. Mrs Günther complains that the structure of the insolvency procedure had no central place of contact where the employees could inform themselves about the further course of the proceedings and what actions might be open to them. She characterises this period as a “very muddled phase”, which led to rumours and disorientation (“If you wanted to find out what you could do or the best way to act in such a situation, you really just got a lot of different answers so that afterwards you no longer knew what you should do”, GER-SR7, 873-877). The overall assessment of respondents concerning procedural justice is highly dependent on their vocational branch, the cause of occupational transition, on the general personnel and the company policy. Participation on the part of trade unions is regarded as meaningful, primarily at the employees’ council level, even though the opportunities for effective action are limited. Individual influence in the context of job cutbacks, is classified as having little or no leverage.

Interactional justice Early information about job cuts or bankruptcy is a central topic among employees in the sense of interactional justice. Most of the respondents were informed in an open and honest manner, but in many cases this did not take place early enough. This resulted in information deficits. For Mrs Ernst, 46 years old, the insolvency procedure in her earlier company was already the second time she had been dismissed. Trained as a retail merchant, she had expected to receive information about the impending bankruptcy earlier. This would have resulted in a greater group spirit among the employees and each person

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would have done all they could for the others and for the firm (“...if an employer would be obligated to gather the whole team and honestly say what is really happening, where there is a risk or not a risk, how we might be able to avoid it … it was a small firm, everyone would have done their best to find a way to save the firm somehow if possible. One would have done quite a bit, I know my colleagues would have done it, they would have gone without a few hundred marks each month and would have said, hey let’s try to build up the firm again; we would have done it, but because of the lack of information things took a different turn”, GER-SR5, 502-531). Mrs Hoffmann is also angry about the lack of early information. She criticises the fact that no talks were held with the staff before dismissals were announced which might have been constructive in finding common solutions (“If they would say: listen, there’s not enough to do in our department right now, do you have any ideas yourselves? What could we do to change the situation? But no, nothing like that. Things just muddled along. Sure, you noticed that you now had less to do here, but nothing was done about it. No talks were held at all”, GER-SR8, 327-332). Employees take different positions on the issue of whether it makes sense to announce layoffs well in advance. Many of the respondents feel that they were not informed in time, but on the other hand, they see the problem that management wants to avoid alarm among employees to keep their work performance from suffering. Mrs Offe also sees a problem in the early release of information, but based on her own experience she never noticed any loss of motivation on the part of employees despite early information from management. She believes the reason for this was that employees were given enough time to re-orient themselves. Important in this respect is to provide employees with some sort of new job prospects, instead of just informing them and then leaving them “in the lurch”. Another aspect in this connection is provided by Mr Unger, who believes early information in itself is not sufficient for finding a new job. It is also important that employees are in a position to assess what prospects their present firm could still offer them or whether it might be better to look for new employment (“Well OK, half a year’s time to apply for a job outside of the firm was definitely long enough. Except you don’t know really, because you have been with the firm pretty long and you want to stay there, of course. Rather than saying, yeah, I’ll look for something else right away”, GER-SR21, 274-279). Expressed in this comment is that early information is only meaningful if the firm can offer its employees alternatives or at least provide support for their vocational re-orientation. Finally, from our point of view the following open questions arise with respect to procedural justice: to what extent were aspects of fairness considered as a factor in the success of the outplacement? Does the assessment of a fair procedure depend on whether the consulting offer is made by one’s firm or by an outside company?

3.2.2 Employability On the one hand, the topic of employability encompasses offers of advanced training made by the earlier firm, and on the other hand, individual strategies which employees generally regard as necessary in maintaining their employability. From the interviews it becomes clear that personal initiative is an essential prerequisite for coping with precarious employment situations. Although all respondents have made an occupational transition with the support of professional consultants, it nevertheless emerges that

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one’s own personal involvement is just as decisive for successful occupational transition. Strategies for taking active steps as a reaction to the threat of dismissal are evident in several cases. Mrs Hoffmann immediately started looking for solutions upon hearing of upcoming dismissals in her department: “So the very next day I got on the phone and asked around, actually I just kept looking forward. But whether there was time enough for this, well maybe. Anyway, I made the best of it, but it was a disaster for others. So that’s something that shouldn’t be forgotten” (GER-SR8, 349-354). After restructuring plans were announced, some of the respondents first took a wait-and-see approach in order to overcome the first shock. This hesitation had various reasons. In two cases the respondents did not expect to be affected, because they felt securely employed in their vocational branch (IT sector). Others, such as Mrs Offe, saw no reason for taking any steps due to the poor job market. She finally reached a settlement with her old firm at less favourable conditions (“…if the job market situation was better here then naturally it would be much easier for you to detach yourself from the firm. But for that reason you’re also willing to say, come on, you can make certain compromises as far as certain tasks are concerned, or whatever.”, GER-SR15, 828832). In turn, others merely delayed taking any action because it was more comfortable to be idle, something which Mrs Axtmann, for example, later regretted. By finding a new job, many of the respondents felt that their chances on the job market had improved. However, many still consider further individual qualification to be vital. This was particularly true for younger respondents. Mrs Bauer, 25 years old, completed a correspondence course parallel to her new job which provided her with specialised knowledge, which she could then utilise at her new job. She began her studies due to personal interest. Mrs Günther, 33 years old, also took a further education course parallel to her job. She had already experienced job insecurity at her old firm. In this respect, advanced training also improved her chances on the job market. But there are other respondents who pursued different vocational directions despite the possibility of remaining employed at their old firm. Mr Thiele, 52 years old and with a master’s degree in economics, had on many occasions during the past few years planned on leaving the company. The alternative job that was offered him did not conform to his ideas of being free to make his own arrangements and work independently, so he decided against it (“…you don’t accept a job where they say, that’s fine and good and then I go there for another 10 years and after that into early retirement. They have to consider whether that is their life goal, it certainly isn’t mine […] And it doesn’t fit my mentality, never did, that was quite clear to me. So for that reason I didn’t take any steps to find a job anywhere at the firm, here or there or at some subsidiary or …none of that seemed right for me”; GER-SR20, 175-189). In this respect, the restructuring process was a welcome occasion for Mr Thiele to leave the firm. Also for respondents who had been considering self-employment over a longer period of time, it was the restructuring of the firm which represented the driving force to seek the assistance of a consultant for their vocational re-orientation. Ongoing opportunities for advance training in their old firm were open to about half of the respondents. In general, all employees also took advantage of them. Mr Michaelis, 50 years old, participated in a promotional training from mason to polisher at his old firm, where he had been employed for 15 years. Mr Quecke, a 46-year-old certified bank official, took advantage of all continuing education measures at his old firm.

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Only one person from the banking sector states that his old firm had systematically blocked continuing education (“Especially in the in-house structure, advancement to many positions was not possible or blocked.”, GER-SR18, 791-793). Regardless of the possibilities of in-house further education, some respondents looked for career alternatives. Mrs Bauer had already started looking for alternate job possibilities before restructuring and had sent out blind applications. Such strategies were not successful, but they did point out a competence for vocational orientation which is important in maintaining employability. In some individual cases, job dissatisfaction was the component that triggered the early decision of looking for another job.

3.2.3 Responsibility With respect to the issue of individual and corporate responsibility, the respondents do not consider the two possibilities as being independent of one another. It is shown that greater significance is attached to individual responsibility, but many of the respondents are of the view that the firm should also observe certain guidelines in order to facilitate the individual person’s chance of smooth occupational transition. Individual responsibility is primarily seen in that it is up to the individual to seek other vocational opportunities as early as possible. Mrs Bauer formulates this thought as such: “To take advantage of all opportunities given by the employer when these exist and to report to the employment office as soon as possible and even send out applications to other firms and to find out where one can be employed elsewhere in another field, where you can be retrained, for example, do a course in continuing education” (GER-SR2, 391-397). Mr Clausen, an electrician by trade, enlarges the aspect of the necessity of ongoing advanced training and continued education in order to adjust to new job requirements. To realise this, the individual must be aware of the current situation in the job world, that there is no longer any guarantee of secure jobs and that, above all, younger people should think about alternative careers at an early date. Mrs Ernst feels that ongoing education is imperative, but also calls upon employers to make such opportunities available (“…it is really important that each employee is provided with all opportunities for advanced training…and actually it should be required to participate in further training schemes” GER-SR5, 703-706). Mr Anders feels that in the wake of dismissals, companies should only be directly responsible for hardship cases (the physically disadvantaged, older persons who are difficult to relocate into a new job). Mrs Hoffmann sees the responsibility of the firm in that management should anticipate developments in order to inform employees in good time about possible changes to take place. This requires providing early information on the part of management, but at the same time in-house solutions should be pursued. Mr Unger does not think much of the idea of discussing employment possibilities with the firm. In his view the individual, above all in the IT branch, should “find work somewhere else as soon as possible, find another job, if possible become better qualified in order to undertake something in this direction. To cut off ties to the old firm as soon as possible …” (GERSR21, 461-470). In order to meet the demands of a responsible policy in human resources, many of the respondents advocate interim solutions which provide space for reorientation. Here offers of limited outplacement measures could be appropriate. But temporarily established personnel companies are also considered possible in order to bridge insecure job situations.

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3.2.4 The outplacement measures Components The components of professional outplacement consulting vary only to a minor degree. Components such as employment potential analysis, job application training, coaching and career counselling are essentially included in the offer according to the needs of the clients. Those who were interviewed provided a wide range of responses to the individual components of outplacement consulting. In many cases, individual consulting was made with the clients, which took account of the personal wishes and needs of those affected. This instrument was added as a supplement to components employed in the course of small-group consulting (e.g. providing special courses or specially-targeted job application training). The general aim of an outplacement consulting was to give participants an advantage over competitors in the job market. This goal was realised in the concept of Deutsche Bahn AG (DB-Arbeit, now DBVermittlung). On the one hand, DB-Vermittlung offers participants the opportunity of temporary employment as loan employees, on the other hand, it provides assistance for in-house as well as external job placement. This method favoured former employees of Deutsche Bahn AG over external applicants. At the same time, DB-Vermittlung tries to place jobs before the employee starts the measure (“So they didn’t wait until February 1, I could look around even before then. And I also had luck with the consultant, who, as far as I could tell, told me everything there was to know. And she was also very pleasant, friendly and nice, something which supposedly can’t be said of other consultants.”, GER-SR8, 685-690). An attempt is made to finding solutions as soon as possible for those affected, above all by taking advantage of in-house transfer opportunities. The disadvantage of this consulting concept, according to some respondents, was its nationwide job placement scheme, i.e. it expected participants to exhibit a greater degree of mobility. This was seen as a disadvantage primarily by those with low vocational qualifications and whose family situation was not conducive to greater mobility. Another in-house consulting concept was realised by the energy suppliers swb AG in their so-called pivot point. Here is where interested parties and employees, who felt the pinch of job insecurity, were offered a range of assistance opportunities on site at the power plant. These ranged from personal vocational consulting, application training and continuing education, to assistance in helping one become self-employed with the goal of helping employees find optimal solutions tailored to their needs. Individual consulting was seen in this context as an interactive process between the consultant and the employee. Connected to this, an ongoing exchange was conducted about the development of the consulting. Direct financial support was provided to the participants as a lump-sum of € 7,500 for job-related qualification and advanced training. The function of individual interviews for coping with the severance process was particularly emphasised by some respondents. In the human resources development company of BASF (PEG), individual and group talks were conducted in order to deal with the situation of dismissal in common and to counteract tendencies of self-pity and resignation. This task was also perceived by consulting companies, such as Quotac, who view themselves primarily as a rescue company in cases of insolvency. The central approach of this transfer company is the extensive appraisal of the dismissal and providing opportunities of individually tailored further training with the objective of a rapid reintegration into the job market. Contacts to companies in the region are intensively

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used, so that after just a few weeks some of the respondents were able to be placed in a new job. Classical outplacement consulting firms concentrate more on individual consulting. Group consulting remains the exception. They strive to find the optimal solution for the client in terms of his further personal and vocational development. An internal job exchange within the consulting firm ensures that direct contacts can be made to potential employers. As a rule, consulting encompasses approximately 10 individual sessions, where a personal qualification profile is drawn up. The client’s biographical development is recorded and if necessary, a psychological report is made for vocational orientation. In addition, tests are conducted, a strength-weakness profile is made and even legal assistance is offered for any problems concerning severance settlements. Finally, the application documents of each client are updated and individual application strategies are developed which contribute an essential factor to their success (“…even if you yourself are not used to presenting yourself, that someone else understands how it is and is also convinced about it (...) naturally, you could also sit down on your own and put something together, like, I can this or I know that person I can talk to about this, but all of that takes a lot of time” GER-SR20, 387-405).

Evaluation The respondents were asked to assess the degree to which consulting had helped them in realising an occupational transition. On the whole, they were highly satisfied by the offers made by the consulting firms. Satisfaction was also high on the personal level, especially since these clients had successfully found a new job. Nevertheless, there were differences in the evaluation of programme components. Respondents from the DB-Arbeit programme were personally satisfied with the offers made. All in all, after initial scepticism, their expectations were fulfilled, even though in some individual cases the offers of DB-Arbeit had no influence on reemployment. The mechanism of loan employment is, however, given a critical assessment in particular for older employees (“I think there must be many who have worked, oh I think maybe 40 years in the switch tower and are now supposed to do work like packing boxes and so on, they couldn’t be expected to accept that”, GER-SR1, 636638). For Mrs Bauer, DB-Arbeit was a good opportunity to bridge the time between jobs. Career planning accompanied every step of the way. Above all, the informative talks and internal job placement are evaluated very positively by her: “You are informed because DB-Arbeit of course is offered the jobs from the railways and made available for the employees here before they are put on the job market. So you can make an effort and be informed well in advance. And job opportunities from the outside market are also offered” (GER-SR2, 536-540). Mrs Hoffmann stresses the aspect of job safety provided by DB-Arbeit. This gave her the secure feeling that she did not have to face the situation alone. But she points out that her personal attitude and intense involvement also played a decisive role in reemployment (“I started looking from the very start to make sure I found something” and “So up to the very last I always had the hope and belief that I was bound to find something at the railways”, GER-SR8, 777-778; 831-833). The support services at the pivot point set up by swb AG were evaluated in a positive light. The legal counselling and support provided for starting up self-employment were regarded as being helpful. Mr Clausen claimes he would have become selfemployed even without the support, but gives very positive marks primarily to the pro-

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gramme’s financial support. Mr Isebrecht feels that the pivot point was a service which could be taken up by other firms. The consulting helped him develop alternatives to his career. The consultant was quite capable of appreciating his situation, because he also used to work at the firm and had been employed as a craftsman. The activities of the Quotac consulting company are also positively evaluated (“Well, the placement quota was super. It was good for us, definitely”, said Mrs Ernst GER-SR5, 1343-1344). Mrs Ernst particularly emphasises that during her advanced training she still had enough time to look for a new job. Furthermore, the measure helped her find a new sense of self-confidence in the insecure job situation. Mr Förster comes to a similar result that the staff in the rescue company were committed to each and every one of them; in his case, this laid the cornerstone for re-employment. Mrs Günther is also satisfied with the support, but points out that the measure may not have the same relevance for all vocational branches. The psychological assistance was particularly important for Mr Michaelis. Although sceptical at first, he later became convinced: “…to cushion this personal shock using psychology, they did that very naturally and somehow I thought that was really great…looking back I was really grateful” (GER-SR13, 531-533; 352-354). He was unable to profit from the continuing education courses, but thought it was a good thing to refresh his knowledge. On the whole, the psychological assistance put Mr Michaelis in the position to take an active role in finding a new job once he had overcome the initial shock phase. After only two job interviews, both of which were successful, he could choose which new job he wanted. He had already considered alternatives such as starting up as an independent subcontractor, if a regular salaried job proved impossible to find (GER-SR13, 488-491). Another aspect is cited by Mr Ziegler. For him, Quotac’s measure provided consulting and advanced training opportunities within the framework of a short-term “safe space” in which he could concentrate on vocational orientation and further education without financial worry. (“That you had the chance during this time to continue, without having to worry about not fulfilling your obligations, to continue looking for a job, absolutely. And just to have the possibility to take advantage of continuing education and not spend that time sitting around doing nothing or just filling out more applications”, GERSR25, 1268-1274). The duration of the measure was generally limited to three months. But even individuals who only participated for three weeks, have a very positive impression. For example, job application training paid off for Mrs Axtmann, who says her later boss remarked that “she had not received very many applications like that” (GER-SR24, 846-847). The offer of the Personnel Development Company (PEG) of BASF is given a good evaluation by the respondents. Some consider participation in the PEG as being not decisive for their re-employment, but neither was it a waste of time since they highly valued such components as application training and advanced training. Mrs Klose finds the opportunity to exchange views with other colleagues in such a difficult vocational situation as being particularly essential: “Well, I think that being with people with the same viewpoint, where everybody describes his personal situation and so you get an insight into them, because usually you just look at yourself and don’t realise what the others are going through. And in this seminar you learned that there are actually a lot of people who are in a worse situation than you are” (GER-SR11, 726-733). Mrs Lutz is of the view that the measure was very helpful for her occupational transition

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because she was not under the pressure of unemployment. She was able to deal with her situation and the application process in a more “relaxed” way. The measure gave her determination and support, and others made an effort for her; during this time she learned how to seek help actively. At its start, the TransFair project of Hypovereinsbank had a fairly negative reputation, as reported by Mr Nolde: “…yeah, well, the local way of putting it was that Transfair was actually in charge of getting rid of excess workers”, GER-SR14, 277279. Over the course of time, the quality of the support was finally acknowledged. Looking back on the phase of consulting, the 39-year-old certified bank official called it a “brilliant time” because it also gave him the opportunity to decide against taking on a different job, thus giving him a greater feeling of security. The time spent in the Transfair project was a limited phase for him in which he could ponder his personal development and become acquainted with new vocational fields. This also gave him the opportunity to review the course of his previous vocational career and to become informed about other fields of activity without being put under economic pressure. For Mr Papst, the outplacement consulting of Mühlenhoff & Partner was very helpful (“Well, without this outplacement consulting I definitely would have had more problems”, GER-SR16, 596-598). He particularly emphasises that his consultant gave him a feeling of confidence that he would find a new job (“…he made no doubt about it and I have to admit that he put it in such a way that I didn’t have any doubts myself”, GER-SR16, 370-372). It was also important that his consultant advised that he should only take on a new job which matched his personal preferences, otherwise he might have been tempted to take on a less qualified job or one that paid less. Mr Quecke similarly expresses positive views. He found the consulting to be very efficient and personally helpful, although he took advantage of it for only a short time, as he soon found a new job through applications and interviews he had organised himself. Mr Quecke puts special emphasis on the support given in legal disputes involving severance settlements. Mr Rohde originally had expected little from the outplacement consulting but in retrospect views it as very positive, in particular his first contact: “…I was quite anxious when I went in and then we had the first interview, where they showed me the various parts of the programme and I really liked it. Its structure was set up very well”, GER-SR18, 1043-1047). The verbal exchange took place on a competent professional level, thus creating an emotional distance to one’s personal situation. It is worthy to note that many of the clients of the outplacement consulting are still in contact with their former consultants. This is an expression of the confidence and satisfaction in the assistance they received. Mr Thiele also characterises the consulting phase as being extraordinarily positive. It gave him the opportunity to become more aware of his personal situation. This ability was something he constantly had to utilise in his former job, when dealing with his staff (“To be more aware of things which you always have ready with respect to others but which suddenly relate to you yourself”, GER-SR20, 345-347). This self-insight was conveyed to him very well by the consultant in that the two of them appraised the severance process together. For him it was important to have a competent person as a contact. Consulting by IBIS Acam is considered by Mr Unger to be very good, especially with respect to the strengthening of his social skills and acquiring a more confident attitude toward others. Mr Vogt emphasises the necessary aspect of self-initiative. He is convinced that employees with more than 20 years of company experience are hard to

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place through external consulting “And when I imagine someone coming in from outside or from the company group and trying within half a year or three-quarters of a year to place people who have been working in this company for 10 or 20 years, this is a very, very difficult task, so I did not approach it with very high demands because I thought it depended more on your own activity. But despite everything, I have to admit that the interviews really helped intensify my outside efforts, that was pretty good”, (GER-SR22, 639-647). This demonstrates that individual success frequently does not depend on the consulting, but at least consulting does provide an impetus to think more about one’s vocational situation. In this respect, occupational transitional consulting always encompasses helping others help themselves in coping with occupational transitions. At the same time, well-targeted consulting is capable of fine-tuning certain basic skills for the job market, such as updating application documents, which still represent a prime criterion for success in the job search.

Trade unions Criticism of trade unions is primarily directed at the lack of closeness to its members and to its sparse information during times of crisis. Mrs Bauer criticises the lack of discussion with members and the union’s low level of interest in them. Except for the union magazine, which was sent out once a month, there was no contact to the trade union (GER-SR2, 700-720). Mrs Ernst does not see any advantage for her in union activities either, in part because, although they had “achieved a lot”, they also made unreasonable demands on the employer (“…the employer would be bled to death if he agreed to these things, that’s not right either.” GER-SR 5, 1078-1080, 1058-1083). Mr Dorn even quit the union, not because he is now self-employed, but because of his dissatisfaction with the union (“…the union has lost all influence in the last five years and can hardly achieve anything”, GER-SR4, 600-602). In the view of Mr Quecke, unions or the respective works council can exert very little influence on the company’s actions. Effects In addition to the personal appraisals and evaluations of the respondents, the assessment of the effectiveness of occupational transition must also take into account the achieved results, i.e. what personal consequences resulted from a successful occupational transition. This essentially involves its effects on personal qualification, the improvement of resources for dealing with the precarious employment situation and the strengthening of motivation, self-confidence and finally the improvement in employability. Almost all respondents are of the opinion that the occupational transition and the related career and personal qualification improved their chances on the job market. Mr Förster, 45 years old, a trained mason and finisher, believes that advanced vocational training led to a dramatic increase of his chances on the job market because it gave him an additional vocational leg on which to stand and thus enabled him to apply in more diverse professional fields. According to Mrs Bauer, her new job enhanced her individual abilities and skills because she was put into a new task field. The programme also reinforced her motivation and self-confidence. She is happy with her new job and feels more securely employed, even though “some job insecurity is still there. Because you still hear a lot about restructuring and then it affects you all over again” (GER-SR2, 696-698). Even in cases where there was no change in vocational activity, respondents express having more satisfaction and greater motivation through the new job. Mrs Hoffmann describes

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her feelings in this respect somewhat more ambivalently. Although the consulting was a help to her in finding a new job with which she is satisfied, she complaines that she is employed in a job outside her field of training and that it is a dead end, as far as her further qualification is concerned. Although she has the feeling of being in a secure job, she views her chances on the job market as being poor because of her age (47 years). This was also the reason why she applied for positions offering much lower pay. Ultimately, she is happy that she could stay with her old company, although now in a different job, not least because she is still paid her former wage. The qualitative improvement which Mrs Hoffmann misses was realised by Mr Clausen in achieving selfemployment. (“…more demanding, more diverse and, I might say, more productive is the way I look at my work. At the Stadtwerke power company I didn’t do any productive work in a real sense [control function, ed. note]”, GER-SR4, 639-641). He feels much better in his present job, regards his job as being secure, and regards his prospects on the job market for craftsmen as being very good. Even in cases where work is more strenuous and work loads are greater, the change in vocational situation is greeted, because it is associated with new chances, new challenges and further personal development (“Well, I think due solely to the circumstance that after 20 years of work you break out of your working life and are more or less forced to work for other companies, that was what, personally speaking, helped me along. This has nothing to do with the PEG [Personnel Development Company] it was just the circumstance that I had to find a different orientation and had also worked for other firms. For example, I worked at a company with 40 employees, that was something quite different”, GER-SR11, 686-695). Despite successful re-employment, the feeling of job insecurity depends on many factors. For one, restructuring measures are an established component of companies and plants which are forced to adapt to changes in overall economic conditions. For another, the perception of personal chances and existing strategies of coping vary considerably. Mrs Lutz feels job security at her new job, even though her present firm is also planning restructuring measures. She is not worried or anxious, though, because she estimates her present chances on the job market as being very good (“It’s not a worry, or that I have fears but I do know things can go well here for 5 years, maybe 10, so I reckon that restructuring will take place even in the next few years and that I might be affected again. But by now I think that can happen anywhere, you just have to make the best of the situation”, GER-SR12, 767-773). Mr Isebrecht feels that his age (40 years) reduces his chances on the job market (“The only way for me to make it on the job market, I think, being 40, is to be ready to accept anything available”, GER-SR9, 1083-1085). Mrs Axtmann regards her job chances, despite success in finding a position, as “still bad”. But in her present employment she has regained a general sense of job satisfaction. The psychological aspects of consulting in the sense of appraising the severance process is evaluated in retrospect by many respondents as being very important and helpful. For Mr Quecke the consulting was very helpful from a psychological point of view in his overcoming the initial shock. Mr Thiele detected considerable mental stress in the phase of being severed from his company. The outplacement consulting helped him very much in coping with this. Mr Michaelis found time in the transition consulting to examine his vocational perspectives, which helped him achieve a new quality in life (“It’s given me a different outlook and I think that is good”, GER-SR13, 394-396). Occupational transition changed the attitude Mr Unger has toward work in the sense that he now finds continuing education more important than before. Mr Nolde emphasises

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that the time spent in transfer consulting gave him a great feeling of security and he also had the opportunity to make important contacts.

3.2.5 Overall assessment The preceding chapters have demonstrated how employees, who have made a successful occupational transition, evaluate this process in retrospect. At this point, we would like to summarise which aspects the respondents give as reasons for the success of an occupational transition consulting, how they appraise the measures, and what individual effects emerge.

Innovative elements of outplacement consulting A number of innovative elements can be found in the various forms of consulting which increase the efficiency of occupational transition guidance. One tool, which many respondents feel to be helpful, is the range of opportunities for outside employment organised by the firm. The company network was utilised to find employment for the personnel on a short-term or long-term basis, without them losing the contact to their old company in the process. Other in-house solutions were the employment of personnel at other company sites and the support given by consulting firms in contacting positions at other firms. These forms of flexible employment strategies are likely to become more widespread. One problem we see, though, is that such concepts assume a greater mobility which is often very difficult to reconcile with family or other private situations. The following elements of occupational transition consulting are regarded by the respondents as useful: • • • • • • • • • • •

personal interviews and emotional support in dealing with the severance process overcoming the shock phase following dismissal overcoming the phases of frustration personal consulting and continual follow-up measures mutual interaction between the consultant and clients (establishing a relationship of trust) maintaining motivation promoting self-initiative and active steps specific measures for enhancing employability special consulting, tailored to further personal and vocational development updating of application documents and improving job application skills promoting self-initiative and active steps continued education and advanced qualification (helpful only if it is clear in what fields vocational reintegration is to take place)

Individual consequences of successful occupational transition The individual consequences of the consulting offer are dominated by further personal development and vocational reorientation. The following aspects are cited in detail by the respondents: • • •

reduction of mental stress enhanced individual skills and abilities change in vocation opening up opportunities for further personal development and a new start in one’s career

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regaining job satisfaction greater satisfaction with the new job and increased motivation

These positive changes, resulting from occupational transitions, are not limited to young people. Instead, there are also older employees who were able to find a new job through a targeted consulting measure. It should be noted that 8 of the 25 respondents included in this part of the qualitative study are older than 45 and thus in an age group which is particularly confronted by problems on the job market. It can be expected that feelings of job insecurity will return also to those now successfully placed, or that they are still present. For many of the respondents, occupational transitions create the feeling of a personal break in one’s career. Staff cuts and the risk of losing one’s job are becoming increasingly accepted as a feature of the workplace and consulting has made individuals realise that occupational transitions and switching careers will increasingly become part of one’s vocational biography. In order to tackle these challenges with an appropriate response, not only the individual must be willing to make changes, but firms too, must provide timely support to their employees. From the viewpoint of the respondents, it is important that a company faced with job cuts should first explore and take advantage of all in-house and external solutions for avoiding staff cuts. This should be accompanied by targeted consulting for clarifying individual options and vocational alternatives. If layoffs are unavoidable, the firms should provide those affected with a kind of “short-term safe space”. In this safe space, where occupational transition transpires, those affected should be given enough time and space to reorient themselves in their vocation, to acquire new knowledge and skills, and to develop a clear vocational perspective without being put under economic pressure. This provides them with the opportunity to bridge the change of jobs in a constructive manner and to enhance the person’s employability.

3.3

Conclusions

This chapter summarises the essential elements of the conducted studies and the conclusions that follow from them. For the group of employees engaged in insecure jobs the primary question revolved around their way of coping with job insecurity. For the group of employees who were successful in finding new work through consulting intervention, the main focus of the study was on the effects and evaluation of the consulting process. Looking at the group of employees in insecure jobs, it could be shown that their main source of stress comes from changing social relationships and anxiety. This is often reinforced by the lack of information provided by the employer. It was also observed that employees, particularly when they have been employed in an organisation for quite some time, make little efforts in further education or training in order to improve their employability. Employees expect their companies to assume social responsibility especially when jobs are cut and in particular for those whose chances of placement in the job market are poor. This especially includes the use of the company network in order to find a position in the same branch for workers affected by job cuts. Here, the wishes expressed by employees match the deficits observed in the companies studied. In the group of the successfully reemployed these models of advanced job placement were successfully practiced by various firms. The overall effects of the different

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types of consulting employed were similar even though they differed on a case by case basis, dependent on the concrete design of the programme. Three areas in which positive effects were reported can be highlighted. First, positive effects of consulting were seen in the psychological profile of the employees. Second, job-seeking skills were improved, and third, the new job fits the profile of the client. Most of the clients were very satisfied with their new job, which suggests the emergence of a sustainable occupational transition. These individuals also report being very motivated. Accordingly, the elements found in all consulting approaches, although employed with different intensities and focuses, can be assessed in a positive light: the personal talks, emotional support and security offered in the phase of separation from the old firm, the personal focus of consulting, which was also employed in group outplacement, and the specific measures used to enhance employability. Involuntary job transfers, seen as occupational transitions suggested or, in a sense, forced upon the individual, represent both a risk and a chance. Such job transitions become a risk for the individual when no accompanying measures are taken and the social assistance of the firm is limited to financial offers such as severance pay, since the dismissed employee must bear the risk of unemployment and its consequences. If those affected by this situation, which often occurs unexpectedly at short notice, are offered a “safe space” and accompanying support in the occupational transition, the prospects for successful vocational reorientation within a short period of time are very good. However, this does assume the active participation of the persons affected, whose behaviour is decisive for the success of the intervention. This safe space, with its ambient factors, financial security and coaching during the phase of looking for new employment, makes it possible for those with many years of work experience to undertake vocational reorientation, linked to professional support which thus ensures the necessary stability and security for managing the situation of occupational transition.

4

Cases of good practice: Description of sample

The following list of case studies encompasses a broad spectrum of in-house and external strategies concerned with the possibilities of professional consulting as a response to the risk of dismissal and severance. We have used the term “outplacement consulting” to describe an approach which includes every form of successful vocational transition which came about through a specific consulting activity. In Germany nine case studies were made – of which four were selected for this volume – that were meant to cover the broadest possible spectrum of outplacement intervention measures. The investigation of the case studies was made over a period of three months (October to December 2001). The term outplacement was used here for a number of interventions, whose common feature is that the former employer assumes social responsibility, for the employees that are about to be dismissed by his financing of an intervention measure. The goal of these interventions was to create a transition from one job to the next, without an intermediate period of unemployment arising. This goal could be achieved by various organisational structures. The outplacement service can either be purchased from consulting firms or performed internally by the company

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itself, with the appropriate personnel. Both forms of consulting can be found in the case studies. The in-house establishment of this service is usually the result of the medium or long-term necessity to dismiss a significant number of employees. The goal of cutting jobs can be achieved just as well with an external consulting firm. However, there are a number of reasons to perform this service oneself. In the following, an overview of the case studies selected will be presented, followed by an evaluation of the individual interventions which will highlight elements that might serve as “models of good practice”.

5

Cases of good practice in outplacement/replacement

5.1 Examples of good practice: Quotac GmbH, Achim 5.1.1 Characteristics of the company Quotac Management GmbH is one of the few companies in Germany which is engaged almost exclusively in job transfer measures (see following discussion). It has been doing so since 1998, when § 254 of the Social Security Code (SGB) was enacted, although it had already been active in the field of continuing education and training since the mid80’s. The main emphasis in the approach taken to career development by Quotac is to regard it as a product of internal processes and not to assume that a sustainable effect can be achieved by qualification alone. This approach has also found increasing acceptance and support among various job centres. Approximately 20 people work at Quotac on a regular basis within the framework of transfer schemes, with about half of them being regular employees. Its advisors are psychologists or pedagogues. Parallel to this, co-operative efforts are pursued with almost all educational and training institutions, as well as with personnel service providers. Yet, the actual core advisory services – coaching and project support – are conducted by Quotac and its own staff. Depending on the prevailing economic trend, a major share of those presently receiving consulting support from Quotac come from building trades as well as from the IT sector. The case described for Quotac relates to the firm Emil Brinkhoff GmbH & Co. KG – an old-established family business. For more than 100 years, it has been active in the field of import, export and wholesale trade in florist articles. In the middle of the 1980s, new large-scale operational facilities were set up; however, since the middle of the 1990s the company was confronted by various crises. In this connection its original workforce of 250 employees was cut in half. In April of 2001 it filed for insolvency. According to § 254 of the Social Security Code (SGB) III a social compensation plan was to be initiated – in this case, a transfer-based compensation scheme1 was implemented, in order to provide support for employees in finding new jobs. At this point, plans were developed to sell off part of the company and offer new employment contracts to part of the employees.

1

The other possibility – a lump-sum redundancy settlement – was not subject to consideration here, which is the case for most insolvencies in Germany.

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At the time the social compensation plan was submitted, Emil Brinkhoff GmbH & Co. KG engaged 125 employees. Some of them managed to find a new job soon, so that ultimately the compensation scheme involved 106 employees (65 blue-collar workers, 41 white-collar workers and 2 trainees) – this included 25 women working part-time and five women with occupational disabilities. The average age of the workforce was over 40 years, and most employees had been active in the company for more than 20 years. Many lived in the immediate vicinity of the plant, and the ties to their employer and community were strong; entire families were working at the plant. The overall level of training of the workforce was very high; however, the company had hardly conducted any advance vocational training programmes. Internal communication structures were practically non-existent. The works council was made up exclusively of employees from industrial occupations; the overall level of organisation was only 10 %. Yet, at the start of the measure the firm could be sold – without employees. 49 former employees went back to the firm from the transfer organisation.2 Another eight had already found a new job, which meant that on the relevant date 49 employees had remained in the qualification organisation. Until this time, representatives of Quotac had already participated in numerous workers and staff meetings and had conducted individual and group discussions for employees, to assist them in getting used to the change in employment conditions. They were given ten weeks for the run-upphase of the measure. The insolvency administrator had first tried to sell the firm within the petitioning period, but this failed. Due to the open communication – which, however, was very time-consuming and had already been set up with the support of Quotac – even the employees’ council finally agreed to the transfer compensation measure. The firm itself provided somewhat more than EUR 50,000 for this, with another almost EUR 400,000 coming from the Federal Labour Office (pursuant to § 254 SGB III).3

5.1.2 Overview of measures: components and scope The project devised by Quotac was called “Sustainable Change”, with the time spent by an employee in the programme being limited to the three months, common in such cases. Its prime objective was rapid reintegration, thus avoiding a period of (long-term) unemployment, and to provide advisory support for paving the way to long-term maintenance of new jobs. In addition, participation in this scheme was meant to improve job placement chances in general – beyond the current employment situation. In accordance with the stipulations of § 254 SGB III, a detailed operational plan was drawn up for the duration of the measure, for it was necessary to provide all participants with advanced training offers at the same daily schedules as their previous jobs. These consisted of individual modules progressing in succession, which were adapted to the respective needs of the industrial and administrative employees. The first two weeks were dedicated to the orientation and entry phase of the new situation. Here, past experiences were to be examined and initial personal strategies were developed, such as training in job application and communication skills. This phase in particular provided a good deal of time for the handling of topics which might 2 3

At first a limited period of employment was planned, to be followed by a new social compensation measure. In the meantime, however, is seems that the business site will be kept. Because of the particular circumstances described above, only about EUR 300,000 were finally called in.

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have been suppressed during one’s previous job. The groups were organised in order to assure a certain amount of continuity; at the same time some of the participants, even at this stage, had to restructure their daily schedules completely. (The attendance times were set according to the times required by insolvency proceedings; for all participants work started at 8 a.m.)4. This first part of the programme was conducted by Quotac with its own employees. Afterwards the group was split into various advance training programmes. Here, there was successful co-operation with qualified local educational and training institutions each conducting a specific training module. Here, emphasis was placed primarily on offers close to the plant site. In some cases, a more distant meeting place was deliberately chosen, for example in order to form car pools and promote a sense of mobility. Besides addressing occupational qualifications in the narrow sense – which took the diverse backgrounds of the employees into account – the services offered also included stress management, debtor counselling, and courses on industrial relations and social welfare law. Very soon the opportunity presented itself for advanced training programmes and practical training courses in companies which had already been approached in the preliminary phase of the actual measure. This meant that the employees would be trainedin at new jobs while still receiving their wages from the qualification company; in addition, Quotac could also lend further support to this training-in period, by means of advisory support measures. This rapid link-up to firms was given top priority and the employees themselves demonstrated an exceptional degree of motivation. On the whole, this was easier to achieve for office jobs than it was for industrial workers. Two employees were supported in their own start-up ventures; the two trainees were able to continue their training scheme at other firms. All employees were supported by intense personal counselling in their endeavours, partly even beyond the actual period of the measure (which seemed both necessary and reasonable in light of its very brief duration of three months).

5.1.3 Evaluation A written appraisement – which probably comes closest to an evaluation – is presently being drawn up for the Federal Labour Office. Thus, some of the following conclusions are still made on a preliminary basis. On the whole, about two-thirds of the participants took up re-employment; the job placement of full-time workers was therefore completely successful in practical terms. Re-employment was not the top priority for all participants. After the measure was completed, some participants took advantage of other programmes offered by Quotac. Quotac would like to keep this chance as well as further advisory services open for former participants, if this proves useful in preventing long-term unemployment in individual cases. Some of the women who had previously worked part-time lost their jobs after the measure, because reorientation did not seem feasible to them in such a brief time. All in all, this measure was viewed by Quotac as being a ”routine case” – although strenuous – it did not present any special or unanticipated problems.

4

The measure started at the same time as the summer school holidays. For this reason, a childcare clause was explicitly stipulated in the agreements.

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Nevertheless, other, more far-reaching conclusions can be drawn from this case – and from the overall experiences gained by Quotac in conducting social planning measures. By now they can depart from full-day advanced training schemes as stipulated by lawmakers on a case-by-case basis. Yet, seen on the whole, greater flexibility is still something to be striven for. When it comes to establishing an employment transfer company one should not wait for more complex societal changes – including those in employer-employee relationships – to happen before one reacts to them. Instead, this change should be anticipated by firms well in advance. Structural hurdles presented themselves primarily on the part of the jobs centres: they often proved incompetent in providing effective advisory and support services. Even if employees did wish to take an active role themselves – in the sense of maintaining their vocational proficiency (as stipulated by SGB III) – they often failed to do so, because existing structures for counselling and advanced training were underdeveloped. Here is where more pressure than ever should be put on firms – particularly since the opportunities offered by public-financed schemes are expected to decline in the future. Job creation schemes as well as unemployment itself could be avoided in many cases, if steps were taken early in order to counteract impending developments. On the other hand, phases of unemployment should be regarded as being less a matter of personal fate than as a component of a changing society. They can be overcome with competent support – and perhaps even regarded as a potential opportunity for personal development. Also worth considering from Quotac’s point of view, is the issue of financial incentives. Mobility often does not take place until its necessity has become apparent.

5.2 Examples of good practice: the job-placement concept of DB Vermittlung GmbH, Berlin 5.2.1 Characteristics of the company DB Vermittlung GmbH was created in the wake of the conversion of the former staterun railways Deutsche Bundesbahn and Deutsche Reichsbahn to private enterprises. The necessary restructuring measures that were part of this privatisation made it necessary to reduce staff over the course of years. The stated goal of German Railways was that no employee would be dismissed for operational reasons. Various steps were taken to achieve this goal. First, an organisational unit was established in central management which served as a compensatory point, i.e. vacant jobs within the company group were reported to this organisational unit, and it also kept track of employees whose job was to be made redundant. This first step created an in-house job exchange, although it assumed merely the function of an advisory go-between among various company divisions and could therefore make recommendations only without having any direct managerial authority concerning departments or personnel. During the evaluation of this procedure, its lack of efficiency became evident. Thus, a second step was undertaken to organise surplus employees from different divisions of German Railways, i.e. those who no longer had a permanent job were allocated into restructuring departments, while maintaining managerial authority with previous superiors. Economically efficient job-creation projects were set up for these employees. However, experience with this project approach has shown that it was not help-

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ful for the vocational reorientation of the employees, since they were sent back to their old jobs if the need arose and therefore failed to perceive their situation within the company group as being something special. Taking this into consideration, the 154 existing restructuring departments located throughout Germany were consolidated under the roof of the jobs service centre. Employees who lost their job due to company redundancy selection were transferred to this service centre. The job service centre was an employment and qualification company with the goal of helping employees make the transition to a new job. In 1999 the second stage of reform at German Railways was carried out, splitting the group into various independent public limited companies which took over their own divisions. In the course of this restructuring in 1999, the job service centre was reestablished as an independent limited company, DB Arbeit GmbH. This restructuring had consequences for employees and their wage contracts for the first time. A termination agreement was concluded between the former company and these employees, which included the offer of transferring to DB Arbeit GmbH with a new employment contract. These new contracts provided for vocational reorientation of the respective employee and assistance in making the transition to permanent new employment. The contract also established the status of the employees at DB Arbeit GmbH as one of loan employees, since the second business activity of DB Arbeit GmbH was devoted to inhouse and external personnel leasing in the branch. This structure was fine-tuned in the course of a following reform in that a differentiated view was taken of different occupational groups, which were offered groupspecific measures in accordance with social security legislation (SGB III). Those concerned were divided into the following three groups: employees with limited protection against unlawful dismissal, employees having neither form of severance protection, and civil servants assigned to German Railways. Different paths of development will be taken for each of these groups in the future. In this respect the activity of the former DB Arbeit GmbH was redefined and DB Vermittlung was founded. DB Vermittlung GmbH started its activities in August, 2001. The goal of this company is to strengthen the pillars of job placement in the transition process, i.e. to place employees from one job to the next in a smooth transition process in order to avoid the stigma of having to spend a lengthier period of time in DB Vermittlung respectively in a transfer company, a situation which can prove a hindrance for employees in finding employment on the job market. For implementing this new concept, a restructuring of collective agreements was necessary. Co-operation was established with an employment and qualification company, in which employees without severance protection were placed temporarily if preliminary job placement by DB Vermittlung failed. The duration of the temporary work contract with the transfer company depended on the duration of the former employment relationship within the German Railways and the age of the employee. Employees with limited severance protection and civilian servants who were assigned to German Railways were given the opportunity to switch to DB Vermittlung, if preliminary job placement failed. Consultants of DB Vermittlung were recruited primarily from the firm’s personnel departments, where they had gained years of experience in the legal fields of labour relations, collective bargaining, civil service and civil service career regulations. Since their task requires a high degree of social skills and expertise, they attend specific personnel development courses which focus in particular on improving their interactive

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dialogue skills, as being indispensable for conflict management and in talks devoted to vocational reorientation. In-house accounting for the services of DB Vermittlung was performed on the basis of a price and services catalogue and was mostly achievement-oriented. If the employee can be successfully placed in a new job, the company division where dismissal occurred is charged a fee amounting to approximately two months pay, otherwise no invoice is made. If the employee has no success in the preliminary placement attempt, he is assigned to DB Vermittlung (which is only possible for employees with limited severance protection), with the division that released him making a one-time payment of approximately € 30,000 for settling all expenditures. For assignment to a transfer company (only possible for employees having no form of severance protection), the employee concerned is paid out 85% of his last net wage. The means for this measure are co-financed by the former company division and pursuant to SGB III stipulations.

5.2.2 Overview of measures: components and scope Transfer processes are tackled by the participating parties in the form of projects. This results in the establishment of activity and time schedules which lend the project a structure and content that must be implemented. The following procedure is typical for the method of DB Vermittlung. When it is informed of a specific company site and the scope and function of planned employee dismissal for organisational reasons, DB Vermittlung assigns consultants to the site. A kick-off information meeting is held with the personnel management that has been in charge up to that point, the representatives of company interests, and consultants of DB Vermittlung. The purpose is to make employees acquainted with their possibilities for vocational reorientation. The next step is opening a project office at the respective company site. The consultants will first pursue preliminary placement according to qualification (since the persons are not yet known at this point) and during this time inform the workforce of vacancies and qualification programmes and perform individual consulting on a voluntary basis. Within the first 10 weeks after redundancy plans have been made concrete, opposing interests within the firm are to be reconciled and a redundancy scheme needs to be worked out. After another 6-7 weeks new employment opportunities for the now targeted employees should be presented in order to direct them toward new jobs by means of individually tailored preliminary placement. Only if these two preliminary phases prove unsuccessful in new job placement, an offer is made to the employee for transition to DB Vermittlung (for employees having limited severance protection) or to a transfer company (for employees without severance protection), where job placement efforts are continued, but where further qualification is also offered. The entire transition process is supposed to be concluded in a maximum of 19 weeks in order to take best advantage of the programme’s main topic of job placement in the critical phase of vocational transition (the first 6 months after losing one’s job). For filling in-company vacancies a procedure within the internal job market was created, which ensured that DB Vermittlung was informed of all job vacancies on offer. First, all new vacancies that need to be filled are communicated to DB Vermittlung, which has a right to nominate employees from its pool of personnel. In case a suitable applicant cannot be found the position is then offered throughout the entire company group. Should this fail, the vacant position is put on offer for outside applicants. An external filling of the vacant position must be approved by DB Vermittlung, which

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results in DB Vermittlung exerting its influence on all hirings in the group. In order to fill vacancies as soon as possible, the different procedures may be performed at the same time. The functional mobility of employees is taken into account in their search for a new position within the group on the basis of requirement profiles. In principle, relocation anywhere in Germany is regarded as reasonable, according to the new collective agreements concluded in August, 2001. The question of regional ties is discussed in talks between consultants and employees when outlining career directions and requires a decision made on short notice. The consultants first attempt to place employees in incompany positions in the region. Only in a further step employment possibilities at other regional sites within the group will be offered. Job opportunities outside the company group but in the same region, are offered as an alternative.

5.2.3 Evaluation A uniform fortnightly status report is drawn up for each project. Based on this report key information is obtained as to approaches for increasing placement efficiency. Project features include its running time, the personnel breakdown of the specific business site, and services performed (number of consultiations, job application coachings, consulting times). The projects can be compared by looking at the results of the preliminary placement with respect to the personal profiles of employees with severance protection, on one hand, and those relating to the qualification of employees without severance protection, on the other hand. These results also throw light on the different qualification profiles among employees. These criteria are not only used in the evaluation of projects, but also in the anticipated steering of new projects in the respective company divisions. Particularly relevant as evaluation criteria are the number of employees who were made offers for filling a spot or for employment contracts, and the number of employees participating in the qualification schemes oriented towards preliminary job placement. These results are counter-signed by the plant involved, in order to emphasise that the results were jointly achieved in the course of the project. In addition, a computer programme is used in the evaluation which keeps track of each employee currently in preliminary placement or who was placed into DB Vermittlung. Thus evaluations can be made relating to various measures, projects and employees, which clarify the individual career profiles. Adding up, the successes attributable to the activities is given the respective company division and DB Vermittlung, placement rate of 62% is given, with 32 % of placements being achieved through the work of DB Vermittlung (since 01/08/2001) in the course of preliminary placement. Cited among the innovative elements is the early integration of DB Vermittlung, which represents an essential success factor in the rapid and effective organisation of the transition process. The structures of DB Vermittlung were adapted to such requirements. The historically rooted learning process within the company, whose outcome represents the integration of all participants in the project structure of the transition process and the specific activities and time schedules of the projects helped achieve well-linked co-operation. Structural barriers were primarily seen in the transformation of a formerly federal authority into a private enterprise. The effects of this conversion process on jobs had often not been realised by employees, who continued to have the impression that their

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jobs were secure. By virtue of the high degree of organisation among railway workers (87% are members of the corresponding trade union) the trade union wields great influence. Employees are usually quite well informed of their rights. One barrier arises when, in addition to company union representatives, regional interest groups come into play. On the whole, the trade union assumed an excellent advisory function for the workforce. The approach taken by DB Vermittlung AG can be applied to government authority structures which have been converted to private enterprises, but which still have a great restructuring need going back before the time of this conversion, such as the German Mail and Telekom, to name some examples. All of these companies are fighting with the problem of a significant personnel surplus, which will have to be reduced in the course of their privatisation in order to realise their rationalisation potential on the cost side and obtain higher yields on the market through careful management. This approach can also serve as a model for such establishments as the German Army and government authorities on the state and municipal level. Once the rail company Deutsche Bahn AG has been reorganised and surplus personnel eliminated, there will no longer be any need for DB Vermittlung from today’s standpoint and its function will thus be unessential.

5.3 Examples of good practice: Mühlenhoff und Partner GmbH, Düsseldorf 5.3.1 Characteristics of the company Established in 1990, Mühlenhoff und Partner GmbH has become one of Germany’s leading outplacement consulting firms. It is active at seven locations in Germany and has branches in Switzerland and Austria. The company is part of the Arbora global career partners network, a co-operative effort of personnel consulting firms active in 25 countries world-wide. In the year 2000, they realised a turnover of approximately EUR 112 million, providing advisory services to about 30,000 individuals in the fields of individual and group outplacement and other career planning services. This reflects an increase of approximately 30% in consulting activities over the previous year. At present, a total of about 40 staff members are engaged at the Mühlenhoff firm, of which 20 are active in administration. Most of the consultants have an academic background with an average age of about 40 and with a diverse range of qualifications, including psychologists who are mainly active in the field of diagnostics5. The target groups of Mühlenhoff und Partner GmbH encompass all fields and qualification levels, from unskilled labourers to top executives. For the latter group, the company offers a special consulting programme. The average annual income of clients in individual consulting is approximately EUR 100,000. Mühlenhoff und Partner provide individual consulting services to approximately 400 skilled personnel and managers per year. The number of participants in group outplacement measures lies between 400 and 1,200 individuals per year.

5

They are in charge of tasks in the diagnostic field, such as determining whether clients should first be treated for an existing problem (depression, addiction) before outplacement consulting can be successful.

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5.3.2 Overview of measures: components and scope Consulting objectives The objective of outplacement mediation can be broken down according to the two respective perspectives of employer and employee. The former employer often sets his greatest priority on a smooth termination of the employment relationship which does not damage the company’s image, with main emphasis being put on the wish for rapid severance and on the minimisation of productivity losses for the firm. On the other hand, the employee is looking for an individually tailored consulting offer, which often encompasses either a fundamentally new vocational orientation or assistance in getting a new start in his present job. Support is supposed to be given to employees in realising their personal objectives during consultation, to frame them in more specific terms and to implement these targets. The objectives on the part of the employers are, however, influenced much more by the individual severance situation. Elements of consulting The consulting process is broken down into three areas or phases. The first phase of consulting is devoted to determining the client’s own placement needs. This involves the analysis of the client’s situation and the determination, definition and establishment of his objectives. This phase lasts about six to eight weeks for individual outplacement, but only around two days for group measures. The second phase is designated as the training phase. Its prime focus of attention revolves around strategies for entering the job market. In a group consulting session, a far greater role is attributed to the process of a job interview than in individual consultation. The third phase of the consulting process is coaching, i.e. the advisory support given throughout the application process. Important goals here involve maintaining the client’s motivation and making sure that after a certain point in the application process there are a number of job offers from which the client can choose. Experience has shown that the scope of implementation of the various measures – definition of one’s position, training and coaching – depends on the position of the client within the company hierarchy. Here is where training measures, such as application skills, are emphasised for labourers and clerks, while the definition of one’s position is primarily highlighted in mid-range positions. On the other hand, coaching is most emphasised in the consulting segment involving top managers, since this is where the client’s lack of orientation results from the broader range of options. The time period of overall consulting is structured according to the four programmes offered. The number of consulting hours spent within the agreed period is not subject to a particular limit but is instead scheduled to fit the personal needs of the client. The three-month consulting course is primarily devoted to defining the client’s employment position and preparing the client for the job market. This type of counselling is frequently chosen for employees with low incomes, for young employees and for any other employees for whom the company does not feel particularly responsible. The six-months (maximum) consulting course is expected to result in the client’s occupational reorientation and is primarily directed towards the middle ranks in corporate hierarchy, as is the maximum 12-months consulting period which offers the additional feature of accompanying the client throughout his trial period at a new job. The fullrange consulting course, lasting a maximum of 24 months, contains a resumption-ofconsulting guarantee if, for whatever reason, the new employment relationship is termi-

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nated. This service is not included in the group outplacement measure on any regular basis. The majority of consulting cases in the outplacement measure are financed by the employer, and to a lesser degree by employees contributing a certain percentage of their severance pay. Support measures within the framework of SGB III play no role in this case.

5.3.3 Evaluation Recent years have witnessed a significant change in counselling needs in the field of outplacement consulting reflecting the change in corporate environments. Whereas the objective of consulting just ten years ago was to acquire a new position, the main focus of today’s consulting activity is on long-term career guidance. The demand for alternative forms of employment (part-time work, the four-day week, sabbatical) is on the rise; but at the same time the clients refuse to accept any downgrading of their qualification and managerial profile in achieving these wishes. A drop in mobility and the corresponding increase in commuting has also been observed among managers. This development has its root in the observed drop in corporate predictability. Structural changes in the overall operational framework pose a challenge to companies as well as to consultants, thus making ongoing evaluation and continued development of the advisory modules necessary. Yet, at the same time, the proven basic approach has remained unchanged. Client feedback at the end of counselling is integrated into this adjustment process. This has yielded no significant results as to which elements (coping with job severance, application strategy or defining personal goals) were most important for the participants. In individual talks with clients, a sense of fairness assumed only a minor role. Here the predominant topics revolved around the current constraints imposed on the clients’ actions. Fairness was seen in the outplacement offer itself. The consulting approach of Mühlenhoff und Partner GmbH is based on a holistic view of the individual. Acquisition and processing of client orders is therefore put in the hands of a consultant who is present throughout all phases of the consulting process. This results in close personal ties between the participating parties, but also in a comparatively modest amount of clients handled by each consultant. No more than 10 clients are advised by each consultant at a time. Another point which distinguishes Mühlenhoff und Partner GmbH from its competitors is its extensive use of the Internet (forums, chatrooms, etc.). A distinction can be made between individual barriers based on the personality of the client and those which are structural in nature. The barrier in the first case is that the loss of one’s job is felt as an emotional insult. This causes reactance to the outplacement offer of the employer and ultimately results in a refusal of the consulting offer. The portion of counselling offers which were not taken up for this reason cannot be quantified precisely. Structural barriers are seen in the lack of flexibility in public job support schemes and advanced vocational training measures, which are not designed for giving personal attention to the career development of the participants. The financial means for these could be allocated to the employee in the form of cheques for advance vocational training, but the use of these financial means would have to be approved by employers, as they have a better grasp of the actual needs to be covered by advanced training. Advanced vocational programmes conducted parallel to outplacement and which are financed by the Federal Labour Office often turn out to be counterproductive. On the one

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hand, they represent uneconomic outlays, and on the other hand they result in a deterioration of the client’s position with respect to successful re-employment if the scheme proves inappropriate for his needs.

Future perspectives Seen in an international context, consulting modules are much more standardised than is the case in Germany. This is due to the fact that the consulting market in Germany is much smaller than it is in the Anglo-Saxon countries and that in comparison to Germany the procurement of external consulting services is practised on a much smaller scale. In future, one can expect that individual consulting components will be increasingly replaced or supplemented by technological solutions. This process will make the role of career accompaniment and coaching even more important. The main emphasis will not be on information gathering but rather on the need to evaluate and filter it in order to manage the existing supply of information effectively. This will make the contact between consultant and client even more intensive. For consulting firms, this development underscores the need for increased professionalism in all areas. On the whole, it is felt that the future market for outplacement consulting services will continue to develop positively, although a two-tiered market has become apparent. In the wage-related area the market has shown tendencies of stagnation, while in the field of management or top management the market is expected to expand quite considerably.

5.4 Examples of good practice: Stadtwerke Bremen, swb Synor 5.4.1 Characteristics of the company Stadtwerke Bremen (swb) AG encompasses a number of subsidiaries which have been merged to form the swb group. swb Synor is one of these subsidiaries and operates three power plants with a total of eight blocks for the generation of electricity. In addition, it also operates other facilities (such as co-generation and block power stations). This makes swb Synor the third-largest municipal supplier of electricity in Bremen. In response to the liberalisation of the energy market, the company group started considering various responses relating to changes in the overall economic framework including eventual redundancies. According to company planning, a power plant block was to be shut down at the end of the year 2000. The result of these considerations was the project ”Cultural Change” with the goal of maintaining the company’s competitiveness in a deregulated market. Cultural change means the change in corporate culture, particularly with respect to a change in the attitude of individual employees who still adhere to the idea of a single lifetime job. The project should encourage employees to concentrate on changes in the world of work, with a sub-project being offered called ”Coping with Insecurity”. This highlighted various ways of coping actively with the threat of losing one’s job. The project’s goal on the part of management was to achieve job cuts without business-related dismissals. Conversely, this meant finding a way to motivate employees to leave the company on their own accord. An analysis of need conducted among employees (using interviews and workshops) showed that this goal could only be achieved if employees were offered appropriate vocational perspectives. Severance payments alone would not be sufficient in persuading them to leave the firm voluntarily. Explicitly stated by the power station’s workforce was its wish for support

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and accompanying services in job transition. A second step involved establishing a central plan which took individual wishes into account. The help of a personnel consulting firm was enlisted for this purpose. The project team was formed at the end of 1999, with the planning stage lasting until August 2000. Following the phase of approval by management, employee committees etc., the actual pilot project was launched at the end of September 2000 and limited to nine months. The two consultants active in the project were selected on the basis of their position of trust among their colleagues. One of the consultants had worked at the power plant for quite some time as a technician before becoming a consultant in the project. The use of fellow workers from the firm provided its employees with identification figures, thus facilitating co-operation based on trust. During the first phase, the consulting team made use of all available information sources (employee newspaper, meetings, e-mail, etc.) in order to explain the offer to the staff. Although the project had originally been intended only for the employees of the power plant block that was to be shut down, the positive ”word-of-mouth” reports made it a success, with the consulting team receiving application requests from all company sectors. In November 2000 it was therefore decided to offer a plan for all employees. Due to the resulting high demand on consulting services, two additional consultants were engaged. In the meantime, the pilot phase of the project had been successfully completed, and the shutdown of the power plant block was delayed by three years.

5.4.2 Overview of measures: components and scope In order to motivate employees to leave the firm voluntarily, a multi-stage concept was drawn up which consisted of various modules. This made use of both internal and external company resources. The central place of contact for employees was the so-called ”pivot point”, a furnished construction site container in which the entire consulting was centralised. It was set up in the vicinity of the power plant block which was to be shut down. The measure was initiated with the aim of avoiding hurdles for initial employee participation which would have arisen if it had been located at the main company office. This also kept distances short for the employees involved, who could take advantage of the consulting offer during their working hours (also during early and late shifts), with talks being kept strictly confidential. The consulting team at the ”pivot point” were authorised to make many decisions on their own, with some unconventional solutions also being proposed (such as the promotion of a training course for scuba diver instructors in Costa Rica). This was only possible because all the company’s decision makers fully supported the project from the very outset and gave the consultants the appropriate authority to make decisions for the project. Here, all employees had cost-free access to the regular features of entry-phase consulting (approximately 1.5 to 2 hours per person), the establishment of a profile highlighting personal strengths and weaknesses, a brainstorming workshop, and personal consulting services. On the other hand, support for business start-ups and the participation in qualification and advance training courses were only available to those who had already signed a termination agreement with the employer. In this last group a distinction was made between ”surplus” employees (those whose present job situation was extremely precarious due to restructuring) and those who were not. The first group was eligible for the services offered at the pivot point immediately after signing the termination agreement. For the other employees, the employer first had to agree to the financing of the measures if the related services were to be taken advantage of.

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Some of the consulting modules described above were held in the company training centre. Coaching, analysis of one’s potential and job-application training were conducted by outside consultants, who were integrated into the feedback process and the evaluation of the overall project in order to ensure an ongoing adjustment of consultation to the needs of the employees. Consulting in specialised fields was organised in cooperation with the job centre and the various chambers of handicrafts. In addition to the services already mentioned, a job exchange was set up in order to make it easier for employees to switch jobs within the corporation. Job-entry consulting was offered on a continual basis and personal consulting according to individual needs. During individual consulting sessions, consultants and employees worked together to find vocational alternatives without resorting to pre-formulated solutions. Employees were encouraged to formulate their own ideas for establishing new and feasible vocational perspectives. At the start of the project, training courses were held for supervisors, who were advised that no pressure should be put on employees to participate in the project. Excluded from the project were employees already in semi-retirement and those in an anticipated retirement scheme.

5.4.3 Evaluation The project started with the objective of providing counselling to 60 employees within nine months, of which 5-10 were expected to leave the company voluntarily within this time, and another 5 at a later date. EUR 300,000 were estimated for project financing. The results after completion of the pilot phase far exceeded the expected goal: 180 of 400 persons (the entire workforce of the power plant) made use of the information offering during this time, 40 of them left the company by the end of October 2001. A new position within the company was found for five employees, with another ten employees being transferred within the corporation. Total expenses amounted to EUR 200,000, thus one-third less than the budget forecast. The most frequented modules were those covering job-entry consulting, application training (approximately 100 consultations each) and, to a markedly lesser degree, the preparation of a strength-weakness profile (about 50 consultations). This succeeded in motivating a large number of employees to attend the entry-phase modules of this measure and thus overcome the decisive hurdle to job re-entry. The service was used by the entire range of employee groups. This laid to rest the initial fear that primarily the most able, flexible and active employees would use this opportunity to leave the firm. The average age of participants was 38, and among those who decided to leave the company, the average age was 40. From the viewpoint of swb Synor, the project was a success: it provided unconditional support on the part of management, department supervisors and the employees’ committee. Employees were given honest, open and ongoing information at every phase. A trusting relationship was established from the start between employees and (inhouse and personally known) consultants of the pivot point. Follow-up support and consultation were conducted at the firm near one’s workplace with no time restrictions and with full guarantee of the participant’s anonymity. This ensured an uncomplicated entry into the programme. Also decisive were the regular meetings of coaches, advisors of the pivot point, the sub-project ”Coping with Insecurity” and the actual personnel involved. A central role was assumed by the entry-phase consultation, which was able to examine and discuss various topics (also private ones) that seemed to concern col-

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leagues the most. It turned out to be very important that enough time was devoted to active listening and that colleagues were not pressured into making an immediate decision about participating in the modules, since entry was possible at all times on a flexible basis. The entry-phase consulting turned out to be particularly effective in opening the door for other employees’ use of consulting services and to sound out their own chances with respect to the project. There was some apprehension on the part of employees in the initial phase that visiting the consulting container might ”blacklist” them in some way and put them in a group which would be the first to be dismissed. These fears were dispersed by the credibility of the consultants and operations in the container which were of great help to the employees, thus creating an atmosphere which made it easier for potentially interested but more reluctant employees to participate in the programme. The following three points of the programme could be considered innovative. First, the consultants were known to the employees, they spoke their ‘language’ and had first-hand knowledge of their concerns and hardships. They could therefore quickly win over the trust of their colleagues and take an active role in shaping the process of job changeover. Second, in-house and outside services were efficiently bundled and networked. Third, the establishment of the ”pivot point” must be seen as an innovative step, with its modest furnishings, far from management, and conforming architecturally to the power plant surroundings. The applicability of this approach is given a cautiously positive evaluation. Adjustment to the respective company situation is necessary; plus an immediate sensibility to the workforce is important in order for such a project to be carried out successfully. The extended implementation of the project concept is presently being tested in the form of a consulting contract. The project is still underway at swb Synor, although due to changes in overall operational plans – the power plant block is not to be shut down until the end of 2003 instead of the end of 2002 – the current situation is more relaxed. The contact point is still open, but its opening hours have been cut back. At the time of the interview, considerations are being made as to what changes will have to be made to the project’s concept in order to anticipate the closing of the power plant at the end of 2003. The project has earned the ”Human Resource Management Award 2001”.

5.5 Conclusions as to what is “good practice” The case studies selected for the Federal Republic of Germany give an overview of activities in the field of outplacement/replacement consulting6. Not all case studies can be regarded as outplacement in the strict sense. Yet, they involve activities which aim at structuring career transitions and avoid unemployment if at all possible. The individual case studies include a number of tried and tested elements which are decisive for the success of outplacement measures and thus for the efficacy and sustainability of career transitions. In the following, the main aspects will be briefly summarised.

Individual consulting In the examples we selected, individual consulting was basically preferred over group outplacement. In individual consulting an open relationship of trust can be established 6

Of the nine cases studied, four were chosen fort his publication covering a broad range of activities.

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between the consultant and the client. Above all, a personal meeting makes it possible to conduct a more intensive and open exchange involving one’s previous career and private biography. Group outplacement seems to be appropriate only in those cases which involve the placement of basic qualifications or where the consultant merely assumes the role of a supervisor of larger groups. In practice, group outplacement tends to place more weight on its portion devoted to individual consulting, thus approaching the concept of individual outplacement.

Early start of consulting The timely engagement of consultants in advance of dismissals or restructuring measures is an essential indicator for creating a seamless vocational transition and avoiding a costly severance procedure. This should be done before social compensation measures or similar social policy instruments are utilised. The cornerstone for a successful vocational transition is laid with the manner in which the severance process is structured. A separation which the employee views as fair is an important prerequisite for a smooth start of outplacement consulting. Fairness in the severance, process requires that deliberate steps have been taken in the preparation of severance which take into account the personal situation of the person affected. It is essential that separation is linked with an offer of outplacement consulting. Fine-tuning the situational analysis and job placement of the client In outplacement consulting, the first interview between the consultant and the client is considered paramount for the further course of the consulting process. The interview addresses in great detail the client’s previous vocational career, ideas are developed for career perspectives and above all the personal goals and wishes of the client are discussed. However, this type of discussion requires a high level of trust. The intensive dialogue is aimed at activating the client’s ability to develop his own career plans and ways to achieve them. The primary task is not job placement but rather that clients are capable of structuring their own vocational future and at the same time realise that the support provided by the consultant helps them help themselves. After analysis of the personal situation has been concluded, the consultant helps in setting up an individual profile for targeting realistic possibilities of vocational activity. Future job stability is primarily achieved by a self-critical and thoughtful assessment of one’s vocational objectives and ideas. In other words, consultants advise clients against careers which do not fit their personal profile in order to avoid disappointments and blunders. Psycho-social aids for coping with the threat of job loss The primary objective of the first intervention phase in reducing the consequences of an involuntary loss of a job is to overcome emotional burdens resulting from vocational severance. Such coping is especially important in cases where the employees feel that they have been unfairly treated and suffer from job insecurity. Only after this phase of stabilisation should specific consulting elements be employed. Specially designed consulting offers Specially designed outplacement consulting attempts to work out a mutually constructive solution by taking the client’s previous strategies for overcoming unemployment into account. The specific formulation of goals is seen as a decisive factor for the efficacy of consulting actions. With the help of a flow chart it is possible to keep track of

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steps which have already been achieved. The consulting period should remain manageable in accordance with the client’s vocational field in order to keep the process from becoming tiresome. When dealing with insolvency, it has been pointed out that the explicit goal is the rapid reintegration into the job market in order to prevent lengthier periods of unemployment or the jobless status. This, though, requires offers in the vicinity and good network contacts to firms in the region. At the same time it must also be possible to return to the consulting process, should reintegration in the job market fail. Depending on individual requirements, the elements of an outplacement consulting primarily include potential analysis, coaching, application training and vocational counselling. Depending on the clients, the size of the firm, the specific type of vocational transfer (restructuring, insolvency, threat of losing one’s own job) and the choice of the consulting elements can play a major role. One central component of outplacement consulting is the improvement of job application skills. This includes the completion of application forms as well as making a professional impression during a job interview. In addition, qualification programmes are formulated which provide the necessary basic qualifications but also provide for acquiring specific career-oriented knowledge. Such advanced qualification should be targeted to the individual’s specific needs for promoting his further vocational development. The intense contact between consultant and client is an essential requirement for effective consulting. The relationship between consultant and client must be based on trust and in practice requires a precise selection of an appropriate consultant for the individual clients. At the same time a change in consultants should be possible at any time in case the basis of trust should be disrupted.

High-intensity consulting helps prevent drop-outs The consultant must ensure intensive consulting particularly in the phase of sounding out new job possibilities, in order to keep the drop-out rate as low as possible (especially for clients who are not in constant contact with the consultant). This requires that the consultant is provided with a detailed documentation of the consulting schedule and has a manageable number of clients. A structured consulting programme should also be present which establishes the course of consulting elements, but which also provides the tools for adequately dealing with as many different cases as possible. Targeted follow-up phase During the period following the acquisition of a new job, the primary task of the consultant is to maintain his clients’ employment sustainability. Since there is the possibility of a mutually agreed separation between the new employer and the client, the door must be kept open for a return to the consulting process. Professional coaching, though, helps eliminate the risk of failure in the new job. The use of flexible job and company structures Some of the investigated case studies treat in-house consulting concepts. These approaches are usually taken by larger firms that wish to soften the impact of unavoidable restructuring or rationalisation measures by specific consulting offers. One consulting concept, for example, aims at either further qualifying employees to take over other jobs within the firm or establishing structures in the firm which enable employees to work from time to time at other firms as loan workers without losing their present job. Another possibility is to set up in-house job exchanges, in order to engage uncertain em-

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ployees at other locations in the firm with the help of targeted consulting and advanced training. Another company concept involves the establishment of a central contact site within the company which provides assistance in vocational reorientation and transition. Employees from the firm were qualified as consultants in order to support fellow employees in such vocational reorientation if they wish. An essential criterion for success here is that the contact site is ”naturally” integrated into the company environment. This eliminates barriers to employee access and makes consulting during work hours possible. The analysed cases present a broad spectrum of possibilities for dealing with job transition. They demonstrate how companies can assume social responsibility towards their employees, especially in the light of necessary personnel adjustments. A crucial point in the future will be for firms to employ such concepts much more than at present in the area of personnel development in order to reduce job loss and the resulting personal and social consequences.

6

General discussion

In the course of a qualitative study of the SOCOSE Project in Germany 50 employees were interviewed, of which 25 had insecure jobs and 25 had been successfully reemployed by virtue of the targeted utilisation of a consulting measure. The problemoriented interview technique was employed in the interviews with the respondents and the results were subsequently evaluated. The second part of the qualitative study featured a survey of innovative case studies which represent for Germany ”models of good practice” in the sector of vocational transitions. Various firms were approached for conducting this study and a semi-structured interview schedule was used to ask their representatives about the underlying concept of their approaches. As examples of innovative management of occupational transitions, the surveyed case studies reflect the heterogeneous landscape of approaches for solving this problem in Germany. The approaches taken in the case studies can be roughly split into two groups: first, those approaches in which individual occupational transitions were accompanied by external consulting firms, and second, approaches where the firms themselves developed the consulting concepts and offered them to their employees. The disparity in the design of company based approaches for dealing with occupational transitions is related to the participating actors in occupational transitions in Germany. The actors vary according to the type of layoff scheme planned. If it involves outplacement consulting, then participation is shared by the consulting firms and the employer of the client who is expected to leave the company. On the other hand, if a planned intervention is involved which, at the initiative of the company, includes a large number of employees, then the participation of all company stakeholders is necessary for its successful implementation. Here a wide range of organisational and institutional processes of co-ordination is necessary for arriving at a result that all participants can share and which can then be presented to the employees. In the case of an intervention following an insolvency, in Germany there is an additional actor present, the Federal Labour Office, which must approve and co-finance the recommended solutions in each

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case. This arrangement makes it considerably more difficult for the participating actors to maintain a comprehensive overview of the respective mechanisms involved. Furthermore, it was shown in our study that there are serious deficiencies with respect to the employability of workers with salaries fixed by negotiation in the low wage group sector. Many long-standing employees lack sufficient competence in successfully managing an occupational transition in today’s jobs market on their own. There are diverse reasons for these obstacles. It is primarily these workers who suffer great deficiencies in the area of conveying their own skills and competence to other employers in the jobs market. It is this point on which the focus of many intervention measures presented in the case studies is justifiably centred. Consulting efforts for coping with the psychological effects of being severed from the organisation were applied to varying degrees in the case studies. This depended on the individual case at hand, and any generalisation of these aspects could result in individual reactions of rejecting the intervention as a whole. Distributive and procedural justice should be observed when drawing up measures well in advance of planned layoff schemes, so that employees feel that they have been treated fairly. Yet, particularly with respect to the survivors of layoff remaining in the company it is important that the company ensures that they do not perceive any violation of their psychological contract with the company in order to avoid negative aftereffects for the company as well as for the individuals themselves. In the long term, it is necessary to establish an institutionalised approach to layoffs. One particular focal point on the part of companies should involve improvement in communication, a point of which our survey showed that there is the greatest discrepancy between expectations and reality, as far as the affected employees are concerned. The importance of swift placement of employees for avoiding the risk of longterm unemployment was largely appreciated by the actors in the jobs market. In contrast to approaches applied in the past, where employees were first offered qualification measures after they had lost their job, transfer companies now try to place these workers in new positions as quickly as possible. Only if this approach proves to be unsuccessful, the second step of further qualification of the employee is taken. From our point of view, this development is very crucial as studies have shown that placement in a new job becomes increasingly more difficult with the continued duration of unemployment. After completion of the empirical study, the following aspects seem to us to be particularly important: •

Due to global economic developments and their effects on the economic climate in Germany, it can be assumed that even in future there will be an increase in the number of individuals undergoing occupational transition; the demand for occupational transition consulting will therefore increase in Germany over the mid-term. A responsible-minded company acting in an ethical manner will have to take up issues of personnel cuts, integrate them into its human resource management and develop company-based, preventive solutions. It is therefore essential that in the company there should be a heightened awareness that responsible personnel policy does not end with the notification given to the employee, but that it also involves providing relief to the employee during the transitional phase leading to a new job.

Empirical analysis of job insecurity and re-employment in Germany •

•

•

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There remains to date no clear answer to the question as to whether the outlined demand is met by the corresponding supply of consulting services. There are a variety of approaches suggested for companies regarding responsible conduct toward their employees. These are, however, projects whose development was based on the needs of the particular company concerned. The results of our study show that the development and implementation of such solutions are welcomed by employees and that none of the drawbacks often feared by company management occurred in the firms where these measures were taken. Today many of these projects have little more than a pilot character and tend to represent exceptions with respect to national corporate policy. In future, the question should be examined as to whether or not the application of such project approaches in other firms is an expedient proposition. The case studies in our survey show how promising a long-term company strategy can be, for example as was the case with swb AG. It offers the advantage of being able to act within the framework of a long-term planning period, thus developing strategic in-house solutions which, in an acute crisis, would appear unworkable over the short term. The concerted action of all actors, with respect to the wellbeing of employees the company wishes to layoff, when conducted as an on-going and balanced process, can lead to solutions which all stakeholders are able to support and where they can assume responsibility. It also seems important that companies take up issues of fair treatment before implementing layoff measures. In the interviews we conducted, employees were greatly disappointed and angered by their company’s lack of transparency in decision-making processes and by its information policy towards employees. An impersonal severance notice seems particularly detrimental. Here is where companies should keep employees informed and develop appropriate concepts to accommodate their needs. Providing employees with information which affects their future and their families also means treating other human beings in an ethically responsible manner, thus contributing to the psychosocial well-being of employees.

Job insecurity and successful re-employment: Examples from The Netherlands Ellen Heuven, Wilmar Schaufeli & Arnold Bakker

1

Introduction ................................................................................................. 171

2 2.1 2.2

Qualitative study: Description of sample .................................................. 172 Insecure employees ....................................................................................... 172 Successfully re-employed individuals........................................................... 172

3 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.3

Qualitative studies: employees in insecure jobs and successfully re-employed ................................................................................................. Description of results of the subsample “insecure jobs” ............................... Situation in the present company .................................................................. Aspects of organisational justice ................................................................... Employability ................................................................................................ Organisational vs. individual responsibility .................................................. Overall assessment ........................................................................................ Description of results of the subsample “successfully re-employed” ........... Situation in the former company ................................................................... Aspects of justice .......................................................................................... Employability ................................................................................................ Responsibility ............................................................................................... The outplacement measures .......................................................................... Overall assessment ........................................................................................ Conclusions ...................................................................................................

4

Cases of good practice: Description of sample ......................................... 202

5 5.1

Cases of good practice in outplacement/replacement .............................. Examples of good practice: “Work and Matching RDM” Start Diensten (Start Services) – Rotterdamsche Droogdok Maatschappij (RDM) .............. Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: Kliq Employability – Trega ..............................

5.1.1 5.1.2 5.1.3 5.2

173 173 173 177 181 181 183 185 185 186 189 192 193 199 201

203 203 203 204 206 208

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1_5, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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5.2.1 5.2.2 5.2.3 5.3 5.3.1 5.3.2 5.3.3 5.4 5.4.1 5.4.2 5.4.3 5.5

Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: ASV – Solvay Chemicals, Herten .................... Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: Randstad Mobiliteitsdiensten – Ericsson .......... Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Conclusion as to what is “good practice”......................................................

208 209 210 210 210 211 213 215 215 215 217 219

6

General discussion....................................................................................... 221

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Introduction

This part of the project involved two major elements: conducting qualitative interviews with two groups of employees on the one hand, and case studies in several Dutch companies on the other. The first group consisted of workers in an insecure job situation following the (future) restructuring of their company. These respondents were asked what elements would help them in such a situation, and which organisational factors obstructed them in adequately coping with their insecurity. The aim of these interviews was to gain insight in key issues for workers in an insecure job situation, and to develop innovative intervention strategies that assisted employees in coping with occupational transitions. The second group was composed of successfully re-employed individuals having found a new job as a result of outplacement/replacement counselling provided by their previous employer. These interviewees were asked about their experiences with different elements in the outplacement programme and how this support has helped them in recovering from the shock of dismissal and in successfully finding another job. For the case studies, seven Dutch companies have been selected where outplacement interventions have taken place in the past, that are innovative or can be considered as “best practice” in the area. We have conducted interviews with several parties that have been involved in this process, such as outplacement-counsellors, human resources managers, members of the works councils and representatives of the labour unions, in order to obtain a complete picture of each case. Additionally, we have deployed written sources, such as social plans, company magazines and literature. Together, these cases give a varied and diverse image of reorganisations and the use of outplacement by companies in The Netherlands. In The Netherlands outplacement/replacement is already a well-developed instrument. The Netherlands represents the country with the highest rates of outplacement/replacement in Europe. As a result of massive reorganisations of large companies in the 1980’s and 1990’s, outplacement/replacement strategies were put into action to assist workers during their period of occupational transition. Following renewed economic prosperity in The Netherlands in recent years and the sharp reduction in the availability of skilled workers, outplacement/replacement has become less of a curative than a preventive strategy. Since the labour market in The Netherlands is tending toward full employment, companies tend to put greater emphasis on a pro-active, preventive approach (e.g. furthering employability) and less on a curative approach (e.g. social plan). Striving for “life-time employability” is slowly starting to replace the concept of “life-time employment” in the tripartite negotiations between the unions, employers and the government. This is part of a long-term development with the emphasis shifting from job security to employment security. Collective bargaining incorporates ever more agreements about training, job rotation, personal development plans and intentions by the employer to facilitate career management. The two groups of interviewees permit us to gain more insight into the presence and effectiveness of these pro-active measures in The Netherlands. Another tendency that can be detected in the outplacement industry over the last decade is that interventions are increasingly becoming instruments of activating employee self-help potential during critical transitions which go beyond assistance in writing job applications and coaching for job interviews.

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Qualitative study: Description of sample

2.1 Insecure employees The sample selection of insecure employees was done according to the criterion that jobs are objectively insecure. Insecure employees can be defined as working for a company where extensive dismissals are about to take place, whose situation is discussed in the media and by the general public. The reference is not to a subjective/personal feeling of insecurity. In The Netherlands, twelve different companies in the process of restructuring and downsizing were selected. Partly due to the favourable labour market situation in The Netherlands at the start of this part of the research project, it has proven to be difficult finding suitable interviewees within the group of insecure jobs. Furthermore, respondents often were reserved about their participation in an interview because of the vulnerable positions in which they found themselves. Different strategies have been deployed in order to find respondents, ranging from contacting HR staff within different companies, personal network and labour unions, and putting advertisements in national newspapers. In the end, we succeeded in finding a group of 25 respondents that were diverse in type and size of company, age, geographic location, marital status, type of job and tenure. Together, these different interviews provided valuable and diverse information on “good and bad practices” in reorganisations. The sample consisted of 11 men and 14 women who were employed in different sectors. These include banks, telecoms, industrial and technical manufacturing, health care, education, transport, automobile industry, publishing and reintegration. The age of the respondents ranged from 28 to 53, with an average of 41 years. 15 respondents in our sample were over 40 years of age. A large proportion of the employees (eight persons) had been employed at the same firm for more than 20 years, five persons for a period of 10 to 19 years, six persons between 5 and 10 years, and only another six persons for less than 5 years. The employees were predominantly skilled workers from different job levels. In the sample there were three primary reasons given for company layoffs: the economic situation in the particular branch, restructuring measures (despite a profitable situation of the company) and privatisation of state activities. The situation in the different companies, leading to the decision of reorganisation and dismissals is described in detail in chapter 3.1.1.

2.2 Successfully re-employed individuals The criterion for the sample selection of successfully re-employed individuals was having received outplacement/replacement counselling before dismissal and having been successfully re-employed. The counselling should have taken place during the preceding 12 months and be financed and organised by the company, an external agency, or with the help of the labour administration. In order to approach these individuals, we obtained the co-operation of the ‘Nederlandse Organisatie van Bureaus voor Outplacement en Loopbaanbegeleiding’ (NOBOL), which is the organisation for agencies for outplacement, retention and employability. The chairman of the NOBOL sent a letter to all its members, asking to locate suitable interviewees who had been counselled during

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the previous years. This procedure enabled us to conduct interviews with a wide variety of successfully re-employed people who had been supported by different types of agencies. In the end, fifteen agencies selected one or two former outplacement-candidates who, according to them, would provide interesting cases to our research project. It should be noted here that this selection method could imply a certain bias in research results, since agencies probably selected former candidates who proved to be positive about the outplacement support they received. The sample consisted of 27 employees (14 males, 13 males) of diverse backgrounds in terms of sector, age, job level, marital status and job level. The sample includes a great variety of sectors such as education, welfare, health care, ITC, agriculture and commercial, technical and chemical industry. The age of the respondents ranged from 30 to 60, with an average of 44 years. 19 respondents in our sample were over 40 years of age. A large proportion of the respondents (14) had been employed at the same firm for a period of 10 to 19 years before starting the outplacement support. Four interviewees had been in the same company for more than 20 years, four persons between 5 and 10 years and only four persons for less than 5 years. Most of the employees had found a new job recently (< 1 year). The employees were predominantly skilled workers from different job levels.

3

Qualitative studies: employees in insecure jobs and successfully re-employed

3.1 Description of results of the subsample “insecure jobs” 3.1.1 Situation in the present company The respondents in our sample were selected from 12 different organisations. This allowed for both a comparison among different organisational contexts and among different perceptions of individuals involved in the same kind of situation. First, the situation in each of these companies will be described. The bank where Ms Jansen (NL-IJ-1) and Mrs Pietersen (NL-IJ-2) are both working has undergone several large restructurings over the past two years. Recently, one of the largest operations has started, which is the closure of small, local offices that will be replaced by large district offices. This restructuring will cause the redundancies of over 6,000 employees who will either be replaced within the bank or be dismissed. So far, there have been no compulsory dismissals in the bank’s history. What is remarkable in view of these recent reorganisations is that in an economic sense the bank is doing very well. Its profits are still increasing. The department where both respondents are employed will be closed down completely. The major activities of the department will be transferred to the bank’s office in London. In Amsterdam, a new department will be created that will conduct an extension of some of the former activities, and function as a mediation centre for the office in London. Of the 450 employees presently working within the department, 200 people will need to find other jobs elsewhere within the bank, or in another company. The other 250 employees will be placed into the new department, although the content of their jobs will probably change.

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Mr Karels (NL-IJ-3) works as a technical engineer in the head office of the ministry of defence. Because of the end of the cold war, the Dutch government has decided to cut down severely on defence expenditure. The first reorganisations started in 1989, involving the integration of different departments and the redundancy of a large part of the staff. In the present reorganisation that started three years ago, 400 of the 950 jobs at the head office will be ‘reshuffled’ and approximately 30 persons will become redundant. Simultaneously, new jobs will be created that require technical know-how and skills that cannot be provided by the employees who have been working at the ministry for many years. Mrs Haag (NL-IJ-4), Mrs Buur (NL-IJ-5) and Mr Bakker (NL-IJ-6) work for a large national reintegration company that was formerly part of the Public Employment Services. The company received governmental subsidies until 2000, when the market for reintegration of unemployed and disabled workers was privatised in The Netherlands. This change from a state subsidised to a commercial establishment has resulted in the redundancy of approximately a quarter of the employees. Half of this redundancy process has already been solved by means of natural turnover of employees leaving the organisation on a voluntary basis. The other workers will probably be faced with a change in their job content, and an obligation to move to another location. The employees belonging to the job groups that will become redundant will all receive a letter giving them the option of either being replaced within the company or to be guided on a voluntary basis by the internal mobility agency to find another job within or outside the company. Mr Visser (NL-IJ-7) and Mr Broers (NL-IJ-8) both work for a large manufacturer of ceramic tiles. The company used to have a reputation of being a reliable employer where workers could stay until their retirement. Due to a change in strategy from production-orientation to sales-orientation, and a cut in returns on the foreign market, a large restructuring process was set in motion that resulted in requiring less employees in 2001. Some 90 employees of a total of approximately 400 were made redundant. The population of redundant employees consisted mainly of male, low skilled breadwinners of different age groups. At that time, the company had very limited financial means, and was on the verge of bankruptcy. Mr Maas (NL-IJ-9) has been working for a large international company that produces medical equipment with head offices in the United States. Recently, the role of the Dutch location has been changed from a production to a distribution unit. The production tasks have been transferred to a country with a more favourable tax system than The Netherlands, which is the main reason for closing down the largest part of the Dutch factory. The reorganisation had caused the forced dismissals of approximately 300 employees. Only a very limited number of workers have found another job within the newly formed distribution organisation. Mrs Leeuwen (NL-IJ-10) and Mrs Fransman (NL-IJ-11) are both working for a large Dutch telecom organisation with a worldwide network. The increasing burdens of debts, bad economic planning, increasing competition in the telecom branch and negative return on investments have caused the company to start one of the largest restructurings in the history of The Netherlands. Over the past decade, the company had already conducted three major restructurings. At the time of the interviews, respondents indicated that in the present reorganisation approximately 20 percent of the total staff would become redundant, equaling a total of 6000 workers. The goal of the whole op-

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eration is to re-establish a solid financial position, in order to be attractive for a potential foreign telecom partner. Recent plans for mergers with foreign companies have not succeeded. The respondents expect the outsourcing of a large number of departments of the telecom company, as well as a merger with, or take over by a foreign partner. Mr Rijn (NL-IJ-12), Mrs Berg (NL-IJ-13) and Mrs Rivier (NL-IJ-14) all work for a large company that has shifted its core activities from publishing to providing marketing information over the last year. During this earlier reorganisation, approximately 90 percent of the publishing activities had been sold to a foreign multinational. All three respondents work for a magazine that is one of the few that has remained after the restructuring operation of last year. Three months before the interviews were held, the respondents had read in newspaper announcements that the company would reduce its remaining staff by another 10 percent, causing a further 35 redundancies of 350 full time equivalents. The largest part of this shrinkage would be achieved by natural turnover and voluntary departure of workers. The main reason for the present reorganisation was a decrease in publishing revenues in the whole sector following the global economic recession. Since the company was still making profits, the respondents did not understand the reasons for dismissing employees. Mrs Groot (NL-IJ-15), Mrs Klein (NL-IJ-16) and Mr Smal (NL-IJ-17) work for a national organisation which deals with job search and job matching of long-term unemployed and other groups of workers who have difficulties in finding jobs. With the privatisation of the reintegration market in The Netherlands, the organisation has started to experience severe competition from other reintegration agencies. These changes in the labour market, and the decline of unemployment in The Netherlands, have resulted in a decrease in the number of clients. The implication of these developments is that in the regional offices where the three respondents work, four of the six employees will be made redundant. Mr Praag (NL-IJ-18) and Mr Amstel (NL-IJ-19) both work for a communal transport company. Last year a small reorganisation resulted in the redundancy of both respondents. Several double posts were reduced to one following the criteria of last-infirst-out. Both respondents were replaced in jobs below their qualification level. They have protested, which has resulted in a job vacuum of one year and uncertainty about the future job position. Till today, both Mr Praag and Mr Amstel have not been offered a suitable new job within the organisation. As for the rest of the organisation, the future is insecure, since the organisation has plans for privatisation that would result in a loss of the civil service status of all employees. Mrs Leuven (NL-IJ-20) works as a music therapist for a large community psychological health organisation. Over the last decade the different regional organisations which offered psychological health care were involved in several reorganisations. Recently a mega-merger has fused all health organisations of this region in one organisation. The reason for the last small reorganisation, in which Mrs Leuven was made redundant together with twelve other colleagues, was a deficit in the annual budget. The selection criterion of last-in-first-out has been applied. At the time of the interview, Mrs Leuven was still working, although her number of clients had been gradually reduced over the last year. In her free time she used the services of the internal mobility centre to search for another job, either within or outside the organisation. Mrs Gent (NL-IJ-21) and Ms Raalte (NL-IJ-22) work as secretarial and administrative support employees respectively in a small training institute with several offices

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spread around the country. The institute used to receive subsidies from the Public Employment Services (PES) to offer training to specific groups of unemployed people. Since the recent privatisation of the PES, the training institute needs to operate on a commercial basis. This has resulted in financial problems that necessitate the centralisation of the decentralised administration offices. At the time of the interview Mrs Gent and Ms Raalte were insecure about their future within the organisation. They would either be dismissed or replaced internally in a different location. If they were offered a new job within the organisation, they would be obliged to accept it. The selection criteria that would be applied and the content of the social plan were still unclear. Mrs Rijk (NL-IJ-23), Mr Waal (NL-IJ-24) and Mr Brand (NL-IJ-25) all work for a large international manufacturer of automobiles with headquarters in Sweden. In 2000 another automobile manufacturer at the same location had taken the opportunity of contractual terms to buy out the company where the respondents are employed. These contractual terms implied that the organisation could do nothing to prevent the closure of their offices, resulting in the redundancy of all employees, including the HR department. A small part of the organisation, so-called “key personnel”, can stay until the final closure in 2004. A social plan was established immediately following the announcement of the reorganisation, as well as personal development plans for all redundant employees. All respondents consider their employer has acted in a socially responsible manner in line with the culture of the company. In most cases, the reorganisation has had a negative effect on the working atmosphere, causing much unrest and reduced commitment and motivation among the personnel. Mr Karels states for example: “There has been an enormous amount of unrest in my department since the reorganisation was announced one year ago. The absenteeism of approximately 15% is huge. The motivation has completely gone. Since we have been shrinking for over 10 years now, we have not undertaken any collaborative actions because everybody’s spirit has been broken.” (NL-IJ-3; 33-38; 42-44). Mrs Leuven says: “One could best sum up things by saying that everybody is surviving in his own way. One person does so by being very angry, while others don’t care about anything anymore” (NL-IJ-20; 58-59). In several companies a competitive atmosphere among employees has emerged in reaction to the reorganisation. Mrs Fransman says for example: “The atmosphere is not so friendly and amicable as it used to be. Everybody tries to save his own life. People try to create a distinct profile for themselves by trampling on colleagues. People have also become more grumpy towards each other” (NL-IJ-11; 5560). In the case of the Swedish automobile manufacturer, all respondents claim that the announcement had no clear effect on the working atmosphere. People still felt very committed to both the company and to their jobs, and the reorganisation had no effect on the sick-leave rate in the company. In most cases, respondents had not undertaken any collective action such as strikes.

Individual aspects The majority of the respondents in our sample were afraid, and in some cases certain, of being dismissed in the near future. Also, several respondents indicated that even if they were not to be dismissed in the current reorganisation, they have become insecure about future organisational changes. Mr Broers: “I already see the next reorganisation coming within a period of two years. The situation of this company is highly uncertain” (NL-IJ-8; 115-117).

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All respondents claim that work is very important to them. Securing an income, being in social contact with colleagues, having a sense of belonging to society, obtaining a sense of independence vis-à-vis their partner, and being offered possibilities for personal development were the aspects that were most often mentioned in the interviews. With the favourable labour market in The Netherlands, most respondents were quite confident about finding another job. However, they felt more insecure about finding a suitable job at the right level, with nice colleagues and good working conditions. In our sample, age proved to be the most important determinant in the insecurity about chances of finding another suitable job. Older workers generally felt very unsure concerning possibilities on the labour market when compared to the young respondents. This insecurity was not only caused by the idea that future employers would prefer younger employees, but also by the lack of up-to-date training and diplomas, and the high salary demands they had because of their seniority. Another crucial factor concerning feelings of insecurity with regard to finding another job proved to be employability as a function of working experience, training and willingness to frequently change employers. The younger respondents, who had never experienced the idea of life-time-employment with their current employer, proved to be more convinced about their possibilities of finding another suitable job. Mrs Rivier says for example: “I am convinced of being able to find another job because I am young and have already built up quite a lot of working experience. I also know that in my sector it is very difficult for companies to find qualified people for the type of job I do. I am just less convinced about finding a nice job that would please me” (NL-IJ-14; 87-94). Also, many respondents show feelings of anger, frustration, distrust and reduced motivation and commitment towards their employer. Mrs Berg says for example: “Any feelings of loyalty with regard to the management board have completely disappeared. Because my company is quoted on the stock exchange, I know the board could profit from the dismissal of my colleagues to buy their third mansion. So I actually consider them to be the enemy” (NL-IJ-13; 99-105). One respondent with long years of service explains how his commitment with regard to the employer has disappeared in reaction to the reorganisation. Mr Karels says: “I used to work with my heart and soul, while now I just don’t have any feelings left for the company. If I can leave with a good settlement I will leave everything behind without blinking an eye” (NL-IJ-3; 55-58).

3.1.2 Aspects of organisational justice Distributive Justice In most cases for which the selection criteria had been established, the last-in-first-outsystem (LIFO) was used to decide on which employees would be laid off. In some cases, the LIFO principle was applied in combination with the work group. In these cases, the number of redundant employees was established for each work group separately, after which the LIFO principle was applied. Quite remarkably, in our sample, many of the respondents did not agree with the LIFO system, although they did understand the necessity for using this type of criteria in dismissing employees. Mrs Berg states that the LIFO system does not adequately reward motivated, qualified employees. Mrs Berg: “I do not find it fair for them to apply the LIFO principle, because especially in our case the newcomers are the ones that are most motivated and work hardest. In the selection decision one should take quality much more into consideration. In order to

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do so, there should be more performance interviews” (NL-IJ-13; 145-150). Other respondents underscore the importance of retaining qualified, motivated staff for the survival prospects of the new organisation. Ms Buur: “Seniority does not imply quality, which in my opinion is necessary to build a new healthy organisation” (NL-IJ-5; 8996). As for the other selection criteria that were applied, respondents were generally very positive about the possibility of the voluntary repatriation grant. In those situations in which employees could decide on who would leave the organisation on a voluntary basis, and who would stay, respondents were positive about the outcomes of the process. In some cases, the official selection criteria, such as the LIFO system, were not applied in a fair manner. Mr Maas explains for example how the design of the selection criteria did not match with the outcome: “They threw out all the older and troublesome people. There was no future for them in the new organisation. On paper there was a policy for dismissing workers, but the execution of this policy was not followed. In the letter to the Personal Employment Services, which needed to give its approval of the dismissal, they put false arguments such as the prior performances of the people involved” (NL-IJ-9; 150-162). Several respondents report on this mismatch between the formal side of the reorganisation and the actual implementation of the plans. The actual application of selection criteria, communication, replacement and guidance by the mobility centre often proved to be disappointing in comparison with the plans. Mr Praag says: “They have broken all kind of promises, even agreements that were put in black-and-white. Therefore I have not been treated fairly. Broken promises are crimes with words” (NL-IJ-18; 133-137).

Procedural Justice Those respondents who were given the opportunity to exert influence over the selection criteria, alternatives for dismissals, the social plan and the personal consequences of the reorganisation, were clearly more positive about their situation than respondents who could not give their input. In many cases, respondents reported that their company did not involve employees sufficiently in the reorganisation process. Mrs Buur says about this aspect: “The management board clearly told us that everything would be top-down. I believe reorganisation should rather start from inside the organisation. The gap between the management and the shop floor is far too wide” (NL-IJ-5; 101-110). In most cases, respondents reported that they were not aware of the role played by the works council in the reorganisation process. In other cases, respondents were disappointed about the contribution of the works council. Mrs Haag: “The works council has not done its job correctly in my view, did not think ahead and has not been watchful” (NL-IJ-4; 125-132). Other respondents were positive about the amount of influence the works council had exerted on the reorganisation process. Mr Visser: “The works council has been closely involved in the reorganisation plans and they have had a lot of influence in the results. Although employees cannot personally exert their influence on the process, and the establishment of the plans is done under strict confidentiality, one should feel confidence in the people that have been elected to represent your interests” (NL-IJ-7; 150-158).

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Interactional Justice All respondents stressed the importance of open, honest and clear communication in the reorganisation process. In those cases where the company had communicated in a transparent, honest, personal manner with employees about the situation, the respondents were clearly less insecure about their future, and had less complaints with regard to their health and well-being. Also, they were more motivated and committed towards their employer. One of the respondents, Mr Visser, who was very positive about the communication, reported: “The current executive manager is strong on communication. He has invited everybody to go carting, to explain in a personal manner what the new organisation would look like, and why the reorganisation was necessary. He has discussed this with us in a very open way. People could ask their questions. One can discuss with him on an equal level. He has clarified every step that would be taken, and informed us thoroughly” (NL-IJ-7; 120-131). Another aspect of communication that is emphasised in many of the interviews is the importance of personal, face-to-face, tailor-made communication as opposed to general, global information about the company’s strategy. Especially, those respondents with long service expected a personal approach from the company to their situation, and showed more anger and frustration if they were treated as ‘numbers’ than their colleagues with shorter service in the organisation. A respondent with a positive attitude to his employer explains: “I got the clear impression that they were concerned about my case. It is part of the company culture to take good care of their employees. We always communicate in a very humane and personal manner. I am sure that they will not leave me out in the cold, that they will do everything to support me in this situation” (NL-IJ24; 106-112). Contrary to these positive experiences, many respondents point to the lack of personal information: “The whole communication is very hierarchical, very much top-down. They [management] should, instead, take people’s worries seriously by asking in open conversations with those involved how people feel about their situation, what future career opportunities could be and what kind of support they need to cope with the situation. I really missed that kind of humane, tailor-made, personal approach” (NL-IJ-3; 110-118). The lack of a personal, humane communication was more clearly evident in large companies. Especially in companies that had gone through a lot of reorganisations in the past, respondents generally hardly knew their direct supervisor personally. This proved to have an important impact on the way major decisions were communicated to the employees. Mrs Fransman explains for example: “The disadvantage of a big company is that one runs the risk of falling between two stools. Everybody gets new job positions, so you often don’t know your manager. Then you need to be very strong and make a fuss, otherwise you will just become a number and be forgotten” (NL-IJ-11; 105-111). The respondents point to the importance of the medium through which the announcements about the reorganisation and dismissals were announced. In several cases, respondents were informed about the reorganisation by the public media. All these cases concerned large companies that were listed on the stock exchange. These respondents indicated that learning about their possible dismissal in the public media gave them the clear impression that the company was more concerned about the interests of the stockholders than those of the employees.

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In all the large companies, e-mail and inter/intranet proved to be an important medium in communicating about the reorganisation. Although respondents generally understood that the size of the company did not allow for personally informing all employees about important organisational changes, they would have preferred to receive this information from their direct manager. Another aspect of communication, that is stressed in many of the interviews is that the company should explain clearly and make it understandable for employees what the exact reasons for the restructurings are. Mr Bakker explains: “People generally understand that the company needs to cutback on expenditure, but it is important to explain very thoroughly why this is necessary, to show respect for those involved, and to give them the feeling that they are being taken seriously” (NL-IJ-6; 166-172). Also, the expression of appreciation by the company for the employees involved is an important aspect. Mrs Rivier explains for example: “What I found very bad is that, from the start, the person who was responsible for the execution of the reorganisation gave us the impression that we shouldn’t be nagging. He showed no sign of recognition such as: ‘it is not your fault, we just need to cut down costs” (NL-IJ-14; 210-215). Respondents indicate that receiving sufficient, complete and accurate information about important organisational changes and about personal consequences of these changes can be supportive for individuals involved. Many respondents say that after the initial announcement, they received practically no further information on the progress of the plans. Often, direct superiors were not being informed either, which made it impossible for them to communicate with their employees. Several respondents indicate that this lack of information has a negative effect on their daily activities. Ms Jansen explains for example: “because I have contacts with clients, I need to know what is going on” (NL-IJ-1; 177-178). The most important aspect of interactional justice which is underlined by each respondent was the need for open, honest and clear information. In those cases in which the company had communicated in a transparent, honest manner, respondents were clearly more positive about their employer, and reported less complaints with regard to health and well being, than in those cases in which companies were dishonest and secretive about organisational changes and personal consequences. Respondents indicate, that in order to reduce uncertainty, it is also important for the company to communicate about future plans and long-term prospects of the company. Many respondents felt insecure about future reorganisations. Another aspect of communication is the need for timely information about important decisions. Respondents who were informed well in advance about future organisational changes, and were thereby given time to get used to these changes and prepare a personal plan to cope with the situation, were generally more positive about the communication by their employer than those respondents who were given less time to adjust to future changes. Moreover, respondents who were informed in time about the social plan and the personal consequences of the reorganisation were rather positive about this aspect of justice. In some cases, the company had made a clear step-by-step plan about when important decisions would be announced. Ms. Jansen explains the importance of such a plan: “Even if it is not clear yet how everything is going to be in the future, it is important to at least have a plan about when that is going to be clear” (NL-IJ-1; 155-157). In many cases, the period between the initial announcement and the actual personal implications for employees was extended, because of the time the works council

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needed to approve the reorganisation plans. Employees generally showed little understanding if the works council needed more than two months to approve the plans. Many respondents indicated that they would have preferred a less thorough study of the plans by the works council in favour of reducing the uncertainty and being informed as quickly as possible about personal consequences. Finally, respondents point to the significance of establishing two directions in the communication. Many respondents report that the communication is generally topdown, and that no platform exists for employees to communicate their personal feelings and questions to managers.

3.1.3 Employability Company offers The respondents report different experiences with regard to the employability policies of the companies they worked for. Especially the larger organisations, such as the bank, the telecom company, the reintegration organisation and the editorial enterprise all disposed of a very active employability policy aimed at enlarging the opportunities of employees both within the company and on the labour market, by offering them jobrotation, within and between departments, and training. Individual strategies The majority of the respondents reacted to the threat of being dismissed by actively looking for another job. Most respondents did not wait for the definitive plans and outcomes of the selection criteria to be presented. Some of the respondents proved to be unable to start active job search because of severe psychological problems they had developed in reaction to the reorganisation. Other respondents felt unsure whether to leave open the option for internal replacement or to start active job search. In our sample, elderly employees with extended years of tenure clearly felt less secure about their position on the labour market, and subsequently proved being less active and confident in looking for another job. Mr Karels argues: “My boss would be prepared to pay for training in order for me to find a job elsewhere, but since I am 53 years old and have a job with a high degree of specialization, it will be difficult for me to find another job” (NL-IJ-3; 202-209). In some cases, these elderly workers followed the strategy of trying to remain within the company until the age of early retirement. Mr Praag says: “In this reorganisation, I see that young people leave because of the insecurity, while all the elderly employees remain and wait for a favourable financial arrangement to leave. They do not want to start all over again in a different company” (NL-IJ-18; 555-564).

3.1.4 Organisational vs. individual responsibility Individual responsibility The majority of the respondents indicate that employees have a personal responsibility in both actively searching for solutions in case of dismissals, and in furthering their own employability in order to better be protected in situations of job insecurity. However, the respondents greatly varied in their opinions of how far-reaching this individual responsibility should be. When it comes to searching for another job, the majority of the respondents argued that employees should have an active attitude in the search for both internal and

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external vacancies, in thinking about future career possibilities and reorientation, and in handing ideas about alternatives for dismissals. As for furthering employability, the majority of the respondents argue that this should be a shared responsibility between the individual employee and the employer. Like the majority of the respondents, Mrs Maas believes it to be the individual’s responsibility not to “rust” in one’s job, but to remain attractive for other employers (NL-IJ-1; 333-338). Some of the respondents argue that employees should have a flexible attitude in adopting to organisational changes, for example, by accepting replacement in a job below the qualification level of the individual involved, although not all respondents agree with this statement.

Company’s responsibility According to a majority of the respondents, the most important responsibility of a company in reorganisation is to communicate with the employees in an open, honest and clear manner. Mrs Rivier says for example: “They should be very clear from the start, no matter how hard the message is. They should clearly explain the reasons behind the reorganisation. By explaining things, people will understand: that is just the way it is, it is a tough economic reality out there, so that is why the company needs to take these hard measures. They should just be clear and honest about that. As an employee you are committed, and take care of the revenues, so I believe you have a right that the company communicates in an open and honest way without hidden agendas” (NL-IJ14; 401-409). As for the medium through which important messages should be transferred, most respondents argue this should happen in a very personal manner, preferably by the direct superior. Mrs Berg says, for example: “The communication about the reorganisation and its announcement should best be done by my direct superior. That is a human way of communication which gives you the feeling that you are not just a number. It also gives you the feeling that it is something that you have decided on together, instead of something that is imposed on you” (NL-IJ-13; 501-511). Respondents argue that managers should always be kept well informed about important organisational changes, in order for them to transmit the information in a personal way to employees. In reaction to the experience of receiving communication via public media, several respondents claim that employees who are involved should always be the first to be informed. Furthermore, companies should inform their workers as quickly as possible about important organisational changes and about the personal consequences of reorganisation, keep them informed during the whole process and stick to promised deadlines. Several respondents claim that particularly companies that want to hire and fire their employees in a flexible way, and will not guarantee job security, should take responsibility in furthering the careers of their employees and support them in retaining a good position on the labour market. According to Mrs Maas, the most important responsibility of the company that can no longer guarantee lifetime employment is to improve the employability of all its employees: “A good company is responsible for stimulating you to develop yourself, by offering education. They have to reserve money for that, also after this reorganisation. They owe that as an employer, especially to people that have been working within the bank for so long” (NL-IJ-1; 152-160). Mrs Rijk argues, that companies should take concrete measures if they have no intention of offering lifetime employment: “If companies do not have the intention to keep an employee in permanent employment, they should make use of fixed-term contracts. People will than at least

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know where they stand, and continue to train themselves to be attractive to other employers. Otherwise they are just offered fake security” (NL-IJ-23; 521-529). As for procedures, respondents argue that companies have the responsibility to comply with legal standards, and to apply rules and regulations properly. These rules and procedures should be clear and transparent. Respondents claim that it is very important that procedures should not merely represent a formality, but that they should actually be executed in a correct way. Several respondents argue that an independent commission should evaluate the way procedures are carried out. Furthermore, respondents say that the responsibility of the company is to involve employees as much as possible in the reorganisation and its consequences. In larger companies, this should both be done by involving the works council and the unions, and by asking individuals affected for their input and opinion. With regard to financial compensation, most employees argue that companies should offer both financial security in the transfer to another job, and compensation for emotional damage as well as practical matters, such as moving to another location. Mrs Klein: “I want to be compensated for the injustice that has been done. Money will not compensate for everything, because I had quite an emotional shock, but at least it offers a basis of security from which you can start looking for another job” (NL-IJ-16; 399412). As for internal replacement, respondents claim that they should have priority access to vacancies in the company, and should be actively supported in searching for another similar job within the company. Respondents disagree about whether employees should be forced or not to accept another job offer within the company, that does not fit their wishes or qualification levels. When a company has not succeeded in offering a dismissed employee internal replacement, the majority of the respondents argue that they should be supported in finding another job by means of an internal mobility centre or an outplacement agency. Most interviewees say that support in finding another job should be limited in time, varying between six months and two years. Finally, respondents argue that the company is responsible for paying for training that can support the dismissed employee in finding another job. One respondent says that a company should actively deploy its network to create job possibilities for redundant employees. All the interviewees are of the opinion that elderly employees should receive additional support both in searching for another job and in financial compensation, if it proves impossible for them to find new employment. Some respondents put the line for ‘elderly’ employee at 45, others at 55.

3.1.5 Overall assessment A wide range of individual and group reactions could be detected in the context of organisational changes and dismissals. On the group level, reorganisations generally had a negative effect on the work atmosphere of our respondents. In some cases, the sense of togetherness increased in the face of job insecurity, while other people reported on increased competition between colleagues. Previous reorganisations with frequent reallocation of employees clearly decreased the sense of solidarity among workers. Feelings of anger, frustration, distrust and reduced motivation and commitment dominated among employees in an insecure job situation. These feelings were generally accompanied by decreased senses of well-being and health complaints. In some cases,

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these effects led to elevated levels of absenteeism and turnover, or prevented people from actively starting to search for another job. Respondents who felt they were treated in a fair and socially responsible manner by their employer showed none of these negative effects, were still positive about the company they worked for, and felt more secure about their future career. The favourable labour market in The Netherlands provided most workers with a basic sense of security about finding another job in case of dismissal. However, they generally felt highly insecure about finding another suitable job with good working conditions and agreeable colleagues. The level of insecurity was, to a large extent, determined by age and employability. These two aspects proved to be intertwined in our sample. Elderly workers generally disposed of extended working experience, but often lacked the certification of this experience by means of up-to-date training and diplomas. Young employees showed a more flexible attitude with regard to changing companies. Also, they were more aware of the necessity and inevitability of lifetime employability. Large companies generally proved to dispose of an active employability policy by offering job-rotation, training, and active career planning to their employees. Respondents indicate, however, that the individuals have an important role in actively using these facilities. Employable individuals were much better armed to adequately cope with their insecure job situation. Active job search was the most important strategy deployed by individuals in coping with their insecure job situation. However, elderly workers generally favoured internal replacement and early retirement. Young employees tried to secure their future by leaving, while elderly workers did so by staying within the company. Other strategies for coping with job insecurity that have been mentioned were reorientation on other professions, and becoming self-employed.

What do people expect from organisations? As a general principle, respondents indicate that companies should deploy the stakeholder model in the decision-making and handling of reorganisations. That is, the social interests of employees should be taken into consideration in making decisions about restructuring. Reorganisations and dismissals in profitable companies clearly give workers the impression that their interests are not taken into consideration, and only those of the shareholders are defended. If dismissals proved to be necessary for the survival of the company, respondents were more positive about organisational changes. The most crucial element for employees in coping with their insecure job situation was interactional justice. Open, honest and clear communication about organisational changes had a positive effect on feelings of security, health and well-being among employees. The reasons for decisions with such far-reaching consequences as dismissals should be thoroughly explained to all individuals involved. Early announcement and a continuous flow of information throughout the whole process of restructuring was said to be another essential responsibility of the company. Individuals should be offered a time-out to cope with the shock of their dismissal and sufficient time to search for another job. Furthermore, companies should inform their employees as quickly as possible and in a personal, face-to-face, tailored way about the individual consequences of the re-organisations. Especially large companies with extended histories of reorganisations often showed a lack of personal, humane communication vis-à-vis their employees. Clear, transparent rules and procedures and a proper application of these regulations, supervised by an independent commission is another important responsibility

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ascribed to companies. Also, employees should be involved as much as possible in the reorganisation process and especially in its personal consequences. Respondents were generally more positive about the decision-making if they, for example, were offered the possibility of voluntary repatriation, internal replacement or future job description. Furthering employability is considered to be a shared responsibility between the employer and the employee. Employees have a personal responsibility in furthering their own employability within the dynamic context of the actual labour market. Companies who can no longer guarantee life-time employment have a responsibility of supporting, facilitating and stimulating this process. The majority of the respondents in our sample were actively offered training, job rotation and career management advise, in order to further their employability. With regard to company offers to dismissed employees, the majority of the respondents claim that the responsibility of companies is to offer financial compensation, training, internal replacement and support in finding another job. Financial arrangement should provide security in the transfer to another job, and compensate for practical and psychological costs of the reorganisation. Furthermore, redundant employees should be actively supported in finding another job either within or outside the company. Most interviewees say that support in finding another job should be limited in time, varying between six months and two years. Finally, respondents argue that the company is responsible for paying for training, that can support the dismissed employee in finding another job.

3.2 Description of results of the subsample “successfully re-employed” 3.2.1 Situation in the former company Most of the respondents in the present sample have been dismissed following a reorganisation of the company they worked for. Mergers with other companies, increasing efficiency and cutting down on costs were the main economical reasons for their dismissals. In some cases, the reorganisation was used to dismiss primarily elderly and sick workers. In two cases, respondents were dismissed following a labour conflict with their supervisor. Two other cases involved job burnout. Finally, three respondents left their organisation because of a misfit between person and environment. These cases have been included, since an important number of outplacement clients in The Netherlands are dismissed following labour conflicts, burnout or malfunctioning. In most cases, the reorganisations had a strong impact on the working atmosphere, both in a positive and a negative sense. One of the respondents explained how solidarity and mutual support within his department, which had always formed a tight group, was furthered and intensified as a reaction to the threatening situation: “From the start, we had told each other: something is going to happen, and how it is going to happen we do not know yet, but we will need to support each other throughout this whole situation. That has really been perfect, I must say”. Several other respondents state that the work atmosphere within their organisation was characterised by competition: “In the beginning we did not notice much difference in the working atmosphere. The reorganisation created a sense of solidarity among people. But at a certain point, it became clear who would be assigned to which position, which created winners and losers. At that point, people started to become each other’s competitors” (NL-IJ-12; 212-214; 34-37). Most of the respondents had received a combination of financial compensation and outplacement following arrangements in the social plan that had been agreed by the

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unions, the works council and the employer. In nine cases, a lawyer had been involved to negotiate support in finding another job and financial arrangements. The cantonal judge settled all these cases. In most cases, the social plan consisted of first striving to replace redundant workers within the new organisation, and if this proved to be no option the plan offered support in finding a job outside the company. The financial settlement generally consisted of an amount that equaled the so-called cantonal court formula (depending on tenure and age). The outplacement varied (in time) between unlimited support by an agency for all dismissed employees and limited (six months to two years) support for individual redundant workers. Most respondents evaluated the measures offered to them as very reasonable and supportive in dealing with the situation of being dismissed. One of the respondents: “The guidance we received from my ex-employer was very good. I clearly got the feeling that they did not leave us in the cold, which was further reinforced by the outplacement” (NL-SR-16; 220-222). Several respondents were offered the possibility to personally make a choice for an agency. They “shopped” around different outplacement agencies to make a choice that fitted their specific needs. One of the respondents states that this is crucial to the success of outplacement: “I don’t think that it is right to impose a standard method; it really has to be tailored guidance, otherwise it doesn’t work. In that sense, the choice of the agency is very important” (NL-SR-14; 181-184).

3.2.2 Aspects of justice Distributive justice Most of the respondents claim that the reasons for the restructuring and dismissal of employees were rationally understandable, but not fair. Especially in cases of mismanagement, beyond any control of the individuals involved, but with a severe impact on their personal lives, respondents claim severe feelings of injustice. In most cases, the last-in-first-out (LIFO) principle was applied to make a selection between employees who needed to leave the organisation, and those who could stay. The respondents show different reactions to this selection criterion. One of the respondents states: “The principle of last-in-first-out was applied. Since I clearly was the last one to have entered the organisation, it was very understandable that I was the one that had to leave” (NL-SR-16; 18-32), while another respondent says: “I find the last-in-first-out procedure unfair. My colleagues who had performed the same job for 25 years, who were completely inflexible and never made a special effort, could stay, while I had to leave. I would find it more fair to select people according to their capacities and motivation” (NL-SR-25; 301-309). In four cases, the quality criterion, mentioned by this respondent, was applied. The selection of candidates for dismissal was performed by means of interviews with employees in order to decide who would be most qualified for the new job. In all four cases, the respondents experienced this procedure as being extremely unfair, causing personal damage to their self-confidence. Another aspect of distributive justice that is put forward by several respondents is the access to possibilities for internal replacement. Most respondents state that their former employer has not put enough effort into finding another job within the organisation: “At the outplacement agency I needed to cope with a lot of frustration that would have been unnecessary if my employer would have put more effort into keeping me within the organisation (NL-SR-11; 32-40). Four respondents state that the possibility of internal replacement has obstructed the process of getting over their redundancy, and

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of focusing on future possibilities: “Looking back I would say that it was a pity that I was offered the possibility for internal replacement. If not, I would have approached the labour market much faster, more goal-orientated and with more self-confidence. Without the option of replacement I would have found another job at least four months earlier” (NL-SR-26; 32-40). In most cases, outplacement counselling was made accessible by means of the social plan for all employees who were dismissed. In all these cases, dismissed workers could participate in the outplacement programme on a voluntary basis. In nine cases, outplacement was offered following individual negotiations with the juridical support of a lawyer. Offering outplacement was crucial for feelings of justice towards the former employer. Typical statements by many respondents are: “The preparations to make the decision for restructuring the company and dismissing personnel were not right. What did go right was the end of the process. They have hired a good outplacement agency and the financial compensation was decent” (NL-SR-12; 85-89). One of the respondents comments on how receiving outplacement can be perceived as a kind of justice: “Being offered outplacement recovered part of my confidence in the organisation. It gave me the idea that I had accidentally run into the wrong people, but that the organisation as a whole strived to treat its employees properly” (NL-SR-6; 93-97). Jointly searching for a socially responsible way to leave the organisation, proved to be crucial for the way respondents experienced the dismissals: “I found it very pleasant that my boss supported me in starting the outplacement, that it was really something we did together. I believe that it is very important to confer with an employee on how he or she can leave the organisation in a good way” (NL-SR-14; 67-70). In the interviews it became apparent that job tenure was the most decisive criterion for considering whether the former employer had sufficiently taken personal merits and social needs into account. The following citations support this observation: “I have been working for the company for ten years with all my heart, and I felt like being packed off home like a little boy” (NL-SR-11; 43-45). “They offered me a sum of money, and that was it. I did not agree with that. It was not so much about the money, but more about the recognition for everything I had done in all these years” (NL-SR-6; 45-49).

Procedural justice In most cases, the procedures and regulations for reorganisation and dismissals have been properly applied. However, several respondents report that in their cases, procedures have not been applied consistently. One of these respondents reports: “There were clear procedures within the branch of how to deal with dismissals, which have been violated in every possible way. They [the former employer] tried everything within their power to try to deviate from these procedures” (NL-SR-13; 185-193). Other respondents state that strictly following procedures can give a bureaucratic, inhuman character to handling reorganisations: “They have followed the law to the letter, but I am not sure whether that is always fair. They have followed the procedures, did not play tricks, but that was really all they did and no more than that” (NL-SR-14; 148-152). Another complaint that was put forward by many respondents was that strictly following the procedures implicated long periods of insecurity for the individuals involved in the reorganisation. However, other respondents claim that redundant workers were not given enough time to adequately cope with the situation: “The urgency to dismiss people was legitimate, but the dismissal procedure as such was not, because they had not prepared people adequately for such a situation. One could say that it is a kind of fair-

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ness to give people the opportunity to develop themselves, and to prepare themselves for another job” (NL-SR-12; 270-282). Finally, several respondents claim that the procedures for internal replacement were not applied consistently, but depended on personal interests of people in crucial positions in the organisation: “The content of the social plan consisted of putting effort, both on the part of the employer and of the employee, into finding another suitable job within the organisation. In my case, there has been no effort at all, while other colleagues did succeed in being replaced. My supervisor obstructed replacement, which is something that has profoundly hurt my feelings” (NLSR-3; 82-86). In most cases, respondents who were laid off following the LIFO principle had the feeling that the information used for taking the dismissal decision was precise. In the cases where no clear procedures existed, no precise information was gained for dismissing workers: “There were no rules or procedures at all. The reorganisation appeared completely out of the blue. This lack of procedures makes one very insecure, and gives one the feeling that dismissing people is possible just like that. As a consequence, one feels completely floating in the air” (NL-SR-20; 402-409). In the cases where the quality criterion was applied to select dismissal-candidates, respondents unanimously agreed that insufficient information was collected to make this decision. In most cases, the works council and the labour union were informed to give employees the possibility to correct the decision of dismissing workers. Several respondents indicate that a support commission was installed for the reorganization, to give redundant employees the possibility to contest their dismissal. However, the procedures designed to give employees the possibility to exert influence over the reorganisation and its consequences were not always applied properly. One of the respondents explains how these procedures created a kind of sham participation of employees: “They [former employer] already had a clear idea in mind of what the new organisation should look like, but they made it appear as if it would be possible to give our input. We had to write down our main tasks, which would form the basis for how many people would have to be dismissed and how the new organisation would be. I can imagine that such a large organisation can’t allow for everybody to have his say, but should just be honest about it. That will at least create more clarity” (NL-SR-10; 444-461).

Interactional justice All respondents underline the importance of open, honest and clear communication in case of dismissal situations. One respondent summarizes the issues regarding communication as follows: “What is really important in the communication is that it is made clear that it is a well thought-out decision. Furthermore, it should be explained to the rest of the organisation how recurrence will be prevented. People in crucial positions in the organisation, such as managers and personnel managers should be well informed and supportive in thinking about good solutions for redundant workers” (NL-SR-5; 320-330). Regardless of distributive and procedural justice, communication proved to be of crucial importance for feelings of being treated fairly by the former employer: “Although technically and financially the whole process has been fair, the personal communication has been unfair to my understanding, which has left me with a bad taste in my mouth about the whole thing” (NL-SR-20; 387-391). One respondent explains how a good communication with the former employer has softened the distress of being dismissed: “One has to learn to see the situation as a new opportunity. A bag of money

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won’t make that happen. People only want money as a redress for being shoved away, but the feeling of being properly valued lies more in consulting with the employer what would be a good way of leaving the organisation. In my case, this has worked out well. I have really left in a decent manner, and I have no more hard feelings at all” (NL-SR-6; 133-140). Another aspect that is addressed by several respondents, is the importance of personal, face-to-face information. Respondents indicate that they only received general information during the whole process of restructuring, which focused on the needs of the company instead of those of the employees: “The communication was open in the sense that it was made clear which positions would disappear, but there was little attention or interest as to what this would imply for the individuals involved” (NL-SR-23; 444-448). Apart from the content of the information, respondents underline the importance of a humane approach in transferring the bad news of the dismissal: “The communication went all wrong. It is quite a shock to get the message of being dismissed. A sort of mourning process that needs to be handled very carefully follows this. They [the former employer] did not take that into consideration at all” (NL-SR-1; 155-158). The need for a personal approach in communicating dismissal decisions also became apparent in the medium that was used to transfer the message. Most of the respondents were informed either personally by their supervisor, or received a letter about their dismissal. One of the respondents was informed by telephone: “I have been informed by telephone, which is not a very elegant manner, so to speak. I had been working there for 16 years, and was sick at that time. In such a case I would have informed the individual personally and not with a quick telephone call” (NL-SR-12; 37-46).

3.2.3 Employability In our sample, knowledge of how to approach the labour market, application skills and self-efficacy proved to be more decisive for finding another job than the level of education or job position. Gaining insight into one’s core capacities, or “knowing one’s own product”, as one of the respondents mentions (NL-SR-2; 334-334), proved to be crucial for finding a new job. Respondents indicate that job-searchers should be capable of translating job-specific and organisation-specific skills in qualities at a higher level of abstraction, that allows for matching a broader category of jobs and organisations on the labour market. Age, organizational tenure and frequency of change of employer proved to be decisive for the level of employability. Elderly workers with extended tenure with the same employer felt more insecure about their position on the labour market than young employees that had frequently changed companies. One of the respondents says: “When you have been working for the same employer for a long time, you don’t know anymore how things work around you on the labour market. Then it is very important to have some time to get used to the idea of needing to look for another job, to order your thoughts and to be supported in doing that” (NL-SR-4; 53-60). Respondents who had been working for the same company for many years had a lot more difficulties in extricating their skills, knowledge, working methods and identities from their former employer. In two cases, respondents had been sent abroad by their employer for several years, which caused them to lose contact with and knowledge of the Dutch labour market.

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Company offers Most of the respondents in our sample had received training and performed various tasks and jobs within the company they worked for, which provided them with a reasonable level of employability. In some cases, employees had only received vocational training that was very specific for the company they worked for. In our sample, the skill level did not determine the level of employability. The employees with low to middle levels of training disposed of specific technical skills that could well be deployed in other companies. Quite remarkably, some respondents that had occupied higher managerial positions within the company proved to have a low level of employability after dismissal. One respondent who had been working as one of the members of the management team explains that the lack of certification of his working experience caused him problems in finding another job: “I had performed many different tasks but did not dispose of any official diplomas. I only had a lot of working experience. Someone who is dismissed in a reorganisation, but who can substantiate his knowledge with training and working experience, will much more easily find another job, but this has not been the case for me” (NL-SR-2; 107-118). Furthermore, the number of broad-based training proved to be important. A respondent who had operated in high job positions in the same company for many years says: “My employability was quite limited. I had only received a number of vocational trainings which were very specific for the company I worked for” (NL-SR-12; 109-113). Another respondent explains how the type of working environment in which he had been operating for a long time reduced his employability: “I had been working in the very protected environment of a charity organisation for 28 years. Although I have had significant managerial positions, I knew absolutely nothing about the outside world. That is why my outplacement counsellor told my employer that my programme would take quite some time” (NL-SR-22; 91-98). Finally, the dynamics of the branch that employees worked in proved to be important for the level of employability. One of the respondents explains: “In my branch things change so fast that it is hard to retain people’s employability” (NL-SR-11; 100-102). In most cases, the social plan provided for financial compensation of additional training if this proved to be necessary to find another job. In seven cases, respondents used this option to start broad-based training, such as self-employment, during the outplacement guidance. Outplacement can be considered as a company offer to further employability of dismissed workers. Developing certain skills to approach the labour market, and translating one’s competencies into concrete jobs are the most crucial aspects of employability. Being supported in defining one’s skills, qualities and motivations by cutting them loose from the specific working context that employees had worked in for many years, proved to be crucial for finding another suitable job. All respondents underline the importance of employability in the current labour market in which employees are more insecure about staying with the same company until their retirement. Respondents point to the fact that companies should work on the employability of employees preceding the reorganisation process, not only by training and job rotation, but also by offering career counselling. They emphasize that outplacement is a specific kind of employability that should not only be deployed as a curative instrument, but that should be made accessible to all employees in a preventive way. Only one of the respondents had received career counselling by an external agency while working for the former employer. In other cases, career counselling had been part of the annual personal development plans

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of the company. In nine cases, respondents indicated having never received any form of career counselling. Finally, an important aspect with regard to company offers, proved to be perceived fairness of the dismissals. Respondents who felt having been treated in a fair way by their former employer had fewer problems in focusing on future possibilities on the labour market than employees who perceived their dismissal as being unfair. Respondents who had been treated in a fair way by their former employer had generally gone through a shorter period of mourning and disposed of more self-confidence with regard to new potential employers than respondents who had been treated unfair. If employability is defined not only in terms of skills, but also in terms of levels of personal wellbeing that enable an individual to search for another job with a sufficient amount of self-confidence, fairness with regard to the former employer proved to be a decisive element in employability.

Individual strategies In differentiating between the various individual strategies that individuals deployed, roughly two groups can be distinguished. One group that actively started searching for a new job by looking for vacancies, networking and writing applications, and another group that took the dismissal as an opportunity to take a time-out and carefully considered future career-steps. A respondent belonging to the first category says: “In the former reorganisation I had learned that one has to start early undertaking things, so when I first heard what the plans were, I have immediately started looking for vacancies, networking and all these things” (NL-SR-7; 222-225), while a respondent belonging to the second category says: “For me it was crucial to be patient and to make a well-considered choice for a new job that I wouldn’t regret later on” (NL-SR-17; 3438). The most decisive factor in defining individual strategies proved to be the level of self-efficacy respondents disposed of. One of the respondents describes this aspect as follows: “I have always had the belief that I would find another job. I knew that if I would open myself to new discoveries during the outplacement, to other branches, other possibilities, new jobs and different cultures, it would make me stronger in the end” (NL-SR-26; 451-457). Respondents indicated that being employable is not only a question of disposing of certain technical skills, but also of the right personal characteristics and attitudes to adequately search for a job in the highly complex labour market. One of the respondents describes these personal qualities as follows: “I am quite enterprising, motivated and willing to do a lot of things, which makes me an ideal outplacement candidate. Other candidates who lacked those skills found it quite hard having to search for a job themselves. It takes a certain attitude to do that” (NL-SR-27; 351-55). Another decisive element in being capable of searching for another job proved to be the mourning process over the former employer. Respondents who were treated in an unfair way by their former employer, and especially those with extended years of tenure, proved to be incapable of searching for another job in the period directly following their dismissals. Finally, respondents indicate that the ability for introspection and for being capable of translating abstract qualities and wishes into concrete job profiles were crucial for finding another job. With regard to their present employers, most respondents indicate that they have become much more aware of their actual and future positions on the labour market. After their dismissals, most respondents had become more active in planning future

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career steps and in considering the usefulness of the present job content for their position on the labour market.

3.2.4 Responsibility Individual responsibility All respondents agree that individuals have a personal responsibility in actively undertaking steps to finding another job when confronted with dismissal. One of the respondents says: “Employees have the responsibility not to leave everything to the organisation, but to take personal steps as well. People who have been working for the same company for a long time sometimes ask too much of their employer in finding them another job. I do not agree with putting that much responsibility with the company” (NL-IJ-10; 160-166). Another responsibility for the individual employee that is mentioned in the interviews is the responsibility to remain employable. Several respondents state that in the present dynamic labour market, individual employees have the responsibility to be aware of their position on the labour market, and to guarantee that position by means of training, internal and external mobility, and active career management. Respondents argue that awareness of qualities, wishes and capacities with regard to work is a personal responsibility of each individual employee: “I believe that it is an obligation and also a right to think about one’s value, one’s abilities and one’s future development” (NL-IJ-11; 66-69). Finally, some respondents argue that individuals have the responsibility to re-orient towards different career-perspectives when the proper profession or branch does not offer sufficient possibilities for employment: “I believe that an individual employee has the duty to look beyond his own specific domain for possibilities of employment” (NL-IJ-13; 46-51). Company responsibility The most often and most important aspect that is mentioned in the interviews is the responsibility of the company to be open, honest and clear in the communication to dismissed employees. Two respondents commented on this aspect as follows: “It can happen that a company needs to dismiss people, but I do believe that people should be treated with respect, and that the message should be communicated in a very elegant and personal manner” (NL-SR-12; 265-268). “The company has a responsibility in being open. They should explain to people as quickly as possible why and how certain decisions have been made” (NL-SR-20; 188-192). As for concrete measures, most respondents agree that companies have a responsibility in first offering redundant employees internal replacement within the company. If this proves to be impossible, respondents agree that dismissed employees should be offered financial compensation and support in finding another job by means of training, outplacement, and support to become self-employed. One of the respondents states: “A company should take the responsibility of taking real care in the communication, offering a time-out and training if necessary, and offering financial compensation for all the work that has been done. They should do everything they can to support people in finding another job. The nothingness that I was confronted with proved to be fatal for me” (NL-SR-1; 422-429). Many respondents mention that their feelings of being treated unfair during the process of dismissal was partly compensated for by being offered sufficient measures, both financially and in support for job search, to leave the organisa-

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tion in a decent way. As for the amount of financial compensation, most respondents mention that the cantonal formula, based upon years of tenure and age, is a good guideline. In supporting dismissed employees in finding another job, most respondents state that companies have a limited responsibility in paying for outplacement programmes, varying between six months and two years, depending on age and years of tenure, and that outplacement should be offered to all dismissed employees: “All different job levels should be given access to outplacement. It is a way of showing both in the personal and emotional domains that someone is being valued and taken seriously. I do not believe that every type of job requires outplacement, but I do find it necessary that it is offered to everybody. So it is not so much the question of needing outplacement or not, but the question of having a rightful access to it, which indicates that one is taken seriously” (NL-SR-11; 333-338). Several respondents state that companies bear the responsibility of giving additional support to elderly workers, who have a weaker position on the labour market than their younger colleagues. All respondents agree that companies should offer their employees life-time employability instead of life-time employment. By means of training, internal mobility and personal development plans, companies can show their responsibility of guaranteeing the employability of their employees. With regard to internal mobility as a means to further the employability of employees, one of the respondents mentions: “I believe that employers should be much more active in encouraging the mobility of their employees. They should make sure that people get the opportunity to continue to develop themselves” (NL-SR-6; 121-125). Respondents indicate that employers should stimulate employability by focussing on the specific potentials, qualities, possibilities and needs of individual workers. “I believe that an employer should manage the specific qualities of its employees not only to make them stay, but also to make them employable in case they should leave” (NL-SR-21; 555-558). Finally, several respondents mention that companies have the responsibility to prepare individual workers for the possibility of dismissal. One respondent states: “Companies should make a strategic choice between wanting to get rid of people easily, but ask for less loyalty in return, or wanting very loyal employees, in which case an employer should be very careful and should put more energy and money in their dismissal” (NL-SR-6; 205-209). Another aspect that is often mentioned with regard to the responsibility of the company, is that employers should do everything possible to provide their dismissed employees with sufficient self-confidence in order to allow them to successfully search for another job. Many respondents underline that this aspect of employability is at least as important as the level of skills that is provided by a company by means of training and job rotation. One of the respondents comments on this aspect: “If rationally, strategically or commercially someone is no longer needed, and needs to leave, one should not take away his or her self-confidence. Every employer should be very much aware of that. It is crucial for the person who leaves to keep his self-confidence” (NL-SR-2; 294308).

3.2.5 The outplacement measures Components The basic outplacement procedure was roughly the same for all respondents. The first step in the outplacement programme consisted of providing emotional support, either by a personal counsellor or by means of group sessions (or both), to help candidates cope

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with the shock of being dismissed and with negative emotions vis-à-vis the former employer. In the next step, instruments such as career and personal surveys, biography, ability analyse and personality profile questionnaires, were deployed in order to deal with the questions: who am I, what am I capable of doing and what do I want? The selfanalyses of skills, core qualities, and wishes were subsequently matched with defining appropriate and motivating objectives for the (dismissed) employees that were realistic and saleable on the labour market. This objective should best capture the experience, capabilities, personality and motivation of an individual and should also fit in with current labour market trends. Next, the actual job search was started, with the aim of generating an interview for the candidate. Respondents were supported in training different job search skills. Training in networking, designing curriculum vitae, support in writing a letter, verbal presentations and practice interviews were elements in most of the outplacement programmes. This part of the counselling aims at addressing the questions: where can I find what I want and how do I get there? All respondents indicate that they have received tailored guidance, depending on the specific goals that they had defined. Psychological stabilisation, self-efficacy, reorientation and skills training were the four components that were most often mentioned by the respondents. Some respondents needed extended emotional support in the mourning process, while other candidates only needed support in training of labour market skills. Some agencies and consultants put great emphasis on emotional support of candidates. The common idea among these consultants is that psychological stabilisation will automatically lead to getting the right position or finding the right destination. Other goals of outplacement that were often mentioned in the interviews were extensive self-analysis of skills, core qualities and personal wishes that would allow for making a right decision for a suitable job. This aspect can be defined as re-orientation. Other agencies and consultants put greater emphasis on the pragmatic part of the process in “finding a job as best one can as soon as possible”. Training of both application skills and specific training, such as furthering self-efficacy and starting one’s own business, were elements that were mentioned in the interviews. Most of the respondents received a combination of individual guidance and group training. Nine respondents were solely individually guided in the outplacement process.

Evaluation Emotional support The majority of the respondents indicate that the support of the outplacement agency has been decisive in coping with feelings of anger, sadness and frustrations with regard to the former employer. One of the respondents explains how far-reaching the consequences of a dismissal can be: “I could live with the fact that I had lost my marriage and my home, but being laid off after so many years of service and motivation is panging every part of one’s existence” (NL-SR-2; 127-132). Some of the typical remarks that were mentioned in many interviews with regard to the support of the outplacement agency in coping with the mourning process are: “The outplacement agency has helped me to break with my attachment to my former employer. It has also helped in coping with the anger I felt because of the way I had been treated” (NL-SR-17; 364369) “If I have done it all by myself, I would have had more difficulties in coping with the past. It would have taken more time, and I would have taken more frustrations to my new employer” (NL-SR-27; 345-348).

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Candidates used different elements offered by the outplacement agency in order to cope with negative emotions of the past. For some respondents, the support of the outplacement agency in clarifying the experiences with the former employer has proven to be important: “My feelings and thoughts were a big mess after the dismissal. They [the outplacement agency] have had a significant role in untangling all that” (NL-SR-6; 159-162). For other candidates, the focus on future perspectives helped them to deal with the past: “Outplacement surely has an additional value in coping and accepting the past on the one hand, and subsequently using that for future decisions” (NL-SR-26; 168-170). Another crucial element in getting over feelings of anger and frustration proved to be the furthering of self-efficacy: “In coping with the situation, it has helped me a lot to focus on ‘what do I want’ and ‘what am I capable of’. This has helped me in turning the button, instead of rethinking the past all the time” (NL-SR-20; 337-342). For other respondents, the presence of fellow-candidates proved to help them in the mourning process: “My counsellor has given me many good hints how to cope with the anger and the sadness. Also the contact with fellow candidates helped me a lot” (NLSR-23; 277-282).

Self-efficacy Most respondents indicate that furthering self-efficacy has proven to be a crucial element in the outplacement programme. Increasing self-esteem, motivating candidates to self-help, inoculation against setbacks and clarifying competencies have proven to be fundamental for finding another suitable job after dismissal. Most respondents state that furthering self-efficacy is one of the main goals of an outplacement programme: “One of the main tasks of an agency is to make one learn to see one’s qualities again” (NLSR-14; 92-92). One of the main means by which self-efficacy was stimulated, was the permanent focus on positive qualities of the candidate: “The focus lies on things that you are capable of. At the end that makes you much stronger” (NL-SR-16; 238-242)“The focus on my positive sides, and creating awareness of what I am capable of, instead of what I am not capable of, have helped me in strengthening my self-confidence” (NL-SR-6; 168170). Another element of encouraging self-efficacy is providing inoculation against setbacks. One of the respondents explains how he was supported in this respect by the outplacement agency: “When I got rejected, my counsellor told me that it was not the right job nor the right time for me. That helped me in keeping confidence” (NL-SR-17; 271-273). Skills The different respondents showed varying needs for support in training of job search skills. Training in networking, designing curriculum vitae, verbal presentations and practicing job interviews were elements of the outplacement programme that were offered to most respondents. Especially for candidates with extended years of tenure with their former employer, this type of training proved to be beneficial: “My skills in writing a decent letter, making a CV and networking had become outdated, because I had been working for the same employer for so long. That is a great advantage of outplacement support: that everything is refreshed which is essential for enlarging the chances of successfully finding another job. Without the aid of an agency, I think it would take at least twice as long” (NL-SR-12; 200-208).

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All respondents underline the importance of one specific element of training in application skills, which is networking. One of the interviewees comments: “I already disposed of application skills such as writing letters and holding a job interview. They have taught me networking skills, in that they pointed out to me that it is not only important to get to talk to the managing director, but also to one’s neighbour. Networking is absolutely necessary for getting a new job” (NL-SR-26; 114-122).

Social support All the respondents that received group training as part of the outplacement programme were very positive about the support and feedback they received from fellow candidates. One of the candidates explains how the presence of other dismissed workers has helped him to put his own situation in perspective: “The crucial aspect of the outplacement was to get to know a lot of different people going through the same situation. It puts things in perspective: I don’t have to feel sorry for myself, a lot of people need to deal with the same situation” (NL-SR-12; 229-232). Another element of social support that is mentioned, is the practical aid of fellow candidates: “I received a lot of emotional and practical support from other candidates. For example, the network of other candidates can be extremely helpful. Also, candidates coach each other, which is very supportive” (NL-SR-26; 89-93). Respondents also underline how one can learn from the way other people cope with the situation of unemployment: “It is useful to see how other people cope with the situation and what is successful for them in finding another job. The group process is very useful in that sense” (NL-SR-27; 389-393). Support in job search Another element that has proven to be very significant to many respondents is the support in making the right choices for a suitable future job: “They did not actually find me a job, but I do not think that I would have applied for my present job without the support of the outplacement agency. Without them I would have probably ended up in a job below my level of skills. They have really supported me in making the right choice” (NL-SR-18; 132-139). Getting insight into proper qualities and abilities proved to be a successful basis for the job search process: “One gains ever more insight in to what one’s core competencies are, and that is what guides you in searching for a new job, instead of skills and values that one has learned in school, education, salary or a car” (NL-SR-2; 456-464). In other cases, the outplacement agency has supported the candidate in becoming more focused in the job search process: “Because of your own enthusiasm, you want to write too many letters. It is important to get more focused in looking for a job. The counsellor helps you in that respect, in holding up a mirror and learning to read vacancies in a different way” (NL-SR-7; 367-371). Job level / age / years of tenure Job position, age and frequency of occupational transitions were the dimensions that were most often mentioned in relation to the question whether outplacement is suitable for everybody. Respondents disagree on the utility of outplacement for the lower job levels. One respondent states: “Outplacement is suitable for all job levels. It all depends on one’s ability for introspection, and on being able to formulate what one wants. Sometimes, people with no education are very capable of doing that, while highly educated people sometimes are not” (NL-SR-22; 121-126). Another respondent does not

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agree with this: “I believe that outplacement is only suitable for highly educated people. Outplacement does not mean finding the same job with another employer, but trying to find a better job” (NL-SR-26; 179-183). Finally, another interviewee takes a middle position between these two standpoints: “I have gone through a process that required a lot of self-knowledge, introspection and willingness to open up for negative criticism. A supply clerk does not need this kind of guidance in my idea, but could be in need of support in coping with the mourning process. So it is really important to provide tailored guidance” (NL-SR-2; 240-252). As for age and years of tenure, most respondents agreed that outplacement is needed more by elderly workers, and employees that have been working for the same company for many years, than it is for young, highly mobile workers. Even if the former employer guaranteed internal mobility, employees who have been working for the same company for a long time need support in certain skills. One of the respondents states: “If I would not have received support from an outplacement agency I still would not have found another job. They know exactly what is going on, how to write an application letter today, how to write a CV, what the possibilities are. That kind of support is really necessary for someone like me who had been working for the same employer for 25 years and never had the intention of changing jobs” (NL-SR-4; 130-138).

Expectations Most respondents mention that they had the wrong expectations when they started the outplacement programme. One of the respondents summarizes some of the expectations that were most mentioned in the interviews: “My expectations were that the outplacement agency would search for another job for me. I also expected to find a job faster, forgetting that it would take some time to cope with my dismissal. I did expect that I would need to do a lot of things myself, but I also expected them to have more contacts, more of a network, while now I think that it has been very good that I have searched for all the contacts myself. So the expectation regarding the speed of finding a new job has not been realised, but the pleasure that I now take in my new job is unbelievable, like a miracle to me” (NL-SR-25; 89-101). Finally, respondents had different expectations with regard to the time needed for finding another job. Especially elderly workers often expected it to be impossible for the outplacement agency to help them find another job at all. In other cases, they found a job much faster than expected. Criticism In the interviews two main points of criticism are brought up. One is the lack of active job hunting and networking by the agency. Many interviewees indicate that the access to a network of the agency could be helpful in finding another job:“I think that it would be good for outplacement agencies to have more and clearer attachments to potential employers” (NL-SR-13; 222-225). The second main point of criticism is the lack of tools to evaluate the quality and integrity of an outplacement agency. Some respondents show concern about the possible conflict between the commercial interests of the outplacement agency and the interests of the individual candidate: “There is nothing wrong with an outplacement agency being commercial, but if they are being judged on their replacement speed, it is crucial that the interest of the candidate remains prior, and that they critically evaluate if the job really suits you” (NL-SR-17; 222-230). Several respondents point to the importance

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of certification of outplacement agencies: “It is very important to separate the wheat from the chaff in the outplacement world, and that a certifying institute guarantees the quality of the agencies and of the counsellors” (NL-SR-27; 389-394). Other respondents showed concern for the ‘black box’ of the outplacement guidance: “A number of things were unclear to me. If someone ends up in an outplacement agency, it is crucial that it is made clear what one can expect from the guidance and what exactly one is going to do” (NL-SR-2; 314-318). With regard to this issue, another respondent states that: “I believe it is important to develop certain protocols to which all guidance must adhere. It should be made clear in advance what can be expected, which steps one can expect during the guidance, in order to give the candidate sufficient tools to evaluate the quality” (NL-SR-6; 230-236).

Effects The most important effects of outplacement that are mentioned in the interviews are the enlargement of employability, awareness of proper skills and abilities, reduction of negative emotions towards the former employer, reduction of feelings of insecurity and a shift in identification with a company towards identification with tasks. The largest part of the respondents indicates that without the support of an outplacement agency they probably would not have found another job, or would have accepted an unsuitable job. For many respondents, outplacement has proven to be an outlet for coping with feelings of anger and frustration with regard to the former employer. Although most respondents indicate they still have the feeling that they have been treated in an unfair manner by their former employer, the outplacement has supported them in successfully coping with the negative emotions of their dismissal and in focusing on future perspectives: “I have felt like a victim for a long time. The agency has clearly supported me in getting me out of that situation, and starting to think about the future” (NL-SR-3; 151156). Most respondents indicate that both the experience of being dismissed and the lessons they have learned from the outplacement have changed their attitude towards their present employer. One of the respondents summarizes some of the changes in her work attitude that were mentioned in many interviews: “There has been a great change in attitude towards my work. I have taken more distance with regard to my current employer. I think that I have developed a healthy kind of distrust. I am committed and realistic at the same time. I am not overly committed anymore, and I pay more attention to my family. My work does not control my whole life anymore. I am also confident of finding another job if this one would come to an end. I do not feel insecure anymore, it is just a job” (NL-SR-1; 369-377). Another crucial element of outplacement that is put forward by most respondents is that the process has had an impact on their employability, not only in being trained in certain application skills, but even more in learning to understand and to use their own capacities and possibilities on the labour market: “I have become very conscious about my qualities and my abilities, and I am capable of putting that into words and to present myself to potential new employers” (NL-SR-11; 222-225). Awareness of skills, capacities and possibilities has proven to be decisive for diminishing feelings of insecurity in the present job. One of the respondents explains: “It has given me a sense of security to know who I am, what I am capable of and what I want” (NL-SR-2; 147-148).

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Most respondents indicate that the outplacement support has had a beneficial effect on their feelings of insecurity in the labour market. One of the main explanations for this sense of reduced insecurity is that the outplacement candidates have learned to detach their skills and capacities from a specific employer: “Now I do not identify so much with the company I work for anymore, but more with the tasks I perform” (NLSR-9; 444-446). The idea of being able to use skills in a multitude of working environments clearly reduces feelings of insecurity: “I feel more secure now, because I have a clear idea of what I am capable of. If this job won’t work, I will find something else” (NL-SR-6; 213-215). The idea of being able to use one’s capacities in many different companies proved to be new to several respondents, especially to those with extended years of tenure. During the outplacement they have shifted their focus from lifetime employment towards lifetime employability. One of the respondents explains how his idea of lifetime employment has changed: “I really like my new job, but if it does not remain that way, I will easily search for something else. I don’t have the feeling that it is terminus anymore” (NL-SR-12; 256-257). Several respondents indicate that the positive effects of outplacement should be made accessible to other employees: “Everybody should receive outplacement in a preventive way, to become aware of one’s work and choices. It does not only have a positive effect on individual health and well-being, but is also beneficial to employers, because the quality of work will increase” (NL-SR-11; 444-447).

3.2.6 Overall assessment Respondents who had been treated in a fair manner by their former employer needed less time to cope with mourning over their past, and were able to focus more easily and with more self-confidence on future perspectives. With regard to distributive justice, respondents pointed to the importance of applying procedures and selection criteria in a fair, consistent manner. Moreover, access to internal replacement proved to be important. Some respondents claimed that they had to cope with a lot of frustration because their former employer had not put enough effort in finding them another job within the company, while other interviewees argued that the possibility for internal replacement had only obstructed the process of getting over the dismissal and focus on future career possibilities. Respondents proved to be more positive vis-à-vis their former employer if they considered the reasons for their dismissal to be legitimate and based on thorough information. Respondents were generally positive about the outcome of the social plan. The majority claimed that the process leading to their dismissal had not been fair, but the settlement been correct. Offering outplacement was considered as a fair and socially responsible way of the former employer to show concern for the dismissed employees. Being offered outplacement was therefore often considered as an act of justice. With regard to procedural justice, respondents showed to be more positive at the beginning of the outplacement when their interests had been considered by their former employer, and if they had been given the opportunity to exert influence over the dismissal decision or its personal consequences. Respondents emphasised the importance of actual, real influence, as opposed to participation of employees as a mere formality. The majority underlined that communication had been the most decisive aspect of justice, and crucial to their perception of the previous situation. Open, honest, clear, fast and personal information proved to be crucial for both reducing the stress of the dismissal and for focusing more easily on future career perspectives. Companies that

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showed concern for the emotional shock provoked by the dismissal, and that communicated in a personal manner with the respondents about the reasons for the reorganisation, and that ensured a good way to leave the company, proved to provoke less frustration and anger among candidates at the beginning of their outplacement. Respondents also pointed at the importance of the former employer expressing his appreciation in order for the individual involved to focus on the future with a sufficient amount of selfefficacy. In our sample, knowledge of how to approach the labour market, application skills and self-efficacy proved to be more important for finding another job than the level of education or job position. Gaining insight in one’s core capacities, and being capable of translating job specific and organisation specific skills in qualities on a higher level of abstraction, that allow for matching with a broader category of jobs and organisations on the labour market, proved to be significant for finding another job. If employability is defined not only in terms of skills, but also in terms of levels of personal well being and self-efficacy that enable an individual to search for another job with a sufficient amount of self-confidence, fairness with regard to the former employer proved to be a decisive element in employability. Respondents claim that coping with the past proved to be a prerequisite for being able to focus on future career possibilities. In our sample, age, years of tenure and frequency of change of employer proved to be most decisive for the level of employability. Elderly employers with extended years of tenure with the same employer felt more insecure about their position on the labour market than young employees who had frequently changed companies. Not the frequency of occupational transitions, but rather the frequency of changing employers proved to be decisive for the level of employability. Respondents who had been working for the same company for many years had more difficulty in extricating their skills, knowledge, working methods and identities from their former employer. Outplacement can be considered as a company offer to further employability of dismissed workers. Being supported in defining one’s skills, qualities and motivations by cutting loose from the specific working context that employees had worked in for many years, proved to be crucial for finding another suitable job. All respondents underlined the importance of employability in the current labour market in which employees are more insecure about staying with the same company until their retirement. Respondents stressed that outplacement is a specific kind of employability that should not only be deployed as a curative instrument, but that should be made accessible to all employees in a preventive manner. The majority of the respondents argued that the responsibility of the individual is to continuously work on employability, and to actively search for future career options in case of dismissal. The most important responsibilities of the employer are to communicate in an open, honest, fast and clear manner about the situation, to apply procedures in a fair manner, to offer internal replacement, training, financial compensation and outplacement, and to offer possibilities for stimulating the employability of employees. All respondents agreed that companies should not so much offer life-time employment to their employees, but life-time employability by means of training, internal mobility and personal development plans. People need different types of support to effectively help them in finding another job. In some cases, psychological stabilisation and furthering self-efficacy proved to be effective, while other respondents benefited from support in re-orientation or skills

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training. Therefore, tailored guidance is crucial for the success of outplacement. The main effects of outplacement that are mentioned in the interviews are: enlargement of employability, knowledge of application skills, awareness of proper skills and abilities, reduction of negative emotions towards the former employer, reduction of feelings of insecurity and a shift in identification with a company towards identification with tasks. The largest part of the respondents indicate that without the support of an outplacement agency they probably would not have found another job, or would have accepted an unsuitable job. In our sample, especially employees who had been working with the same company for a long time, and workers who felt that their former employer had treated them very unfairly, needed extensive support in the mourning process over their dismissals and in rebuilding self-confidence. Support in training application skills proved to be most necessary for people with extended years of tenure in the same company. Elderly workers proved to benefit most from support in furthering self-efficacy and in reorienting towards different career possibilities, since they often felt most insecure about their position on the labour market. Outplacement proved not to be suitable for employees who would have preferred support in active job hunting and matching or extended psychological support. The majority of the respondents indicated that the support of the outplacement agency had been crucial in coping with feelings of anger, sadness and frustrations with regard to the former employer. Emotional support, focus on future perspectives, and support from fellow-candidates proved to help respondents in this process. Most respondents indicated that furthering self-efficacy had proven to be a crucial element in the outplacement programme. Increasing self-esteem, focusing on qualities, motivating candidates to self-help, inoculation against setbacks and clarifying perceived competencies had proved to be decisive for finding another suitable job after dismissal. In most cases, elements of the application-skills training, such as training in networking, designing resumes, verbal presentations and practicing job interviews, proved to be important. Respondents who had received group training as part of the outplacement programme were very positive about the emotional and practical support and feedback they had received from fellow candidates. Finally, support in job search by means of clarification of core competencies and motivation, and of structuring and focusing the job search, proved to be a significant element of the outplacement programme for many respondents. The lack of active job hunting and networking by the outplacement agency, and lack of tools to evaluate the quality and integrity of an agency, were the most important criticisms that respondents put forward.

3.3 Conclusions Dutch companies generally consider it their responsibility to support redundant employees in terms of material compensation, training and outplacement/replacement measures. Depending on the economic situation of the companies involved, social plans generally include favourable arrangements to support dismissed workers during their period of occupational transition. Also, the formal procedures and basic laws are strictly adhered to in most cases. However, the social responsibility of companies with regard to more immaterial or psychological effects of job insecurity can still be greatly improved.

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The most crucial issue in this respect proves to be communication. Open, honest, clear, personal and timely communication about organisational changes has a positive effect on feelings of insecurity, health and well-being. These, in turn, determine an individual’s level of employability and ability to focus on future career possibilities with a sufficient amount of self-confidence. In considering laws and guidelines for protecting and supporting individuals in occupational transitions, it seems to be important to understand how the social responsibility of companies with regard to interactional justice can be secured. Information is of essential importance to workers in adequately coping with job insecurity. European guidelines with regard to formal procedures and concrete arrangements such as financial compensation, training and outplacement/replacement should not discard the importance of this issue. The processes of reorganisation and outplacement are closely intertwined. Employees who are treated in a fair manner during the process of reorganisation experience fewer difficulties in the phase of an occupational transition. They need less time to cope with negative feelings towards their employer and can more easily focus on future career perspectives. In considering social responsibility of companies in the context of reorganisations and dismissals, this seems to be an important issue. Outplacement should best not be deployed as an instrument to repair the psychological damage and self-confidence of an individual who was treated in an unfair manner by his or her former employer. Companies who treat their redundant workers in a socially responsible manner can prevent this kind of damage. In such a case, outplacement can become an opportunity to carefully consider future career steps assisted by the right time, instruments and professional assistance to do so. Outplacement should best not be understood as an isolated intervention, but should rather form part of an integrative set of instruments deployed by companies to assist their workers in the current dynamic labour market context. Outplacement can be considered as one measure among others to further the employability of individual workers. One could state that in a best case scenario, with a well-developed employability policy outplacement could become obsolete. Training, internal mobility, preventive career counselling and personal development plans will generally support individuals in guaranteeing a good position on the labour market and in developing the flexible attitude needed to cope with occupational transitions more easily.

4

Cases of good practice: Description of sample

Seven Dutch companies have been selected where outplacement/replacement interventions had taken place in the recent past that could be considered as “best practices” or innovative in the area. The case studies encompass a great diversity of strategies in dealing with situations of reorganisation, redundancy and dismissal. The profiles of the different companies, as well as the reasons for restructuring, vary greatly. It is interesting to compare how a company on the verge of bankruptcy deals with dismissing employees in a socially responsible manner despite severe budgetary restrictions, as opposed to a profitable organisation that dismisses workers for other than economic reasons. Several parties involved (e.g. labour unions, HR managers, general managers and outplacement counsellors) were asked which elements could set examples for other companies that want to deal with reorganisations and dismissals in a human and fair

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manner. Additionally, written sources, such as social plans, company magazines and literature, were deployed. Together, these cases give a varied and diverse image of reorganisations and the use of outplacement by companies in The Netherlands. Four of these were selected for to be included in this volume.

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Cases of good practice in outplacement/replacement

5.1 Examples of good practice: “Work and Matching RDM” Start Diensten (Start Services) – Rotterdamsche Droogdok Maatschappij (RDM) 5.1.1 Characteristics of the company The company “Start” originates from an initiative of the social partners – employers, employees and governmental authorities. Start Services is a sister organisation of the temporary employment agency Start. Whereas the main focus of the temporary employment agency is to find suitable candidates for the employment offers on the labour market, Start Services offers outplacement activities with the aim of finding a job that matches with the profile and wishes of the dismissed employee. These outplacement activities consist of both guidance and job placement of mostly low-skilled and bluecollar workers. Until April 1996, Start consisted of a tripartite direction of governmental authorities, employers and employees. With the start of the economic growth in The Netherlands in 1994, accompanied by a strong decline in the number of mass dismissals, the organisation of Start has changed. Start Services, currently named Start Career Intervention, is now mainly focused on individual career management and the reintegration of (partly) disabled workers. The outplacement counsellors have varying qualifications. For the project “Work and Matching” (in Dutch: “Werk en Bemiddeling”) at the Rotterdamsche Droogdok Maatschappij (RDM), that will be discussed here, a team of seven counsellors was composed. The team consisted of qualified HR professionals having considerable experience in job placement activities, and technical specialists. A dismissed RDM manager contributed to matching the backgrounds and specific technical skills of the outplacement candidates to the demands of the labour market. Astrid Zwaan, former team manager and intermediary/counsellor of “Work and Matching” for Start Services, states: “This variation in qualification of the counsellors was the main strength of the team. The input of the technically skilled counsellors was not only important in finding suitable jobs for the candidates, but also in empathizing with them and gaining their credibility”. The concept of “Work and Matching” was developed as a joint intervention of employers, labour unions, the Public Employment Services (PES), the Insurance Administration Office (GAK) and Start Services. Gert-Jan den Besten, union leader at the Christian Dutch Labour Union (Christelijk Nederlandse Vakvereniging, CNV) for the metal and electronic branch, explains that the concept of “Work and Matching” has been embraced as “the third generation” social plan. The first generation of social plans integrated financial and legal aspects in procedures regarding dismissals. In the second

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generation social plans, outplacement was integrated as an instrument to support dismissed workers in finding another job. In the third generation social plans, active job search and job placement by an external party is added. In the case of RDM, Start Services and the local PES were jointly responsible for both the execution and coordination of the project. As part of the steering committee, representatives of the GAK, the labour unions involved, RDM and the insurance board for the metal and electronics industries (BV 10), cooperated with Start and the PES in the coordination, supervision and evaluation of the project. The RDM project was financed from three different sources: • • •

supplements paid by RDM based upon agreements in the social plan; earnings from employment executed under the authority of Start Services; social security benefits (i.e. for unemployment, sickness and disability).

5.1.2 Overview of measures: components and scope The central idea of the concept of “Work and Matching” is the combination of job placement, e.g. active job search and networking of the outplacement agency and the ex-employer, on the one hand and guidance, e.g. training, individual counselling and emotional support on the other. Following the term of notice, dismissed workers are offered a so-called “labour contract with postponed performance obligation” (in Dutch: MUP contract) by Start Services for a period of two years during which candidates are offered tailored counselling, training and (temporary) jobs. Temporary jobs are employed as one of the main strategies of helping candidates finding a permanent job. During the period of inactivity, the employee receives unemployment pay. Participation in this labour pool is on a voluntary basis. The concept allows for a transfer from work to work, instead of searching for a job while being unemployed. The general goal of the project is not only to support dismissed employees in finding another job as quickly as possible, but also to retain a newly acquired job in order to prevent candidates from having to fall back on unemployment benefits. Another objective is to preserve the experience and expertise of dismissed workers within the branch. The concept was first successfully applied in 1993 for supporting dismissed employees of the Group of Technical Installations (in Dutch: Groep Technische Installaties, GTI) in finding new jobs, and has subsequently been implemented in a number of other large restructuring operations like those of Fokker, RDM and Stork. The initial goal of the project for GTI was to maintain ties with their dismissed employees, in order to draw from this pool of skilled, well-known workers in the event of new vacancies. For the dismissed worker the main advantages of participation in the project are: • • • •

receiving personal assistance in finding a new job; preserving professional skills and employment rhythm; preserving entitlement to unemployment benefits; preventing workers from feeling pushed out.

The implementation of the “Work and Matching” concept in the restructuring of RDM in 1994 was extensively recorded and evaluated. RDM is a large company in the metal engineering sector located in Rotterdam. Following a decline in the demand for nonnuclear submarines in the eighties, the number of RDM workers was reduced from 3,500 to 1,200. During the last reorganisation of 1994, 235 employees were made re-

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dundant. At that time, the labour market situation in the metal branch was difficult. In the period between 1991 and 1994, employment in the metal industry sharply declined by 9 %. In the period between September 1994 and February 1997, a total of 180 workers participated on a voluntary basis in the labour pool. The Social Plan provided financial incentives for encouraging redundant employees to participate. For the remaining employees a dismissal permit was applied for. The group of dismissed RDM employees that participated in the “Work and Matching” project consisted mainly of male (95 %), low-skilled technicians (79 %) with an average age of 44. Astrid Zwaan describes the group as “metalworkers that were proud of their craftsmanship with long term employment at RDM, never complaining or being ill and all living in the same neighbourhood”. The project was introduced to RDM employees by means of extended information sessions, in which the labour unions and the works council played an important role. Rob Kars, manager of Start Services and one of the originators of the “Work and Matching” concept, explained that initial distrust among RDM employees had to be taken into account: “This group of dismissed workers showed an enormous distrust towards the employer they had worked for all these years. This distrust had to be converted into a voluntary choice to participate in the “Work and Matching” project and to have confidence in Start for helping them in their job search. This is quite difficult, and one needs a strong team to deal with it. One should carefully and extensively explain the contents of the project and gain trust in order to convince people to participate”. The project team, consisting of seven intermediaries/counsellors and three salary administrators, was located in an office at the RDM domain during the first nine months of the project. The temporary employment agency Start Techniques was also present at this location to provide for relevant vacancies. This internal location allowed RDM employees to start their job search during their period of notice. Zwaan: “They could just walk in during their break and start looking for another job”. During the first months of the project the main focus of the counsellors was the job search and job placement for candidates with “easy profiles”. The acquisition of vacancies was one of the main tasks of the project team during this period. The network of Start temporary employment agency, PES and contacts of RDM (e.g. clients, suppliers and competitors) was actively drawn on to find new jobs for the candidates. Furthermore, approximately 3,000 companies were approached by means of mailing actions. Over 40 employees found new jobs during their term of notice. Another group of workers found temporary employment by means of the so-called “fellow lending method”. This method allowed workers to retain their contract at RDM while working for a similar company. The financial means that were generated this way were deployed for education and training of employees with difficulties in finding a new job. After an intake, the remaining candidates were assigned to a personal intermediary/counsellor, whose main tasks were to guide participants throughout the whole process of job search, and to actively search for and play an intermediary role in finding a new job, thus functioning as “a personal temporary employment agency”. During the first months of the project, emotional support was offered by means of personal conversations between the counsellors and the participants. Zwaan: “These people certainly did not wear their heart on their sleeve. We first had to gain their trust by listening to them. We just let them tell their stories without trying to make them turn their heads towards the future, because they were still completely attached to RDM”. Because of

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the extended years of tenure much support was needed. Participants had to deal with the loss of their jobs and summon the willingness to start a job in a new context. The acceptance of the new situation is a crucial element in the outplacement process: “…it is only by accepting the new situation that participants can be made aware that they can do more than they think. Re-establishing one’s self-confidence is the most important condition for finding motivation and exploring new initiatives” (Start, 1997, p.13). Following this period of psychological stabilisation, individual profiles were drawn up for each candidate, in which inventories were made of specific skills, workexperience, and personal qualities and wishes. Subsequently, candidates were supported by the intermediary/counsellor in finding a suitable job by actively matching the profile to demands in the labour market. Drawing on networks, monthly individual guidance in application activities, and additional broad-based and specific technical training were integrated into the so-called Individual Guidance. In the course of the project, it had become apparent that such a structural approach was needed to adequately support the group that had not yet succeeded in finding another job. The training that was offered varied from basic courses of Dutch, word processing programmes, starting self-employment, to specific technical training of Autocad and the acquisition of safety certificates. The broad-based education was generally offered by the PES, while the technical training of employees was taken care of by the internal training centre of RDM. Furthermore, most of the candidates possessed little or no application skills. Six group sessions were organised by the PES. Three sessions consisted of training in basic application skills. In three additional sessions, these skills could be put into practice and experiences between candidates could be exchanged. The social support from former colleagues had proved to be an important aspect of these sessions (Start, 1997, p.14). The mobility centre offered candidates access to vacancies of PES and newspapers, computers and software programmes, for developing application skills. Finally, the idea of “one counter” taking over all administrative paperwork from candidates, was crucial for the success of the project. The co-ordination of the different flows of money (e.g., payment of posting, unemployment benefit pay, sickness leave payments) was taken over by Start, which relieved candidates of complex administrative paperwork between periods of work and inactivity. Donald Heckscher, former secretary of the insurance board for the metalworking and electronics industries (BV 10), explains: “A very important aspect of the social plan was to make sure that these people would not have to go through the bureaucracy”. Zwaan: “We had a number of salary administrators in our team who offered clarity to the candidates and who allowed them to lay aside the burden of addressing all different counters that one is confronted with when losing one’s job. This allowed candidates to totally focus on finding a new job”. After having found a new job, candidates were followed up for another two months. Employees who had not succeeded in finding another job at the end of the project were personally introduced to their intermediary at the GAK, the PES and Start temporary employment agencies. Furthermore, they were informed about possible institutions and administration that they would be confronted with.

5.1.3 Evaluation On the whole, the project “Work and Matching” has been very successful. The integration of different techniques (e.g. job placement, counselling, training), the successful collaboration of different parties involved, the intensive guidance individually tailored

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to the persons and the taking over of administrative paperwork, contributed to 92 % of the candidates finding another job within two years after the start of the project. A study by the GAK (Doodeman & Halfhide, 1997) shows that the period of inactivity of exRDM-employees was 60 % lower compared to a control group of dismissed workers within the same branch that were not involved in the project, leading to a saving in expenditures on unemployment benefits of more than EUR 2.7 million. The following aspects were crucial for the success of the project: • • • • • • • • • • • •

Combination of personal psychological and practical guidance on the one hand and active job search and job placement by the outplacement agency on the other hand; Tailored guidance and integration of different techniques in a structured programme: personal guidance, group training of application skills, broad-based and technical training; Use of networks of the different parties involved (Start, Public Employment Services, and RDM); Temporary jobs as a strategy to finding permanent positions; Personal motivation of most candidates to finding another job; Composition of the project team, integrating counsellors of different technical and HRM backgrounds; Willingness of BV10 and GAK to apply the rules of the Law on Unemployment flexibility; Dedication, enthusiasm and motivation of all parties involved in this “new and innovative” project; Successful cooperation between parties involved: RDM, Start, PES, BV10, GAK, and labour unions; Administrative effectiveness: creation of “one counter” taking over all administrative paperwork; Economic growth and increase of number of vacancies starting in 1994; Willingness of companies in the metal branch to retain knowledge, skills and experience of dismissed employees within the sector.

The most important barriers mentioned by the respondents are the initial distrust towards the outplacement agency by the RDM employees, the level of qualification and age, and legislation. Zwaan explains that a large part of the candidates were low-skilled and elderly employees, but “we’ve never attached much importance to these barriers. We considered them to be a given fact for which we needed to find a solution”. As for the legal barriers, Donald Heckscher explained that giving people the right to receive unemployment benefits also brings obligations. The question whether RDM employees that were offered a contract by Start and receiving unemployment benefits in periods of inactivity, could be characterised as “culpable unemployed” and proved difficult to solve from a juridical perspective. Another obligation of the Unemployment Insurance Act, namely the obligation for frequent application, also proved to be inconsistent with the “Work and Matching” programme that incorporates, for example, a period of grievance during which candidates do not actively search for another job. Heckscher states: “We should be able to deal with legislation in a flexible manner in order to realise these kind of projects”.

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The concept of “Work and Matching” has been applied to a great number of reorganisations in The Netherlands. Towards the end of the RDM-project in 1997, some 1500 dismissed employees from other companies were participating in a “Work and Matching” project. While initially mainly large companies offered these services to their employees, several branch agreements now also provide workers in SMEs with the benefits of the programme. Over the last years, following the strong decline of mass dismissals in The Netherlands, the programme has been applied to a lesser extent, with more emphasis being put on the reintegration of (partly) disabled workers and individual career guidance. Sources -

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Start Loopbaaninterventie [Start Career intervention] (1997). Eindrapportage RDM Werk & Bemiddeling [Final report RDM Work & Matching]. GAK Nederland bv, Afdeling Statistiek en Onderzoek [Industrial Inssurance Administration Office, department of Statistics and Research] (1997). Reïntegratie Door Maatwerk: een nieuwe Start. Effectmeting ‘Werk en Bemiddeling RDM’” [Tailor-made Reintegration: a new Start. Measurement of outcome of ‘Work and Matching RDM’”]. Amsterdam: Gak Nederland bv. RDM Technology, Sociaal Plan 1994 [Social Plan 1994].

Interview partners -

Ms Astrid Zwaan, Start Services, former intermediary/counsellor and team-manager of “Work and Matching”. Mr Rob Kars, Start Services, former manager of Start Services and one of the originators of the “Work and Matching” concept. Mr Donald Heckscher, former secretary of the insurance board for the metal- and electro technical industries (BV 10). Mr Gert-Jan den Besten, Dutch Christian Union (In Dutch: Christelijk Nederlandse Vakvereniging CNV) for the metalworking and electronics branch, union leader.

5.2 Examples of good practice: Kliq Employability – Trega 5.2.1 Characteristics of the company Originating from the Public Employment Sevices (PES), Kliq was founded in 1999 in response to the privatisation of the reintegration activities for unemployed and disabled workers in The Netherlands. Kliq consists of two major business units: Reintegration and Employability. Reintegration aims at supporting unemployed and disabled workers in finding a job. Employability aims at supporting transfers from one job to another. Outplacement, career counselling and coaching are the main activities of this business unit. Kliq Employability has become the new organisation for the Bureau Outplacement, the former outplacement agency of the PES. Kliq Employability does not aim at a specific target group or branch, and disposes of different products to support various groups of employees in their transfer to other jobs. In practice, much of the outplacement candidates of Kliq are low to middle skilled workers. The central aim of the outplacement programmes offered by Kliq is to further the self-efficacy of the candidates. Nadine Scheepers, career counsellor/senior coach at Kliq

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Employability, explains: “We find it very important that the people involved make their own choices. That way, individuals are motivated when they start working, and it offers inoculation against possible setbacks. However, we do see a tendency that ever more people start asking us for an active role in job search and matching. We are prepared to do this, but the point of departure remains the same: it is up to the individual to make a move, and we should not take over all the work”.

5.2.2 Overview of measures: components and scope Trega International B.V. is a producer of ceramic tiles located in Maastricht, in the Southern part of The Netherlands, that disposes of a European distribution network. Trega was formerly known as Sphinx Tiles that was founded over 100 years ago. Due to a change in strategy from being production-orientated to being sales-orientated, and a cut in returns on the German market, a large restructuring process was set in motion that ended in shrinkage of personnel in 2001. Some 90 employees were made redundant. At that time, Trega had very limited financial means. Hettie Kijzer, union leader at the Dutch Confederation of the Trade Union Congress (Federatie van Nederlandse Vakverenigingen, FNV Bondgenoten) for the process industry, states that the unions had feared a bankruptcy of the company. Despite the limited budget, the social plan provided for outplacement support. Paul Leenders, General Director ad interim at Trega, explains: “Given the tight financial basis, we have striven to find a way to make the reorganisation acceptable, both from an economical as from a social point of view”. The population of redundant employees consisted mainly of male, low skilled breadwinners of different age groups. Kijzer: “Sphinx used to stand for solidity in Maastricht. It used to be a typically settled down type of company, where people started working when they were fifteen years old and remained until their retirement. There was little fear of being booted, and if that was the case, people could count on Sphinx for doing that in a socially sound manner”. Having performed relatively simple routine tasks in a very specific branch, most of the candidates proved to be hardly employable at the time of their dismissal. Kijzer: “Outplacement is most important for the most vulnerable group of elderly, low skilled workers. They really need the support of an outplacement counsellor, because someone who has been working in a tile factory for 25 years, starting at the age of 15, really does not know how to apply for a new job”. Leenders explains that the choice for Kliq was, apart from budgetary considerations, largely based upon the profile of the population: “Because Kliq issues from the PES, they operate in a segment of the labour market that seemed to correspond best to our population of low skilled production employees”. The works council, the labour unions and the direction of Trega jointly voted for Kliq following presentations of four different agencies. The general goal of the outplacement programme was to support redundant employees in finding a new job. Employees were entitled to outplacement support for a maximum period of one year. Redundant worker could participate in outplacement activities on a voluntary basis. Most of the employees started the outplacement programme during their period of notice. The outplacement programme started with a general introduction, during which employees were informed about the content of the programme. Subsequently, intakes were held with all employees and individual profiles were drawn up in order to categorise the candidates into three possible forms of guidance of three, six and twelve

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months. Leenders comments that if Trega would have had more financial means the company would have opted for more individual, tailor made guidance. In the specific case of Trega, elements of the outplacement programme were clustered in order to cut down expenses. A five-day group training in application strategies and skills was organised, followed by training in approaching the labour market and looking for jobs and vacancies. This phase was followed by active job search and matching. Trega had specified in the contract that Kliq would support candidates in actively approaching potential employers. Kijzer states that this is an important aspect of the outplacement programme: “In my opinion outplacement generally does not pay enough attention to job hunting and matching. At Trega’s some people really are in need of more support than aid in writing a letter. They need a network and someone that helps them in searching for jobs”.

5.2.3 Evaluation Five months after the start of the programme, the final results cannot yet be evaluated. Kliq claims that their outplacement support usually leads to 85 % of the candidates finding another job within one year. Notable about the Trega case is how the company succeeded in arranging outplacement activities for its redundant employees with limited financial means. Clustering and standardising part of the outplacement activities, while still allowing for additional support for the most vulnerable employees, were efficient ways to save on costs. Sources -

Trega International B.V., Sociaal Plan Trega International [Social Plan Trega International], 8 June 2001.

Interview partners -

Mr Paul Leenders, Trega International B.V., General Director, Ad Interim. Mr Jan Tap, Trega International B.V., chairman of the Works Council. Mr Weck, Trega International B.V., Director HR. Mrs Hetty Kijzer, Dutch Confederation of the Trade Union Congress (Federatie van Nederlandse Vakverenigingen, FNV Bondgenoten) for the process industry, Union leader. Mrs Nadine Schepers, Kliq Employability, career counsellor/senior coach.

5.3 Examples of good practice: ASV – Solvay Chemicals, Herten 5.3.1 Characteristics of the company ASV is a joint venture of the Bureau Outplacement, which is the outplacement agency of the Public Employment Office (PES), and the temporary employment agencies Start and Vedior. Starting its activities in the beginning of the nineties as a commercial department within the PES, Bureau Outplacement has recently been integrated in Kliq. The Bureau Outplacement offers psychological guidance, practical training and support in job search and matching for redundant employees. The focus of attention is on the individual. Starting from the skills, experience and wishes of the candidate, the Bureau Outplacement offers both group activities and individual support in finding a suitable, permanent job. The Bureau Outplacement disposes of offices spread all over the coun-

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try. The staff consists of generally certified and/or professionally trained career counsellors. The Bureau Outplacement aims to target all different groups of workers, but is in practice mainly involved in the guidance and matching of low to middle skilled employees. While the Bureau Outplacement is mainly responsible for outplacement support and training, Start and Vedior give input in the ASV joint venture by bringing in their networks, thereby facilitating access to the labour market for redundant employees by providing active matching and vacancy offers.

5.3.2 Overview of measures: components and scope Solvay Chemicals is a large worldwide chemical group with headquarters in Belgium. The plant located in Herten, chosen as the present case study, was founded in 1936. Its core activity is the production of chlorine by means of mercuric electrolysis. Because of the policy of a number of European countries, starting in the eighties, to put mercury on a “black list” of chemicals, Solway was forced to end its production of chlorine in 1999. The company did not explore other means of production. During the fall of 1998, following a joint venture with the German BASF, Solvay announced the dismissal of 40 employees. Directly following the establishment of a social plan for this group, Solvay announced the closure of the chloride plant, and, as a consequence, the dismissal of another 140 employees in 1999. Over 180 employees of a total of 230 were dismissed. The remaining part of the staff continued working in the alkaline evaporate installation and the catalyst plant that were left intact after the restructuring. Of the group that was made redundant in 1999, a total of 112 employees of 50 years and older received a suppletion arrangement that guaranteed a reasonable level of income until reaching retirement. The remaining group of 38 workers was offered outplacement for one year, with a possibility to extend this period to two years following advice of the supervision commission that was in charge of a fair execution of the social plan. This group of workers consisted of a mix of low- and middle-trained technical employees (mean age 40 years), who had a relatively high tenure within Solvay. Wil Maenen, former Solvay HR Director in Herten, explains that Solvay used to be a company where several generations of employees spent their entire careers. Huub Mestrom, personnel officer at Solvay in Herten, comments: “Solvay had already been known as a plant that survived all storms. Therefore, the first reorganisation in 1993 had already come as a real shock to people.” Most of the redundant Solvay employees were technical operators and production workers who disposed of certificates and in-company training. This employability clearly facilitated their transfer to other jobs. Furthermore, during their career at Solvay, employees had performed rotating tasks with different machines that made them even more employable. The main task for ASV was to support redundant employees in re-orientation and in finding another suitable, permanent job. Frits Geraets, former chairman of the works council, explains: “The main goal of the outplacement programme was to guide people in their transfer to another job in such a way that they would still enjoy their new job after one year.” Peter Minkenberg, career counsellor at the Bureau Outplacement, comments: “Our main task was to guide people to finding a suitable job that they would enjoy. There is no use in forcing people into positions in which they run the risk of another negative experience. An enjoyable suitable new job can take away much of the pain of the dismissal.”

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Immediately following the announcement of dismissals, the HR department started active job search even before the negotiations about the social plan had been terminated. Hetty Kijzer, union leader at the Dutch Confederation of the Trade Union Congress (Federatie van Nederlandse Vakverenigingen, FNV Bondgenoten) for the process industry, states that the HR department has played a decisive role in supporting employees in finding new employment. The personal network of the HR director was deployed for job placement, regional companies were actively approached and employees were offered support in job search, basic application skills and administrative procedures. Once the social plan had been established, these activities were handed over to ASV. Maenen states that one of the reasons for people to put trust in support from the HR department was that this department was not only responsible for the execution of the reorganisation, but was at the same time its direct target. The mobility centre that had been arranged for by the HR department was handed over to ASV. The outplacement programme that was offered included both, psychological guidance in the mourning process and in re-orientation on the one hand, and practical support in job search and matching on the other. The mobility centre also took over part of the administration of employees, such as their inscription with the PES and the Insurance Administration Office. ASV took offices at the plant in Herten in order to enable employees to start searching for another job while still being employed by Solvay. In the mobility centre, search facilities and vacancies were being offered, and career counsellors of ASV were present to individually support employees on a weekly basis. Employees were offered the opportunity of performing job search activities during working hours. Minkenberg comments: “The advantage of our presence at the plant site was that people could perform their search activities in their familiar surroundings.” ASV started their programme by organising information sessions in which employees were informed about the content and possibilities of the outplacement programme. Geraets explains that these sessions were necessary to convince employees to participate in the programme: “Initially people were primarily interested in the money, but in the course of the reorganisation their focus of interest shifted more and more towards receiving good guidance and support in finding another job.” The information sessions were followed by an intake that subsequently formed the basis for delineating individual outplacement programmes. The psychological guidance in mourning over the job loss proved to be an important aspect of the outplacement programme in the case of Solvay. Minkenberg: “People felt grieved in their pride. They had always been working hard. We taught people how to deal with their job loss, both in group settings and in individual sessions. People can learn from each other and receive feedback from group members.” Geraets confirms that the group-orientated approach was important in supporting employees in the mourning process: “People got the opportunity to talk to and support each other. I personally believe that it has been an enormous help for people to be able to ventilate their emotions at work and to receive support from colleagues.” Another important aspect of the psychological guidance of employees proved to be their re-orientation. This aspect was addressed during the four-weeks group training and in additional individual talks with the counsellors. All employees could participate in the training on a voluntary basis. The training consisted of three main components: self-analysis, labour market analysis and practical training of application skills and job search. Geraets stresses the importance of self-analysis during the training. Minkenberg

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explains how this self-analysis formed the basis for further steps in the outplacement programme: “Clarifying to people who they are and what they want makes them selfconfident, which in turn makes it easier for them to search for a job and present themselves to potential new employers. One could also detect that especially elderly workers showed fear with regard to the labour market.” The outplacement support has proven to be important in making people shift their focus from past experiences to future possibiliies. Minkenberg: “When people have been working for the same company for a long time, they start to identify themselves with the company. The company has become part of their own identity. We need to support people in dissociating themselves from this company identity.” Geraets: “People need to turn the button and make the best of their situation. The joint support of the outplacement agency, the HR-department and the works council, and the social support between workers has been helpful in that process.” Minkenberg: “It is important that people don’t look back in resentment, but can look at future possibilities. That takes a lot of personal attention and clarity.” Apart from psychological guidance, employees were supported both during the group training and on an individual basis in application skills and job search as well as matching. ASV played an active role in stimulating the self-efficacy of candidates in their job search on the one hand, and in actively participating in acquisition and selection of vacancies on the other. Networks of Solvay, the PES, Start and Vedior have all been actively drawn on in order to find new jobs for the redundant Solvay employees. The job placement was facilitated by the favourable labour market and the regional shortage of process operators. The intensive collaboration among the different parties involved in the reorganisation is propounded by all respondents as being partly the reason for the success of the outplacement activities. The PES, Start, Vedior, the HR department, the works council, and the labour unions successfully cooperated in finding solutions for the redundant employees. Minkenberg: “The co-operation between the Bureau Outplacement and the HR-department was perfect. They [HR] were available at any time for deliberation and cooperated in a constructive manner to find good solutions for the employees.” The Bureau Outplacement followed all candidates for two months after having found another job. Minkenberg explained that employees having difficulties in their new job could be reintegrated in the outplacement programme.

5.3.3 Evaluation The outplacement programme has been very successful. Of the 38 participants in the programme, 35 found another job within one year. The most crucial factors for the success of the outplacement programme were: • • • •

Employability of redundant employees related to training, certification and taskrotation during their career at Solvay; Tailored guidance in outplacement support; Combination of stimulating self-efficacy of the candidate on the one hand, and shared responsibility in job search and matching between the candidate and the agency on the other hand; Combination of psychological guidance in the mourning process and reorientation, as well as practical support;

214 • • • • •

Ellen Heuven, Wilmar Schaufeli & Arnold Bakker Combination of group sessions for stimulating social support between candidates on the one hand, and individual support for enabling tailor made guidance on the other; Intensive, successful cooperation between Bureau Outplacement, HR department, Works Council, Public Employment Services (PES), Start and Vedior; Combination of networks of Solvay, PES and temporary employment agencies; Favourable labour market; Clarity on the finiteness of employment within Solvay.

One of the barriers that came up during the outplacement programme was the relatively elevated level of Solvay employees’ salaries, which made it difficult for candidates to find a similar job with the same level of income in another company. The financial means offered to dismissed employees in the social plan were partly aimed at compensating for this possible decline in salary. Another barrier mentioned by Minkenberg was that during most of the outplacement activities employees were still working at the Solvay plant. Therefore, participants did not always dispose of sufficient time to dedicate to job search activities, and were obstructed from disengaging themselves completely from the company and focus on future employment. After the actual dismissal, employees were entitled to unemployment benefits. Under the ‘New Deal’ (“Sluitende Aanpak”) policy, unemployed are offered a training programme, a subsidised job or a regular job within one year. Minkenberg explained that this policy sometimes intervenes with the guidance by the outplacement agency: “There exist many isolated programmes that are not interrelated. This means, for example, that the Insurance Administration Office can oblige people who are already participating in an outplacement programme to take certain steps to find another job. This makes things very difficult and confusing for the person involved.” Sources -

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Dobber, L. (1999). Solvay Chemie zal nooit meer swingen [Solvay Chemicals will never swing again]. FNV Magazine, pp.24-26. Kroniek, Personeelsblad van Solvay Chemie B.V. [Kroniek, Staff magazine of Solvay Chemicals] (January 2000). De Soda. Laatste uitgave van de Kroniek. [The Soda. Last edition of Kroniek]. Roermond: Solvay Chemie B.V. Bureau Outplacement (30th Oktober 2001). Evaluation [Evaluation]. Roermond: unpublished letter of Bureau Outplacement to Solvay. Solvay Chemie B.V, Sociaal Plan [Social Plan], 15 June 1999.

Interview partners -

Mr Wil Maenen, Solvay Chemicals, former HR director, currently plant manager at Herten. Mr Huub Mestrom, Solvay Chemicals, HR-personnel officer. Mr Frits Geraets, Solvay Chemicals, former chairman of the Works Council. Mrs Hetty Kijzer, Union leader at the Dutch Confederation of the Trade Union Congress (Federatie van Nederlandse Vakverenigingen, FNV Bondgenoten) for the process industry. Mr Peter Minkenberg, career counsellor at the Bureau Outplacment.

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5.4 Examples of good practice: Randstad Mobiliteitsdiensten – Ericsson 5.4.1 Characteristics of the company Randstad Mobility Services (Randstad Mobiliteitsdiensten, RM) are an independent business unit that is part of Randstad Holding. Randstad Holding is a worldwide serviceprovider of flexworkers. RM is specialised in guiding employees in the transition between jobs. RM has been developed as a separate business unit within Randstad Holding in response to demands by clients to not only provide flexworkers, but also through- and outflow of staff. The core activity of RM is group outplacement, although individual guidance and matching has received growing attention over the last two years. Knowledge of group dynamics is explicitly used as an instrument to support dismissed employees in finding new jobs. Furthermore, active job search and matching are integral parts of the RM services. Compared to other outplacement agencies, RM offers very pragmatic guidance to their candidates, putting greater emphasis on job search and matching and less on psychological and emotional guidance of employees (for example, regarding the mourning process after job loss). RM offers tailored guidance that fits candidates’ individual profiles. RM disposes of four offices staffed by approximately 70 permanently employed job counsellors. Furthermore, RM deploys a network of free-lance counsellors. Most of the counsellors have a background as an intermediary in a temporary employment agency. The counsellors are usually located at the domain of their clients.

5.4.2 Overview of measures: components and scope Ericsson is a worldwide supplier of telecommunications, providing everything from systems and applications to mobile phones and other communication tools. Starting off as a Swedish company in 1876, today Ericsson operates in more than 140 countries around the world. In The Netherlands, Ericsson includes two juridically distinct entities: a research and development organisation (ELN) and a sales organisation (ETM). Because of globalisation and the decline in the telecom market over the past four years, several large restructurings have taken place worldwide, implicating the redundancy of thousands of employees. In The Netherlands, over 120 employees were dismissed in 1998 when the production department was closed down. In the social plan for this group of mainly lowskilled employees with extended years of tenure, based in a region with a relatively elevated unemployment rate, much emphasis was put on supporting dismissed workers in finding another job by offering outplacement activities. During the same year, Ericsson also dismissed a group of young, mainly academically trained employees. The social plan that was drawn up for this group only contained financial compensations. Rob Salman, Director Human Resources of ELN, explains: “At that time, with the favourable labour market, it was very easy for high skilled employees in the Telecom branch to find another job. People were absolutely not interested in receiving outplacement.” These examples show that Ericsson strives for tailored solutions for specific groups of redundant employees. The subject of the present case study is the most recent reorganisation that has started in July 2001, where some 160 employees were made redundant on a total popu-

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lation of 2,500 at that time. This group consisted of mainly highly educated, young employees, with only one fourth being over 40 years old. The social plan that has been established consisted of both financial compensation and outplacement activities for employees over the age of 40. Employees were given the opportunity to participate in an outplacement programme of RM during their six-month period of notice on a voluntary basis. Central to the outplacement activities offered was a differentiation in guidance for different age groups. In accordance with the social plan, three groups were defined for whom differentiated support was offered by RM: • • •

employees under age of 40 could make an appeal to a help desk and subscribe to relevant workshops; employees between 40 and 50 years of age were offered guidance and matching for a period of six months; employees over age 50 were offered guidance and matching for a period of one year.

Salman explains that, apart from budgetary reasons, Ericsson has opted for RM because of their group-orientated, pragmatic approach, in which active job search and matching receives dominant attention over psychological guidance in the mourning process and re-orientation. The affiliation with the target group and the possibility of modular training for the group of employees younger than 40 years were additional arguments for Ericsson to choose RM. The programme started with an information session, the day after the notification of dismissal, in which all employees of over age 40 (40+) were informed about the approach and method of RM. Subsequently, intakes were held with all 40+ employees. Individual profiles were drawn up in order to establish a tailored programme for each candidate. Furthermore, a three-day mobility group session was organised in which candidates were trained in making a self-analysis, recent labour market developments, and application strategies and skills. For the group that was younger than 40 years, a help desk was set up at the Ericsson domain, offering practical application support and advice in approaching the labour market. Furthermore, this group had the possibility to subscribe on a voluntary basis to a number of workshops regarding personal analysis, basic application techniques, networking and salary negotiations. Additionally, Ericsson organised a so-called “company day” during which twenty companies presented themselves. Salman explains that this day proved to be successful in motivating redundant employees to quickly turn their heads to future possibilities and employment, and in making the social responsibility and commitment of Ericsson visible to its employees. For the employees over age 50 (50+), the programme started with group sessions and individual talks with a counsellor. Support and group training were offered to candidates in dealing with the job loss. Additionally, specific training programmes were organised for this group bearing themes such as self-employment, second half career guidance and communication skills. The remaining part of the programme for the entire group of 40+ was divided into individual guidance and group activities. Candidates were individually assisted in drawing up an inventory of knowledge, competencies, and wishes, analysis of vacancies and application skills. The so-called “job clubs” aimed at exchanging experiences and

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stimulating social support between candidates. During these job club meetings, participants were informed about themes such as networking, psychological tests and legal aspects. This phase of drawing up personal profiles and labour market analysis usually took about three months. In the following step of active job search and matching, counsellors supported candidates in actively approaching potential employers. Candidates could draw on the networks of both Ericsson and Randstad, and deploy traditional job search methods such as newspapers and the Internet. Lilian in ‘t Zand, regional manager at RM, explains: “We (RM) do not only train the candidate in developing application skills, but we also divide the ‘homework’. Since we are very much focused on the labour market, we consider it to be our task to actively acquire vacancies and to approach the market. In this division of homework between the candidate, who also bears a proper responsibility, and RM, we clearly distinguish ourselves from more traditional outplacement agencies.” Additionally, optional instruments such as psychological tests, secondment, experimental and temporary employment and job specific training were offered to support the candidate in finding another job.

5.4.3 Evaluation Five months after the start of the programme, the final results cannot be evaluated yet. RM claims that the method deployed for Ericsson usually leads to 90% of the candidates finding another job within one year. The combination of mainly group-orientated, pragmatic support and training on the one hand, and co-sharing responsibility in active job search and matching by the candidate and the agency on the other, proves to be successful. In ‘t Zand explains that the personal motivation, discipline and actionreadiness of the candidate, and clearness and stimulation on the side of the ex-employer are other crucial factors contributing to a successful outplacement. Carla Kiburg, union leader of the Dutch Confederation of the Trade Union Congress (Federatie van Nederlandse Vakverenigingen, FNV Bondgenoten), explains that quickly changing people’s mindsets from mourning to future employment should be an important element of the outplacement programme: “It is very important that outplacement counsellors support candidates in changing their focus from the trouble that lies behind them to future possibilities. If people remain in a mourning mindset over their job loss for too long, it will take much longer for them to get back to work.” The RM programme seems to be less suitable for candidates who are in need of extensive psychological guidance in their grieving process and re-orientation. The style of an agency and the content of the activities offered, which in this case is very pragmatic, should ideally match with the needs and background of the target group involved. Kiburg: “Some outplacement agencies are suitable for blue collar workers, others more for white collar employees. It is important to know which methods, style and network they deploy. We keep records of which agency is suitable for certain types of jobs. The quality also varies with the region agencies operate in.” Obviously, one best method does not exist. The differentiation in guidance by age group seems to have been successful for the specific target group of highly employable Ericsson employees in a favourable labour market. However, these possible effects cannot be generalised to other situations. Another element in the social plan is the differentiation in periods during which different age groups are entitled to outplacement support. Since the possibilities of finding another employment decline with age (a problem for elderly workers), this seems to be a

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logical differentiation. All respondents agree that is it important to have finality in the period during which candidates are supported. Kiburg: “In current negotiations, I try to negotiate outplacement support for six months with the possibility of extending this period if necessary. This way a safety net is created while simultaneously taking into account the need of finiteness in terms of costs for the employer.” One of the structural barriers that has come up in the Ericsson case is that the Unemployment Insurance Act obliges (future) unemployed to actively deploy all opportunities to find another job. This implies that a dismissed employee is legally more or less forced to accept outplacement activities when offered by the ex-employer, although voluntary participation is of utmost importance for success. A possible sanction of not accepting outplacement support is the capping on future unemployment benefits. Kiburg explains that an obligatory participation in an outplacement programme in previous Ericsson restructurings had been negatively evaluated by the agency involved. A final aspect is the importance of separating temping activities from outplacement activities. Kiburg: “It is very important that within an employment agency, outplacement and temping activities are organised under two clearly distinct business units that should be staffed by different people. The outplacement organisation can profit from the use of the network of the temporary employment agency, but it should be very clear for the candidate that he or she is not inscribed in a temporary employment agency, but is being guided by an outplacement agency that uses the facilities of the temporary employment agency.” In ’t Zand comments on this aspect: “In our information sessions we clearly explain that we represent a separate business unit within Randstad, and that we focus on permanent jobs. Our advantage is that we represent the labour market, which is very important to many people.” Sources -

Ericsson, Sociaal Plan Ericsson Nederland [Social Plan Ericsson The Netherlands], 25 June 2001. Randstad Mobiliteitsdiensten (June 2001). Concept projectvoorstel voor Ericsson door Randstad Mobiliteitsdiensten [Concept project proposal for Ericsson by Randstad Mobiliteitsdiensten]. Den Bosch: unpublished.

Interview partners -

Mr Rob Salman, Ericsson EuroLab Netherlands B.V., Director Human Resources.

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Mr Cor Timmermans, Ericsson, member of the Works Council.

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Mr Hank van ‘t Wout, Ericsson, chairman of the Works Council.

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Mrs Carla Kiburg, union leader of Dutch Confederation of the Trade Union Congress (Federatie van Nederlandse Vakverenigingen, FNV Bondgenoten).

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Mrs Lilian in ‘t Zand, Randstad Mobiliteitsdiensten, regional manager.

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Mr Peter Minkenberg, career counsellor at the Bureau Outplacement.

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5.5 Conclusion as to what is “good practice” Outplacement agencies generally offer similar basic elements in their services. A general introduction and intake, establishment of a personal profile, psychological guidance in the mourning process and in self analysis, support in labour market analysis, training in application skills, and support in job search and matching, and follow-up care are basic activities that are integrated in the case studies described here. The agencies put different accents in terms of group vs. individual support, stimulating self-efficacy vs. active support in job search and matching, and psychological guidance vs. pragmatic support. Integrating group elements in the outplacement programme can have a positive effect both in terms of task-orientated and emotional support among candidates and in terms of reducing the costs for the employer. Individual elements meet the need for tailored guidance and for considering specific needs and wishes of the candidate. The right balance between group and individual elements depends on the profile of the target group involved on the one hand and on the budgetary possibilities on the other. In a similar way, it is important to find the right balance between psychological and practical support. Need for psychological guidance in the mourning process and in supporting candidates to disassociate themselves from the former employer and focus on future possibilities depend on the background of the individuals involved. For a young, highly employable academic job hopper, the need for this type of psychological support is rather different from that of a low-skilled production worker who has been working in the same factory for thirty years. This holds the same for the need of practical support in training application skills and approaching the labour market. The need for psychological support in re-orientation depends both on the individual needs and wishes, and on the demands in the labour market. If there exists no more need for the type of skills that individuals have deployed during their careers, psychological guidance is needed in supporting the candidate to re-orientate on other possible jobs. As for the right balance between stimulating self-efficacy and taking over jobhunting activities, once again the profile and background of the individual is decisive. In The Netherlands, the outplacement agencies that are part of temping organisations tend to put more emphasis on job hunting than traditional outplacement companies, that generally put the emphasis on psychological guidance and on stimulating self-efficacy. The case studies show that a co-shared responsibility in job search and matching between the candidate and the agency seems to be effective in many cases. Therefore, it is important that the specific network of the agency matches with the profile of the population involved. There is no one best formula for supporting redundant employees in their transfer to another job. It is important that the style of the counsellors, the network of the agency and the methods deployed match with the specific profiles and needs of the target group involved. Furthermore, tailored guidance that matches the specific needs and profile of the individual candidate, in terms of psychological support, practical aid, and training is crucial for the success of the outplacement programme. In some cases, such as the example of the highly employable Ericsson employees, support can be restricted to thematic workshops. The favourable labour market has risen the question whether outplacement support should only be offered to vulnerable groups, such as low skilled, elderly workers. Apparently, not all dismissed employees need outplacement support

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for finding another suitable job. However, outplacement could be integrated as a standard in the social plan as a safety net that employees can use on a voluntary basis. The profiles of advisors involved in outplacement activities vary from professionally trained, certified career-counsellors to former HR- and temporary employment agency professionals, or advisors with technical backgrounds that match with specific skills and profiles of the population involved. Several case studies show a successful combination of all three types of counsellors. The integration of a representative of the (former) employer who is familiar with the specific company culture and can solve practical internal problems proves to be successful in some cases. The available budget, historical relations (e.g. in providing flex workers), method of approach and style of the counsellors involved are the most decisive elements in the choice of an agency. Involving labour unions and the works council in this choice can be important for their role in convincing dismissed workers to participate and put confidence in outplacement support. The case studies show that an intensive collaboration among different parties involved in the outplacement process can have a synergetic effect on successful job placement. Joining the forces of outplacement councellor, (former) employer, governmental authorities such as the Insurance Administration Office and the Public Employment Services can lead to an enlargement of labour market possibilities by combining different networks and overcoming legal barriers. Involving the former employer (or company site) in the outplacement process can be a way to show social responsibility towards employees. Active supervision and support of outplacement activities is in some cases organised under the supervision of a special steering committee. In other cases, the HR-department is made responsible for these tasks. Another element that improves the chances of a successful outplacement programme is the role of the employer preceding the dismissals. The most crucial aspect that needs to be underlined is employability. Regular broad-based and technical training, certification and taskrotation clearly improve the chances of an outplacement candidate of finding another job. Furthermore, a fair, human execution of the reorganisation can support redundant employees in making a positive start in the outplacement process. Finally, an important aspect for the (former) employer is to provide clarity about the terms and date of dismissal. Ambiguity obstructs outplacement candidates from shifting their focus to future possibilities with other employers. An active involvement of the (former) employer can be realised by establishing a steering committee consisting of representatives of the employer, the employees and the unions to supervise and support the progress of the outplacement process. Another instrument is integrating incentives in the social plan that make it financially rewarding for the company to support candidates in a quick transfer to other jobs. This does, however, bring about the risk of pressure, leaving the candidate insufficient possibilities to deal with mourning and re-orientation. In the case studies, several barriers become apparent that can impede on a successful execution of outplacement programmes. Outplacement candidates receiving unemployment benefits are faced with obligations deriving from the Unemployment Insurance Act that can be conflicting with elements in the outplacement programme. An example is the obligation to frequently apply for jobs while candidates may be in the middle of a mourning process or re-orientation. Furthermore, under the so-called “New Deal”-policy, unemployed are offered obligatory guidance and training that can be

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conflicting with the methods and guidance of the outplacement agency. A possible barrier on the side of the employees involved is the lack of motivation to participate in outplacement activities. All respondents stress personal motivation of candidates as one of the most crucial factors for a successful outplacement programme. Participation in such programmes should therefore preferably be on a voluntary basis. Obliging employees to participate severely reduces the chances of success. Extensive information sessions and the role of labour unions and the works council are important in convincing employees to put their trust in outplacement support. The lack of motivation can be provoked by ambiguity about the dismissal date and about possible internal replacement. Another reason for candidates not to be motivated is the so-called ‘golden cage’. The continuation of pay for a certain period, or a financially rewarding suppletion arrangement can be more attractive than the salary offered by a potential new employer.

6

General discussion

In the course of this part of the SOCOSE project, a total of 52 employees have been interviewed. A group of 25 workers in insecure job positions were asked what organisational elements helped and obstructed them, in adequately coping with their insecurity. Another group of 27 former outplacement candidates were questioned about their former employer and about their experiences with the outplacement support in overcoming the dismissal shock and in successfully finding another job. Finally, seven Dutch companies were selected for the description of innovative case studies of which four are reported here. Several parties involved (e.g. labour unions, HR managers, general managers and outplacement counsellors) were asked which elements could set examples for other companies that want to deal with reorganisations and dismissals in a human and fair manner. The Netherlands have known a relatively long and successful history in outplacement counselling. Moreover, collective bargaining generally does not only include curative measures such as outplacement, but also provides for preventive measures such as training and job rotation that further the employability of workers and facilitate their transfer to other jobs in case of dismissal. This general tendency of focusing on life-time employability also becomes apparent in the interviews with respondents who have or had to deal with job insecurity and (potential) dismissal. Our study shows that both employees and companies appreciate outplacement as being an important measure in supporting individuals in their transfer to another job. However, they also stress that outplacement should rather be part of an integrative set of instruments aimed at furthering the employability of individuals. Regular broad-based and technical training, certification, career management, personal development plans and task-rotation clearly improve the chances of an outplacement candidate to find another job. An ideal organisational setting with a well-developed employability-policy should even make the use of outplacement as a curative instrument unnecessary. Our study shows that employable workers were generally well equipped to adequately cope with job insecurity and occupational transitions. Employability is usually defined in terms of objective features such as level of education, skills, working experience and age. However, our study has clearly shown that “softer” features such as self-efficacy and personal well-being are extremely impor-

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tant in determining the indidivual level of employability. Employees who feel confident about their own capacities and skills and about their abilities to find another job, have fewer problems in dealing with job transfers than workers who are less self-confident. This specific aspect of employability is positively related to the evaluation of fair and human treatment by the employer. Individuals who feel having been treated in a fair manner by their former employer need less time to cope with mourning over the past, and are able to focus more easily and with more self-confidence on future jobperspectives. Thus, a fair and human treatment in the context of reorganisations and dismissals can be an important way for companies to further the employability of their redundant employees. The results of the case studies have raised the question whether outplacement support is necessary for everybody, or should rather be restricted to vulnerable groups such as low-skilled, elderly workers. The best way to deal with this question is to integrate outplacement as a standard in collective agreements or social plans, as a kind of safety net that workers can use on a voluntary basis. Also, the necessary period of outplacement greatly varies in the judgements of employees. The support should provide workers with sufficient support and security after their dismissal, but should not have a negative effect on the motivation for job-search (i.e. the golden cage). The periods recommended varied between six months and two years (for vulnerable groups). Furthermore, the results of our study show the differences in need of support and type of support when comparing various individuals and groups of workers. Some (groups of) employees benefit most from practical training of basic application skills, while for others support in psychological stabilisation and furthering of self-efficacy prove to be effective. The Dutch outplacement market provides a wide variety of agencies that put different emphasis in their services in terms of psychological vs. pragmatic support, active support in job search vs. stimulating self-efficacy, and group vs. individual support. There is no one best way or magic formula for the effectiveness of outplacement support. The network of the agency, the methods deployed and the style of the counsellors should best match the specific profile and needs of the individuals involved. Therefore, tailored guidance is a crucial prerequisite for the success of outplacement. Our study points out the vulnerability of specific groups of workers in the current dynamic labour market. Elderly workers with extended years of tenure generally feel less secure about their position on the labour market than their younger job-hopping colleagues. More specifically, the group of workers between 45 and 55, who generally do not benefit from favourable arrangements for elderly workers but have reduced chances of finding another job, proves to be particularly vulnerable in the context of reorganisations. The results of our empirical study show that Dutch companies generally dispose of an extended set of measures to support their workers in both furthering their employability (e.g. training, internal mobility etc.) and in helping them during job transitions (e.g. material compensations, outplacement etc.). However, a less visible and tangible element of support, that is communication, clearly needs more attention. Thus, although the formal, legal and material parts of reorganisations seem to be relatively well developed in The Netherlands, the aspect of human, fair and open communication still needs a lot of improvement. Open, honest, clear, timely and personal information prove to be crucial for both reducing the stress of job insecurity and dismissal, and for focusing

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more easily on future perspectives. Fair and human communication provokes less frustration and anger at the beginning of the outplacement programme, and thereby has an important effect on the duration of the support needed. A good and intensive collaboration among different parties involved (outplacement counsellor, employer, governmental authorities, and public employment services) can have a synergetic effect on successful job placement. Joining the forces of these parties can result in an enlargement of labour market chances and in overcoming legal barriers. An active involvement by the (former) employer in the outplacement process can be a way of showing social responsibility towards employees. Finally, an important aspect for the (former) employer is to provide clarity about the terms and date of dismissal. Ambiguity obstructs outplacement candidates from shifting their focus to future possibilities with other employers.

Job insecurity and successful re-employment: Examples from Italy Sebastiano Bagnara & Leonardo Bargigli

1

Introduction ................................................................................................. 227

2

Qualitative study: Description of sample .................................................. 227

3 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.3

Qualitative studies: employees in insecure jobs and successfully re-employed ................................................................................................. Description of results of the subsample “insecure jobs” ............................... Situation in the present company .................................................................. Aspects of justice .......................................................................................... Organisational vs. individual responsibility .................................................. Employability ................................................................................................ Overall assessment ........................................................................................ Description of results of the subsample “successfully re-employed” ........... Situation in the former company ................................................................... Aspects of justice .......................................................................................... Responsibility ............................................................................................... Employability ................................................................................................ The outplacement measures .......................................................................... Overall assessment ........................................................................................ Conclusions ...................................................................................................

4

Cases of good practice: Description of sample ......................................... 258

5 5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.2.2 5.2.3

Cases of good practice in outplacement/replacement .............................. Examples of good practice: Galbani ............................................................. Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: ASSO ................................................................ Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation .....................................................................................................

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258 258 258 259 261 263 263 264 266

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5.3 5.3.1 5.3.2 5.3.3 5.4 5.4.1 5.4.2 5.4.3 5.5

Examples of good practice: Scherer .............................................................. Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: Mawer............................................................... Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Conclusion as to what is “good practice”......................................................

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Introduction

The following report presents the main results of the empirical research lead by the Italian team for the second work package of the SOCOSE project. The analysis is divided into two main parts as described below. The report presents a qualitative analysis based on extensive interviews with a sample of 50 workers. In particular, after a brief description of the sample (chapter 2), the main results are presented in chapter 3, which refer to two different groups of 25 subjects each: the first consisted of workers who ran the risk of losing their jobs, or “insecure workers” (3.1); the second of workers who, contemporaneously with dismissal, had participated in an outplacement service with the support of a specialised agency, and were subsequently successfully re-employed (3.2). The analysis presented serves a double purpose: i) for the first group (insecure workers), it was to point out what effects the insecurity had on the workers, what the relationships between the sense of insecurity and the reactions of the workers were, as well as the policies of the firms; ii) for the second group (successfully re-employed), the purpose was to define the factors that had positively influenced the possibilities of re-employment for the workers, considering both, the subjective resources of the individual workers as well as the instruments utilised by the firms. In addition, the report presents a detailed description of four cases of outplacement, realised in Italy between 1997 and 2001. For each of these, the analysis comprises three main topics: i) the characteristics of the agency1 that realised the intervention in terms of dimension of business, experience, qualification of counsellors, outplacement methodology and evaluation systems; ii) a general description of the intervention, in regard to its main components – psychological consulting, job search support, etc. – and objectives; iii) a general evaluation of the intervention. The main aim of this chapter is to identify one or more models of best practice – in a sense that will be better specified in chapter 5.5, by assessing strong points and weak points in a sample of outplacement interventions that represent some of the most important ones in the Italian development of outplacement.

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Qualitative study: Description of sample

The qualitative analysis presented in this chapter was carried out for each group on the basis of 25 open qualitative interviews, which attempted to reconstruct the principal aspects of the experiences of the interviewees. Interviews took place between April and November, 2001, and the interviewees were contacted with different strategies. For the insecure workers sample, interviewers had created a list – based on news given by national or local media – of companies at risk of mass dismissals in different parts of Italy. From this list, the most interesting cases were selected, and then the interviewees were contacted both with the help of intermediaries, mainly unionists, or directly by going to the job-place. For the successfully re-employed sample, interviewees were contacted thanks to the help of some outplacement agencies, which firstly got in contact with 1

By “agency” we mean the outplacement company and the subjects realising the outplacement interventions, independently of the legal status held.

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some of their former clients, to check if these would agree to have the interview performed; in case of a positive response, the name and telephone number was passed on to the interviewer. The main selection criteria for the interviews were geographical location on one side, and branch of the dismissing company on the other. From the first point of view, the sample was selected in order to include people living in different regions, in the North (Piemonte, Lombardia), in the central regions (Lazio) and in the South (Abruzzo, Campania). From the second point of view, we had to distinguish between the two different groups. For the successfully re-employed the selection privileged primarily industrial companies, which generally use outplacement services more extensively than service companies in Italy, and in particular electronics and computer manufacturing, a branch which has experienced particular difficulties during the last two years; different industrial branches were included (food industry, chemistry, textile, construction) which are subject to recurring crises in Italy. For the insecure workers, the selection was done with the intention to trace as far as possible the branch distribution of the other sample, so as to ensure a better comparison between the two. These arrangements were intended to exclude some evident biases – e.g. those coming from interviewing people all working in the same company or all living in the same area. The composition of the two groups of interviewees was fairly homogeneous as far as personal characteristics were concerned. Hereafter, the principal characteristics of the two samples will be summarized – age, family situation, education, duration of the work relationship, etc. – which will be useful in better contextualising the subsequent analysis. In fact, the evaluations and perceptions of the interviewees depended heavily on the individual situation: for example, whoever had a family generally complained of greater stress with respect to the possible loss of his/her job, which was due to a sense of responsibility in regard to his or her family; whoever was older expressed little faith in being able to be re-employed; whoever had always worked for the same firm showed less capacity for initiative and a lesser acquaintance with the labour market, etc. The age of the interviewees of the group of insecure workers was between 25 and 53. Among these, however, there was a prevalence of those over 40, who represented 14 out of the 25 interviewees; while only 2 of those interviewed were younger than 30. The division according to sex was slightly favourable to men (14, against 11 women); as far as the family situation was concerned, there was a majority of married subjects (18 out of 25) and those with children (16 out of 25). The level of education of the sample of insecure workers was medium to high, with a majority of subjects holding a high-school degree (13 out of 25), with 5 university graduates, and only with 7 subjects of lower qualifications. Correspondingly, the white-collar workers prevailed over the blue-collar workers (14 against 11). The relationship of the interviewees of this first group with the present firm had lasted for many years in the great majority of cases: on an average, the interviewees had worked in their present firm for 14 years, only in two cases the duration of the relationship was less than 10 years. As far as company size was concerned, the firms in question varied greatly: there were both multinationals and small firms, even if the average size corresponded to the Italian reality (368 employees). The firms belonged to a wide variety of sectors, concentrated particular in electronics and computers (6), textiles (4), and mechanics (3), as far as industry was concerned, while a relevant number of them (5) were active within the service sector.

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The age of the interviewees of the group of workers successfully re-employed was between 30 and 54; also among these, those over 40 were predominant, and represented 15 interviewees out of 25. In this group, no one was younger than 30. Division according to sex titled in favour of men (15, vs. 10 women), while as far as the family situation was concerned, the married subjects were again in the majority (15 out of 25), as were those with children (17 out of 25). The level of education of the sample of workers successfully re-employed was medium to high, with a majority of subjects with a highschool degree (14 out of 25), with 7 university graduates, and only with 4 subjects of lower qualifications. Correspondingly, the white-collar workers prevailed over the bluecollar workers (15 against 10). This distribution mirrored the greater diffusion of outplacement in Italy within the first category of workers. The relationship of this group with the present firm had lasted in the great majority of cases for only a few years – on an average, those interviewed had worked for their present firm for 2 years – and therefore the outplacement intervention was still quite recent. As far as company size is concerned, the firms in question varied greatly: both multinationals and small firms were represented, though the average size was smaller with reference to the group of insecure workers (134 employees). The firms belonged to a wide variety of sectors, concentrated in particular in electronics and computers (6), the food sector (3) as regard industry, while a relevant number of these (9) were active within the service industry.

3

Qualitative studies: employees in insecure jobs and successfully re-employed

3.1 Description of results of the subsample “insecure jobs” 3.1.1 Situation in the present company In this section we shall proceed to reconstruct the situation as it was in the firm where the interviewees worked, so as to clarify the psychological impact of the situation of insecurity linked to the possibility of losing one’s job. It will be particularly interesting to verify the qualitative relationships between the reactions of the individual workers and firm policies. It will thus be possible not only to formulate useful indications for managing restructuring situations, but also to evaluate how developed the instruments used by Italian firms are. In most cases (18 out of 25), the interviewees belonged to firms that had experienced dismissal phenomena in the past. In several cases, these were situations that dragged on in time, with recurring crises. In particular, these situations involved state companies that were privatised during the 1990s: “We ... were sold by the state to an American corporation. After two or three years, [it] … sold the branch of the firm … which dealt exclusively with computers … to another corporation …. This corporation has been with our firm for about two years now. After one year, it had another restructuring” (IT-IJ8, 61-67). In other cases, the dismissals involved the interviewees with vexed dynamics: “The boss called the president … who told us that he was dismissing us for these reasons: if the firm was not able to produce the quantity of potatoes at that price, it would close. So the condition was dismissal (with the guarantee of being the

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first to be rehired, seeing that we had been working there for 18 years) … and that’s what happened … After a while, we were rehired, after a month and a half” (IT-IJ15, 40-48). In all cases, past dismissals were linked to restructuring processes following market difficulties, acquisitions or mergers, which mostly gave rise to collective dismissals. However, there was no lack of cases in which the reorganisation did not involve dismissals, but the reorganisation of the professional prospects of many workers – above all among the most qualified – by persuading them to resign, as emerges from the following interview: “Several people I know left voluntarily, because they found something better: above all, they went to smaller firms where they had to work more, but were paid much better” (IT-IJ1, 42-44). The situation of existing crisis will probably involve dismissals in the near future for most of those interviewed (14 out of 25). Strong fears exist even among those who do not predict imminent risks of dismissal. In this regard, the opinion manifested by a woman who worked in a firm where privatisation was under way, is very interesting: “… It’s a truly huge transformation! … however, this transformation has had an effect only on the way in which we work. You know, many colleagues … from one day to the next have found themselves moved from one department to another, and for some of them this has meant … how should I say … a loss” (IT-IJ4, 49-54). Insecurity is not always generated by the concrete possibility of dismissal. It can also be caused by a professional reorganisation, which makes the person feel weaker on the whole in his or her work environment. The majority of those interviewed (16 out of 25) stated that the firm in which they worked was not looking for alternative solutions to possible dismissals. Even in the frame of this small sample, the lack of development among Italian firms was confirmed that would result in actions being inspired by the notion of social responsibility. To the contrary, in many cases difficulties emerged also in obtaining from the firms a respect of their legal commitments, as is crudely described in one interview: “The firm … did not recognise anything to us. Indeed, I can also add [that] we were not paid for the months of December and January. They didn’t pay us … half the 13th month, and we are waiting for … our severance pay. So, here we are in June, not having been paid one cent from December on. … Our firm could afford to close in the black, because they kept the money in their pockets, laid us off, and didn’t pay us what was owed us” (IT-IJ1, 100-110). This impression was confirmed from the qualitative point of view by two considerations: 1. The interviewees considered it normal that the firm did not take care of them in the case of dismissal – as efficaciously synthesised in one interview: “The culture does not exist” for finding alternative solutions (IT-IJ14, 22). – 2. The alternatives sought only rarely concerned the reinforcing of the workers’ employability. In fact, the instruments used by the firms were those of reducing the working hours through “solidarity contracts”- namely, a decrease in hours agreed upon with all the workers, accompanied by a reduction in pay, and early retirement for the older workers. No clear indications emerged from the interviews when passing to a consideration of the eminently subjective aspects of the situation of job insecurity. The propensity to a greater collaboration among colleagues was similarly widespread with respect to the behaviour of competitiveness and disagreement. The relationship between a deterioration of the work environment and the behaviour of the firm’s management is particularly evident in the following interview: “We had always heard rumours about dismiss-

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als. From the very beginning … they struck terror … in the workers …. They told people to work more hours … they didn’t force us with a whip, but … they drove us to always hold on tightly to this job … Each one … of us was worried about his job” (IT-IJ1, 5663). The pressures put on the workers by the firms emerged in various interviews, like the following: “Nowadays, they submit us to even nine or ten hours of work. The other day, I worked for ten straight hours, from seven in the morning I didn’t ever stop, not even for lunch. I can’t say that the manager keeps us under pressure, because he’s a young man, too. He’s a good person, for heaven’s sake, indeed he’s brilliant: He’s just twenty-eight, very well-educated, and knows how to do his work. He receives orders; he’s young, and is subject to pressure; and if the branch doesn’t do well, it’s his fault, and he wants to get ahead. It’s a chain effect” (IT-IJ5, 63-70). In these cases, the desire to react is added to the insecurity, which often generates situations of great frustration. Moreover, the lack of trust between the firm and the workers can determine uncontrolled fear, which in turn often generates situations of downright reciprocal distrust among the workers: “People work more attentively, they’re nervous…there’s more selfishness: I do my own work, and don’t care about the others; it’s difficult” (IT-IJ1, 49-51). “Relationships among colleagues have been considerably upset. We have experienced a fear to share the results of our jobs with our colleagues, and a refusal to give help to them ... for fear of ... not having any more contractual powers left” (IT-IJ9, 109-112). Only in one case did an attempt for an active reaction emerge, one that was based on the workers’ responsibility and on the collaboration and interchange with the firm’s management, which, however, seemed to divide the workers (IT-IJ5, 72-89). In fact, collaboration seemed to exist at the expense of the older workers, who were probably not able to cope on their own with the challenge of the situation, and therefore were stigmatised by their younger colleagues. On the other hand, the younger generations are often characterised by a condition of uncertainty that is structural, as is pointed out well by this interview, describing a precarious job situation: “There are unquestionably periods in which you have a little tension, because then, with the fact that on the one job they renew my contract every three months, and on the other job, every six months, practically every three months there’s a renewal of the contract … In contrast to other people there, who live with their families and therefore don’t have an absolute need to work – if they stay home for three months, nothing happens – if I’m laid off for three months, I end up not being able to pay the rent … This is definitely not an easy way to live” (IT-IJ11, 127-134). The emergence of competition between generations represented a strong negative element, since it exposed the weaker subjects – that is, the older workers – to a judgement of uselessness and incapability, as evidenced by the following testimony from an older worker: “There are young, very young girls, and so they say that we old ones can leave; this fact has already created competitive behaviour” (IT-IJ6, 65-67). It is interesting to note that these contrasts could be exacerbated by the firms’ decisions: in the case cited above (IT-IJ6), the firm, indeed, left the burden of deciding whether to be put on the mobility lists and then be accompanied to retirement, or else to refuse and let the firm decide on whom to oust, to the older workers. The firm had previously declared itself to being indifferent with respect to the possibility of dismissing one worker rather than another, thus creating fears among the younger workers and among those with

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families, which the latter vented on their older colleagues, bringing pressure to bear so that they would spontaneously offer to go into mobility. The firm’s scant fairness was very evident: in order to favour a calmer development of the situation, it should have taken over the responsibility of determining the criteria for choosing which people to dismiss with the objective of establishing several fundamental and common values between the parties involved to be respected in the restructuring process. Faced with the situation of uncertainty, in the majority of cases (15 out of 25) the workers seemed to adopt collective forms of behaviour marked by passivity, with a fairly limited action of union demands. Conflicts in attitude between different generations emerged also for this aspect, as the following interview reports: “The older colleagues utilise the union. However, they are not very active; in brief, I don’t find them very active. They would like the young worker to put themselves on the front line. But, obviously, this doesn’t work, because each one of us protects his own job, because we can’t live without a job” (IT-IJ5, 40-42). The workers’ limited participation in the union can also be attributed in some cases to hostile policies implemented by the firms, as is emphasised very directly in one interview: “In the specific case, the firm intentionally avoided favouring a union aggregation” (IT-IJ14, 44). At the same time, in the majority of cases (13 out of 25), uncertainty seemed to determine an increase in the workers’ commitment. In some cases, this lead to a collective collaboration in order to improve the firm’s prospects, but in most cases, to avoid their being picked out for dismissal. This had the effect of increasing competition, as indicated above. In the cases of very tangible risk of dismissal on a wide scale, nevertheless, commitment could drop to the point of a downright collapse: “A lack of interest could be seen, almost an alienation from one’s job, a collective indifference marked by ‘so much the worse, so much the better’ ” (IT-IJ3, 37-38). To evaluate all the social implications of situations of uncertainty such as those described above, it is fundamental to analyse their effect on individuals and their reactions. These must be interpreted starting from the evaluations and fears of each individual in relation to his or her personal condition. Everybody will react in a very different way, depending on whether he or she feels threatened or not by the loss of the job. In this regard, most of those interviewed (15 out of 25) considered that there was a real possibility of dismissal for them. This dread was accompanied by a fear of not being able to find new employment, for reasons that were mainly linked to age, sex, and professional level. For those who thought they would have to look for another job, the strongest fear was that of losing their own patrimony of competencies and even credibility, as the following interview testifies: “By now I have reached a credibility … I’m well known and esteemed … there’s no law that says that you were doing a job of a certain importance and that today you’ll have the opportunity of doing a job of the same importance in another firm. That is, I built up my career over 11 years, and if in one day I find myself having lost it, I can’t go to another firm and say that I used to do …, I used to say … the firm will take me and tell me: now you are here, you’re a new person; begin over again. Therefore in life, you’ll always be in the ranks because then, if this firm closes, you’ll find yourself in the same situation … so, you lead your life in the ranks …” (ITIJ1, 121-136). In these cases, the potential utility of an outplacement service is evident, since the subject is in such a crisis of trust that he no longer can evaluate his own re-

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sources serenely, and takes it for granted that no firm will be interested in giving him a new opportunity. The situation then becomes even more critical if previous negative experiences weigh heavily: “I’m like the one who has a heart attack and is saved. In any case, he’ll always have problems in life because he’ll always be afraid that the same thing will happen again.” (IT-IJ1, 157-160). A strong sense of solitude and abandonment on the part of society represented the peak of the individual crisis; “If you don’t work, you don’t eat … I don’t believe you would be helped for a lifetime … however, it’s your life, and you have a family to support … at your expense, I mean … so, you have to strive for impossibilities in order to seek …” (IT-IJ1, 161-166). The reactions within the family circle varied greatly, passing from dramatisation to dissimulation; in any case, however, they manifested the extent of the psychological stress to which the workers were submitted. For example, they tried to maintain normality – even a precarious one – in their own family spaces, by making an appeal to their own inner resources: “My wife is clearly informed of the situation at work, but since her firm also has ups and downs and is not doing too well, we have decided that away from work we’ll talk of other things and will ‘pull out the plug’, so to speak. I try to play down the situation so as to tranquilise her” (IT-IJ1, 97-100). The evaluation of the importance of one’s own job expressed by the interviewees was generally not limited to the economic factor. Indeed, the majority emphasised the non-material value as the component of personal identity in all spheres of life. “Work is important for me, because it is the basis for being present in various other activities also outside of the job. Clearly, it must be a job that does not demean me above all as a human being” (IT-IJ3, 61-63). This aspect then emerged with particular force among the women workers: “I like my job, it’s something that I’ve considered mine for many years … it makes me feel alive in some way. Leaving in the morning, changing clothes … even if, however that may, it’s hard work: you leave the house. You get used to it, you don’t neglect yourself. Instead, in staying at home, the housewife is always a bit neglected. And … I go out, I go to do my job. Then I come home: with this type of schedule, I also have the possibility of doing other things … so, I feel realised” (IT-IJ8, 163170). Job satisfaction represented a primary value for the majority of workers; nevertheless, very often the dread of abandoning one’s main source of income persuaded workers to accept considerable professional reassessments with temporal horizons that were not well defined: “Well-being on the job no longer exists… I can’t speak of job satisfaction: I’ve been removed and replaced by an American. I consulted the union and received a certain support. I have no particular position in regard to the firm: I want to leave; it doesn’t want me to….” (IT-IJ7, 71-77). On the other hand, this attitude could also be positive, if associated with individual strategies, as in the interview quoted here: “In the sector in which my firm operates, jobs are no longer very secure. I react by trying to work in different sectors which are, I think, growing …. I haven’t been unnecessarily absent, and I went to work even when I didn’t have to. I want to devote myself to business management and leave technical work” (IT-IJ7, 87-94). The risk situation was not always a negative experience, for a few, it seemed an opportunity to put oneself back in play, as in the following interview: “You have to put yourself back in the field. Above all, you have to be acquainted with the instrument of communication which, in this case, is the press; it’s the computer; and you have to try

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to exploit it in full relief, trying above all to hit on what our capacity is. …. in some way, the possibilities exist, because … for example, in carrying out collaborations for publishing houses … you don’t have a job that starts at 8 and lets you out at … but, anyway, our work is not made up of timetables” (IT-IJ10, 128-136).

3.1.2 Aspects of justice As we will see in detail, fair treatment of workers emerges as one of the fundamental points in the divestment process. Whoever is directly subjected to the risk of dismissal, with the ensuing loss of security, immediately develops a strong sense of injustice: As confirmed by numerous experts in the field of outplacement, whoever is submitted to these processes (except for rare exceptions) feels that he or she has suffered a great wrong. No business policy, however judicious it may be, can completely eliminate this reaction; moreover, it is unquestionable that a lack of attention to aspects of justice in the management of firm restructuring can aggravate the workers’ psychological reactions – as we will see in many of the individual cases analysed here – causing greater difficulty for them being hired again, in addition to further costs for the firm. As far as distributive justice is concerned, it must be noted that in a large number of cases (11 out of 25) the selection criteria for possible dismissal had not yet been determined, or else, they had not yet been communicated to the workers at time of interview performance. In the remaining cases, the criteria for identifying which people to dismiss could be attributed to five main groups: discretionary criteria, which in many cases leave a suspicion of personal favouritism (8 cases); criteria attributable to the functional areas in which the workers were employed, so that all those employed in the areas destined to be divested were dismissed (3 cases); criteria attributable to personal characteristics of the workers, on the basis of which those having greater seniority were privileged (1 case); voluntary leave, in which there was no decision involved on the firm’s part (1 case). Where depersonalised criteria were used or criteria not open to communication with the workers, the interviewees expressed strong dissatisfaction, which made them evaluate the fairness of the firm’s behaviour negatively. The interviews describe a wide variety of incorrect behaviour, in which the firms implemented their own strategies in a way that was not open, seeking to impose their own solutions on the individual workers and, in some cases, violating the basic principles of fairness. To support this, the workers described many examples of practices of “intimidation” as in the following case: “On the part of the firm, an effort was made to put those persons whom they wanted to dismiss in difficulty … there was a strong change from the point of view of production, actually obliging people to work twelve-hour shifts … As far as engineering is concerned, the effort to make people leave was to remove them from the positions that they had and send them to do jobs that, probably … they had done ten years ago; not letting them find their desks … of the type: ‘from now on you’re no longer here; go find yourself another place’. This is the sort of thing that occurred” (IT-IJ16, 116-134). It seems that these examples of mobbing were concentrated in the upper echelons, but also in the intermediate ones, in the form of a strong, immediate and ostentatious professional reassessment of the interested parties, as illustrated in the following interview: “The executives were asked to leave; their contracts were not renewed, they couldn’t do anything with the cadres, and so – with really terrorist-like activities – they sought to put them in a position of “choosing” to leave. If a person who is used to managing a group of people, who has huge responsibilities, has everything

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taken away from him from one day to the next, and is placed in a ridiculous position without making him do anything, it is obvious that he will react and decide to leave” (IT-IJ7, 159-174). Then, in one case, the divestment further contained an evident and serious discrimination against women: “All, all the women, that is, the women’s section of the production, because the men’s section of maintenance and that of the shift foremen were not touched. Only the women’s labour force was involved” (IT-IJ15, 78-79). It was very surprising that this behaviour did not cause particular clamour, either with the unions or outside the firm; and this leads us to reflect on the difficulty of spreading the notion of the social responsibility of firms in a context in which a respect for the laws and for constitutional values is often lacking. The adoption of discriminatory criteria or ones that were difficult to understand on the part of the workers had immediate consequences on the behaviour of the same. The individual initiative and the faith in oneself decreased, as is described in the following interview: “using different weights and measures, one never knows which is the winning criterion, so … one never knows where any sort of initiative is going to end up, and many times one is led to hide oneself, rather than to suggest something new, or individual. … I think that the word ‘fair’ has actually not been used” (IT-IJ3, 190-203). Therefore, neither worries about reduced productivity on the part of the workers, nor – all the more so – considerations of fairness seem to have been very widespread among the firms. The psychological conditions of the workers submitted to these pressures became very difficult, increasing the effects of their insecurity: “when the self-assured management … is at the limits of personal discretionary power, without taking into account either professional character or meritocracy, it is evident that there are no criteria, there are no procedures …. The result [is] … absolutely negative, because [power] always lies in the hands of whoever can press – or not press – a button, and not in the fact that he is there because he is in a state of actual evaluation” (IT-IJ14, 193-202). The firms’ limited sensitivity was reflected, moreover, in the workers’ expectations, which were rather limited. In fact, even the person who positively evaluated the firm’s behaviour seems to have been satisfied when the latter offered welfare-type interventions, such as early retirement: “The firm behaved very correctly. As criteria, it considered the age and how many years [people] had worked there, in order to then evaluate the early retirement” (IT-IJ1, 155-156). The workers and also the unions often seemed tied to principles of an ideological nature, neglecting to request interventions that would have offered better prospects in the long run. This attitude is well exemplified in the following passage, which describes a situation in which the unions’ only aim was to have an equal distribution of off-the-job periods paid by “cassa integrazione”: “The union considered that every worker must on his/her turn have a period off the job to be made redundant; so – some more, some less – they all went in ‘cassa integrazione’”. Therefore, in the end…there was a criterion of equality” (IT-IJ17, 127-131). Thus, as far as procedural justice is concerned and in correspondence with the picture just described, participation in the restructuring process was evaluated as low by all those interviewed. Their comments may be exemplified by the following two passages: “The employees didn’t have the possibility of changing anything: it was already decided like this, and no one could do much” (IT-IJ1, 150-151); “the employees simply had a passive role; they came to know of decisions already made that not even the union could do anything more about” (IT-IJ3, 183-184). Thus, a strong sense of impotence was manifested which also involved the unions; the firm was perceived as an omnipotent

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and hostile entity which took little care of the needs and expectations of its own employees. In several cases, the desire for participation and the workers’ initiatives came up against explicit refusals, as in the following example: “We had made a proposal that was probably the only one that could go ahead, and they didn’t accept it. That of being allowed to receive extraordinary redundancy payments for one year … to let the firm get back on its feet a little. … Since for the extraordinary redundancy payments the firm had to follow a certain route, that is, they had to present their accounts … show all their cards, let’s say … they refused to do it” (IT-IJ6, 132-139). We must emphasise that, in this case, the firm’s refusal did not concern the introduction of innovative solutions, but indeed the application of the instruments of income support provided by law. Considering interactional justice, the scarce propensity of the firms to ask for the collaboration of their own workers found its clearest expression in communication policies. These were evaluated negatively by the majority of those interviewed (18 out of 25), above all due to the lack of timeliness. This determined further problems, such as the circulation of uncontrolled rumours, which increased confusion and tension and reduced the credibility of concomitant or subsequent official communications. Furthermore, management of the communication brought to light further examples of incorrect behaviour. In the situation described below, for example, the communication was managed precisely with the aim of increasing pressure on the workers: “There have always been rumours of dismissals. Ever since the beginning, because perhaps they struck terror in the employees, in the workers, because we were in a firm that … told people to work more hours: it’s not that they obliged us to do so with force … however, we were always led to fear for our jobs” (IT-IJ2, 56-63). In other cases, the times and ways with which the firm’s plans were communicated left at least something to be desired: “They didn’t explain anything. They gave us our Christmas package on December 23rd. They sent us on holiday, and when we came back from our vacation we asked for explanations … because … by telephone they told us that we could have another week added to our holiday … after which on December 31st, they called us into the office one day and said, ‘okay, chaps, today we closed the firm; all of you, go home.’ This was the situation” (IT-IJ2, 70-77). In the majority of cases, however, the problems seemed to derive simply from a complete absence of communication strategies, the responsibility for which was left to the individual executives, as in the following case: “We didn’t know anything. Sometimes the director talked to us … in short, they all talked in a whisper, between the director and vice director. But they didn’t tell us anything clear” (IT-IJ5, 123-126). In this way, situations of downright confusion could occur, as described in the following case: “I was called in by the head of personnel, and was informed of the plans. That is, to tell the truth, it happened after I told him that the firm had decided to do without me, after having been so informed by my supervisor. The head of personnel told me at first that he didn’t know anything about it; then, when he said that he’d been informed of it, he confirmed it to me” (IT-IJ7, 175-181). In many cases, therefore, the firm simply seemed uninterested or incapable of controlling the flows of information inside it, with serious consequences both for its own organisational set-up and for the well-being of its employees. In the few cases in which communication was sufficiently clear, it was offered in an aseptic manner which did not satisfy the workers’ desire to interact. They thus kept their opinions to themselves, developing a hidden resentment towards the firm, as in the following interview: “The explanation (given by the firm to the employees) was very

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simple: ours is a firm that must be put on the market with a target of 70/80 persons; … it must have a … higher turnover. The costs are too high. Production must be reduced. We can no longer have relative costs at 110 thousand lire an hour or 120 thousand for each employee … For these reasons we are subcontracting with outside firms at 70 thousand lire. This was absolutely not true” (IT-IJ9, 172-176). Not infrequently, the refusal of interaction was explicit, as in the following case: “The president called us in and … in brief … [he said] ‘I’m the boss, I’m the president, I have decided and so you can talk, you can blow off steam as you like, but it won’t change anything…’ So, from then on, I decided to delegate the union to talk to this gentleman. And then the union quarrelled [with him]: on the other hand, he’s a very hard person” (IT-IJ15, 99-113). The major conflicts seemed to weigh on the situations of firms of a more limited size, in which there is less possibility of drawing up communication plans, and where the importance of personal relations – which can influence not only the workers, but also the executives, who are led to resolve with hostile behaviour their own sense of difficulty in the face of the situation – is greater. Even when they initially adopted efficient lines of communication, the smaller firms – but in some cases also the more structured ones – did not seem to possess sufficient organisation for perpetuating them in time, as described in the following interview: “Initially, … the new external administrator had meetings with the personnel, and informed them of what he was doing. More recently, only through hearsay. He was not communicating anything any more. There were losses, and we didn’t even know of them. That is, we knew by rumour, but he did not inform us of anything. I don’t think that a situation like this is an ideal one” (ITIJ17, 114-118). Lastly, extreme situations of precariousness involved some of the younger workers. It seems that the young generation is getting used to working in conditions that the older workers would not have accepted. In the following case, regarding a young person working in a service company, for example, the communication policies did not represent a remedy for insecurity, but indeed seemed to be created in order to maximise this feeling: “… we actually received the communication from the computer … Opening the e-mail, three days before the renewal of the contract, we found a notice and according to the notice that was there, you understood whether or not your contract had been renewed … it was awful … Also because, we then found ourselves all together, perhaps there were ten of us in line … those who had it renewed and those who didn’t … so, in short, it wasn’t at all pleasant” (IT-IJ11, 207-214). The consequences of the communication choices adopted by the firm were described very clearly by the interviewees. The main consequence was represented by a strong drop in commitment and personal initiative on the job, with a strong alienation, as synthesised in the following interview: “If they had been a little clearer and prompter in the communication, they could definitely have obtained better results, because with the climate we’re experiencing, personal initiatives have been damaged” (IT-IJ3, 200-203).

3.1.3

Organisational vs. individual responsibility

The problems discussed in the preceding paragraphs – deterioration of the work environment, scarce participation of the workers in the restructuring process, a lack of communication plans, etc. – in the first place derived from the lack of a clear reciprocal assigning of responsibilities between the firm and the workers. That is, there does not

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seem to have been a shared basis, on which it would have been possible to derive from the precise and generally valid commitments, the modes of behaviour which both parties should have followed in order to guarantee correctness to the entire process. In this section, we shall examine the judgements of the workers interviewed in regard to both the responsibilities of the firms and those of the workers themselves. As far as the responsibility of the individuals was concerned, its role was reputed to be fundamental by the majority of those interviewed. However, in many cases, this responsibility was opposed to a – supposed or verified – “irresponsibility” on the part of the firms. That is, many of the interviewees stated that each one should carefully consider his or her own future interests, because no one else would deal with them. In many interviews a widespread mistrust of the transparency of the firms emerged. The implicit reasoning of many workers was the following: since it was neither possible to trust what the firm communicated, nor its interest in the workers, it was necessary for each person always to be on the alert. To this end, many emphasised the necessity to widen their own horizons, taking an interest in their own work environment. If it is often necessary to assume one’s own responsibilities for the future, in opposition to the disinterest of others, the main task of the individual in a dismissal situation, as some of those interviewed appropriately emphasised, is also that of reconsidering honestly one’s own past responsibilities. That is, the individual must first assume his own responsibilities to himself. Dismissal thus imposes, in fact, an overall reconsideration of one’s own past as a necessary premise for a future evolution. However, there were not many workers who formulated this need with clarity. The two interviews that follow are an exception: “The first thing to do is to examine one’s professional conscience, that is, ask oneself what one is capable of doing, and if possible, before looking for alternatives on the outside, look for a re-placing inside the same firm. [It is necessary] to invest in training courses, to be hired on the outside, but also within a perspective of re-placement inside or even in new activities which the firm may undertake…(IT-IJ3, 290-305); “firstly [the individual] must examine his conscience, understand where he has made a mistake, even in relation to the action, if what happened to him is due to reasons independent of the attitude of the individual or of the firm, or if it’s his own responsibility” (IT-IJ7, 258263). Others strongly emphasised the necessity for anticipating, as much as possible, the separation from one’s own job-related reality, which often represents the fundamental psychological cost of the dismissal process: “In my opinion, the fundamental thing is to clear out …. [Meeting] new colleagues, without taking away the affection that I feel for the people whom I have shared 15 years with. … you arrive from another place into a new environment … you probably have 15 years to face. This is being far-sighted” (ITIJ10, 331-340). That is, one must accept the challenge of a new environment and the risks that the reconstruction of a complex ensemble of social relations in the work place involves. The attitudes needed in the dismissal situation – self-evaluation, opening up to the new – are very demanding, and require that individuals call on all their own personal resources. It was therefore not surprising that the evaluations regarding the possibility of assuming the initiative varied a great deal, depending on the personal characteristics and competencies of the workers. The importance of age, family responsibilities, gender, and the level of education and qualification can objectively determine the possibilities of being re-employed, and consequently produce also a strong mistrust of one’s own possibilities. A situation of this type is well represented in the following interview: “The

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responsibility of the individual …in my case, a person aged 37, married and with a twoyear-old child … isn’t that, alone, you’ve the opportunity of finding a job easily. That is, I mean, there are situations which unfortunately those who live them, live them badly. Because, either you have the great luck to find another firm which will hire you … and in any case, hoping that these [outplacement] firms will undertake to try and give you, let’s say, the support … to go ahead” (IT-IJ2, 289-294). In some cases, the aforesaid difficulties determined a downright refusal of the change, as described in the following interview: “In my case, if … they send me a letter of dismissal … I won’t find another work position. This is clear. I will fight for mine … I don’t feel like going and taking courses, because if I were 10 years younger, I would surely go and study. … However, now, the way things are at present, no. I am also tired, I’ve reached a period in life that … If the firm really wants to fire me, either it must give me an incentive and I will leave calmly: mobility, receiving redundancy pay, whatever, as long as I arrive at the point of getting my pension. This is what I would do. Then, if the firm wants to negotiate pleasantly, okay; otherwise, I’d get a lawyer, and would conduct my case as it would need to be done” (IT-IJ8, 260-277). At the other extreme were the younger and more educated workers, who were not conditioned by a long work history behind them. These young workers seemed to demonstrate a greater propensity for taking upon themselves the burden of changes: “On a personal level, the worker can infinitely widen his knowledge; I think that each one of us has this capacity. It’s that they don’t want to do it; that’s different. Because by now, there are those who have been working for 30 or 40 years and are tired; they say, ‘I’ve always done this, what does it matter to me?’ Instead, I believe that learning is always an experience of life. Because then, when you compare yourself with others, it’s not nice to find yourself in certain situations where you are ignorant, and many people know things. … Often and willingly I listen to my colleagues, to someone who is in the administration, talking, and I’m curious: I try to learn, I listen, I learn, I try to steal information from the others. … I repeat, ignorant people don’t get ahead” (IT-IJ5, 174-188). Also in this case, as previously emphasised, a negative judgement emerged from the younger workers regarding the attitudes of their older colleagues, which may partly have been well-founded, but which overlooked the specific difficulties which these workers had to deal with. The general indication that emerged from the interviews, however, was not directed towards a particular type of support – financial, outplacement, training, etc. – but rather towards the request for a greater consideration of the individual needs and expectations of the workers. The interviewee quoted hereunder asked the firms to assume the responsibility for a change in their own organisational criteria, in the direction of a greater exploitation of all their human resources. This orientation is well described by the following interview: “[offer] … independent [job support] … certainly, but you would need to know the persons who then want to work for themselves … so that a person becomes known; he must be followed every day. … And then, one day, this person might go and … what do I know, get involved with self-employment, because he is prepared to work for himself. The other person could do a technical job, because he is prepared to do technical work” (IT-IJ2, 239-245). This interview brought to light a very important aspect: if a “responsible” management of the restructuring process must take into consideration the needs and expectations of the workers, firms must get used to interacting and to being acquainted early with their own workers; otherwise, however well-constructed it may be on paper, no plan will work for the firm’s real situation.

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Within this perspective, a fundamental role was attributed to the timeliness and efficiency of communication and, at the same time, to the participation of the workers: “If I were the boss of the firm, … I would worry above all about warning the workers who would be dismissed … try to make them understand in any case the situation of the firm if the situation were tragic; to explain it in a friendly and brotherly fashion, even if I had to close. … I’d try and take an interest in the employees who have worked for me and for my firm for 11 years … and then, not underestimate the tasks that they have performed, mainly not underestimate the persons who have performed those tasks … because disinterest means … not considering the persons” (IT-IJ2, 205-211); “above all, the firm shouldn’t reach the point of talking to the employees when by then they had already decided what they would do; it should involve them more beforehand, and then there are various possibilities, because it can boost resignations, it can provide incentives for training courses or re-placement the redundant personnel in several diversifications” (IT-IJ3, 237-241). Moreover, it is interesting that several interviewees requested very innovative solutions, such as that of choosing a “preventive approach” in which crises can be managed, with agreed-upon times and means and with sufficient anticipation. Within the framework of a greater involvement of the workers, a fundamental role was attributed to the union, to which much criticism and a widespread sense of dissatisfaction for the present negotiating procedures within the restructuring framework were addressed. On the other hand, the need for mediation through public bodies emerged to a much lesser extent. This opinion can be explained on the basis of the Italian institutional set-up, which traditionally gives abundant space to free negotiating between the social partners in these cases. In any case, the major responsibility for the problems was attributed to the firms, and the unions were “excused” by the majority on the basis of their structural contractual weakness, above all in the regions of southern Italy.

3.1.4 Employability The attention devoted by firms to this aspect was little. The instruments used by the firms were few in general, and almost never combined into a coherent framework. From the results, it emerged that the greatest importance was attributed, both by the firms and by the workers, to economic incentives: on the firm’s side, it was intended to utilise this instrument above all to diminish the conflicts with workers being laid off; on the workers’ side, the consistency of the severance bonus represented the first point to be negotiated. In several cases, however, not even concession of the severance bonus could be completely taken for granted, as described in the following interview: “They dismissed us, and then through the union, we learned of similar cases in other firms, and we asked for a small incentive in cash. We had asked for a bit more; however, we were satisfied all the same, because after a month of pressure, it was hard” (IT-IJ15, 186-191). It is therefore not surprising that only 4 interviewees out of 25 gave a positive evaluation of the offers from their own firms. The conduct of the firm often and willingly lent itself to a suspicion of discrimination on a personal basis. “[The firm didn’t offer help] to everyone: having been an individual question, different weights and measures were evident” (IT-IJ3, 152; IT-IJ13, 199). This happened mainly in those cases – representing the majority – in which a plan of intervention was not prepared in advance; but the measures were decided case by case, and therefore varied greatly, depending on the attitude of the individual workers to the bargaining.

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The limited use of such instruments by the firms was accompanied by a deficit on the side of the workers. For the most part, these did not seem capable of activating individual re-qualification and/or re-employment strategies: in only 8 interviews it was possible to track down the intention to search for new job opportunities and/or to set out along paths of reinforcement to their own employability, for example, through resorting to training or to outplacement services. Nevertheless, also most of these subjects lacked the drawing up of detailed plans of action and/or the active search for new training or job opportunities. In most cases, even when the interviewees evaluated the undertaking of actions of this type as being necessary, these were rather general intentions to which their actually being put into action on the part of the subject did not correspond. Very often, there also existed objective constraints, in both drawing up and operating the individual strategies, which derived from a poor knowledge of the labour market. It thus occurred that the plans could be decided on the basis of commonplaces gleaned from the media, the contents of which were not closely examined, as the following interview describes: “If things should go badly here, what would I do? Indeed, I also evaluated the intention of widening my knowledge, taking a course, computer science, English: today, these are the avant-garde things. What are we supposed to do?” (IT-IJ5, 94-98). It would therefore seem reasonable to hypothesise that the individual workers’ capacity for putting intentions into action depended, in general, on their level of education, which should in turn be proportional to the attitude of examining their own knowledge and information carefully. Therefore, it ought to have made it easier to draw up and conduct individual plans for re-placement or re-qualification. Clear indications did not seem to emerge from the interviews in this sense: passivity in the face of the risk situation involved subjects holding degrees and employed in positions of responsibility; likewise, among those who really helped themselves were also subjects with a limited education and/or who were workers. Age neither seemed to play a role, even if in some cases a contrast between generations emerged (see chapter 3.1.1). For those who were used to the certainty of their jobs, like those people working in state companies, adapting to an objective situation of greater risk was much more difficult. This does not mean that, as in several cases, the fact of having a university education and professional experience in roles of responsibility helped the workers to plan with greater cognition and calm their own job future, even if they were not favoured by their age (IT-IJ9, 231-266). The security of possessing a patrimony of appreciable competencies enabled them to have greater security in their possibilities for re-placement: “My behaviour has changed … my search is for a job … for a new job in which there is continuity, however. Let me give an example: I’m reading more in the meantime. Above all, newspapers … the trade journals … I have already excluded a priori all the neweconomy type companies, because I believe that … in the coming year there will be an inversion in the trend. Decidedly … I am orienting myself towards a company of a certain calibre. If I have to change, I have to change in a positive sense” (IT-IJ9, 268-279). Furthermore, there was the unusual condition of several younger subjects who work with highly flexible contracts, above all in the services sector. In these cases, the propensity to always being active on the job market was a direct consequence of the structural uncertainty to which these workers were subjected, as is described in the following interview: “…work in itself as necessity and then, obviously … one tends to always improve one’s own situation in the sense that, … obviously, it’s not that I’m

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becoming a fossil over this present situation, also because … as in any case I work without a contract, it could change from today to tomorrow. So, I’m always seeking to…get cracking, to send out my CV, to go to interviews, to look around me … finding another job isn’t difficult … It’s obvious that, in order to go after another type of job, from the moment in which he is fired, a person seeks … better conditions” (IT-IJ11, 102-110). The search for new opportunities coincided here with the search for conditions of minimum security, within a social and cultural framework that is profoundly different from that of the older workers. As stressed above, only a minority of firms offered schemes aimed at supporting their dismissed workers in searching for a new job: 4 interviews mentioned training courses offered to employees being laid off by the firm; 2 mentioned support for entrepreneurial initiatives or self-employment. Furthermore, as far as training courses were concerned, in many cases these were short, and often were centred on basic computer skills, which rarely left the workers satisfied (e.g. IT-IJ12, 132). The offer of replacement services, which was mentioned in 7 interviews, was relatively more widespread. Under this label were often concealed, however, initiatives that have little to do with the outplacement schemes of consolidated intervention. In reality, these were reemployment initiatives that were undertaken directly by the firms, through direct contact with other firms, and without any form of psychological support or training, such as those conducted by the specialised agencies.

3.1.5 Overall assessment The analysis of the interviews with workers and employees who were in a condition of job insecurity has provided a very rich picture from a qualitative point of view. It depicts a wide spectrum of reactions, opinions, and feelings. In this regard, the analysis pointed out a first fundamental result: in the life of a person, the situation of insecurity represents a problem of considerable dimension, which involves both his cognitive and emotional resources, and requires great energy in order to be dealt with and managed adequately. From this point of view, the passage to a widespread “culture of flexibility” did not seem immediate, since the workers suffered from a feeling of inadequacy with respect to the tasks imposed by the need for frequent job transitions. In the majority of cases, this feeling was reinforced by both the job and institutional and social contexts. The individuals in a situation of difficulty did not feel like being helped, and indeed were not helped by their own counterparts. On the contrary, a good part of their individual energys was often spent in clashes with the firm, and the sense of solitude aggravated the stress, thus decreasing their ability to draw up future strategies. The difficulties in question emerged in all the main topics dealt with during the interviews. The job situation, in which the interviewees found themselves, was often characterised by tension among colleagues and towards the firm’s management, which – in cases in which the workers who were to be dismissed had not yet been identified – determined situations of exaggerated competitiveness. If, instead, the decisions had already been taken, the workers’ commitment often became reduced, without the firms apparently being worried about the consequences. Only in a few cases the firms undertook support actions for their workers. On the contrary, in many cases, the workers were subjected to further pressures, due to unclear or incorrect decisions on the part of the firms. The instruments that the latter adopted did not seem directed at reinforcing the employability of the employees who were leav-

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ing, but at offering income-assistance or interventions of short-term effect. This trend, moreover, could not only be blamed on the mentality of the workers, but also on the union – which often seemed more interested in defending ideological principles than in supplying real support to those who found themselves faced with the risk of being dismissed. Furthermore, in almost all cases, there was an absence of any sort of communication policy on the part of the firms. Consequently, the information was often circulated by backstairs rumours, with serious consequences for the workers’ trust in the firms – which at times seemed not to be interested in others and not capable of controlling information flows. The dearth of clear communications criteria represented only one sign of more serious shortcomings in the firms’ policies. In almost all cases, the workers complained about the scarce attention paid to them, which was illustrated in different ways: dismissal criteria perceived as being arbitrary; the lack of information and lack of timeliness in receiving it; absence of support; lack of availability for dialogue, etc. For the workers, instead, attention to the individual, exercised mainly through a careful and respectful communication, represented the main duty of the firms. When requested to evaluate the correctness of the firms’ behaviour and to specify the responsibilities of these in situations of crisis or restructuring, almost all the workers requested that the firms adopt policies open to dialogue, in which it would be provided – where such a possibility existed – that workers could offer their own contribution in order to resolve the crisis situation. The workers asked that, when necessities for dismissals arose, the decisions should be made on a shared basis and in timely manner, leaving up to each one the possibility of identifying – to the extent that this would be possible – a path appropriate to his or her own needs and expectations. Considering the limitations of the sample, it was not easy to identify clear relationships between the workers’ reactions and their personal, family, and professional conditions. Unquestionably, however, age seemed to influence the individual workers’ capacity for initiative, just like the value attributed to individual initiative. In many cases, in fact, a contrast between generations emerged, in which the younger workers showed more openness to flexibility and a greater capacity for initiative, which often developed in conflict with the resistance of the older workers. Less evident was the relationship between the capacity for initiative and the variables connected with the competencies of the individual workers, such as the level of education. No clear indications in this sense seemed to emerge from the interviews: Passivity in the face of the risk situation involved university graduates and those employed in positions of responsibility equally, just as among those who really helped themselves there were persons with a limited education and/or who were employed as workmen. It is probable – even if not entirely verifiable in this limited sample – that factors of a historic type, linked to processes of privatisation of the extensive aggregate of Italian state-owned and statecontrolled companies, acted instead on the individual propensity. In this sense, the most important variable would seem to be the duration of the job relationship. The long average duration of the job relations of those interviewed (see chapter 2) was, in fact, a consequence of the policies set out by the big Italian private and – above all – public companies, which over the course of decades have consolidated the expectations of the workers in regard to the security of their jobs. At any rate, within a framework of shared responsibilities, the vulnerability of several kinds of workers should be taken into con-

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sideration in order to guarantee a greater ethicality of the job-transition processes, and not be blamed on the individuals alone. In conclusion, the picture that emerged did not appear to be particularly positive, from either a subjective or an objective point of view. As far as the former was concerned, in fact, the interviews confirmed that whoever was in a situation of insecurity experienced great suffering, which involved very complex aspects that were not exclusively connected with considerations of an economic nature. Indeed, for all those interviewed, and in particular for the women, their job represented a strong factor of personal and social identity, which they did not feel to be sufficiently protected either by the firms or by the social and institutional contexts. From the objective point of view, instead, the interviews made it possible to verify the insufficient sensitivity of the firms to adopting support actions in favour of workers who had been dismissed. The most eloquent confirmation of this situation was given by the fact that the majority of workers did not expect any more help from the firms than what was strictly due to them from a legal point of view, considering that at times they were even obliged to commit themselves precisely in order to make firms observe the legal obligations.

3.2 Description of results of the subsample “successfully re-employed” 3.2.1 Situation in the former company In this section we shall reconstruct the situation in the interviewees’ previous firms, in order to clarify the psychological impact of the dismissal situation. In most cases, the first effect of the dismissal notice was to transform the working environment considerably, inducing greater competitiveness among the workers, to the serious detriment of collaboration (13 cases out of 25). Competition was particularly strong when the decision as to who would have to leave the firm, had not yet been made. Thus, each worker tried “to save himself” (IT-SR12, 21; IT-SR14, 19-20), with a competitiveness that was not yet explicit (“we tried to understand what was happening…I think that each person in his own little corner thought about where he stood with respect to the others”, (ITSR16, 20-22). This could lead to very heavy consequences on the climate between colleagues: “The colleagues I used to laugh with up to a few days ago were making an effort to say hello; no one trusted anyone any more” (IT-SR21, 24-26). However, in 7 cases out of 25, the interviewees were unable to define the situation experienced with their own former colleagues, either as of greater competition or of greater collaboration. As in all these cases, entire divisions were destined to be dismissed, neither competition nor co-operation could have had an effect on the situation of individuals. (“There was neither co-operation nor competition; there was no point in joining up together, because things were already decided on and done”, (IT-SR5, 1920). In some cases, the workers did not have time to react to the notice: “There was no competition among the workers, because no one had expected a decision like this … we were all taken unaware, and so there was not even any cooperation” (IT-SR7, 19-22). In other cases, instead, bewilderment was rampant: “There was absolutely no increase in cooperation and perhaps not even in competition, but this was because the atmosphere was so uncertain that we really didn’t know what to expect” (IT-SR15, 55-57). Furthermore, there was a general lack of solidarity on the part of the colleagues working in sectors that were not involved in the restructuring (IT-SR7, 31-32). A greater collaboration among the workers during the firm’s restructuring phases was registered only in a

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minority of cases (5 out of 25). This became obvious, for example, in the attendance at union meetings and in the attempt to sensitise the institutions and public opinion regarding their situation (IT-SR2, 19-23). In many cases, however, these attempts were not extended to all colleagues: “A part of the personnel … tried to work together to be able to keep their jobs; other people, instead, just let themselves go” (IT-SR1, 24-26). In all cases, this variety in behaviour found an explanation in an attitude marked by resignation. All those interviewed complained of the impossibility of intervening in the firm’s decisions, thus manifesting a passive attitude in regard to the restructuring process. Then, in many cases, this sense of resignation was combined with great disappointment as far as the union was concerned: “We thought it was useless to go on strike, as everything was already decided on also with the unions. The firm had made an agreement with them. I … said to myself, ‘that’s the way things are’ … we were not consulted beforehand, nor did they tell us what we could do” (IT-SR5, 28-34). Many also had a sense of impotence with regard to their firm’s structures, which they perceived as all-powerful: “… we were aware that everything had already been doomed and that little could be done, because … multinational companies can do what they want … there was no union, Ministry or any other institution or person who could oppose their will” (IT-SR17, 23-27). As a consequence of the above problems, the commitment of the workers generally decreased, or in any case continual problems in relationships arose within the firm. Tensions increased among the people involved (IT-SR4, 18-20; IT-SR15, 59-63; ITSR16, 24-26), and many lost both motivation and stimulus (IT-SR1, 25-26), to the point of complete alienation (IT-SR12, 23). Others forcedly increased their work rhythm: “There was a clear desire to show that they were indispensable to the firm, to avoid being condemned to death” (IT-SR14, 23-27). On the other hand, many workers tried to emphasise that their own commitment had not changed: “I’ve always worked as I did the very first day; I have given everything to the firm, and now I regret it” (IT-SR7, 2829). Together with the outplacement service, the measures taken by firms in this situation were in general those of offering financial incentives. In many cases, the interviewees complained that they had not received offers to be re-placed within the same firm (IT-SR2, 36-37); in other cases, that the agreements had not been respected: “I had accepted a transfer, just so I could remain in the firm … however, once I transferred … things were not as we had agreed upon” (IT-SR6, 43-47). More in general, the evaluation of the offers was negative in most of the cases (23 out of 25). This judgement depended on the fact that, for many interviewees, the preferred solution would have been that of re-placing them within the same firm. This shows how the effective dismissal was not yet totally accepted, even after a long period of time, thus confirming the workers’ resistance in a situation in which the labour market was becoming increasingly flexible. The decrease in guarantees was experienced as a threat by all those interviewed, even after they had successfully participated in outplacement services. The resistance on the part of the workers is well-illustrated by several testimonies: “The firm thought more about investing in its image than in the personnel. In the past, there was already a situation of redundancies, but no one was dismissed. They ought to have done the same thing that they did then” (IT-SR6, 40-42); “I couldn’t say what the firm should do. The firm shouldn’t have ‘offered’ dismissal” (IT-SR7, 43-44). In no case, outplacement was

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judged to be a sufficient method per se for compensating the injustice experienced; moreover (as we shall further outline in this chapter) this dissatisfaction seems to have been determined by failures in the firm’s general policies in restructuring rather than by a negative judgement of the service itself – which, on the contrary, was evaluated positively in most cases. Compared to the strong apprehension manifested by the workers, firm policies aiming at increasing participation and active involvement would be necessary in addition to efficacious plans of communication. Instead, most cases (19 out of 25), the interviewees stated that their involvement and that of their colleagues in the decisions relative to the restructuring was very limited. In addition, in several cases, those interviewed complained about differences in treatment: “…one part was involved, and another was not … the workmen almost not at all” (IT-SR1, 47-51). Also in this case, a strong sense of impotence could be detected between the workers: “The employees have no great power to make decisions; in any case, they can’t influence a large firm that is deciding on dismissal plans” (IT-SR3, 87-88); “substantially speaking, there was a clear-cut communication, even if the tones were very conciliatory; however, it was clear from the beginning that there was no great possibility of to negotiate anything. The most that could be negotiated was the money that they could give us” (IT-SR4, 49-50). On the other hand, in most cases the interviewees expressed great interest in the possibility of being involved, emphasising the positive psychological effects of this: “To participate in the process of change is always desirable; it is better to participate in a decision than to have to submit to it” (IT-SR2, 102-105). Others, instead, placed their trust in equity evaluations: “The employees … should have been able to participate in the implementation of these plans. We are always talking about workers on the one hand and the firm that provides employment on the other, but I believe that the interests converge on the same point: the well-being of everyone” (IT-SR17, 75-78). On the other hand, there were also those who emphasised that participation ought to be possible “only if the persons who talk about it know all the factors that contribute to making given decisions; therefore, … those who talk about these things shouldn’t be dilettantes” (ITSR14, 133-135). Involvement of the unions was considerable in most cases (14 out of 25). In general, the restructuring agreements were the results of direct bargaining between the firms and the unions, in which the workers were not always involved. As a consequence of this, the evaluation of the unions’ actions was generally negative, since they were accused of not having acted sufficiently in the interest of the workers (IT-SR2, 76-77; IT-SR5, 72-73; IT-SR6, 62-64; IT-SR7, 60-74; IT-SR13, 142-145; IT-SR12, 63-65). From the interviewees’ viewpoint, therefore, the unions played a fundamental role in the restructuring process, and many responsibilities were attributed to them, even if there where some who emphasised that – all things considered – the union, like individuals, also have limited power to influence the decisions of firms (IT-SR16, 123-125). It must be emphasised that, according to the interviewees, the unions’ fundamental objective should be simply that of avoiding dismissals by assuming very radical positions. It is not sure whether the interviewees would have expressed the same judgements if the process had not directly concerned them. In fact, the judgements expressed a strong emotionality in regard to their former employer, more than the attempt to evaluate their own situation from a wider perspective, in which it is also necessary to take

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into consideration the objective difficulties of the firms, which today have to cope with a growing level of competition.

3.2.2 Aspects of justice The fair treatment of workers represents one of the fundamental points of the dismissal process. Whoever is directly subjected to the risk of dismissal, with the loss of security that derives from this, immediately develops a strong sense of injustice: as confirmed by numerous outplacement experts, whoever is subjected to these processes feels that he has suffered a serious wrong (except for rare exceptions). No business policy, however sagacious, can completely eliminate this reaction. Moreover, it is certain that a lack of attention to the aspects of justice connected with the management of a firm being restructured can aggravate the psychological reaction of the workers, determining greater difficulties in their being re-placed, in addition to further costs for the firm. As far as distributive justice is concerned, the criteria for identifying the persons to be dismissed could be divided into five principal categories: criteria attributable to the functional areas in which the workers were employed, since all those with jobs in the areas earmarked to be set aside were dismissed; this represented the majority (10 cases out of 25); criteria attributable to the family or personal situation of the workers, on the basis of which, for example, those who have children or who have greatest seniority are privileged; nine cases out of 25 fitted into this typology; criteria pertaining to the workers’ merits, which were reported in only 2 cases out of 25; in one case, the dismissals took place on a voluntary basis, therefore, there was no selection on the part of the firm; in three cases, the workers simply complained about the absence of any sort of clear criterion, except for personal favouritism. In general, those interviewed defended the criteria that could be attributed to the family situation: “I think basically that, knowing the situation quite well, they tried to save whatever they could” (IT-SR1, 160-161). The greatest dissatisfaction was registered, instead, in the situations in which the choice was made on the basis of the area in which the interviewees worked: “They chose the sectors to be eliminated, and had no thought for the persons who were working there, much less for their merits. It was an injustice” (IT-SR5, 148-149); “they decided to eliminate a sector; they didn’t think about the individual workers. This decision was unjust … the personnel who had made the firm grow wasn’t taken into consideration; it was disregarded” (IT-SR7, 162-163). However, there were those who emphasised the injustice of not having their personal merits considered: “The firm had to give us more opportunity; it should at least have permitted everyone to try their hand at another type of job, and then they could have made a fair decision” (IT-SR8, 111-112); “unfortunately, the only element that was not taken into consideration was in fact efficiency, the satisfactory work of the person who was laid off” (IT-SR15, 291-293). Moreover, there are these cases in which the interviewees were not aware that any type of criteria had been followed: “The methodology they used to decide who had to go is still a mystery to me. It was all decided on a personal level … the cut was made with a hatchet, rather than with a scalpel” (ITSR16, 261-264). The presence of cases of favouritism represented a recurrent complaint during the interviews, showing that this point assumed fundamental importance in these moments: “I heard of different amounts of severance pay from case to case, while I expected equal treatment for everyone. I learned that differences were made, and this disappointed me” (IT-SR17, 36-40).

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From the interviews, therefore, there emerged not so much a propensity for a given criterion as opposed to another – as was predictable, considering also the different personal and family situation of the interviewees – but a request for greater attention to the individual aspects, with the ambition that these could be taken into consideration when others made decisions that were fundamental for their lives. Although it would evidently be very difficult for the management of a firm’s restructuring to completely satisfy the ambitions of the workers – who, in many cases, have the greatest resistance in accepting the very idea of being dismissed. Attention to these aspects could, nevertheless, facilitate the task of business managers. As regards procedural justice, in the great majority of cases (21 out of 25), the possibility for individuals to interact with the firm’s decisions was very limited. Many explicitly complained that the firm never took into consideration the possibility of reconsidering its own decisions (IT-SR5, 150-151; IT-SR7, 169-171; IT-SR12, 39-40; ITSR14, 275-277). Furthermore, in 13 out of 25 cases, the interviewees considered that the criteria chosen were not applied logically: “There was complete and utter anarchy in the management; therefore, … the firm gave a free hand to the personal interest of the individual manager, as long as the objective was attained” (IT-SR16, 272-276). The interviews also give valuable indications regarding aspects relative to communication. In this respect, the dissatisfaction of the interviewees was great: 18 out of 25 complained that the communication was not timely, and was often preceded by backstairs rumours (see, for example, IT-SR16, 78-80: “The announcements were preceded by other backstairs rumours … subsequently, much later, the official announcements from the firm arrived. The backstairs rumours, which were more real and more immediate, were the ones closest to the truth”). In several cases, the communication arrived even during the period of the summer holidays, when all the main decisions had already been made: “Just imagine, I was on holiday when the unions phoned me and told me, ‘look, this is what’s happened’ … because it always happens in August when people aren’t around” (IT-SR11, 83-85). In other cases, the news was learnt from the newspapers (IT-SR3, 51; IT-SR14, 68-69). An exhaustive example of the prevailing dismissal communication procedures is provided by the following interview: “Initially there were backstairs rumours, and we began to learn something from colleagues working in other sites, with whom we were periodically in contact, and then from the unions. Also the firm, through its executives, informed us ‘in friendly fashion’ with regard to its plans. Only a few days prior to being laid off, the firm informed us, formally, by letter, of everything. In the letter, it was explained that the firm was implementing its restructuring plan …. The written communication arrived when we rebelled at the lack of a written – and, therefore, ‘formal’ – communication” (IT-SR5, 51-61). More in general, the interviewees emphasised the need for communicating the situation with clarity and for not indulging in optimistic falsehoods: “I think that the firm should inform us exactly on how things are and what its necessities are in a very transparent way. In the case that I experienced, I feel that the firm communicated sometimes too much and, consequently, also not well” (IT-SR15, 95-98). To conclude, from the interviews it emerged that, very often, the firms did not manage to control either the procedures of implementation of their restructuring plans or the relative flows of information, generating suspicion and resentment on the side of the workers. In the opinion of the interviewees, it was not the criteria adopted in the

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dismissal process that influenced its acceptance on the side of the employees but rather the attention towards the individual worker and his needs. In fact, those interviewed requested the possibility of interacting with the firm’s decisions, thanks to a clear and timely communication, and not to be treated in an impersonal manner.

3.2.3 Responsibility The evaluations of the interviewees regarding the firm’s correctness towards them found confirmation in the opinions expressed relative to the firm’s responsibilities during the restructuring phases. In 7 out of 25 cases, the principal responsibility of firms was identified in the clarity of communication (IT-SR3, 41-44; IT-SR16, 57-61). In 12 cases out of 25 the interviewees expressed themselves to be in favour of outplacement, indicating it as the main responsibility of the firm that has dismissed one of its employees. In some cases, this opinion originated from a rather impartial evaluation of the objective conditions of difficulty in which a firm could find itself: “If [the restructuring] is a fact of the market, of necessity to the firm, the firm should at least put the workers in contact with agencies that can provide consultancies and help them in being re-placed” (IT-SR10, 498-501). In most cases, however, outplacement represented a compensation that was owed, but that was not sufficient with respect to the harm caused by the dismissal. In witness of this, many of interviewees, showing persistent resentment towards the firm, felt that the firm’s primary responsibility was to pursue solutions alternative to dismissal. This opinion was expressed in very direct manner: “The firm thought more about investing in image than in the personnel. In the past, there was already a situation with redundancies, but no one was laid off. It should have acted as it did then” (ITSR6, 39-42). Others manifested a more organised judgement, emphasising that the firm had not sufficiently pursued solutions of internal re-placement: “[The firm must] understand who the persons … and their interest … are. By way of example, I know of people who have been laid off and who wanted to continue to work” (IT-SR15, 87-89). Those interviewed were unanimous in attributing a fundamental role to the initiative of the individual, who must activate all his resources in order to succeed in managing difficult moments successfully, such as those preceding and following the loss of a job. Great value was attributed to the need to be re-qualified, and also to autonomous initiatives, even if there were those who emphasised the difficulties in putting oneself back on the labour market, above all for the older workers and for whoever worked at the lower levels (IT-SR6, 74-76; IT-SR1, 79-80). The psychological commitment to put oneself back on the job market is considerable, as the following testimony emphasises: “I think it’s a moment in which you have to thoroughly explore what is total sincerity in regard to yourself, in understanding what you want to do, at what level, what type of commitment or of time you want to dedicate to the new job, and so it’s a very complex decision” (IT-SR15, 180-184). The worker must learn to acquire an intermediate-period perspective, by investing in himself : “Investing in refresher courses, to create a range of alternatives that are perhaps even more interesting, is the best thing. Unfortunately, this is not always possible, and so undoubtedly at times you are obliged to search for alternative offers of jobs that are even worse … one must try to create new job opportunities for oneself in any possible way” (IT-SR2, 114-122). It was also emphasised that the main aid is the one that comes from within oneself, and that little can be expected from the firm, the unions

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or others: “… when one undergoes a situation of this kind, the first thing that one tries to do is to go and look for another job; therefore, if possible, to take advantage of the remaining time to acquire some sort of additional competence, update oneself, even if in those moments you probably lack the frame of mind to do so. You need a good dose of optimism to do these things” (IT-SR4, 78-82). In conclusion, the interviewees had a rather simplified picture of the responsibilities in the business restructuring processes. The firm’s duties were always linked to the individual situation, and a clear notion of a firm’s social responsibility, from which to produce an aggregate of new rights for workers, adapted to a labour market that is increasingly flexible and open, was lacking. Much importance was attributed to the responsibility of the individual, consequently, the point of view most widely expressed and assumed of that contrasted with the disinterest on the side of the main actors: firms and unions. It is necessary that each person ‘thinks for himself’, because no one else is going to deal with his situation.

3.2.4 Employability The instruments put forward by Italian firms in order to manage restructuring do not in general resort to the notion of employability; nor do they seem particularly oriented towards increasing the possibilities for re-placement of the workers who are leaving. As will emerge in the second part of this report, in which we examine several outplacement interventions carried out in Italy in recent years, resorting to these services is often the result of requests on the part of the unions and local institutions, rather than coming from the firms directly involved. The habit of resorting to outplacement is only common in the affiliated or subsidiary companies of foreign multinationals; and, in this case, the input for these services almost always comes from the international management. From the results it clearly emerges that both, the firms and the workers attribute the greatest importance to economic incentives: for their part, the firms intend to use this instrument above all for decreasing conflicts with the workers who are leaving; on the part of the workers, the consistency of the severence payment remains the first point to be negotiated. In several cases, the firms also offered options beyond outplacement, such as attendance at training courses and support for self-employment projects. However, it seems that in most cases these types of initiatives disappointed the workers, showing the firms’ lack of real interest, even after making commitments: “At a certain point they began to talk about possibilities of training courses even through outside persons, other companies which intervened; however, in fact, not much was done from this point of view. If we are talking about refresher courses as a form of help, the firms did not provide it, because the courses were not given: they talked about them, but they remained an idea – maybe there wasn’t even enough time” (IT-SR4, 32-36); “[the firm] provided for economic aid for self-employment even if, in reality, all the projects were blocked because they were considered too expensive; this was help only on paper, not factual” (IT-SR7, 37-41). In several cases, there were also complaints that the aims of the training courses were not clear: “There were refresher course meetings which were, however, not specific for this situation, also because there was great confusion as to how this thing would finish: in the beginning, it was supposed to involve even the sale of the whole firm, then the conveyance to another group; then, instead, it was changed to a restructuring” (IT-SR14, 50-56). Here, the resulting confusion was due to the fact that

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the interventions were realised within a muddled framework of communication. The importance of communication policies and, more in general, of a systematic approach to the management of a restructuring was therefore confirmed. The realisation of individual interventions outside a clear overall programme may in fact turn out – as in this case – to be counter-productive, increasing confusion and a tendency towards conflict among the workers. A serious problem is that the interventions generated unjustified discriminations among the workers: “It depended very greatly on who the direct superior was. Someone made … a plan for the re-placement of his employees; someone else simply accepted the number that was to be eliminated, and went ahead with his personal way of reasoning” (IT-SR15, 74-78). These types of situations indicate that, often, the firm’s management was not able to have – nor was it interested in having – control of what happened in the firm during the restructuring phases. To illustrate a further example of serious inefficiencies in these types of interventions, we can cite the following: “In the end, an agreement was made for possibilities of having training courses. I took a course in computers. When I took it, after more than one year there was no one left from my former company. The course was not even a very good course, because it was at an elementary level” (IT-SR20, 73-77). It therefore seems that, in a number of cases, the firms aimed more at “pleasing” the workers than at supplying truly useful support. No particular strategies for improving their own employability in the near future emerged on the part of the workers. In most cases, the interviewees were satisfied with their new jobs, and showed no particular interest in their own continuous updating. Their perspective remained short-term, and they saw their possibilities for improvement exclusively within the framework of their own current employment. The prevailing attitude is well illustrated by the following testimony: “I didn’t face this problem: as I said, I wasn’t well; now I feel better, I’ve begun to work again, and hope to continue here. For now, I’m satisfied” (IT-SR19, 387-391). It must likewise be said that, in Italy, neither the legal context nor business policies favour the possibility for workers to continually update their skills. In short, therefore, reinforcement of employability still does not seem to be a primary objective on the part of workers, who pay greater attention to defending their contractual interests. Nor, on the other hand, does it seem to have importance for business policies, which very often seem oriented at decreasing conflicts by offering apparent compensations, above all through training courses, and not inspired by a keen adherence to principles of social responsibility with regard to the workers.

3.2.5 The outplacement measures In this section we present characteristics of the outplacement interventions and evaluations as to their effiency as expressed by the interviewees. In most cases, those interviewed took advantage of a programme of individual outplacement (16 out of 25), structured in classic manner over a series of phases that can be synthesised as follows:

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Sebastiano Bagnara & Leonardo Bargigli Preliminary interviews with a strong component of psychological assistance; a skills assessment and the drawing up of a CV; mock interviews, with the aim of reinforcing the participants’ capacities of presenting themselves; in general, these had a very strong impact on them (IT-SR7, 104-107; IT-SR9, 229-232); assistance in the search for job opportunities, by means of help in planning interviews and in managing psychological difficulties, especially in the early stages of the search.

The collective-type interventions had several peculiarities, above all during the initial phase that was centred on group meetings: “There were about 20 of us. Then there were a psychologist or sociologist, a lawyer, a union representative, and some consultants. They first tried to give us a better explanation of how the situation was, in order to calm us down; in this, they partially succeeded. They illustrated to us the programme, which consisted of simulations of interviews, drawing up a CV, searching for new job opportunities, with their moral and training support” (IT-SR7, 96-102). In some of these cases the outplacement agency devoted itself directly to the search for job opportunities for the participants: “We took down the names and addresses of firms from the telephone directories, and then they took care of contacting them. The consultants knew the work I had done in the firm, and looked specifically for firms that were looking for a career brief like mine. Thanks to the activities carried out by these consultants, I had the chance for an interview with a firm” (IT-SR5, 96-100). In 16 cases out of 25, the interviewees had a fairly clear concept of the characteristics of the route that they were about to undertake, as a consequence of a previous phase of information and orientation: “When I was dismissed, I expected that the consultants would apply themselves and would help us, as they did, to find us a job. My expectation was to find a job, not just any job but one suitable to my professional qualifications: the service was effective” (IT-SR5, 117-119). However, the fact that 9 persons undertook the outplacement process without having clear expectations must be emphasized, since this indicates that in many cases these types of interventions are still carried out with insufficient preliminary preparation: “I didn’t even know what outplacement was, and it was the agency – and not the firm I worked for – that explained to me just what it was. I discovered it afterwards” (IT-SR16, 189-190). The most common error committed by the interviewees was that of believing that the agency would have directly re-placed the participants, and in several cases this involved disappointment (IT-SR2, 150-183; ITSR12, 149-154). In other cases, the absence of expectations generated positive effects, progressively increasing trust in the service: “Not really knowing what this support was exactly, I didn’t have a precise expectation; on the contrary, I was perhaps a bit sceptical” (IT-SR3, 143-144); “ideas were muddled, and I was slightly suspicious; but I quickly changed my mind, thanks to the competence and, I must add, to the results” (ITSR12, 155-158). Most of the interviewees (18 out of 25) stressed the major importance of the emotional support offered by the consultant with respect to the acquisition of specific competencies: “The outplacement service helped me, above all, from a psychological point of view. I enriched my experiences and improved my motivation” (IT-SR6, 106-107); “what counted was the reassurance: I convinced myself that I could still make a contribution with my work” (IT-SR13, 235-236). “The agency helped me morally so much, above all to pick up again. It also helped me to put in a true light the experiences that,

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instead, I had previously left in the dark and hadn’t brought to light” (IT-SR19, 125127). “The consultation on re-placement unquestionably helped me, above all from a psychological point of view, making me get over the trauma of being dismissed. My professional experiences aren’t improved, but certainly my human ones are” (IT-SR17, 145-147). In addition to the psychological support, the interviewees also stressed the contribution offered by the consultants for a better evaluation of their professional competencies. The following testimony is examplary in this regard: “A good job was also done which in any case contributed … to clarifying one’s motivations, experiences, competencies which could also go well beyond … the framework of the previous job … While I was working in this banking institute, however, for many years I always cultivated my hobbies, which then were found to be something that led to another type of job” (ITSR3, 136-140). In many cases, the support also managed to make the participants reconsider their own professional path, opening up spaces for growth and improvement with respect to the preceding condition: “This was personal growth, … which led me to say that perhaps this job was not one that I really liked and that maybe I’d like to do something else. I then had the opportunity and possibility to do it” (IT-SR3, 169-171). “It may seem like a contradiction, but at the very end of a situation that seemed negative, a type of prosperity ensued for me and my family that I would have never expected” (IT-SR16, 223-226). In the light of the strong points outlined above, most of the interviewees (15 out of 25) offered a positive evaluation of their experience with outplacement, stressing its effiency in re-orienting the course of their work. However, it must be emphasized that 10 of the interviewees declared themselves as being dissatisfied, complaining about deficiencies of various aspects of the service. Very often, the judgements among those who did not consider that they had received valid help were very harsh: “I had no benefit from it; I obtained absolutely nothing. I wasted time, a lot of time” (IT-SR11, 113115). In others, complaining of the absence of practicality in the service, problems of a wider range were brought up: “I don’t know why I was included in this programme, if not for the fact that initially I said that I refused to leave the firm. The support that this out-placement firm gave me was extremely theoretical, but I saw very little practical [help]” (IT-SR12, 135-137). An interesting aspect emerges from the testimony just quoted: the success of outplacement is directly linked to the candidate’s motivation. Therefore, when motivations were scarce or unclear – as in the example – the effect of the service could even be counter-productive. For this reason, it is fundamental – as stressed by numerous consultants – that adherence to the service be strictly voluntary. On the other hand, experienced counsellors should be able to increase motivation and to adapt any intervention to personal needs. Not by chance, during the same interview there emerged strong deficiencies in the structuring of the intervention: “It cannot be considered negative if it is offered to certain persons with necessities different from mine … I didn’t believe that this agency was capable of responding to my expectations” (IT-SR12, 149-158). Even if the majority of those interviewed gave a positive evaluation of OP, it is interesting to recall that almost all of them had a negative judgement of the unions, whose interest in obtaining this opportunity was often fundamental (see chapter 3.2.1). This apparent paradox can be explained as follows: During the interviews, the unions were strongly criticised for not having avoided the dismissals, while very scarce importance

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was attributed to the fact that, to make up for that, the redundant workers were given the opportunity for a new job through outplacement. This widespread opinion indicates that for the Italian workers – above all those with a lower qualifications – it is still very difficult to accept the idea of an elevated mobility in the labour market: To be obliged to leave the firm in which they have worked for many years involves a real and proper trauma, as a consequence of which alternative measures such as outplacement, even if evaluated positively, do not seem to offer sufficient compensation. It is even more interesting to note that this retrospective evaluation remained, even if in the great majority of cases (19 out of 25), the interviewees considered their current job to be more satisfactory than the preceding one, and believed that they had high possibilities for professional growth in the near future. In the majority of cases (16 out of 25), the workers’ motivation in the new job has grown, and they felt themselves to be more active and more productive in their new jobs. However, where there was a lack of a greater motivation in the new job, this was not always associated with negative attitudes. In several cases, it was more probably linked to a disenchantment that seemed to lead to a better equilibrium: “There are possibilities for growth within the new firm, but I should have to work much more, move around much more. I’ve already worked for 25 years, and I don’t feel like moving around. I would rather give more attention to my family. My work attitude has changed; I don’t want to take the initiative of assuming responsibilities that are not mine” (ITSR7, 150-156). On the other hand, this type of attitude confirmed that the trauma associated with being dismissed had long-lasting consequences on the attitude of the persons in regard to their job. The professional satisfaction was not always accompanied by economic satisfaction. For this reason, it was difficult to evaluate the improvement or deterioration of the overall condition: “Physically and psychologically, I think I have suffered a deterioration with the new job, because it is a long way from where I live and that involves quite a few sacrifices. I am not mistrustful of the new firm, but the distance weighs on me … In principle I’m satisfied with my present job; but … I have lost a lot in economic terms … The new job gratifies me from a professional point of view, but I don’t feel justly gratified from an economic point of view. Today, I’m doing a job that has greater responsibility than the one I did previously” (IT-SR5, 130-140). From this point of view, indeed, the situation appeared much less positive; only a minority of workers in fact declared that they had improved their economic conditions. Then, in several cases, the deterioration was accompanied by a real and proper sense of defeat: “considering my qualifications, considering what I’m being paid … it is clear that the damage I have suffered was considerable. So I shall never again be able to receive such pay” (ITSR11, 194-198). These types of evaluations have an objective foundation, if we consider that in most of the cases, re-employment was achieved in firms of a much smaller size than the previous ones. The negative reactions associated with the necessity for this passage are well described in the following remark: “The quality of the present job is inferior to that of my previous job. Before, I worked for a large multinational industry, where the experience dated back many decades and was developed by many persons. The firm where I’m working now is young, with just 4 to 5 years of experience, which is limited to about thirty people” (IT-SR12, 185-190).

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This passage was very often connected with the experience of lower job security, which involved the majority of those interviewed (17 out of 25): “Working in the private sector, I have a certain sensation of job insecurity, taking into account the fact that I have always lived the traumatic experience of my dismissal in the private sector. Working in a multinational, I had more guarantees. The firm where I’m working now is much smaller” (IT-SR17, 157-161). The loss of security did not always involve negative reactions, as in the case of those who became self-employed: “I feel the uncertainty that … the entrepreneurial world can cause, … we are united by the necessity of billing, profit; it goes without saying that nothing is guaranteed. But I don’t live it as a negative situation; I live it as the reality of work. In the end, no one is certain, not even when he is an employee, so where’s the difference? There’s no security: the uncertainties are always something you keep locked inside you” (IT-SR16, 229-234). In conclusion, from the interviews emerged the potentials of the outplacement service, together with several deficiencies, which did not seem to involve the service in itself, but rather the aggregate of the firms’ policies. Outplacement’s potentials are well acknowledged in the majority of the interviews, in which emotional support in the difficult moments of being laid-off and the stimulus towards constructing a new image of oneself were appreciated, and enabled the interviewees to continue their own professional evolution. At the same time, there also emerged the resistance of the workers, who very often had not completely processed the experience of the dismissal, even at a distance in time. Very often, this resistance met with objective difficulties, above all in the regions of southern Italy, in finding a job that offered the same economic conditions as the previous one. In fact, it was not rare that a situation of greater professional satisfaction was accompanied by an economic re-dimensioning or by a greater insecurity, due to the fact of working in small firms.

3.2.6 Overall assessment The analysis of the interviews with dismissed workers who had successfully been reemployed following an outplacement intervention has made it possible to offer a qualitative evaluation of the success and failure factors of these types of interventions, as well as an in-depth picture of the relationships between the policies of firms undergoing restructuring and the psychological impact on the workers who followed this path. Although the information contained in the interviews showed very different evaluations and reactions among the workers, a fundamental result emerged clearly from the analysis: in the majority of cases, the outplacement service was utilised by firms in extemporaneous manner, that is, above and beyond an overall plan for managing their own restructuring which should have provided for both, the activation of a coherent and well-organised aggregate of support instruments for the workers being laid off, and an efficient plan for communication and confrontation with all the subjects involved. In most cases, in fact, it seems that these plans were not drawn up – or that, at least, they were not efficiently communicated to the workers. The evaluation of the firms’ communication policies were mostly negative since these were lacking timeliness and clarity, thus generating confusion and anxiety among the workers involved. From the interviews it emerged that the firms were often unsuccessful in controlling – or unwilling to do so – the implementation procedures for their restructuring plans, above all in regard to the selection criteria for the personnel to be laid off. Instead, they delegated the responsibility to individual executives. This trend

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generated flows of uncontrolled information that in many cases led to suspicion and resentment in the workers. On the other hand, the interviewees requested that the firms have greater consideration for them, an objective that was to be manifested principally with a more open and more transparent communication policy, greater availability for confrontation and dialogue, and more attention to the expectations and needs of the individual workers. The intervention instruments used by the firms confirmed the lack of a widespread sensitivity to the topics of social responsibility on the one hand, and to the necessity for new policies of support to the workers, centred on the reinforcement of employability, on the other. The latter objective did not seem to have particular importance for the policies of the firms: these often seemed to be oriented mainly towards reducing conflicts by offering compensations of short duration – in some cases, also through training courses, which often left the workers dissatisfied – in order to reduce the workers’ unrest, more than to be inspired by a convinced adherence to principles of social responsibility with regard to the workers. On the other hand, the lack of attention to these topics also involved the workers. The interviewees had no clear notion of social responsibility on the part of the firms, from which to derive an aggregate of new rights for workers that would be suited to an ever more flexible and open labour market. Indeed, importance was attributed to the responsibilities of the individual worker, in contrast to the disinterest perceived in the principal social actors – the firms and the unions. In the most widespread mentality, it is necessary that each one “thinks to himself”, because no one else takes an interest in his situation. At the same time, the lack of support also strongly reduced the individual worker’s capacity to act. Only rarely did the interviewed workers choose or intend to choose autonomous strategies in order to improve their own employability. In the majority of cases, those interviewed were satisfied with their new jobs, and showed no particular interest in continuing refresher training in the future. Their perspective remained short-term, and all viewed their own possibilities for improvement exclusively within the framework of their present jobs. From this point of view, it therefore seemed that the effects of outplacement were limited. On the other hand, it must be considered that, in Italy, neither the legal context nor the firms’ policies favoured the possibility for workers to up-date themselves with continuity. More in general, the outplacement experience, which ought to represent a factor of evolution for both the individual workers and the firms, instead seemed to suffer the negative effects of an unfavourable social and institutional context, characterised by little consideration on the part of firms, unions, public institutions, and also workers. The outplacement service could be useful in reinforcing the reciprocal trust of the aforementioned social actors: In these types of interventions, the initiative of the individual is supported and turned to account, thanks to the interest of firms and unions, and this ought to make it possible to improve the reputation of the latter on the side of the workers. From the results obtained from the interviews, however, this still remains a remote objective: A strong sense of distrust seemed to persist in the workers in regard to both the opposing party (the firm) and those who ought to represent them (the union). This unfavourable result can be explained if we consider that, due to the above-mentioned deficiencies in firms’ policies, outplacement was not experienced by the interviewees within the framework of new rights and responsibilities, but as an extemporaneous experience – almost as a “stratagem” on the part of the firm to dismiss them. In the ab-

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sence of a more favourable institutional and regulatory framework – in which an overall reform of labour-policy instruments is foreseen – the prevailing mentality of the workers can change only with difficulty, oriented as it is towards defending the security of the “permanent position” in conflict with the firms’ new exigencies. On the other hand, the potentials of outplacement were favourably testified in the majority of the interviews, in which emotional support during the difficult moments of being laid off and the stimulus towards building a new image of oneself were appreciated, and enabled many of those interviewed to continue their own professional development. In view of the limited size of the sample, it was not easy to identify clear relationships between the evaluations of the workers on outplacement and their personal, family, and professional characteristics. Yet, in many cases the dissatisfaction in regard to outplacement can also be explained by the objective difficulties that several categories of re-employed workers often encountered in their new jobs. It frequently resulted that a situation of major professional satisfaction was accompanied by an economic reorganisation, or by greater insecurity due to the fact of working in small firms. These problems seemed to be connected firstly with geographic factors: For workers who live in the southern regions of Italy, it is often difficult to find a job that offers the same economic conditions as the previous one did. Age and education did not appear to play an important role, while conditions related to gender appeared to be very relevant: Women, in fact, expressed greater dissatisfaction towards both the outplacement service and their new job situation, which was often characterised by worse economic conditions and greater job insecurity. An evaluation of any outplacement intervention should, therefore, also take into consideration the general problems of the labour market, which may vary greatly between countries and regions in relation to the characteristics of the workers.

3.3 Conclusions As emphasised in the respective concluding evaluations of the analysis of the two groups of workers interviewed, the situation in Italy seems to be characterised by an overall lack of support and consideration of the problems of the workers who have lost, or who risk losing their jobs. In the first place, the instruments used by the restructuring firms are not aimed to help individuals in coping with the extended and deep effects of job insecurity on their psychological state. In the interviewees of group 1 (“insecurely employed”), there thus prevailed a profound feeling of solitude and the conviction of being able to count only on their own efforts. Consequently, also the expectations in regard to the firms were very limited. The workers put considerable emphasis on the responsibilities of the firms, but did not seem similarly resolved to demand their implementation, adjusting themselves more often to the lines of behaviour utilised by the firms themselves. There thus prevailed a widespread feeling of impotence that also involved the union, whose behaviour was generally evaluated rather negatively. In the second group (“successfully re-employed”), outplacement was applied to a great extent in the absence of coherent policies on the part of firms, aimed at reducing the impact of the restructuring processes on the workers being laid off. Consequently, in many cases the judgement of the interviewees regarding this type of support was unfavourable: even after having found a new job the firms’ lack of consideration caused the workers to retain feelings of deep resentment in regard to their previous firm, even if the latter had offered them outplacement support. The reasons for this attitude must also be

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sought in the difficulties that the workers encountered in their new jobs. In fact, a sense of greater personal satisfaction was often accompanied by a worsening of economic conditions and less job security. This depended on the fact that, very often, these workers passed from large-size companies to small firms, which were even less prepared to support their own employees with innovative policies. In conclusion, therefore, in Italy on the part of all the social actors there is a lack of systematic vision on how to deal with the problems of individual workers in a labour market that is becoming more and more flexible. The psychological consequences of this lack on the side of the workers risk determining great problems for the social cohesion. A common trait of all the interviewees in both groups was a feeling of remoteness and distrust in regard to the aforesaid social actors. This derived from the workers’ observation of a substantial lack of interest on the part of the latter, as far as their problems were concerned. The workers did not feel protected by either the firms or the union, much less by the public institutions. Within this perspective, the development of outplacement services could take on a very important role, favouring greater social cohesion. Nevertheless, it seems improbable that the simple diffusion of these services could compensate for the deficiencies in the active labour market policies set out by both firms and governments. On the contrary, in the light of the analysis carried out, it would seem legitimate to suggest that a complete deployment of the potentials of outplacement would be possible only within an overall renewal of these policies.

4

Cases of good practice: Description of sample

This chapter describes four outplacement interventions realised in Italy during the past years. The cases will provide the reader with a wide view of the kinds of interventions in the period under consideration. The identification of best practices, which represents the main objective of this part of the research, necessitates a detailed examination of the different approaches in relation to specific business, sectorial and geographical contexts. As will emerge from the analyses hereunder, a key element in the success of the outplacement interventions lies in the capacity of adapting the intervention schemes to concrete situations.

5

Cases of good practice in outplacement/replacement

5.1 Examples of good practice: Galbani 5.1.1 Characteristics of the company The particular nature of the outplacement project in question lies in the way of managing the activities, which were realised directly by the firm during its restructuring phase. Between the end of 1996 and the beginning of 1997, Galbani, an Italian food company belonging to the Danone group, elaborated a social plan for the management of its restructuring by its Organisation and Human Resources Division. This plan related to more than 1,200 redundancies on a national level affecting the workers employed in distributing the products. Almost all of these were warehouse men. Adoption of the

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social plan was included among the strategies consolidated by the Danone group, in accordance with the firm’s concept of social responsibility. The plan, which was approved by the Ministry of Labour, provided for the adoption of the Extraordinary Redundancy Fund (Cassa Integrazione Straordinaria)2, together with the start up of an outplacement project, and for the offer of incentives for voluntary leaving and/or earlyretirement - only as a last instance for dismissal of all those workers who had not been rehired during the previous phases. The union agreement that had given the go-ahead to the intervention was signed in July 1997. The outplacement interventions in the main southern areas were deferred until the year 2000. Initially, in order to realise the outplacement intervention, Galbani had applied to an agency located in northern Italy that was the regular consultant for the Danone group. Both Galbani and the agency in question soon agreed upon the lack of efficiency of this way of managing the intervention. First of all, the involvement of a wide portion of workers residing in southern Italy made it difficult for the agency to operate in a labour market with which it was not very well acquainted and which presented – as is well-known – characteristics different from those of northern Italy. This was due to both, the lower availability of jobs, and to the different mentality of the workers. Secondly, it must be noted that these were small groups of workers scattered over almost all of Italy. It was thus necessary to build a national network to manage the intervention. As a consequence of these considerations, the agency assumed the role of planning, training and technical consultancy. Meanwhile, Galbani provided for activating internal “Operative Re-Placement Centres” (ORC) carrying out ad hoc hirings of personnel which entirely managed the realisation of the outplacement intervention. In particular, the structure of the ORCs provided for the presence of one to two internal employees, and a variable number of consultants to be found within a local framework who would guarantee an adequate knowledge of the local economic situation. The consultants had various skills: psychological, sociological, and economic, with experience in the management of human resources and/or in the creation of firms – the project also providing for support of self-employment. On a national level, there were approximately 20 ORC employees, divided into groups of four to five per unit. Generally speaking, the organisational structure of the ORCs was the following: one to two collaborators whose job was to carry out telemarketing by phone with local firms, in order to verify the availability of hirings; one to two internal employees at Galbani, whose job was to manage relations with those firms interested in hiring during the phases subsequent to the first contact up to the effective re-placement of the worker.

5.1.2 Overview of measures: components and scope As mentioned above, the aim of the intervention was the re-placement of 1,200 workers involved in the distribution of food products and divided into numerous production units at different locations. Galbani had decided to internally maintain only the administrative functions of distribution, entrusting the warehousing and delivery of the goods to third parties. The firms that took over absorbed less than half of the previous internal workforce. The professional profile of the workers was rather weak: the average age of 2

The Extraordinary Redundancy Fund must be authorized by the Ministry of Labour, after the company presented a plan for re-organizing and then continuing its own activity. In this case Galbani included outplacement service for redundancies in its plan. From that moment on, this kind of service came to be widely required by the Ministry.

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the participants was between 40 and 45 years; the work-status level was rather low, since these were warehouse employees. Participants adhered to the service on a voluntary basis. Financing of the outplacement intervention was done entirely by the firm, which, however, was able to have its workers benefit from the income integration offered by the Extraordinary Redundancy Fund (Cassa Integrazioni Guadagni Straordinari, CIGS), the use of which was approved according to regulations by the Ministry of Labour. The relationship with the unions was more complex: In Naples, for example, these were very diffident with respect to outplacement. Both collaboration and conflict occurred, involving the levels of politics and management. Where collaboration won out, union officials and firm carried out common and co-ordinated communications, with the aim of convincing the workers to join the social plan. Where diffidence won out, the union officials spread doubts among the workers regarding the efficiency of the instruments used, generating problems for the management of the project. The intervention lasted for 36 months, a period that corresponded to the duration of the CIGS. Once this period was over, the workers still not rehired lost the benefits of the service and were put into “mobilità” (i. e. were dismissed). The length of the times with respect to the 24 months initially provided for must be blamed on the difficulty of re-placement encountered by the ORCs in southern Italy. The average re-placement times were very different, depending on the geographical location of the ORCs. For example, in the Veneto region, re-placement took place within 4 months, while in Naples the activity was prolonged for the entire 36 months provided for by the project. At the end of this period, finding a new job was impossible for a significant percentage of participants (approximately 15%). The activity realised for the re-placement of the Galbani workers was divided into the following phases: • •

•

•

Introductory counselling: group meetings took place with the aim of informing the workers and publicising the services offered by the ORCs. Personal counselling/collection of information: this activity was realised with a mixture of standard and personalized interventions, carried out partly on an individual level and partly on a group level; the aim was to bring together all the information necessary for drawing up a CV. Establishment of individual profile: this was realised by means of both group and individual activities, with particular attention in the case of handicapped persons; the phase involving the drawing-up of the CV was realised on an individual level, however, using a personalised methodology that could consider the particular characteristics of each worker. Counselling for application/job interview: this was realised through collective activities – a collective search for opportunities at the ORC – and individual activities – during the contact phase with the firms. Within this framework, both standard techniques, such as searching by means of newspapers and magazines, and “personalised” techniques, such as the finding of opportunities on the basis of the participants’ personal acquaintances, were used. The search for a job through personal and family relationships represents a very important channel in the Italian labour market, particularly in southern regions.

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Ascertaining a match between skills and demands of the labour market: an individual activity was realised consisting of a mediation between the worker and the firms. The first contact with the firms was made by the ORC employees, who presented anonymous CVs and established a direct contact between the worker and the firm only after an explicit expression of interest on the part of the latter. Furthermore, the ORCs ran a continuous monitoring of the situation even after the first direct contact between firm and worker. It was necessary to resort to these stratagems because of the need to protect the worker, above all in southern Italy: allowing a non-controlled contact between a worker and a firm would have greatly increased the risk of “off-the-books” hirings, given the characteristics of the local economy, in which there are high quotas of “shadow” activities. This would also have caused damage to Galbani and to the region if the workers had worked “offthe-books”, while maintaining the benefits of the Redundancy Fund (Cassa Integrazione) and the other benefits provided for in the social plan. Professional training: this was realised on an individual level through differentiated paths, on the basis of the participant’s personal situation, and thus involved only the workers who had manifested specific needs in relation to the competencies required by the new job. The training activities were aimed at basic competencies – English, computer education, communication techniques – and were entirely financed by Galbani. In addition to these, training seminars were organised on themes related to firm creation and management, aimed collectively at all the participants. The workers who effectively followed this path – which was a small minority only – had a consultant’s support available for the start-up phases: financing opportunities, etc. Counselling following re-placement: this activity took place on both individual and group levels: hiring of the participants provided for a trial period, at the end of which the ORC was assigned to back the participants in preparing the documents for the bureaucratic transfer from the old job to the new one. During this phase, the employees exchanged views on the new situation.

5.1.3 Evaluation The adaptation of foreign intervention models to the Italian context, in which the passive policies (e.g. the redundancy fund) have always had a fundamental role, was a very important innovative factor of the intervention in question. The effects of passive policies on the workers were in contrast with the activation effort, which is the primary objective of any outplacement intervention. As a consequence of the abandoning of certain standards, such as the autonomous search for work on the part of the participants as is widespread in Italy, an outplacement agency has to put special emphasis on replacing this with a more active role. Further, replacement becomes particularly complicated in the areas with the greatest employment difficulties, such as those of southern Italy. In the case of Galbani, telemarketing activity was realised by the ORC, in which more than 2,000 firms were contacted. This was necessary for two specific reasons: i) the participants’ low work-status level; ii) the peculiar difficulties of the labour market in southern Italy, in which high unemployment levels are coupled with a wide presence of “shadow”, and even illegal, activities. For these reasons it seemed unlikely to Galbani that the participants would find a job through their own efforts that was legally and economically congruent with the

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position held at Galbani itself. This mediation activity is in contrast with the typical procedures of outplacement, in which the participant’s individual initiative represents the pivotal point of the intervention. Instead, in this case, contact with the firms took place by means of the following procedure: ORC employees contacted the firm, explaining the project and noting any manifestations of interest; in the affirmative the firms were contacted by ORC people in charge, who presented a range of anonymous CVs. In the case of interest in a specific CV, ORC took care of coordinating contacts between the firm and the worker. This was, in fact, a genuine commercial activity, in which the workers represented the “goods” to be “sold”. This process did not occur at the expense of other “classic” activities – such as the autonomous search for a job – but in parallel, even if in effect the great majority of the participants found a new job thanks to the telemarketing done directly by the ORC. From an organisational point of view, the project’s critical point was the need to implement a structure that was widespread throughout Italy, introducing into it newlyhired personnel who in general did not have previous specific experience in this field. A large amount of work resulted from this: in particular, a training phase for the workers was provided for, carried out by an Italian consultant agency of the Danone group in Italy. In view of the characteristics of the case, particular attention had to be paid also to justice considerations: ORC employees were colleagues of the redundant workers, who not only did not suffer their same difficulties, but on the contrary had been hired precisely dependent on their leaving the firm. In spite of this, after an initial diffidence, a climate of trust was successfully established, based on the results of the services offered. On the firm’s part, particular attention was given to relations with the workers: communication of the restructuring plan was first made to the union officials, who sought to inform the workers involved. Subsequently, at the moment in which the ORCs were activated, meetings were organised with whoever was destined to leave the firm, to inform them of the firm’s situation and of the possibilities available to them. These people had already received oral notice from their own union representatives or from those of the firm. The letters making them redundant were sent only afterwards. Despite these efforts, the project received significant resistance on the part of the participants – particularly in southern Italy – who were used to considering their jobs at Galbani as absolutely secure. The shock due to the loss of security was overcome only partially, when they were successfully rehired, because in any case the workers never accepted the fact that the firm could dismiss them in the presence of a growing turnover. Illustrating the strategic motivations that justified this choice – that derived from the intention to avoid a complete de-localisation of the production to countries of Eastern Europe – was never sufficient to fully convince them. Also very important for the project was the construction of personal relations with the local actors. These relations were necessary in a very diffident context, in which for example the same generosity of Galbani’s offer aroused a suspicion of “swindles” in the firms interested to hire the participants.

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5.2 Examples of good practice: ASSO 5.2.1 Characteristics of the company In order to foster a correct understanding of the genesis of the project in question, it is appropriate to make some brief considerations regarding the characteristics of the geographical area in which the intervention itself was realised. The Mugello and the Val di Sieve form a homogeneous territory in northeast Tuscany. This area is a portion of land centred in the large valley around the Sieve river, and is located behind the Apennine chain northeast of the plain of Florence, from which it is divided by an extensive mountain area. Due to its geographical location, over the centuries this has mainly been a transit area between Tuscany, Romagna and Emilia. The environmental characteristics have favoured agriculture and farming. The closeness to Florence has strongly influenced social and political events, consolidating a substantial marginality of the area. In today’s production structure, the importance of the manufacturing industry – particularly the traditional sectors, such as textiles and leather – is still prevalent. Services are centred on the retail trade; the building sector occupies a large portion of employees; the environmental and cultural resources of the area – fruit of a peasant civilisation that has by now declined – still await an adequate exploitation on the part of tourism. This economic structure is the heredity of the economic boom of the post-World War II period, which was eminently favoured by the elevated social cohesion of the area, founded on a network of interpersonal relationships that also involves the institutional actors. Today, the Mugello is an area characterised by an insufficient endogenous innovative capacity that is particularly exposed to the economic transformations underway in recent years. An on-site study carried out in 1998 demonstrated the crisis signals of the two supporting sectors of the local economy: textile and leather firms within the industrial section, and trade in that of services. Within this context, a highly-articulated aggregate of institutional actors undertook a wide range of coordinated initiatives in order to combat the crisis in progress and to consolidate new perspectives of development. To this end, in 1997 an Agreement for Development was stipulated between Province, Communes, Mountain Community3, Chamber of Commerce, and social parties – unions and entrepreneurial associations. The ASSO project represents one of the initiatives agreed upon by the parties adhering to the Development Agreement, which was started in June 1999 and continued until September 2000. The activity was then formally concluded with the presentation of the results of the intervention at a public meeting that took place in Florence. The project was financed by the regional government of Tuscany, and was presented, in collaboration with the above-mentioned institutions, by CGIL [General Federation of Italian Trade Unions], Italy’s largest union. This choice was motivated by exclusively technical reasons, and the effective management of the project was entrusted on an equal basis to all the aforesaid partners. In order to set the intervention in motion, an ad hoc management structure was set up that continued to function for the entire duration of the intervention and ceased its activity at its conclusion.

3

In Italy, the Mountain communities represent an important institution of coordination between mountain Communes located in the same territory.

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5.2.2 Overview of measures: components and scope Within the socio-economic context described above, the ASSO project initially originated from the need to favour the re-placement of the women workers made redundant by a local firm that produced footwear. Subsequently, a vast network of local actors was activated, both on the part of the workers (the proponent was CGIL, the largest Italian trade union) and on the part of the employers – Associazione Industriali di Firenze, Confederazione Nazionale dell’Artigianato, Conferescenti, Unione Industriali di Prato – with the involvement of the Mountain Community of the Mugello. As mentioned above, the presence of networks of relations among the local actors represents one of the strong points of this area. In its final formulation, the project thus took on a wider valence with respect to the original intention, by addressing itself to all the workers and residents in the area, that were registered on the mobility lists, i.e. formerly dismissed by various industrial firms. Furthermore, the intervention framework was extended also to smalland medium-sized firms which were directly involved in the project: The local SMEs were invited – through a series of structured formularies and with the support of the tutors in the project – to state their professional needs, with the intention of soliciting greater attention to the problems of managing human resources. Lastly, the need arose to provide training also for the tutors who, within the framework of the project, would have the task to follow-up the re-placement of the participants. In fact, in the area there was a complete lack of basic knowledge, even more so regarding the specific competencies for managing an outplacement intervention of such complexity. The intervention had a threefold objective: 1) to re-place the largest possible number of workers registered on the mobility lists in the area, by activating them to define and pursue new professional objectives; 2) to carry out an action of territorial animation in regard to the firms, with the aim of stimulating them to acquire up-to-date evaluation instruments for their skills needs; 3) to train a group of people – the tutors – with competencies that are innovative for the area, who could be subsequently employed in the management of the socio-economic changes underway. Most of the workers who participated in the project were women (48 out 51). These were mostly machine operators whose professional competencies were not greatly in demand on the labour market, even if most of them had a secondary-school diploma. Among them were, however, persons with very different levels of education, with qualifications that ranged from a primary-school certificate to a university degree. In view of the existing crisis in the sectors from which they came, re-placement of the participants in jobs analogous to the ones they had previously held was impossible. Instead, an overall reformulation of the professional prospects was needed: for workers used to repetitive tasks, a complete change in mentality had to be brought about. To further complicate the picture, it was necessary to consider that the time that the participants remained on the mobility lists varied greatly: from a few days to two years. Therefore, the participants’ capacity for personal initiative, influenced also by a longer or shorter stay in a state of forced passivity was also very different. Lastly, the differing personal characteristics of the participants, with ages ranging from 22 to 55, also had to be considered.

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The intervention took place in the following successive phases: • • • •

• • •

Introductory counselling: the intervention was presented to all potential users through a series of meetings reserved for small groups (20 persons). Personal counselling/collection of information: this was realised through individual interviews, with the aim of evaluating the possibility to transfer the participants’ competencies to new business contexts. Counselling for application/job interview: an activity of individual accompaniment, together with a tutor, with the main objective of reinforcing the participant’s self-esteem. Ascertaining match between individual skills and demands of the labour market: a matching analysis was carried out between the participants’ skills and the demand of the local labour market, to identify the possible firms to which to send the participants for an on-the-job training phase; in the intention of the project, this phase should be followed by the hiring of the participant. Guidance with regard to self-employment: an ad hoc training module was carried out on this topic. On-the-job training: this was the most important phase for the purposes of replacement, since it permitted the participants to experiment their capacities in a new job context, thus allowing them to increase their confidence in them. Establishment of individual profile: this phase was part of all phases of the intervention. At its conclusion, all participants were in possession of a CV – as a result of the work done with the tutors – in which their skills and resources were identified.

The phases described above represent the general outline of the intervention. However, the project was carried out in a personalised approach that provided for very different courses, entry and exit procedures. In particular, the intervention had no constraints of duration for the participants within the overall limits of the project (15 months). Therefore, the duration of the intervention differed from case to case, varying from a few days up to 8 months. Consequently, the outline described above was followed by each participant in a very different way. After the collective meeting at which the project was presented, the 51 participants underwent individual interviews for a first analysis of their personal situations. On the basis of the indications and preferences expressed during the interviews, the participants were introduced to three alternative routes: • • •

a series of individual interviews to arrive at a skill assessment, followed by a support activity in their search for a job; a series of group meetings to examine closely the principal techniques in looking for a job, followed by a support activity of this; a training course, centred on group activities aimed at increasing the participants’ self-esteem by identifying the competencies to be exploited and the formulation of a professional project. In this case, the training activity was followed by an on-thejob training phase, programmed on the basis of the previously-formulated professional project, and supported – when necessary – by participation in training activities outside the project, or in training modules of a general nature – mainly in basic information technology – carried out within the project.

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5.2.3 Evaluation The intervention described above presents characteristics that are very different from both individual and group outplacement as performed in Italy. In the first place, there was no direct involvement of the firms that dismissed the workers, because for the most part these had completely ceased their activities. Instead, the costs of the project were entirely met by public financing. Secondly, identification of the participants was not made on the basis of their belonging to a specific firm, but rather starting from a particular individual condition: that of being registered on the mobility list. That is, the service was activated from the side of the labour offer – i.e. workers – and not from that of the labour demand – i.e. firms – as generally occurs. These two differences offer very interesting indications regarding the problems relative to justice and to social responsibility in relation to workers who find themselves expelled from the production cycle. The social implications of the economic crisis existing in the Mugello have in fact been taken over by the principal local institutions, who thus made up for the “irresponsibility” of the firms that reorganised or ceased their activities in the area. This is a promotion intervention of a different approach to the management of crises linked to economic transformations, which has turned out to be particularly appropriate for contexts in which the crisis involves a majority of medium-to-small firms having neither the economic resources nor the “advertising” incentives for financing outplacement interventions. In this direction, the use of a selection criterion for the participants that is not based on specific business situations represents a very important point. Very often, the activation of outplacement interventions depends on the greater or lesser sensitivity of the management and/or union representatives of a firm. The attention of the public institutions also varies greatly, as they prefer to concentrate on several cases of greater importance, with the risk of neglecting others, seemingly less important as regards the number of workers involved, but not so for whoever is directly involved. Identification of the participants on the basis of an “individual need for re-placement” unquestionably represents a step forward in the direction of a generalisation of these services, which avoids discrimination in characteristics and rights among the workers. Also, as emphasised in other cases, the adoption of similar criteria makes it possible to re-dimension the social alarm connected with crisis situations: the invitation to participate was made, in fact, to more than 300 people, but only 51 effectively adhered. This confirms that, in Italy, it is very difficult to establish whether persons in given legal conditions – e.g. being registered with the employment office or on the mobility list – are actually unemployed and looking for a job. In the light of this premise, the main results of this case can be synthesised as follows: • • •

this was a very innovative experiment for Tuscany, in which personalised services were activated in accordance with methods representing the future trend within the framework of active labour policies; most of the participants found employment, with both fixed-term and open-term contracts, and also with collaborations of various types; a number of SMEs attained a high involvement in the project, showing themselves to be available for renewing their own criteria for selecting personnel within the perspective of a greater valorisation of their human resources;

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the investment in training of tutors obtained the expected results, since most of them remained to work in the area, even if within different institutions or projects; thanks to the project, the institutional and social actors acquired a greater awareness regarding possible action strategies in the face of the economic dynamics in progress; the experience accumulated in the project was successfully transferred to the new public employment centres in the area, following the reform of the system of public employment services; several of the tutors involved in the intervention became part of the personnel of the newly-constituted centres.

Among the main strong points of the project, we must emphasise the capacity to adapt with respect to the local context, the personalising of the services, and the attention to problems of gender. The first point was favoured by resorting to local resources – that is, to persons who already had a network of acquaintances in the territory. This was the fundamental function of the tutor: the creation of relations with the local firms was greatly facilitated by it. The second point represents a decisive element in the assistance to persons in difficulty, such as dismissed workers, which should be progressively extended within the framework of active labour policies. The third point was very important in this specific case, since family relations in the Mugello have been shown to be a strong constraint for the participants, who were in a great majority women. In several cases, for example, outplacement could not be carried out, because it was not possible for the participants to travel just a few kilometres from home. At the same time, also on the basis of its experimental character, the activity revealed several weak points. In the first place, numerous organisational problems were encountered that were linked to inexperience in these types of interventions, and these undoubtedly diminished their efficiency. Secondly, as mentioned above, no ex post evaluation report was made which would have permitted a systematic evaluation. This is an important deficiency since, within a perspective of greater attention to the user, only an evaluation of efficiency and efficacy can supply precise indications regarding the sustainability of the services provided. Thirdly, it was not possible to continue this service, the subsequent continuation of which was not financed by the Province of Florence, which had initially demonstrated an interest in this possibility.

5.3 Examples of good practice: Scherer 5.3.1 Characteristics of the company The outplacement intervention presented here was dealt with by a private agency, Coutts Consulting Italia. The headquarters of this agency are in Milan, but it also has two branches, one in Bologna and one in Rome. The agency’s staff consists of 20 consultants who are linked to the same by a permanent partnership and by a sole-tradingright relationship. They are flanked by numerous freelance collaborators, who have come to form a fairly stable network that is spread all over Italy. The prevalent competencies of the consultants and collaborators are those relative to the managing of human resources: in general, they come from previous professional experience matured in managing the personnel of other firms or in professional training and orientation. To a lesser extent there are consultants who have a background in commerce, and take care of managing the agency. The agency’s clientele is composed of large-sized firms, al-

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most solely multinational companies. Interventions have been realised within firms of smaller dimensions which, however, were either subsidiary companies or branches of multinational firms. Among these clients, there is only a very limited number of Italianowned companies. According to the agency, this distribution derives from the scarce acquaintance with outplacement at a national level: it often happens that those Italians in charge of personnel contact the agency as a result of solicitations on the part of the group’s international management.

5.3.2 Overview of measures: components and scope The firm involved in the intervention was a multinational in the chemicalpharmaceutical sector. The intervention was necessitated by the removal of the entire production plant from northern to central Italy. All the workers at the old plant were consequently inserted in the mobility lists; and, following a union agreement, these were able to benefit from a service of collective outplacement, which was added to severance-bonus economic incentives. It must be noted that, in any case, the firm offered the workers the possibility of being transferred in the company’s retinue. However, this offer did not interest the workers, who preferred to remain in their own social context – it must be considered that the company was located in a small provincial town in the north of Italy – also because they were reasonably confident of being able to find an alternative occupation on the spot. The 80 participants – all those working in the factory, with the exception of some executives and middle executives – were equally composed of specialised workers and clerks. As the entire factory was involved, various skills and functions – production, warehouse, commercial offices – were involved. Executives of the factory were able to turn to an individual outplacement intervention, which was carried out separately from that of the other workers. The intervention began in July 1999, and was concluded in January 2000. Financing of the intervention was effected completely by the company. In spite of this, the local institutions assumed a role of supervision and control, since the firm in question had an important dimension for the local labour market. Close contacts were made with the Regional Public Employment Agency (Agenzia Regionale per l’Impiego) of Lumbardy and with the “Assessorato per il Lavoro” [Labour Councillorship] of the provincial administration of Lodi. The staff utilised for the intervention consisted of four consultants with skills in the management of human resources and a degree in political sciences and/or law. The intervention was divided into the following successive phases: •

•

•

Introductory counselling: this was carried out through preliminary meetings between the firm, unions, and ministerial structures, who had to concede the use of redundancy funds. These meetings contributed to defining the executive programme of the intervention on the part of the agency and the firm’s communications plan. Presentation of the intervention: once the union agreement that gave rise to the intervention was signed, a series of meetings were held with the participants and with the union representatives in order to illustrate to them the terms and conditions of the service. Personal counselling/collection of information: this activity was carried out on an individual level, through meetings between the individual participants and the

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consultants. The first part of the activity took place in accordance with standard procedures, based mainly on the use of structured questionnaires. Subsequently, there were open interviews, which permitted the consultants to deal more thoroughly with the participants’ personal conditions. Establishment of individual profile: this activity took place on an individual level. It was not limited to compiling a curriculum vitae, but consisted mainly of identifying a series of professional objectives to be pursued. Counselling for application/job interview: this activity involved a mixture of collective meetings, in which the techniques of job-hunting were explained, and individual meetings, in which the consultants provided personalised guidance. In particular, the consultants helped the participants to implement a detailed planning of the actions to be undertaken. Ascertaining match between skills and demands of the labour market: this analysis was made on an individual level and was intended to offer an evaluation of the employability of a given professional profile, also in order to determine possible necessities for professional training. This activity is highly specific, since it is necessary to identify those firms which, in the moment in question, can offer job opportunities with professional profiles analogous to those of the participants. In this case, these activities were extended, by means of a direct survey, to the ascertaining of job vacancies in the local firms. At the same time, the agency publicised the intervention to the same firms, presenting the aggregate of professional profiles offered by the participants. If a firm was interested in one or more of the participants’ profile, the agency requested authorisation from the participant to forward his CV to the company. After that, contacts were managed autonomously by the participant and the interested firm. Professional training: since the dismissing firm was not available to cover the costs of professional training aimed at the re-placement of its dismissed workers, the agency directed the participants towards the opportunities offered by the public system of professional training. Guidance with regard to self-employment: informative group meetings were realised, in which basic information on the start up and management of a firm was explained.

The intervention was contracted for a duration of 7 months. At the end of this period, about 90% of the participants had been re-placed. The participants who had not been replaced were mostly women older than 40, workers as well es clerks. Many of these women showed a limited stimulus to being re-placed. They rather preferred – also due to family reasons – to continue to get the “indennità di mobilità” [mobility benefit] for the entire duration foreseen, and then to retire from the labour market. Further, we must consider that almost all of the participants had to accept a reduction in pay, since they found jobs in medium-to-small-sized firms which were not able to offer pay that was analogous to what their previous work contract had provided for.

5.3.3 Evaluation A particularity of this intervention was the fact that the agency worked without any supervision on the part of the firm from which the participants were dismissed. Once its removal was concluded, the said firm did not show any particular interest in the fate of its former workers, to the point that it was the agency which took the initiative of pre-

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senting periodic reports on the state of progress of the intervention. In the face of this lack of interest, the agency was able to avail itself of strong participation on the part of the union, which continued to be interested in the workers’ progress. With respect to previous interventions, it was attempted to favour the group dynamics as much as possible, precisely in order to compensate for the “disintegration” of the context of origin of the firm. Standardised classroom activities were limited as much as possible, as it was preferred to perform simulations or other situations that provided for inter-activity. The participants were divided into small groups, and carried out a quota of individual activities that was relevant in an intervention of collective outplacement. The agency adopted a very flexible approach in this direction, providing for the possibility that the consultants’ activity intensified in the case of persons with greater difficulties. The intervention also witnessed the introduction of a computer system for an integrated management of the archives of job vacancies and of the professional profiles of the participants. This was instigated by the agency in order to make the intersecting process between labour demand and offer more efficient. The initial hostility of the workers towards the firm was quite low. In the consultants’ experience, the workers’ reactions were more negative when a process of reduction in personnel was enacted – which necessarily implied a discrimination between the workers – with respect to cases, like this one, of the complete closing of a plant. However, the project had to overcome initial difficulties of a different kind: the workers started from a situation of distrust with respect to the possibility of finding an occupation with characteristics that were analogous to those that they have had previously, which, for almost all of them, had been satisfactory. Management of the initial phases of the intervention was facilitated by the fact that the agency was involved starting from the project-related phase, collaborating in defining the firm’s communications plan, above all as regards the explanations relative to the outplacement service. Communications witnessed a preparatory phase, through meetings between the firm and groups of workers, before the decision to move was made official. The communication activity was also very important during the intervention: the agency prepared a monthly bulletin of job opportunities to inform even the participants who were less assiduous frequenters of the premises that the agency had prepared on the spot. The transferability of the methods used for the intervention is high, even if in the case of collective outplacement it is necessary to rethink the terms of the intervention in every individual case on the basis of the firm’s and the region’s contexts, and of the objectives to be pursued.

5.4 Examples of good practice: Mawer 5.4.1 Characteristics of the company The agency that managed the intervention in the Mawer company is called Evoluzione Professionale. This agency, which was founded in 1997, has two branches, in Rome and Turin. Its main activity consists of outplacement services, in addition to several auxiliary services both for private (coaching, mentoring) and institutional clients, such as the consultancy and planning of services for employment. The firm’s clients are above all large multinational companies located in northern Italy, which are found prevalently within the food and chemical sectors. Within these businesses, a wide range of work

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statuses and duties have been covered so far, including the re-placement of all the personnel employed in particular production units: from workmen to executives.

5.4.2 Overview of measures: components and scope The outplacement intervention for the workers of the Mawer company had a particularly innovative character for Italy. The persons involved were all employees of the “Gruppo Finanziario Tessile“ (GFT), which sold one of its plants, situated in the province of Cuneo, in Piedmont, to another firm, i.e. Mawer. This was a firm specialised in mechanical productions which, after having bought the plant, never began its activity. It finally went bankrupt, leaving the former GFT employees unemployed. In view of the problematic situation in which these workers found themselves, the provincial administration of Cuneo felt it should intervene directly and appointed the outplacement agency to take care of the re-placement of these workers. There were two objectives for the intervention: 1) to favour the most extensive replacement of the workers involved; 2) to make a transfer of know-how to the newly constituted public employment centres. The aim of this transfer was to re-orientate and extend the services of local employment centres. For the outplacement agency, the intervention was dealt with by three senior consultants. In order to guarantee the aforesaid transfer of know-how, these were flanked by three employees from the same number of employment centres of the Province of Cuneo. The political management of the project was assigned to a committee in which the local institutions (province, commune) and the social parties (union members, associations of entrepreneurs) were represented. There were 31 participants, only 5 of whom were men, and almost entirely workmen. Overall, the ages were fairly advanced: only a minority (15%) was less than 40 years old; about 50% were around 40; 30% were older than 40. The intervention took place between December 2000 and June 2001. The activity was divided into the following phases: •

•

•

Training of employment centres’ employees: introductory seminars were realised for the 3 employees involved, with the aim of illustrating the characteristics and problems of the outplacement service; subsequently, the workers were subjected to on-the-job training and then collaborated, together with the consultants and with their supervisors, in realising the intervention. Introductory counselling: through a series of collective and individual meetings, a qualitative analysis of the personal and professional situation of the workers involved was made, in order to identify which among these were really interested in the outplacement service. This phase was called “Identification of Needs”. Among the workers, in fact, many were close to retirement, or were simply not interested in working again, or in any case were not willing to accept even a limited transfer – within 50 km from their home – in order to have a job. For this reason, a targeted choice of the persons to whom to address the intervention was made, thus guaranteeing its financial compatibility for the customer. Personal counselling/collection of information: individual and group activities were realised in accordance with the methodological standard of collective outplacement. However, also a part of personalised activity was realised in order to adapt the standard to the exigencies of the individual personal characteristics of the participants.

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Sebastiano Bagnara & Leonardo Bargigli Establishment of individual profile: individual and group activities were realised, prevalently in accordance with standardised procedures. Ascertaining match between skills and demands of the labour market: both individual (interviews) and group (seminars) activities were realised, in which a direct marketing activity with the firms was also included. In 80% of the cases, work was found on the basis of contacts activated directly by the outplacement agency. Training: in this phase, several participants joined public courses which were of use for the job opportunities towards which they were oriented. Guidance with regard to self-employment: four persons were given support in setting up a self-employment activity which was then undertaken with success. Counselling following re-placement: the employees of the employment centres stayed in contact with the participants, remaining at their disposition in informal manner for contacts and help subsequent to the moment of the project’s conclusion.

5.4.3 Evaluation The intervention for the Mawer workers was realised by exploiting techniques consolidated by collective outplacement realised in Italy. Moreover, two innovative elements must be registered: 1) a long preliminary phase for identifying the participants’ needs; 2) the transfer of know-how to public employment centres. As regards the first point, the intervention was characterised by an extensive personalising of the approach, in which the outplacement was only one of the possibilities offered. There was an intense preliminary series of meetings, in which the individual situations of the workers were analysed. This phase was also very useful for measuring with greater precision – and for streamlining – the social emergency linked to the closing of the Mawer plant: of the 121 workers initially involved, only 31 participated in the service after the preliminary consultancy. The subjects who abandoned the project signed a letter refusing the service, in which they attested to having alternative autonomous solutions at their disposal. Among these, several cases emerged that illustrated the undesirable effects of passive policies in Italy: For personal reasons – pregnancy, old people to care for, etc. – many preferred not to work at all, as they were anyhow covered by economic benefits for 36 months starting from their dismissal. Furthermore, many people showed that they were unwilling to travel, even in limited manner, to get to another job. The criterion of adherence to the project was, in fact, that of committing oneself to accepting a job that was congruent with the previous one – in regard to duties, pay and location – even if with a certain margin of flexibility, relative indeed to being willing to travel. The possibility of efficaciously implementing this preliminary phase was linked, according to those who handled the intervention, to the fact that the organiser was the Provincial Administration, which substituted the firm, providing the participants with an “extra”, in respect of the norm. In this case, therefore, the workers had a lesser level of conflict situation compared to the majority of outplacement cases, in which the workers “required” the service (like the monetary incentives, as an alternative) as a way of reparation in respect of the wrong done to them in being dismissed. The workers thus expressed their own effective needs with greater veracity, making a significant saving of resources for the community possible. This experience thus represents a model for a more general renewal of the services for employment, in which it is possible to offer services aimed at the effective

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needs, by identifying the user targets among the wide audience of persons registered with the employment office. The main strong point of the project was the extensive availability shown by the public institutions. This help was precious in resolving a complicated situation also in relation to the use of redundancy funds. The competent administration, in fact, requested a refund of a part of the income supplements paid, since the firm had not completed any formalities. Strictly speaking, then, it would not have been possible to finance a re-placement intervention, as the workers were in a situation that none of the competent institutions was able to define precisely. In particular, it was in doubt as to whether the incentives provided for by law for the hiring of workers laid off could be applied. The decision that the subsidies would be distributed was made only in April 2001, while the project had already begun in December 2000. To set the project in motion, a subterfuge was resorted to, using the instrument of apprenticeship, with the support of the Province, in order to immediately place whoever found a job that interested him/her. The workers therefore worked under an apprenticeship contract until 31 August 2001, the moment in which they were dismissed and, consequently, could be hired by the new firms with the incentives provided for workers in “mobilità”. The model applied for the intervention has an extensive transferability to similar conditions. With this project, in particular, the Province of Cuneo intended to include this kind of service within the framework of the activity of public employment centres, by acquiring the necessary skills for activating and managing interventions in cases of necessity, even with the support of consultants. Depending on the model proposed, these are extraordinary services for the activation and management for which it is necessary to have a core of internal skills.

5.5 Conclusion as to what is “good practice” The analysis made in the preceding pages presents the characteristics of four cases of outplacement councelling identified as innovative for Italy on the basis of the evaluations of the experts contacted and of the existing literature. It must nevertheless be reported that no linear relation exists between innovative nature of one intervention and its being a case of best practice. In fact, the identification of best practice presupposes the existence of a systematic and independent evaluation of the results of an intervention, on the basis of which to determine whether this is relatively better than another of the same type. In the cases dealt with here, we were unable to follow this procedure for two fundamental reasons: 1) it was not possible to obtain independent evaluation reports, except in one case; 2) in the case where reports of this type were available for all the cases treated here, the necessary terms of comparison would be lacking. It is not possible, in fact, to evaluate a project on the basis of a particular indicator – for example, the percentage of re-placed participants – if official statistics on the average results obtained from analogous interventions are completely missing. From this point of view, the Italian situation has been confirmed to be greatly wanting, since both overall sectorial statistics and reliable certification criteria for the results obtained by the individual agencies are unavailable. In these conclusive notes, we shall therefore limit ourselves to presenting several qualitative considerations of a general nature, with the aim of identifying the principal tendencies within the outplacement sector in Italy. This means describing several cases

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of best practice in the sense of practices that are consolidated on the market, being the fruit of the accumulation of experience on the part of agencies and consultants during the course of their daily activity. In particular, from the aggregate of cases presented, it is possible to obtain indications in three different directions: first, several recurrent intervention schemes are identified; secondly, several important national and/or regional factors are identified that determine the peculiar characteristics of these schemes; thirdly, several elements of reflection for the future development of outplacement services in Italy are identified. As far as the first point (recurrent schemes) is concerned, it must be emphasised that the cases presented have several important elements in common in their structuring: •

•

•

•

In the preliminary phase as well as during the intervention, the trade-unions were usually involved both for the initial promotion of the intervention and also for the management of the communication. In several cases, the intervention was activated through the pressure applied by the union on the firm. According to the opinion of numerous outplacement consultants, the union ought to concentrate its current energies on dealing with the access conditions and duration of the replacement services for workers involved in the reorganisation phases, rather than persisting in defending unproductive jobs. As confirmation of this position, it must be reported that where the role of the union was marginal, there resulted a lesser tutelage for the more vulnerable subjects (in terms of age, sex, or professional characteristics), who for the most part were unsuccessful in being re-placed. The consultancy for re-placement, based for the participant’s active role, was flanked in all cases by a promotion action of the participants that was carried out directly by the agency, both through the press, and also through telemarketing campaigns carried out with the local firms in the area. The motivations used by the agencies for this deviation from the standards of individual outplacement were of various types: i) the low qualifications of the participants, which made them much less capable of promoting themselves; ii) a mentality of the Italian workers characterised by inertia, the result of the effects of passive labour policies; iii) the importance of personal relationships in the Italian labour market, as a result of which the agency had to act to create a climate of trust between the participant and the new firm; iv) the shadow economy, as a result of which the agency needed to control the relations between the new firm and the worker, so that the latter would be hired within a regular contract. Resorting to professional training took place in almost all cases. Access to the courses on the part of the participants was effected either with the financing of the firm from which they came or by resorting to public courses (financed, e.g. through the European Social Fund). These training interventions were normally held subsequent to the identification of a possible job, in the case that the new firm found a shortage of competencies on the side of the participant. The use of personalised approaches was widespread in all the cases dealt with. Also in collective interventions the quota of individual activity was important. All the agencies were prepared to concentrate their commitment more on those participants who were in a condition of greater vulnerability, with particular regard to the disabled.

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From the elements described above, a consolidated model of collective outplacement interventions in Italy emerges which presents features of unquestionable interest and originality. As said previously, the analysis of the cases also shows that this model resulted from the adaptation of several intervention schemes to the national context consolidated at an international level. In particular, the agencies had to consider: •

•

•

The presence of a consolidated system of industrial relations in which the union had an important role. Therefore, on the one hand, where the union had been involved, the overall climate was favourable, while where this involvement did not occur (because the firm intended to proceed autonomously or the union showed itself to be less accessible) problems were invariably registered. The institutional context, characterised by the consolidated resorting to policies of income support (passive) which, according to the agencies, repressed the participants’ capacity of initiative, constituting in many cases a lack of incentive: very often, the agencies observed a disinclination to search for a job before the conclusion of the unemployment-benefits period, while it would be necessary to start hunting for a job immediately after being dismissed. Re-placement, in fact, is all the easier, the shorter the period of the workers’ inactivity is. The specific problems of the southern Italian labour market, characterised by high unemployment and shadow economy: in this reality, it was very difficult for the agencies to guarantee the participants a new position congruent to the preceding one. This explains the direct involvement of many agencies in the job search for the participants.

Several critical points for the future development of outplacement in Italy have emerged from the analysis made. According to the majority of the experts interviewed, these services have a fundamental limitation – despite the evolution under way – and are still very little known to Italian firms and workers. For example, in many cases, even when the interventions involve branches of multinationals, they are activated thanks to the input of the international management, and not of the Italian one. On the other hand, it must be revealed that, also in Italy, the situation is in a stage of change. Recent legislative interventions have finally provided for public recognition of the companies that carry out outplacement. An article of the Finance Law of 2001 (Art. 117 of Law 388 of 23 December 2000) amends Art. 10 of Decree Law 469/97, which regulates the procedures of authorisation and accreditation of private companies that intend to carry out activities of mediation between the labour demand and offer. Adjacent to these, the new formulation introduces the activities of professional re-placement and of the search and selection of personnel. The possibility has thus been extended to constitute lists of accredited agencies, with consequent major opportunities of development of these services for the entire Italian labour market. Nevertheless, implementation of the procedures has encountered several difficulties, linked to the basic options of the law. The regulation provides for a regime of separate accrediting for the three activities described above – mediation, replacement, search and selection – thus generating an aggregate of bureaucratic complications in their practical implementation. For this reason, the current executive order provides for amending this definition, by introducing a single procedure that enables accredited companies to perform all the activities identified. This procedure will supposedly be unified also with the one provided for temporary work companies, with the

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aim of creating a single market of private services relative to the labour market, in which – with fewer constraints – multifunctional competitors capable of offering a wide range of integrated services can take part. Although in general this option seems welcomed, many of the outplacement agencies have raised doubts regarding this proposal, emphasising the specificity of the work that they do. According to their position, it is in fact important to safeguard the professional competencies accumulated by the agencies within the framework of their own experience, by recognising outplacement as an activity distinct from the others and endowed with its own methods that are codified at an international level. The introduction of a unitary regime of accrediting could thus involve the risk of lowering the quality of the service within a context like the Italian one, in which the knowledge of this instrument does not enable a sufficiently informed choice on the part of the possible consumers. On the other hand, general structural barriers exist for outplacement which complicate the expansion of these services in Italy. An important example of these constraints is the limited sensitivity of the public institutions. At present, the attention and sensitivity of the local and national governments are concentrated on cases of particular importance, due to their size, history or union presence. Most of them belong to the industrial sector. Less attention is given, instead, to the dynamics that regard the small and medium firms and the sector of services in general. The opportunity to generalise the adoption of these instruments in favour of all workers is still not perceived. In addition, an acquaintance with the idea of the firm’s social responsibility in the case of dismissals is not very widespread among Italian entrepreneurs. Above and beyond these difficulties, from the analysis made, the necessity emerges for a generalisation of outplacement to ever wider categories of workers, which would overcome the disparities of treatment that exist today. Many consultants attribute a fundamental role in this process to the union, which should identify these services as an essential instrument of tutelage for all workers and should be more active in the direction of overcoming the traditional intervention schemes based only on income support; on the other hand, a lack of trust in the autonomous initiative of Italian companies seems to be rather widespread among the consultants themselves. Moreover, it is to be reported that deficiencies seem to exist also in the communication capacities of the outplacement agencies. These do not seem to follow a coordinated policy, and are found not to be equally committed to disseminating their own activity through publications and meetings. Further, as already mentioned, there is a lack of sectorial statistics and criteria of certification of the results obtained. A greater coordination of the information and communication policies on the part of the agencies is, instead, essential in order to increase progressively the knowledge of these instruments, thus favouring their future diffusion.

6

General discussion

The conclusions of the qualitative study from the side of the workers and those drawn on the basis of four case studies of outplacement show a very mixed picture, due to the different perspectives from which the analyses were carried out. The second part of the research depicts a more comprehensive framework, describing the actual “state of the art” in Italy with regard to outplacement, which is characterized by an increasing inter-

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est and commitment of social actors and institutions for a renewing of labour policies, in which outplacement – together with other intervention schemes – should play a key role. Further, the analysis of cases shows that Italian agencies already have acquired a valuable experience in designing and realizing interventions in different branches, geographical areas, and kinds of firms – large multinational companies and SMEs – and with regard to different skill levels of participants. Nevertheless, acquaintance with outplacement is still very low among Italian workers, firms and public bodies, and only few dismissed workers have the chance to take advantage of this service. The first part of this research shows the point of view of the workers both on problems and challenges related to an increasing mobility in the labour market, and on the effectiveness of outplacement. Most of the interviewees are very critical about companies’ behaviour towards themselves, complaining about the lack of respect (i. e. consideration for their expectations and needs) showed by companies in many ways: low possibility for workers to communicate and cooperate with the company, untimely and unaffordable information about dismissals, etc. It has to be noted that this attitude is also expressed by those who were successfully re-employed thanks to an outplacement scheme. Most workers of both groups (insecure and successfully re-employed) do not seem to have a clear acquaintance of the general context of their situation – globalization, i. e. increased international competitiveness – but limit themselves to blame on social actors – firms mainly, but very often unions and public bodies, too – for their condition. This, though, should not be blamed on them alone, of course: as emphasised in the respective concluding evaluations of the analyses of the two groups, the situation in Italy seems to be characterised by an overall lack of support and consideration of the psychological and social problems of the workers who have lost, or who risk losing, their jobs. The psychological consequences of this create great problems for social cohesion, and within this respect the development of outplacement services could take on a very important role, favouring greater social cohesion. The positive aspects resulting from a general outlook of the Italian situation do not seem strong enough to suggest the hypothesis of a fast development of outplacement schemes, with a growing number of firms of different size, location and branch recurring to it in the next future. Most probably, in the absence of related political measures, the Italian market will keep its very slow growth for these services even in the next years. This is due to different causes, which can be summarized in three ways: i) in Italy, there is a limited number of large companies that represent the main component of the demand of these service in all countries; this limits the effectiveness of interventions based on ethical codes of conduct referring to firms’ social responsibility; ii) regional differences in the labour market between North and South are great, and make it very difficult to re-employ workers in southern regions; iii) workers’ resistance to job changing is very high in general, and expecially in large industrial firms and former State companies. As a consequence of the preceding remarks, the role of public policies for the development of outplacement in Italy seems fundamental. Policies should promote this service in four fundamental directions: i) regulation of the private outplacement market in the direction already undertaken with the aforesaid interventions; ii) direct financing of outplacement in particular situations – e.g. bankruptcy of the dismissing firm; iii) encouragement towards the inclusion of outplacement in collective bargaining; iv) activation of forms of mixed public/private financing for these services based on the model

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of the traditional income support policies. This last aspect seems particularly important for extending the use of these services also to firms of smaller dimensions, which have more difficulties to entirely finance themselves. A discussion on the use of forms of cooperative financing for outplacement shared by public institutions and workers (even with insurance financing models) should therefore be included in the discussion within the framework of the reform of labour policies, in order to guarantee better assistance in case of dismissal to all workers. This new framework should be based on the possibility for all dismissed workers to take advantage of a coherent set of intervention schemes (income support, training, outplacement), differentiated on the basis of their needs and personal characteristics (age, gender, living place, education, etc.). This is essential for the future development of outplacement, too: it seems improbable that the simple market diffusion of these services could compensate for the deficiencies in the active labour market policies actually set out in Italy by firms and public bodies. In the light of the analyses carried out it would seem legitimate to suggest that a complete deployment of the potentials of outplacement would be possible only within an overall renewal of these policies.

Job insecurity and successful re-employment: Examples from Spain Ramon Sentmartí, Josep Espluga & Louis Lemkow

1

Introduction ................................................................................................. 281

2 2.1 2.2 2.3

Qualitative study: Description of sample .................................................. Insecure Jobs ................................................................................................. Successfully re-employed ............................................................................. General Sample characteristics .....................................................................

282 283 283 283

3

Qualitative studies: employees in insecure jobs and successfully re-employed ................................................................................................. Description of results of the subsample „insecure jobs“ ............................... Situation in the present company .................................................................. Aspects of organisational justice ................................................................... Distributive Justice........................................................................................ Procedural justice .......................................................................................... Interactional justice ....................................................................................... Employability ................................................................................................ Company offers ............................................................................................. Individual strategies ...................................................................................... Organisational vs. individual responsibility .................................................. Individual responsibility ............................................................................... Company responsibility ................................................................................ Overall assessment ........................................................................................ Description of results of the subsample “successfully re-employed” ........... Aspects of justice .......................................................................................... Distributive justice ........................................................................................ Procedural justice .......................................................................................... Interactional justice ....................................................................................... Employability ................................................................................................ Responsibility ............................................................................................... The outplacement measures .......................................................................... Overall assessment ........................................................................................

284 284 284 285 286 287 288 289 289 290 292 292 293 294 296 298 298 299 300 300 303 304 309

3.1 3.1.1 3.1.2 3.1.2.1 3.1.2.2 3.1.2.3 3.1.3 3.1.3.1 3.1.3.2 3.1.4 3.1.4.1 3.1.4.2 3.1.5 3.2 3.2.1 3.2.1.1 3.2.1.2 3.2.1.3 3.2.2 3.2.3 3.2.4 3.2.5

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1_7, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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4

Cases of good practice: Description of sample ......................................... 311

5 5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.2.2 5.2.3

Cases of good practice in outplacement/replacement .............................. Examples of good practice: MOA................................................................. Characteristics of the company ..................................................................... Overview of measures: components and scope............................................. Evaluation ..................................................................................................... Examples of good practice: CREADE .......................................................... Characteristics of the company ..................................................................... Overview of measures ................................................................................... Evaluation .....................................................................................................

6

General discussion....................................................................................... 320

311 311 311 312 314 315 315 316 318

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1

281

Introduction

The Spanish labour market is characterised by a high unemployment rate as well as a high rate of temporary contracts (both the highest in the EU). These two factors indicate a high level of instability amongst employees, which especially affects women, older people and/or employees with low qualifications (CES, 2002; EPA, 2002; Huguet, 1999; Miguélez, 1995). The Spanish administration has developed two main kinds of actions to tackle this problem. On the one hand, there are passive actions, which basically consist of unemployment subsidies for all those employees who, after having contributed to the social security system for a certain amount of time, receive an income (the amount of which depends on the amount of contributions paid in by employee and employer) which may last for between three months and two years (depending on how long the employee has been paying contributions to the social security system). The Spanish labour administration has also developed two different levels of active policies. On the one hand there are several programmes which aim to assist the unemployed in re-entering the labour market. Amongst these programmes, IOBE (Information and Advice for the Research of Employment) is by far the most common, which receives important financial contributions from the European Social Fund. During the last few years the different branches of the labour administration have been developing pilot programmes which seek to personalise to a greater extent the assistance given to each individual, such as the programme Activa 45, implemented by the Catalan administration, or the programme Timonel under development by the Spanish labour ministry. Also as active policies, the Spanish government has implemented several programmes that aim to avoid dismissals. In the economic recession at the beginning of the eighties, the Spanish government developed a package of intervention measures to increase competitiveness in all industrial sectors that were in crisis and ultimately, to maintain thousands of people in their jobs. The measures of intervention were, basically, re-orientation of human and financial resources, plus a process of re-industrialisation of the most affected areas and sectors. In the agrarian sector, since the mid 1990s the government has implemented a package of actions addressed to maintaining the levels of employment in the most underdeveloped rural areas, such as the Casas de Oficios (trade workshops), with special attention to the south-west regions of Spain where there are the highest rates of unemployment. Outplacement programmes are still exceptional amongst Spanish workers. The main reason is that outplacement in Spain is not obligatory. Companies may offer outplacement to (all or some of) its employees not as a legal obligation but as part of their human resources policy. Outplacement in Spain is a company’s endogenous answer to dismissal. In relation to the legal prerequisites when dismissing employees, the company’s obligations are limited to economic compensation. This economic compensation might proceed in three ways. There is the so-called ‘individual dismissal for objective cause’ (such as when the company is experiencing important losses, changes in production, organisation, etc.), in which the company has to pay 20 days for every year one worked in the company, to the employee dismissed. Then, there is the so-called ‘collective dismissal through an expedient of labour regulation’. This kind of dismissal needs

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to be authorised by an administrative body and implies collective negotiation between the company and the employees. The company generally ends up offering more than the 20 days per year (it is rather common to negotiate between 30 and 45 days per year worked). Lastly, there is the so-called individual dismissal for a subjective cause (i.e. the company dismisses the employee through means of a disciplinary process, which then goes to court). According to the verdict, the company may or may not have to compensate the employee by paying 45 days per year worked (or the company has to readmit the employee). In any of these cases, once dismissed, the employee receives unemployment subsidies (if he has been working and therefore paying the corresponding social security contributions for at least 6 months). In Spain there are basically five companies which offer outplacement services (four of them being branches of international companies). According to different estimates, for their outplacement services they receive approximately EUR 9 million per year, a small figure compared to the estimate of EUR 500 million for the whole of the European Union1. Most of the employees who benefit from these services are men (about 75%), working in international companies (85%) with a management position within the company (their average income per year is between EUR 60,000 and 90,000 per year), and with university degrees (70%). In other words, outplacement services in Spain are currently available to a rather reduced and selective group of employees. Nonetheless, Spanish labour experts argue that there is a progressive spread of outplacement services into wider sectors of the Spanish labour market (Pin & Sáenz, 2001; Huertas, 2001; Sáenz, 2000). The report we present gives an insight into the current Spanish labour market situation, analysing the social perceptions of two main groups: those employees that feel their current job is insecure and those employees who, after having been dismissed and having received outplacement assistance, have been successfully re-employed. The second part of the report presents several cases of good practice in terms of dismissals. There are two examplary cases where the employer shares the responsibility in assisting its employees in finding new employment.

2

Qualitative study: Description of sample

The first part of this contribution focuses on two different groups: employees who at the time of their interview felt their jobs were insecure, and a second group of people who had been successfully reemployed after having participated in a programme of outplacement. We interviewed 50 people, equally divided into the two pre-established subgroups: 25 “insecure jobs” and 25 “successfully reemployed”.

1

In comparison, France alone spends about 150 million euros every year in outplacement services (Pin & Sáenz, 2001).

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2.1 Insecure Jobs This sample consists of 25 people, 13 men and 12 women, with an average age of 40.5 years. The predominant level of academic qualifications is secondary studies (56% of the sample). The table SP-1 summarises the most relevant variables: Table SP-1:

Composition of the subsample “insecure jobs”

Average age Age range Primary education Secondary education University education

Men 43.1 years 28-53 years 4 9 -

Women 37.7 years 27-52 years 3 5 4

2.2 Successfully re-employed This sample consists of 25 people, 12 men and 13 women, with an average age of 41.2 years. The predominant level of academic qualifications is secondary education (48% of the sample). The most relevant variables are summarised in the table SP-2. Table SP-2:

Composition of the subsample “successfully re-employed”

Average age Age range Primary education Secondary education University education

Men 44.2 years 28-53 years 2 6 4

Women 40.5 years 30-52 years 4 6 3

2.3 General Sample characteristics The age range of the people interviewed in both groups was from 28 to 53 years. People who worked for primary and secondary sector companies tend to have worked at the same company for many years (between 10 and 37 years, depending on age). However, those who worked in tertiary sector companies tend to have worked for their current company for shorter periods (between 2 and 6 years). Some of the employees interviewed were working in the mining industry. These are generally companies which have recently been privatised (or are in the process of becoming private companies). The new management of these companies has decided to reduce its production, and therefore proposed a reduction in its labour force. These kinds of companies are characterised by a strong union presence, with a relatively high participation and commitment of their employees, which forces the company to negotiate the process of restructuring. The people interviewed who work in the secondary sector work mainly for the textile industry, the car and home appliance manufacturing industries. In all cases, the companies announced a restructuring of the workforce and a new method of work due to the introduction of new production processes. Other people work in companies related to telecommunications which have come up against prob-

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lems because they have recently been privatised and/or the new owners have merged with other companies. These companies tend to have very large workforces, and the employees rely on a strong organisation that gives them enough strength to negotiate the conditions of restructuring. However, the new company’s management teams have initiated a process of downsizing the labour force and therefore reduced the employees’ collective strength. Some of the people interviewed worked in companies linked to commerce, private education and media activities (tertiary sector). Some of these companies have reduced their activities due to lack of orders and therefore there are clear indications (although not made public) of job redundancy plans; others have clearly announced their downsizing plans. Most of the participants interviewed commented that there was a very low collective conscience among the employees, i.e. the unions had very little presence in the company and employees acted very much from an individualistic point of view. Other people work in public companies or institutions, on a temporary contractual basis. It has been observed that these people suffer from high levels of job insecurity. They pointed out that their jobs depend on arbitrary decisions made by their superiors (civil servants) or politicians.

3

Qualitative studies: employees in insecure jobs and successfully re-employed

3.1 Description of results of the subsample “insecure jobs” 3.1.1 Situation in the present company Most of the people interviewed are employees working in companies that have announced plans to restructure the workforce, with the consequence of dismissing employees. This means that the employees interviewed face the risk of dismissal in the near future. Some of them have already received a letter informing them about the termination of their labour contract. The reasons companies refer to when justifying their plans for dismissal are: restructuring at a global level; privatisations (in the case of public companies), joint ventures, mergers, relocating to other areas (within Spain or abroad), and because there has been a decrease in their production (due to the decrease of demand in their products). In most cases, the announcement of restructuring has resulted in a change in the work atmosphere. There is an increase of rumours among the employees, stress, and in some cases an increase in sick leave. The main differences arise between the companies in which the employees act collectively (generally through the trade unions, but not necessarily) to negotiate with the management of the company and those companies where people act individually or in small groups. The labour environment is said to be more positive (less stressful) in the first group than in the second. Some of the interviewees, who have worked for several different companies and have undergone various job transitions and experienced unemployment, do not believe that companies take them into account and can give them security. As Mrs Pedrera affirms: “The companies I have worked for have never given me anything other than

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what was strictly due to me. And if they have had the chance to keep something from my earnings that was my due, they have. In a negotiation with a company you will rarely come out winning, they do whatever they want” (SP-IJ-18; 433-438). The rest of the interviewees generally have enjoyed labour stability for many years (from between 10 and 37 years in the same company), and tend to consider that the company has acquired a responsibility for them because they have dedicated many years of service to the company. These people express the idea that a company should not be able to get rid of its workers with such ease. In accordance with Mrs Katya: “I just cannot get over the fact that after having worked for so many years for this company, putting in so many hours and so much effort, this is the way they repay us. If someone had told me a few months ago this would happen, I would have never believed it” (SP-IJ-19; 210-214). In general, the people interviewed are not prepared for the changes that they are facing and in fact do little to prepare themselves for the changes. They frequently argue that there is little they can do, as they perceive the situation to be beyond their control, for example, because of age (especially those over 45) or the lack of time caused by family responsibility (children etc). Only some of the young, skilled workers interviewed, who work in the secondary sector, consider that they are able to actively confront the changes in their job or the company. In this sense, those people with more specialised skills in sectors of potential growth (for example, telecommunications) seem to be the group who have more resources available to them when they have to look for a new job. It is also important to take the family situation into account, as a source of support or tension. It can be seen that more qualified workers (especially those with university education) who hold responsible positions, view the whole process from a more isolated position, without support from any organisation or union, and are the most likely to rely on the court to resolve their cases. Mrs Leiro explains her case in public administration: “Taking into account that there is an underlying political power struggle, the trade unions prefer to wait on the sidelines and are therefore not very involved in our problems” (SP-IJ-15; 112-118). According to what Mrs Leiro says, the top personnel of the institution were very much against any type of union intervention. Amongst the most qualified workers there is one exception to this situation of isolation: those people who work for the telecommunications industry. The interviewees from this sector are highly skilled technicians whilst at the same time also have strong union and organisational support. Amongst workers with low qualifications, the relevant variable in order to analyse their situation is the type of company they work for, rather than the type of work they do. People who work for a large company with a strong union have a certain amount of power they can use to pressure companies into negotiating. However, people who work for small companies or have little union presence have less margin to manoeuvre in order to face the processes of change and hence, have to accept more precarious working conditions or more indiscriminate redundancies.

3.1.2 Aspects of organisational justice In general, the majority of people interviewed consider that the companies act unjustly towards them, as they perceive there are no reasons (economically) to justify the re-

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structuring of the company or the organisational changes which are affecting them, or because they expect the company to treat them better (in the case of people who have worked at the company for many years). In the majority of cases, the procedures involved in restructuring are seen by the workers as unclear and intentionally misleading. Often, the information given by the company and their possibilities of participation in the processes are minimal. It has been observed that when there are possibilities of negotiation between the workers and the company, this is normally due to the fact that the union is well organised and influential.

3.1.2.1 Distributive Justice Amongst the people interviewed in the primary sector (mining/extracting companies) the idea predominates that, although the companies are profitable enough, the management acts unfair because they have no intention of increasing production or maintaining jobs, and they have suspended any investment that might have been necessary in the functioning of the company. The workers interviewed consider that after working for these companies for so many years they do not deserve such poor treatment. As Mr Beiras expressed: “The company is making sure that production declines and that the extraction becomes more and more dangerous every day due to lack of maintenance, and they are doing this on purpose so that they can use it as a pretext to close the mines” (SP-IJ-2; 342-354). In many companies, in the last few years, the workforce has been divided into two groups: older workers who have a permanent contract and new workers who hold temporary contracts. Both groups have different working conditions, a fact that has weakened their capacity to negotiate. While the temporary workers have more precarious working conditions, the permanent workers are pressured to accept changes in their working conditions (timetables, work tasks, etc) or even to leave the company (through early retirement or redundancy incentives). Workers who are conscious of this situation find it extremely unjust. There is only one case of an interviewee who works in a small industrial company, Mr Bienvenido, who affirms that the company had to decrease production because client demand for their product had decreased dramatically. However, he also adds that: “the company had made large profits in the past, which it should have saved in order to invest it now and try to tackle the reduction in productivity without making anyone redundant” (SP-IJ-5; 621-624). The majority of people interviewed who work in the tertiary sector (private education, advertising, post office and public administration) have temporary contracts and tend to have a feeling of job insecurity which is very personal and not collective. They consider their position very unfair, but at the same time they demonstrate a certain resignation because they perceive that they can do very little to change their future. In the majority of cases, because of the temporary nature of the work, the workers take for granted the fact that they could well be made redundant in the future. As Mr Guerrika affirms: “They told me two months ago that there were downsizing plans in the pipeline and that they only required one person of my characteristics; taking into account that I was the last to join the company, I am getting prepared to be made redundant” (SP-IJ12; 30-34).

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Mrs Suárez, who works in a public company which is soon to be privatised, considers that there will be changes due to the restructuring of the company, but she does not know to what extent: “I think that the introduction of new machinery and the privatisation plans will endanger all workers who have a temporary contract. What I do not know is what selection criteria the company will establish when it reduces the workforce and whether I will be affected” (SP-IJ-14; 162-166). On the other hand, Mrs Leiro works in public administration and complains that every time the politicians in charge of the institution change, all the temporary workers, such as herself, are dismissed: “[The last time there were elections] two colleagues were made redundant (...), as well as the administrative personnel with temporary contracts… they even made the cleaning ladies redundant” (SP-IJ-15; 24-44). Mrs Leiro considers that this way of acting is very unfair, the fact that the value and capacities of individuals are not taken into account.

3.1.2.2 Procedural justice Frequently the company management is accused of having authoritarian attitudes. Mr Juvé considers that the new owners of his company are acting undemocratically: “There’s no democracy in the company. The new owners are not from this area and come with impositions. They have a very different way of thinking from us and this is transmitted to all the levels; they come with impositions; they’re authoritarian.” (SP-IJ1; 112-122). Furthermore, the workers feel cheated because the company has tried to hide their real intentions. All these factors combined have generated a permanent feeling of mistrust towards these large companies. Concerning the process followed by the companies, in the majority of cases the workers felt cheated and see their future very negative. Mr Bartolomé talks about blackmail when he defines the way his company has acted towards them and considers that the company has been unfair because it only wanted to negotiate with permanent workers. “The company told us that if we accepted that temporary workers were made redundant before their contracts expire, the company would be more flexible in the restructuring process” (SP-IJ-7; 173-187). Mr Fernández commented that the situation of job insecurity made him so ill he could not go to work “however, the medical service at the company put me through a stringent medical check up, they rang my home at any time of the day and night, they came to see me and made me go to the doctor continually, and this made me even more ill” (SP-IJ-10; 274-281). The greatest difference is seen between those companies where the unions are united and those where the unions are divided. Some interviewees commented that in some cases the unions have agreed to certain working conditions without really taking into account the demands of the workers. Mr Fernández comments: “The major unions have stopped any attempt at mobilising the personnel, using the bureaucratic structure they have (...) Up until the point that they have become an institution in the service of the human resources department”(SP-IJ-10; 140-147). However, in other cases the workers have united and have organised assemblies where they have negotiated directly with the companies, and where the different unions have united. As Mrs Sobirana confirms: “The unions do not make any decision without the support of the employee committee at the assembly; the assembly is the only sovereign body to take decisions” (SPIJ-8; 788-791). In these cases the workers have managed to negotiate with the company

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and have obtained some advantages, but in the majority of cases they have not been able to stop the process of closure or restructuring. The workers in the tertiary sector tend to be the most vulnerable when it comes to changes imposed by the companies. The information they are given is minimal, and the opportunity to participate in the process is nil. This means that they often have to defend themselves through the courts. As Mrs Piti explains: “We were the last to know and during the last stages of closure we have had a unilateral reduction in our salaries, and therefore we are going to take the company to court” (SP-IJ-11; 234-241).

3.1.2.3 Interactional justice The shortcomings in communication procedures are reflected in the way the companies communicate their intentions and the reactions of the workers. For example, Mr Juvé claims that the company wanted to blackmail the workers: “They informed us about the viability plan [to guarantee the future of the company], but before starting negotiations, and taking advantage of the Easter holidays, they presented a plan of regulation which consisted of the dismissal of a large number of employees. Their strategy was that if we did not accept the viability plan they would put the regulation plan into action. They wanted to negotiate with blackmail” (SP-IJ-1; 294-299). In general, employees take for granted the fact that the company does not give the workers the option to participate in the decision-making process. In the cases we dealt with, the reaction of the workers consisted of strong mobilisations (strikes, demonstrations, etc.) which have even involved local politicians, through which they have managed to get the companies to reconsider their intentions. However, the workers consider that at the moment they have only managed to delay the restructuring. In general, the companies have placed obstacles in the way of worker participation in the processes of change which were taking place. As Mr León says: “What the company should communicate is above all what their real multinational plans are, and within this communication strategy, it should be implicit that the workers ought to be able to participate in taking strategic decisions; not only when there are redundancies to be made, but before this situation occurs.” (SP-IJ-3; 326-332). In the communication of processes of change the situation is similar: Mrs Sobirana says that the workers became aware of the sale of the company through the media, and that the company had always presented redundancy plans during the holidays: “The company never told us about its plans; we became aware of the problem when the company started to make people redundant. On some occasions, we read in the press about things that the company should have informed our employee committee” (SP-IJ-8; 429-435). In general, all the interviewees, of all ages, have similar perceptions with regard to the treatment they have received from the company: they all talk about unfair situations, of unjustifiable restructuring of the company, of obscure and unclear processes and the lack of information or the opportunity to participate. We should, however, mention some cases of young people without much work experience who resignedly accept the fact that they have been affected by restructuring. For example, Mr Pedrera (28 years old) affirms that he was the first to leave because he was the last to join the company, and although he does not want to judge whether or not this is fair, he says that he finds the decision logical. “Two months ago they told me that they were preparing to downsize and as I was the last one to join the company, I guess I

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will be the first one to leave. It’s not very nice, but I suppose it’s normal” (SP-IJ-18; 3034). It seems that these situations occur mainly in small companies that have very individualistic labour relations.

3.1.3

Employability

3.1.3.1 Company offers Amongst the employees interviewed from the primary sector, the most common attitude is ‘wait and see’ what will happen in the future. In general, it is people with few qualifications who recognise that they need to bring their skills up to date through training courses. However, in these companies there is a trend to reduce training courses (which is related to the plans of closing down the mines). One of the companies has offered a re-employment plan to the employees, but this has been rejected due to a previous negative experience when many of the employees who participated in such a plan lost money and felt cheated by the company which was organising the re-employment programme. As Mr Beiras says: “Yes, the company wanted to introduce a plan of re-employment, but we have not accepted it due to the results from the previous experience. What happened before is that more than 80 employees participated in the programme: They took some training courses related to different projects, others took a lorry driving license test in order to set up a company to transport minerals, etc. They really believed in the project, and many of them put lots of their own money into this social fund to create a new company, or into another company which was taking the money and in theory was offering employment (some invested about 20.000 Euros each). After some time a furniture company was set up in Cardona, but it was a disaster and it had to close down; in relation to the transport project, it was also a failure because there was no profit left, and in the end only 3 or 4 employees got a permanent job working in a factory in the area. Once people saw the results of the whole programme, there were many complaints and the employees who had participated in the programme and who had invested their own money in the project claimed their money back (some managed to get some money back). The general impression was that they had been swindled by the company which was in charge of the re-employment programme” (SP-IJ-2; 256-278). In general, these companies have not offered any type of resources to help affected workers find new jobs; they have simply proposed early retirement for those older than a certain age. The majority of people interviewed in the secondary sector have received little help from their companies in finding new jobs. In most cases, people were only offered redundancy pay (often a little higher than legally required) or early retirement. The luckiest have managed to get training courses which have served to improve their CV, but often, these courses are taken with the current job in mind (which they will probably leave) and not with alternative future jobs in mind. As Mr Bartolomé explains, the training courses have served to improve his internal situation: “I started off on the production line, where I stayed for two years, then I put my name down for a promotion so I could transfer to the administration department and the company has given me the necessary resources to continue improving my qualifications and skills. I am not discontent about that” (SP-IJ-7; 288-292). However, now Mr Bartolomé is facing the possibil-

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ity of redundancy due to company restructuring, and his training, although it has improved his CV, does not faciliate easy job transition. In some cases the company offers its workers the possibility of becoming selfemployed. However, this offer is not considered a very good one, as there are many cases of people who had accepted this offer in the past and who have not been successful. As Mr Fernández says: “They became even more exploited than when they worked for the company” (SP-IJ-10; 161-168). Mr León adds that: “I was always against economic compensation and the supposed help to the workers so that they could become self-employed, because it was nothing more than a trap on behalf of the management to remove the working class from the centres of production” (SP-IJ-3; 313-321). After analysing all the interviews in this sector, it can be stated that in no case has the company offered the possibility of re-employment to any of the people affected by restructuring. However, in some cases, a worker has been offered the possibility of reemployment to another job within the same company, albeit with worse labour conditions (part-time, etc). This is what happened to Mr Bienvenido (SP-IJ-5), although he has not accepted the conditions. Finally, in the group of people interviewed in the tertiary sector, the comment that predominates is that the companies and institutions they work for only offer them economic compensation for future redundancies (the minimum to which they are legally entitled). In a few cases, the institution has offered the workers training courses, but only related to their current job. As Mrs López says: “The courses that I am doing will only be of use in this specific job, but not to look for a job in another place” (SP-IJ-16; 788-791). In some cases, for example with Mrs Piti, the company offers a change in the contract as a condition for them continuing to work at the company, which the affected workers reject because they believe they will have to accept worse terms of employment: “The only thing they offer is a change of our employment status: If we accept to change to temporary contracts, they have promised us more working hours, but this is blackmail” (SP-IJ-11; 75-80).

3.1.3.2 Individual strategies Most of the workers interviewed in the industrial sector do not decide to look for another job, as they are willing to fight to keep their present jobs. This is probably due to the fact that there is a strong union presence with the capacity of negotiation with the company management within their firms. The majority express the conviction that if they change their job it will be to go to another job with worse conditions than their present one. Therefore, they are resistant to any job transition and reluctant to think very much about individual strategies in order to improve their possibilities of finding another job. Beyond this common attitude, there is also a small proportion of employees who take a more active role in their job transition, taking further training courses and/or actively looking for new employment. In general, all these people have a competitive curriculum as they have worked in several companies and institutions during their working life, and they are normally highly qualified and skilled. It could be said that they are people with sufficient resources that allow them to find another job, but these resources were obtained through

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individual strategies, more than through offers from the institutions and companies where they work. As already stated above, the option of self-employment is generally unpopular amongst workers as it implies worse labour conditions. However, in the case of highly qualified workers it can be seen as a way out. As Mr Fernández explains with respect to the lawyers in his company: “They received help from the company to set up on their own with a guarantee of work contracts from the mother firm, and I understand that it is going well, (...) but of course, we are talking about a privileged group” (SP-IJ-10; 175182). With regard to individual strategies, age is one of the arguments which makes some people resist looking for another job and insist on fighting to keep the one they have. That is, people who are older than 45 normally consider their age a serious obstacle to finding another job. As Mr Fernández says: “It would be very naive on my behalf to think that my future is secure ... Things have changed a lot and my age is an obstacle” (SP-IJ-10; 106-111). With this line of thought Mr Fernández does not take into account the possibility of improving his CV through training or other means: “At my age I do not think I have many possibilities of learning another occupation. That is for younger people” (SP-IJ-10; 416-420). On the other hand, differences have been observed between the interviewees that have more work experience in specialised sectors (for example, telecommunications) and those who do not. The first group has taken several training courses during their working life (especially those with postgraduate education). Therefore, they consider that they have a good CV and in many cases they are willing to undergo more training in order to keep up to date with new advances and are therefore more prepared to look for alternative work in the labour market. However, as in most cases and – in accordance to the general strategy mentioned above, concerning the will to fight until the end to keep their current job – many of the interviewees do not take any decisive action to improve their employability. They prefer to wait and see how the labour situation evolves at the company. As Mr Leny affirms: “The first thing I have to do is to fight to keep what is mine, my job and my salary, because any other job would not offer me the same economic conditions” (SP-IJ-4; 286-300), and at the moment he has no thoughts of taking any kind of training course, “unless it was for a specific job that they were offering me” (SP-IJ-4; 512-519). People who have experienced few labour transitions, who have worked at the same company or in the same sector for many years tend to be more anxious when faced with changes that affect them. Amongst these people are some who perceive their re-employment as very problematic because they believe that their employability is very low (because they have not taken any training courses for a long period of time) or that they are too old to learn new skills. Some of the higher qualified interviewees who work in specialised jobs do not seem to be particularly concerned about changing companies, and think that if they are affected they will be able to find another job in a relatively short time. There is a difference in attitude between the two groups with respect to personal initiative and the way they face an insecure future: Whilst the first group have a passive attitude, the second are more active.

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Measures implemented by companies to accompany the restructuring of the workforce and work practices are very scarce. One measure is voluntary redundancy from the company, with the incentive of a slightly higher economic redundancy payout than the figure stipulated by labour law. Another measure is the offer of early retirement to some employees (normally the offer is made to affected workers around the age of 55, but sometimes this is lower). In some cases, the company has offered workers training courses, and there is one case where a company proposed a re-employment plan. This, however, was rejected by the workers, as they did not believe in its efficacy.

3.1.4 Organisational vs. individual responsibility 3.1.4.1 Individual responsibility The majority of the interviewees consider that the principal responsibility of the worker when faced with redundancy, is to fight to save his job. Furthermore there are numerous witnesses who affirm that this can only be done collectively. As Mr León expresses: “The principal responsibility of a worker is to fight to save his job together with his colleagues. If redundancy is inevitable, he should demand a good compensation plan and, if possible, some sort of re-employment assistance from the company. On an individual level, a worker has few possibilities of success however much he tries, the only strength comes from collective unity” (SP-IJ-3; 390-400). In general, workers believe that the first thing they should do is negotiate with the company to keep their job, and secondly to negotiate compensation and secure unemployment benefits – always collectively. In general, individual action has little success, and even those employees who mistrust the unions, when faced with downsizing which puts their job at risk, have come to recognise that individually it is very difficult to be successful in their demands. As Mrs Redorta explains: “I had always seen the unions as an obstacle, as a kind of problem for the functioning of the company, but now I am going through this insecurity myself, the redundancies that have been announced ... now I think that we can only accomplish something if we are organised” (SP-IJ-17; 633640). In a way, people perceive that the ultimate responsibility falls on the company and that individuals can only react towards the proposals of the management. Some of the interviewees, however, have a slightly different point of view to what we have said until now, and consider that the principal responsibility of the individual is to try and negotiate as much compensation as possible and to find another job as soon as possible. This view is particularly predominant amongst workers who have changed jobs and companies several times in their working lives, especially those who are highly qualified. The interviewees who have worked at the company for shorter periods (and who have had a more varied and complex working life) tend to accept more easily that their jobs are at risk than those who have been working at the same company for many years. Furthermore, they place less responsibility on the company and more on the workers. In fact they assume that it is the workers’ responsibility to find a new job. As Mr Guerrika affirms (28 years old, has worked for his current company for 2 years and now finds himself facing possible redundancy), the responsibility of someone who is faced with redundancy is “first and foremost, to find themselves another job” (SP-IJ-12; 376-379). Mr Bienvenido (SP-IJ-5), who is 47 years old and has worked for his current company

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for three years and may soon be facing redundancy, says the same. Employees who have worked for the same company for a long time present much more rejection to the possibility of their dismissal: “For most of us [referring to the employees of a textile factory] this has been our only job; we have been working in this company since we were teenagers; this was a model factory, everybody wanted to work here, we all thought we would retire from here … And now they are telling us that they want to close down! What are we going to do if they sack us? There is nothing else in the village. Furthermore, most of us have no qualifications whatsoever; we haven’t even got a driving license to go to another village. It can’t be; they cannot close it; the management, the village council, the politicians, whoever, have to realise that they can’t close the factory down, that it would be a real disaster for the whole village” (SP-IJ-23; 412435), argues Mrs Candela.

3.1.4.2 Company responsibility In general, it is considered that the principal responsibility rests with the company that wants to introduce the changes. The interviewees consider it is the company management that should ensure the correct functioning of the company and try to avoid redundancies. If they fail to do this, then the responsibility falls onto the individuals who are affected by the restructuring. This responsibility basically consists of keeping their jobs or, if not achievable, of trying to get as much compensation as possible as well as looking for another job right away. The idea that it is the responsibility of the company to relocate their redundant workers is held by very few interviewees only. In some cases, especially when there is an announcement of the closure or downsizing of a large company, employees transfer part of the responsibility towards the public administration and mainly towards the political leaders. The people interviewed who work in the primary sector tend to consider that the resources they exploit (e.g. mining and extracting activities) can be exhausted and that, therefore, there are legitimate cases when companies have to close down. However, they insist that when faced with situations of restructuring and change, the responsibility falls not only on the companies but also on the local council in the area where the company is situated. In this sense, local and regional politicians are also considered to be responsible. This does not exclude the responsibility of the workers from finding themselves new work. As Mr Beiras says: “It is clear that if there is no possibility of maintaining his job, the worker has to find another job and ask that the regional autonomous government help him to find a new place of work” (SP-IJ-2; 476-483). However, these workers also argue that deciding whether one of these companies has to close or undergo restructuring is something that should be done with the participation of the workers. As Mr Juvé says: “The company should give access to the workers in the process before deciding on redundancies, workers should participate in deciding how the company could become more competitive either through a reduction in salaries or by making investments related to future plans” (SP-IJ-1; 414-419). So far, however, he sees this as impossible because companies do not conceive the possibility of sharing the management of the firm with the employees. According to the majority of interviewees, apart from ensuring the effective functioning of the company, the responsibility of the company management should also comprise giving clear and adequate information to the workers about the processes of

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change. Companies consider the option of relocating the effected workers as impossible. As Mr Beiras comments: “I do not know up to what point the company has to worry about the professional future of its workers” (SP-IJ-2; 369-374). Mr Beiras insists that he would renounce part of his possible compensation in exchange for career guidance, assessment and training in order to improve his CV. However, he thinks that this would be impossible because he does not believe the company would offer this to the workers, and indeed, he does not believe the company has any responsibility to do so. He thinks this may be possible only in relation to high-level employees. In relation to the companies which were previously public or which are in the process of privatisation, employees in general demand more public control, especially concerning decisions made by the management that may affect the stability of the workforce. Workers with both low level and high level qualifications consider it the responsibility of the company to make good use of the human resources they have and guarantee the company functions well, or as Mr Bartolomé says (low skill level): “Whether or not we have jobs depends on the decisions taken by the management, and it is the financial managers who have to guarantee the smooth running of the company. The individual’s responsibility is to try to keep his job for as long as possible” (SP-IJ-7; 297-308). This is the feeling shared by the majority of interviewees, as Mrs Isla affirms (high skill level), faced with the threat of redundancy, the worker has to defend his job. Therefore it is vital to promote the unity of the workforce. Mrs Isla also considers that: “A company with a minimal amount of integrity should present a plan of viability and ask the workers to participate in the solution of the problems and if, at the end, they still have to make some workers redundant, these workers should be psychologically and economically helped, with some offer of work in another company or with the offer of training (...) they should be offered a way out” (SP-IJ-9; 562-576).

3.1.5 Overall assessment How do people cope with uncertainty? The people interviewed from the primary sector (primarily from the mining industry) tend to try to avoid the changes. In some companies the workers act collectively and with great strength, using their capacity to exert pressure to make the company negotiate with the intention of resisting any of the restructuring measures. Most secondary sector interviewees believe that it is necessary to confront the intentions of the company collectively. In general, these workers express the priority to fight for their current jobs, and they are conscious that it can only be done through the union. People in this kind of situation maintain a high sense of self-esteem and are strong enough to demand that the company keeps their jobs. However, this perception of unity among the employees, led by the trade unions, as an important element in order to negotiate with the company management is not common in all cases. There are also interviewees who mistrust the unions because they consider they have accepted too many changes and that they have betrayed the workers affected by restructuring plans. In these cases, people feel abused and the way they face the situation of uncertainty is more individualistic.

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Amongst the people interviewed who work in the tertiary sector, it can be observed that, in general, they face their situation of job insecurity in an even more individualistic way. There is a general perception of lower tension when referring to their labour transition, especially if one takes into account the fact that the majority of these people hold temporary contracts and there is a high level of job rotation. We have observed that, in general, people who have a higher level of qualification and who carry out complex or specialised tasks present the most positive predisposition when faced with possible restructuring, as well as when having to find a job. However, we must point out that this attitude is related to the type of qualification. When an employee has a very specific qualification that can only be used for very specific jobs, then this employee feels that his opportunities to find a new job with similar conditions are highly limited. This perception of difficulty increases when that person works in a sector that is in decline. Thus, we can affirm that people who have undergone more labour transitions feel more prepared to face future changes. However, this does not mean that they face these changes with optimism, often it is the opposite: They have more experience in moving from one job to another (generally passing through a period of unemployment), which indicates that their working life has been highly unstable. It seems that flexibility increases employability and thus the chances of finding a new job. Nonetheless, and especially for the mid-low labour positions, flexibility generally implies instability on the employees behalf, which not only has economic but also psychological as well as social implications. Many of the interviewees emphasised that the risk of dismissal also brings with it the risk of breaking personal friendships, a way of life as well as social recognition. However, the majority of the people interviewed have not planned strategies to face the changes which affect them. More frequently, they see obstacles which impede them when they should prepare or retrain themselves, such as age, lack of time due to family obligations or the fact that their work is highly specialised or not specialised enough. Very often, these difficulties mean that generally the people interviewed do not take any positive action to improve their curriculum vitae, and prefer to dedicate their resources to fighting to keep their current job. It has also been observed that people who maintain close social relationships with family members and friends have a more positive predisposition to cope with periods of change. In general, there tends to be a great reluctance to change to a different sector of activity. As Mrs Isla says: “I would do a job like the one I am currently doing in any other company in the same sector, I would not really like to change sectors, but if necessary I would. At the moment I have not thought about taking any training courses because I think I am well prepared” (SP-IJ-9; 837-841). Women with low level qualifications and who generally work in production lines sometimes consider taking domestic jobs, such as cleaning and looking after old or ill people, etc. - jobs which are typically identified with the submerged economy.

What do people expect from organisations? Workers hope that their company management will ensure for the smooth running of the firm without having to make people redundant or introducing major changes to the organisation of work. If there is no other option than to make these changes, they expect the local and regional authorities to give them support in solving their problems (al-

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though always in collective terms). Employees hope that the companies will denounce their restructuring plans, and if not that they at least guarantee good economic conditions for the affected workers. People who have to adopt more individualistic strategies try to improve their curriculum through training courses and bringing their skills up to date. Amongst these people there is a demand for stability and for clear and just criteria in their companies, when it comes to deciding the continuation (or termination) of an employee’s contract. Almost without exception, people demand that companies are clear about their intentions and give them pertinent information, concerning the processes of restructuring, so that each employee can formulate an idea of the real possibilities of continuing with the company and adopt the most adequate strategies (individual and/or collective). Some of the interviewees, who are characterised by having a high level of training and who carry out specialised jobs, are more willing to accept changes and tend to think that if they are made redundant, they will find a similar job with relative ease. They therefore adapt more positively to change. What they expect from the companies is transparency and more time to formulate strategies.

3.2 Description of results of the subsample “successfully re-employed” The majority of the people interviewed in this subsample were aged between 38 and 50. Six of the interviewees were around 30 and five were over 50 years old. There are few relevant differences between the age groups. However, the most noticeable difference is that the older employees tend to be much more worried about their future employment situation than the younger ones. A phrase mentioned by several interviewees was ‘I was convinced that, at my age, no company would be interested in me’. The younger employees were much more optimistic about their future. It could be said that outplacement is offered by large companies who normally have a long-serving workforce. The people interviewed in this subsample come from different branches of activity. A large proportion work in companies in the secondary sector, basically in the pharmaceutical, chemical, manufacturing and food industry. The remaining interviewees are from the tertiary sector: computers and communications, insurance, commerce, finance and law. None of the former companies of the people interviewed were in the primary sector. All of these companies had a large workforce, often running into thousands of people. Most were multinational companies, with the workforce distributed across various countries. However, even in local branches the number of employees often exceeded 500. In most cases, the restructuring of the workforce was due to company mergers, relocation of the company (to another city or country) or closure of the Spanish branch of the company (in the case of multinational companies). In most cases, companies involved in the food production industry were local companies that have been bought by international companies in the sector. The result of company buy-outs has been restructuring of companies or closures because what interests the buyers, more than the production they generate, is their client lists and market share. As Mr Reus says: “From the time they announced the restructuring of the work-

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force, there was a bad feeling among the employees. The company was not doing badly, it was the leader in its sector and was very profitable” (SP-SR-2, 70-77). In general, it has been observed that the announcement of restructuring and redundancies generates a negative working environment which was maintained for the duration of the restructuring period. Mrs Balti comments that panic ensued when her superior announced that there would be five redundancies in her department: “From that day there was a feeling of anxiety and mistrust amongst the staff, people couldn’t give their attention to their work and this, I think, served to accelerate the process… A situation like this leaves you incapable of working properly and enjoying your work” (SP-SR-11, 38-46 and 73-74). However, it is necessary to add that the higher qualified workers or those who held intermediate level positions within the company seemed to cope with the situation with less fatalism and on a more individualistic level than the others. In the field of production, in general, there are three kinds of collective behaviour. In some cases, interviewees argue that despite the anxiety and tension that existed in the company, people retained the same production levels until the last day: “There was a very bad environment at work, but we worked just as hard as always up until the last day; in this sense we were very professional” says Mr Llauna (SP-SR-20, 58-64). A second group maintained a work-to-rule attitude, i.e. doing the minimal amount of work. As Mrs Ruiz says: “Before, we were very flexible and quite often worked overtime. But, from the moment they informed us of the closure, at 7 o’ clock, we put our pens down and just went home” (SP-SR-25, 188-193). There is another group which argues that their production level decreased progressively the closer they got to the dismissal date: “At the beginning we all felt very confused, but after a few days we went back to normal and our level of productivity was the same as before .... We agreed with the company that we would work until October, but after the summer holidays many employees did not do much more, and they said to me: ‘Why are you working so hard, at the end, what for?’, but I felt that if we had reached an agreement we had to stick to it”, says Mrs Florín (SP-SR-24, 237-248). The reasons to develop either one collective attitude or the other might well be related to the work environment prior to the announcement of the dismissal. It seems that when there is a good working atmosphere, people tend to try to maintain it up to the end. Also, if there is a good relationship with the company management and people believe that the managers are just as much victims as they (the employees) are – which is particularly relevant in local branches of multinational companies which are due to close – they tend to continue with the same good working atmosphere, maintaining good relations and the same level of productivity as previously. As Mrs Domenec says: “We knew that the decision to close our branch was not taken by our managers, but by the bosses who are far away in the company headquarters. In fact, our managers were as much victims of the whole situation as we were. This, together with the fact that we had always had a very good working environment made things much easier … We worked as a team until the last day. It was quite amazing, it was as if everyone had agreed, somehow unconsciously, that the news itself [of closing the branch] was bad enough, so we should at least try to avoid any kind of conflict among ourselves” (SP-SR-17; 149-166).

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3.2.1 Aspects of justice 3.2.1.1 Distributive justice In most of the cases, the interviewee related their dismissal not to reasons of profit of that particular branch (or department within a branch) but to decisions taken by headquarters. According to Mr Llauna: “I wouldn’t be surprised if the decision to merge the companies was taken by the top directors while they were playing golf somewhere in the USA” (SP-SR-20; 302-305). Similarly, Mrs Floria says: “The decision to relocate the company to Madrid was taken by a person who had probably never been to our branch in Barcelona, and maybe didn’t even know where Barcelona was ... At the end of the day, we’re just numbers to play with” (SP-SR-24, 87-94). In most of the cases, when the branch was closed interviewees mentioned that the branch was very profitable and therefore they could not really understand why it had to close. Mr Gerárdez says: “The company was very profitable, but the central office in the USA decided to invest in other European countries and close our branch ... I think it also had something to do with the stock market” (SP-SR-7, 44-50). There is an important difference between skilled workers who hold positions of responsibility and those who do not. The first group, in general, tend to consider that the changes which affect them are fair (distributive justice) because there was no other way, as the company acts in their interest and for their benefit, even if it affects people in a negative way (even themselves). For example, Mr Santi considers that his redundancy was correct: “Yes, because it has happened to other work colleagues in the past ... I think it was correct” (SP-SR-1, 209-214), although he emphasises that “the employee never thinks it’s fair because you’ve worked hard and done your best ... especially when you’re being made redundant for economic reasons so the company can become more profitable” (SP-SR-1, 331-335). It is interesting to note how these workers perceive and rationalise what is happening to them and how they contextualise it within a process which is beyond their control and which, according to them, should be accepted. As Mr Beato says: “Concerning whether the decisions were correct ... I would say no, but I wasn’t within the global context; I could think it was personal, but no, because it was a decision taken at the global level, they were going to totally restructure the company” (SP-SR-9; 477-484). Age becomes a very important factor for those employees who are older than 45, and especially for women with few qualifications. In general, they have a stronger perception that the company has used them, and once the company does not need them anymore they are sent back to a labour market in which they will have no opportunities. However, their resentment is not so much focused towards the company itself, nor its management, but towards the labour market in general. They tend to feel that they have a lot of experience, they are prepared to work hard and are very much committed to the company, and yet they perceive themselves as the ‘expendables’ of the labour market. To some extent, they feel that they themselves are responsible for being in this situation. They feel that younger people are more prepared for the new labour conditions and that they themselves do not have the required skills (they often mention computer and/or foreign languages). They argue that they did not have (and indeed have not had) the chance to receive such training. As Mrs Dunia says: “In my youth, we started work when we had finished compulsory education. You have been working since then, all

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these years, every morning ... And now, once the company does not need you, they sack you. Yes, I can understand it; I understand the company’s decision, but even so I feel it’s very unfair ... You find yourself in a new world which doesn’t need you anymore, you feel totally alienated, insignificant” (SP-SR-12; 408-417).

3.2.1.2 Procedural justice Some interviewees also complain about the way the restructuring process had been implemented, believing that they shouldn’t have been affected, as Mr Robert says: “Things were done badly, because before doing anything, they should have studied the source of the problem. For me the first problem was to buy a new company in a way that couldn’t have gone well, and I was made to pay for their bad decision and bad management when I had nothing to do with it” (SP-SR-4, 385-390). This complaint was made by several interviewees. Interviewees who hold unskilled or low skilled jobs tend to have quite different perceptions with respect to aspects of justice. Very often they voice doubts about the validity of the arguments given by the company to justify the restructuring. As Mr Josu says: “I’m not very sure whether this move was justified or not; I mean, I’m not certain that the reasons they gave us, that the company couldn’t expand any more at the industrial estate where it was located, were really true. However, we also have to accept that we didn’t fight enough, because the unions said ‘you’ve got this far and we accept the conditions’, so ...” (SP-SR-3; 224-230). Some of the interviewees considered that the company was just doing what it had to do. This opinion seems to be held mostly by those people who believe they have been sufficiently compensated for having to accept certain changes. As Mrs Peluchi says: “No, I am not angry with them, because all my effort has been compensated ... Yes, because they gave us lots of facilities, and when you realise there is such a positive attitude on their side, then we think that although it’s bad [the dismissal], at least it’s not all bad. It is obvious that everybody would have loved to stay on, but at least we left with good compensation … Maybe the process dragged on a bit too long, all these months of waiting ... Yes, these months have been a bit worrying: it would have been better to make it all shorter” (SP-SR-16; 156-164). Although Mrs Peluchi justified the redundancy, she complains that the procedure took too long. This is another well-voiced criticism amongst the interviewees. The way of informing the affected employees also generates worry and uncertainty. As Mrs Mariano affirms: “It’s very hard, you’re working and you see people moving, and then you wonder if that person will be called to the office, or whether it’ll be someone else who’ll get the call. It’s awful, and I wouldn’t wish it on anybody. ... You think if it isn’t now, it'll be in a few months or even years time, so you think, better if it happens now whilst you’re still young enough to do something else” (SP-SR-13, 6072). The way of announcing the restructuring process to the employees is very important to these workers. It is not so important whether the company informs the employees gradually or all at once, but employees feel it should be done with respect towards them. For example, Mrs Balti was told unexpectedly about the situation and she still feels indignant: “I hardly remember anything; I felt very bewildered, as if I had been hit on the head. I went home with a copy of the dismissal letter, some money from the economic compensation they offered and a great sense of humiliation. I don’t think the company acted very honestly and we didn’t deserve such treatment as we had worked

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there for a long time” (SP-SR-11, 140-147). She was satisfied with the outplacement service, but this did not reduce her anger towards the company that dismissed her, mainly due to the way she was informed about her dismissal. People in the sample who had spent many years working for the same company accept the process of change that they have undergone with more difficulties. They do not like the idea of change and, to varying degrees, they feel their old company has betrayed them. As Mrs Rosada says: “My boss calls me to his office and says ‘I’m really sorry Rosada, but I have to tell you something’. I didn’t agree with the reasons he gave me because they weren’t true, but anyway. I would have liked having been told in a different way. After 19 years at the company I could not believe that they were dismissing me so casually. I could have understood if they had told me that there was no longer a place for me, that they could not find another position for me ... but not that they did that” (SP-SR-15; 172-187).

3.2.1.3 Interactional justice The aspects perceived as most unfair are to do, above all, with the way the workers have been informed of the redundancies and with the lack of participation they have had in decisions concerning downsizing. This perception of injustice is mostly voiced amongst qualified employees who hold positions of responsibility. For example, Mr Irueta commented on his disorientation: “I was very surprised when they dismissed me; I didn’t have time to think, I said ‘alright, if I have to go.’ Afterwards, I went to see my lawyer and he told me that the company was fulfilling its legal obligations with regards to the compensation they offered me” (SP-SR-18, 712-719). Mr Reus says: “I would have preferred it if the company had just told me, look, we can’t hang on to you, we’ll give you a couple of months so you can look for a new job, we’ll give you the money that’s due you … but in this way it seems that you’re leaving because you want to” (SP-SR-2, 127-144). Mr Reus considers that after the time and effort he had dedicated to the company, the managers of the company should have treated him better and they should have dismissed him in a way that seems it was on his own initiative, i. e. that it was him who was leaving the company rather than the company dismissing him. In general, many of the interviewees consider that there was a lack of communication, that the companies did not want to negotiate and did not allow any interaction. Some of the interviewees, especially qualified men who hold positions of responsibility in the company, also perceive the labour environment as insecure, although they do not view the changes with so much indignation, i.e. there is a certain relation between the degree of perceived justice or injustice and the type of predisposition to accept changes and confront them actively. Nonetheless, as most of the people interviewed had worked for the same companies for many years, the level of personal initiative to anticipate reactions to the changes does not seem very prevalent.

3.2.2 Employability In general, companies undergoing restructuring offered the dismissed employees economic compensation. In addition, the company offers included, in all cases, the possibility of participating in outplacement, although many of the employees interviewed had no knowledge of what outplacement was. In most cases, these offers were well received. As Mr Santi says: “I did not know what outplacement was. They told me they

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would help me find work ... I was lost. When they were explaining it to me, I thought it was a short course that I had to pay for myself and that offered me the opportunity to make contacts. Of course, I asked them how much these courses cost and they told me that the company would pay. It was a pleasant surprise, and I thought there was nothing to lose, whereas probably there was something to gain. So, taking into account that I would not have to pay for it, I accepted” (SP-SR-1; 188-195). In some cases people initially perceived outplacement in a very sceptical way, and some were even against it. Mrs Valle says: “I thought it would be a waste of time, but I decided to go because the sessions were during the working hours, so it would be a way to skip work” (SP-SR-22; 188-192). In these cases employees did not see the outplacement agency as an independent actor that was there to help them, but as an instrument working on the company’s behalf to help ease their restructuring plans. “They [the outplacement agency] arrived before we had finished the negotiations with the company, and they told us that the company would carry on their plans whatever our intentions were. We felt that they were there not to help us, but to help the company, so we told them we did not want to see them until we had reached an agreement with the company”, said Mr Gerárdez (SRSP-7; 224-229). Except for one case, outplacement was offered by the company to the employees. In general, workers could not substitute the offer of outplacement with additional economic compensation. As Mrs Castillo says: “Some people wanted to have the money instead of outplacement, but the management said no. I can’t remember exactly what it cost, but perhaps it was EUR 3,000, and people asked the management if they couldn’t have the money instead. But as it was an offer from the company, not one of our demands, the management said they should either take it or leave it” (SP-SR-14; 459467). Other options offered by the companies included early retirement, but this only applied to employees of a certain age (between 50 to 55, depending on the case). Another type of offer made by companies was that of self-employment. However, only two of the people interviewed had taken that option, and in both cases they were men with high qualifications who had previously worked in management. In general, the proposal of self-employment is either not conceived as an alternative (especially for manual workers) or is received with mistrust, in the sense that employees felt selfemployment would lead to considerably worse working conditions. It is also noticeable that, in general, the lower skilled workers stayed in the same sector, whereas the proportion of employees moving from one sector to another is higher amongst the interviewees who worked in administration and also amongst those who held positions of management. When we look at people’s expectations in relation to finding a new job, from our sample we have observed that there is a link between age, sex and the level of qualification required for that job. In this sense, the lowest expectations of finding a new job was reported by women older than 45 who have few qualifications. As Mrs Dunia comments: “They gave early retirement to people older than 50, and because I was three years younger, I didn’t fit into this category. (...) Before, we weren’t given very much education, which is very different today because young people are very well prepared ...

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Me, I’m 47 years old, how can I start studying now? Well, we have started to do a few courses and ... we are not stupid, but it’s a lot harder for us” (SP-SR-12; 728-740). The age of the majority of people interviewed is between 38 and 50, and in general, they view their age as a factor of instability. Mrs Montsat thinks that “when they close a company, the employee never gets sufficient compensation. Furthermore, after so many years ... and of course, most of us were women, and most of us were of a certain age and you say ... well, you’re not young enough and not old enough to get any money” (SP-SR-10; 116-121). Mrs Mariano explains: “Of course it’s not easy, and it’s even worse when you’re too old for the labour market, after having worked for 26 years for the same company. That, for me, is the hardest thing, like a heavy weight on my shoulders. I was 46 and everyday I heard ‘there’s no place for you’; in fact there is no place for me, because I can’t ..., or I don’t have enough skills or education, or just because I’m 46 years old, and that’s really hard, because, amongst other things, I can’t do anything about my age. ... In some job interviews I was told: ‘I prefer you, but the other applicant was 32’” (SP-SR-13, 259-271). Age does not only imply an obstacle, in fact it can also bring advantages when looking for a job. Unfortunately, these advantages seem to hold little value in the Spanish labour market. In her search for a job, Mrs Feliz tried to point out the advantages: “I told them, look, with me, because of my age, they would receive fiscal benefits, also they could be sure that I would not be taking any maternity leave, or have to take a child to the doctor or those sorts of things” (SP-SR-18; 291-297). Mrs Feliz is convinced that although she found work, it was due to personal contacts, and that her new company did not take the above factors into account. Different types of personal resources can be important for the employee in the process of change, not just to better cope with the situation, but also to take advantage of outplacement services. If a person does not have an active and positive predisposition when looking for work, or does not have training resources or adequate contacts, it is more difficult to benefit from outplacement in order to be re-employed, or at least it becomes much harder for the outplacement consultant to assist that person in his job transition. As mentioned above, qualified employees who hold positions of responsibility are able to change companies more easily. However, the interviewees in the sample which fall into this category did not leave their previous company at their own decision, but because they were forced to do so (through dismissal or because the company closed down). For this reason they have accepted to make use of outplacement. However, these employees possess a certain amount of personal initiative and they actively look for work. The fact that they have a good network of contacts greatly helps their chances for re-employment. As Mr Fiesta explains: “I left the company without any great tension, I had six months of compensation and people who could help me, I had contacts. ... Maybe some people are calmer; they take courses or a sabbatical year. In my case, the basic objective was to get back to work and that’s what I did. What I didn’t realise was how hard the change would be” (SP-SR-6; 248-255). Mr Fiesta has become selfemployed.

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3.2.3 Responsibility Aspects referring to questions of responsibility are conceived in relatively different ways depending on the kind of job and the skills level required for doing that job. As we mentioned earlier, in this sense there is a difference between people who have skilled jobs or greater responsibilities, and people who have less skilled jobs and do not hold positions of any great responsibility within the company. The idea predominates, in the first group, that the principal responsibility of the individual is to look for another job, because they tend to think that nothing can be done if the company wants to make them redundant. Mr Reus comments that “you need to have a certain attitude of provisionality with your job because it [redundancy] can happen anywhere, there’s no point getting upset about it” (SP-SR-2; 855-859). Mr Beato says more or less the same, although he recognises that there might be obstacles, such as age, to living with this sort of permanent sense of provisionality: “Yes, I met a person who had studied with me there [at the outplacement company], and he was totally depressed, he didn’t understand, how, after 20 years, it had happened to him. I told him not to give up, to start again, but, of course, depending on your age, you might have problems” (SP-SR-9; 350-361). In general, these interviewees believe that you have to be prepared to take advantage of any opportunity, or even to create them yourself. As Mr Iureta says: “When you live in a world of opportunities, the best is to have many doors open to you, because when one closes, you have another chance. From the moment I began this period of change, things started setting better for me, it seems” (SP-SR-19; 645-651). In the second group, the idea that the responsibility of the employee is firstly to fight collectively to obtain the best working conditions, or at least the best conditions of redundancy is more widespread. Secondly, the responsibility of the employee should be to be well prepared and qualified to do his job. As Mrs Dunia affirms: “I would have fought more to keep my job. Instead of saying ‘let’s negotiate and see how much they’ll give us’, I would have negotiated to keep my job because many companies and employees have got together and put pressure on the management, and have managed to keep their jobs. I would have fought more to keep my job. I don’t think we did enough in this sense, I mean the company was profitable. It was very profitable!” (SP-SR-12; 575586). In many cases, the interviewees tend to accuse the unions of not having done enough to avoid the restructuring or closure of a company, especially the interviewees in this second group. In general, amongst the interviewees there is the feeling that work allows one to accumulate experiences that can be transformed into valid resources in order to deal with the uncertainty of the future and to be optimistic. As Mrs Rosada says: “No, not at all, I was very happy with the company; I learnt a lot there and I also gave a lot to them. ... I’m an optimistic person who always looks to the future, you have to be 100% positive, so I was, and I continued to get up early, I didn’t let it get me down. I found things to do. ... And I believe in myself. It didn’t matter too much: if one thing didn’t work out, another opportunity would arise” (SP-SR-15, 289-300). In this same sense, other interviewees talk about a work ethic as a kind of responsibility that employees should have. As Mrs Mariano affirms: “I enjoy working, I like to be on good terms with everyone, I like to work in a place where the atmosphere is good.

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If I do something, I like to do it well or not at all. Now I really value having a job, although I earn a lot less than I used to earn, but I’m really happy just to have a job, especially as there are still people I met during the outplacement who haven’t found employment yet” (SP-SR-13, 526-533). Interviewees also state the necessity to have sufficient personal resources to cope with situations of change, and that outplacement helps to bring out these resources. As Mr Beato says: “The worst thing you can do is lock yourself in at home. Go out, get some sort of training, talk to people, find a consultant who can help you; all of this is better than staying at home. There are people to talk to, your colleagues. The advantage of the outplacement is that you’re not alone” (SP-SR-9; 899-904).

3.2.4 The outplacement measures All the interviewees have taken part in some form of outplacement and have managed to find a new job within between one and sixteen months. There is a diversity of opinions in relation to the outplacement measures. Most interviewees emphasised that it has been very positive for them, although it may not have been the key factor in finding new employment. There are two main intertwined aspects of the measures that have been mentioned by almost all the interviewees. The majority has emphasised the importance of the psychological assistance in overcoming anxieties due to the dismissal and also in developing their self-confidence. They related this assistance not only to the help of the consultants, but also to other factors, such as the fact of having a (new) place to go, of being in touch with other people who are in a similar situation, etc. Most of the interviewees also mentioned the importance of the contents of the programme, which they considered an important instrument in assisting them in approaching the labour market. In all cases, the offer of outplacement has arisen as the initiative of the dismissing company and not as a demand of the employees.

Components The majority of the outplacement services offered in the sample lasted between 3 and 6 months. However, there is a relevant proportion of employees who have received a oneyear outplacement programme, and in a few cases interviewees have said they had an indefinite outplacement programme. We have also found out that in general the shortest programmes are for cases of collective dismissal and for lower level workers, whereas the longest outplacement programmes (one-year or indefinite) were offered to individual employees who held mid to high-level positions. Nonetheless, in almost all the cases, the interviewees mentioned that the outplacement companies were quite flexible, and we know of no participant who was forced to leave the outplacement, even when the time agreed with the dismissing company had expired and the participant was still searching a job. On some occasions the interviewees had taken some time off between the dismissal and the initiation of the outplacement programme. These periods of time lasted from a few weeks (generally the participant used it to go on holiday) to a year (the participants decided to spend this time with his family or to take some courses). The outplacement agencies also allow the participants to interrupt the outplacement programme and take it up again later on. In some cases, this has been due to the fact that the participant had taken a job which lasted only for a short period; in other cases this occurred because the participant had to leave for a period due to health problems.

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The outplacement process is very similar in the majority of cases. First of all, there is a personal interview in which the consultant in charge of a particular participant gets to know his situation, interests and expectations. The next step involves the self-analysis of the participant (noting his strengths and weaknesses) and the definition of his professional objectives. The next stage involves a package of training courses in which the participant is taught how to write a CV, how to act in a job interview, networking techniques, etc. This stage is normally carried out in groups of five to ten people. The following step is searching for a job, although, quite often, this might have already started simultaneously with the earlier stages of the outplacement. Job searching involves looking in the press and internet for job advertisements, establishing contacts with companies, etc. Once the participant has found a job, he generally celebrates his success together with the other outplacement colleagues with a party at the outplacement premises. Generally, the outplacement agency keeps contact with the participant during the first months at his new job. The location of the performance of the services varies. We have observed that collective outplacement generally takes place in the factory from where people are dismissed, whereas individual outplacement takes place at the outplacement company’s offices. In some cases, the outplacement started in the factory and later moved to the company offices when the dismissing company closed down. The outplacement office tends to be the place where participants prepare letters, use the internet, etc. As Mr Iureta says: “At first, I had no idea what outplacement was. My niece had told me that they would only show me how to write a CV and then tell me ‘get on with it yourself’, and in reality it's something along those lines; it's not an employment agency, but it was good, I had newspapers, the computer, the telephone, fax. It was like being in my office, looking for work from my office” (SP-SR-19; 562-569). In terms of attendance, participants of individual outplacement generally went to the outplacement office every day, at least in the initial period. Participants of collective interventions generally initially attended group sessions once or twice a week, and once through the training programme, attended individually according to each participant’s need. In some cases, the intervention was offered whilst the participant was still working at his old company (especially in cases where the company has decided to close down and therefore all the employees were made redundant or transferred to another plant). As Mrs Peluchi says: “You could do the outplacement before, whilst you were still working; the company gave us this option. ... I think it’s a good idea to go before you leave the company, otherwise if you go after, it’s all a bit ..., and you are more valued when you are working than when you’re on the dole. That’s how the labour market is, it’s more important to be working and then leave the company than to go on the dole, even if you get benefits. Someone with the same experience and the same education, and who is on the dole is always under-valued because it means that you need to work” (SPSR-16; 299-310). In other cases, the interviewees mentioned that they would have preferred to start the outplacement before the dismissal took place, but the dismissing company refused. Mrs Domenec says: “Once they had told us about the dismissal and had offered us outplacement, we asked if we could start it before we left, but they said ‘no’. I guess

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they thought we might have left the company before it closed down. They wanted us there until the end” (SR-SP-17; 212-219). However, in general, interviewees who went through an individual dismissal were first dismissed and then took outplacement as part of their redundancy package, whereas interviewees who went through collective dismissal started (or at least made initial contact with the outplacement agency) before they left the company.

Evaluation In general, the majority of the interviewees had no previous knowledge of what outplacement was, until it was explained to them by their former companies. A certain level of frustration concerning initial expectations can be detected. As Mrs Domenec says: “I thought it would be something else, that they would do more. I thought they [the outplacement company] would contact the companies and introduce us to different companies” (SP-SR-17; 387-392). However, after initial contact with outplacement the interviewees’ expectations changed and at the end everyone seems quite satisfied. As Mr Beato affirms: “For me outplacement served, above all, to act as a stop-gap and to keep busy, going there and having my own office, the continuity, and doing things. Furthermore, I also think it was positive and it went well for me; it showed you that there were more people with problems. In my case, outplacement was positive because at least I was doing something and I saw that I wasn’t alone” (SP-SR-9; 711-719). However, not all the evaluations are positive. For example, Mrs Dunia complains: “We took a computer course in order to learn how to find work through the internet, but it was very basic, nothing special. For me, the most important thing I’ve learnt is to have confidence in myself. But you don’t really think ‘wow, that’s amazing!’. I think they also learn quite a lot from us because they listen a lot; the majority are psychologists, and I think they learn more from us than we do from them” (SP-SR-12; 370-377). It seems that the aspect most valued from outplacement is moral support and the increase in self-confidence which outplacement generates – aspects considered by the interviewees as very important in order to continue the process of searching for work. As Mrs Lopido says: “Yes, that is what has helped me and motivated me most: I already knew I was good at what I did, but they tell you and they convince you that you have many qualities, well, it helps a lot” (SP-SR-21; 788-802). Differences have been observed in the way interviewees benefit from outplacement. People with more qualifications and more social resources (key contacts, etc.) make selective and sporadic use of the options outplacement has to offer, whilst people with fewer qualifications and a smaller network of contacts normally attend every day and use the resources intensively. As Mrs Mariano explains: “The outplacement went very well for me. I’ve met people I’ve become friends with and we meet up, ring each other, ... It’s true that there are people who have gone there for a while, have done what they had to do, but when they realise that they won’t help them anymore, they leave and do it on their own. However, I went there willingly, I had a good time, and as I haven’t got a computer at home, I did everything there. It went well for me because I never stopped working, the people were nice … For me it went really well” (SP-SR-13; 442450).

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People with more qualifications and a certain amount of social resources (who normally held a position of responsibility at the old company), although they agree on a positive evaluation of outplacement, place more emphasis on personal initiative. As Mr Fiesta says: “I would recommend it; in fact I’ve already recommended it to one person. If a person who has lost his job and thinks that one of these companies will find him a new one, well he’s wrong. Outplacement is an ideal complement because it gives you lots of ideas, they listen to you and help you prepare strategies, teach you how you should do it, they tell you how you should go about networking ... If you have all of this and you want to work, you’ll succeed” (SP-SR-6, 330-340).

Trade unions In most of the companies where the people interviewed had worked, there was little organised union presence. In the cases where there was some sort of union, it seems that its role in relation to outplacement was not very relevant. Outplacement does not seem to be a demand of the unions; it is simply accepted as part of the package of measures offered by companies who are restructuring. In some of the cases, the unions took part in deciding upon which outplacement company would carry out the programme, as Mrs Peluchi explains: “The union committee accepted everything that we were offered and negotiated and decided upon what most interested us. As regards to compensation, early retirement and outplacement, it was the committee’s decision as to which company would do it. ... The union committee did well, but the company didn’t put up a fight” (SP-SR-16; 202-207). This attitude of the unions has brought about criticism from some people, for example Mrs Montsat: “I’ve got less confidence in the unions now because I think they demobilised the employees and they accepted the closure too quickly and didn’t help us at all to find new jobs” (SP-SR-10; 710-715). The role of outplacement is even questioned by a member of the union committee, who helped negotiate the closure of the company where he worked, accusing the outplacement company of negatively affecting the negotiations that the committee was holding with the company because they started the counselling before the conditions of closure had been decided. Mr Gerárdez says: “I think that in our case they helped the company in a way, which in fact is logical taking into account who pays them. In fact, already in the first meeting we had with them, they told us that if a multinational wanted to close, then it would do so whatever our position and demands were” (SP-SR-7; 515521). Effects As the subsample in this group is made up of people who have found new employment after having attended an outplacement, the apparent effects of the outplacement measures have been successful in the search for new jobs. However, it is necessary to add a few more comments. First of all, many of the interviewees affirm that they have found work thanks to outplacement. As Mr Reus says: “I always left feeling motivated and self-confident, and that’s good, not only because it helps you to get over a bad moment, but also to find work. You can’t go to a job interview feeling negative” (SP-SR-2; 234-238). According to Mr Reus, he has had his new job for a month, he enjoys his work, has increased his

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skills and experience, improved his curriculum and now he earns more than before. He is convinced that he found the job thanks to the advice given to him during the outplacement, especially through developing his networking skills. In some cases, it is the outplacement companies themselves who introduce the participant to the new company. This is what happened to Mr Santi: “I was only on the dole for 20 days because I was lucky enough to find work immediately. The outplacement company introduced me to this firm and I went straight back to work. The outplacement company had information on a vacancy for a salesman with my kinds of qualifications, they helped me update my curriculum, I sent it to the company and after three or four conversations with the company, I started to work there” (SP-SR-1; 198205). Some of the interviewees believe that they found work thanks to outplacement, but who suspect that the result would have been the same without. They believe that outplacement just accelerated the process. According to Mr Fiesta: “I think I would have got to the same position as I am in now, but having someone to talk to, who isn’t family and who is a professional in the field, is fundamental” (SP-SR-6; 354-359). Mr Robert affirms: “They have helped me in certain aspects, but if you don’t have any skills, they can’t help. What happened to me was that the company that contacted me already knew me, so we talked and we reached an agreement and I was offered the job. In this sense, the people from the outplacement company didn’t really have a lot to do with it. ... However, they taught me to act differently in certain situations, and in this sense I believe the outplacement has been very positive” (SP-SR-4; 320-329). Some interviewees affirm that they have found work but not really through the outplacement programme. As Mrs Peluchi comments: “I found the job because we were clients of this company where I now work and they said they were looking for someone” (SP-SR-16; 387-389). Moreover, there is the case of Mr Gerárdez, who found work three months after leaving his old company. He says that he found the job on his own, through a newspaper advertisement and that not many people from his old company had been successful in finding new employment: “Not many of the people from the production department have been re-employed” (SP-SR-7; 472-473). It can be said that outplacement is less successful with finding employment for people who hold unskilled jobs and who have few professional contacts. There are also those people who are considered qualified and skilled and who have a certain amount of social resources available to them, who also express this attitude and are more critical about outplacement, for example Mrs Domenec, who considers that it would be better to give the chance of attending an outplacement to people who really need it because they do not have many personal and social resources: “If I hadn’t attended outplacement, I would still have found work, because I found the job without their help, through another channel. In any case, I still believe that they gave me moral support, although there are people who perhaps needed it more than I did” (SP-SR-17; 414-419). Furthermore, the work that these people manage to find does not really satisfy their expectations, as Mrs Montsat comments: “The six months of outplacement did not directly result in my new job, which I got through contacts and asking around on my own. I’ve been working here for a year. It’s a different job to the one I used to have. I

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only work part-time, but I’d like to work full-time as I earn very little” (SP-SR-10; 866872). In the majority of cases, the employment attained after having passed through a process of outplacement is inferior compared to the previous job. Although this is also true for many of the qualified interviewees who have strong personal resources (initiative, contacts, etc.), it especially affects those who are unskilled. The perception of accepting a job with worse working conditions can be linked to the circumstance that many of these people had worked for the same company for many years – inlarge companies with good working conditions in comparison with the present-day context of labour relations. We can therefore say that the decrease in labour status can be linked to the type of company the interviewees come from. In some cases, animosity towards the current company has been observed, accompanied with a feeling of nostalgia for the old company. As Mrs Dunia says when commenting on the conditions of her new company where everyone is obliged to work shifts: “I’ve definitely lost out on many things. How can you have a family relationship when sometimes you’re working the night shift, another day you work in the morning and another day you work in the afternoon: It’s awful, that’s clear. But, of course, you’ve just got to put up with it, because without a job, there’s no money, and without money, there’s nothing. It wouldn’t surprise me if one day someone got hold of a gun and went crazy, because if I ever lost my job and had no money, I would, too. You have such a feeling of impotence ... you want to work, and you do your best, but ... with these kinds of conditions: night, day ... whenever they feel like it; they pay you a pittance ... God … But at the end of the day ... what can you do?” (SP-SR-12; 834-842).

3.2.5 Overall assessment First of all, we must take into account that the interviewees come from companies which share certain characteristics: They have a large workforce, often running into thousands of employees (they are often multinationals), and in the majority of cases the restructuring was due to mergers or the closure of the Spanish branch of the company. Normally, the restructuring of the workforce affects mostly unskilled employees, although qualified middle-level employees are also often affected. In general, an important difference is detected between qualified employees who hold positions of responsibility within the company and unskilled employees who do not. Qualified employees tend to be more individualistic and less dependent on the company, and have a greater amount of personal initiative and social resources (professional contacts, etc.), whilst unskilled workers have a greater dependence on the company and tend to cope with labour changes collectively. The first group tends to consider the redundancies as unfair but inevitable, and they are predisposed to adapt to the situation. Normally they consider the way the redundancies have been announced as unfair. The interviewees in the second group, i.e. those who carry out unskilled jobs, often doubt the validity of the reasons given by the company for the restructuring and quite often express indignation at having been mistreated. In general, companies in the process of restructuring offered their employees economic compensation for being made redundant, and in many cases the amount was

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higher than the legal requirement. Furthermore, they offered an outplacement, a concept that was unknown to almost all the employees. The offer of outplacement was not demanded by the employees or by the labour unions, but was well received. Other options offered by the companies have included early retirement and some proposals for selfemployment. Amongst the interviewees, there is a link between age, sex and skills/qualification level that is observed when taking into account expectations with regard to the possibility of being re-employed. In this sense, the lowest expectations of finding work are reported by women older than 45 who have few formal qualifications. This is principally due to obstacles which exist in the Spanish labour market. Age is an obstacle which worries the majority of the interviewees in the sense that almost all think that they are too old to find a new job that offers similar working conditions to the previous job. Various types of personal resources (training, contacts, specific skills, family support, etc.) are also important in these processes of change, not only in order to cope with the situation of being unemployed, but also to benefit from the services offered through outplacement. All the interviewees have attended outplacement and have managed to find new employment in a relatively short period of time, although this is not conclusive evidence that outplacement has been the key factor in finding new jobs. In general, the outplacement processes offered lasted for a period of between 3 and 6 months (occasionally one year or indefinite). The processes involved were very similar: The outplacement offices serve as a meeting point to take part in voluntary activities, firstly in small groups and then on an individual basis. Activities range from learning interview strategies, writing a curriculum, etc. to improve or learn relevant skills. Some people only attend once or twice a week (mainly qualified people with more social resources and who held positions of responsibility within their old company), whilst others attend every day for the whole working day (mainly people with few resources to find work, or people who are demoralised and spend the whole working day at the outplacement offices which allows them to structure their time as if they were working). In general, the aspect most valued is moral support that helps to increase selfconfidence, aspects that are considered by the interviewees to be very important in order to continue the process of successfully finding new employment. People who are already actively predisposed to finding work, find some of the elements of support helpful, but not indispensable. People who are more demoralised and who possess fewer personal resources to help them in their search for employment, are the people who need the facilities of outplacement most, but at the same time are those who have least success in finding new jobs. It must be kept in mind that all of the people interviewed have found work due to outplacement. However, we should also consider the situation of those people who participated in outplacement but who have not found work. According to the comments made by some of the interviewees, this group of people are generally those with few qualifications and limited personal resources.

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Cases of good practice: Description of sample

The first outplacement interventions in Spain took place in the mid 1980s. Since then the use of these services has slowly but constantly increased. There are five companies which currently offer outplacement services in Spain (four of them being branches of international companies). These are, in order of annual revenue: MOA (Management Outplacement Administration), Creade, Dake Beam Morin (DBM), Coutts Consulting and Lee Hecht Harrison (which was recently acquired by Adecco). This report presents two case studies of outplacement carried out in Spain since 1998.

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Cases of good practice in outplacement/replacement

5.1 Examples of good practice: MOA 5.1.1 Characteristics of the company MOA presents itself as a private company that offers a package of services addressed to facilitating corporate changes and career management. Within this package the company offers individual and collective outplacement services, global mobility programmes and professional balance services. Its customers include all sectors of activity and all kinds of companies; however, a high percentage of its customers are multinational companies. MOA is itself a multinational company that was established in Spain in 1984. Currently, it has offices in Madrid, Barcelona, Bilbao and Valencia, plus centres of permanent operations in Seville and Zaragoza. There are about 100 people working in Spain, 40 of them working in the office in Barcelona (the office which we contacted for this study). In relation to the qualifications of the counsellors, about 50% are psychologists, and the others come from a variety of fields: economics, law, engineering, etc. All the counsellors have at least a university degree and many of them have post-degree education in human resources. MOA is a member of the French group BPI (Bernard Paoli International), one of the first European consultant organisations, and it is also a member of OI Partners (Outplacement International Partners) in Spain, the world’s largest career consulting partnership. It is also a founding member of AECO2, member of AOCFE3 and of AOCFI4.

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Asociación Española de Empresas Consultoras de Outplacement (Spanish Association of Outplacement Consulting Firms), founded in 1991. Association of Outplacement Consulting Firms Europe, founded in January 1996. Association of Outplacement Consulting Firms International, founded in 1982 with its central offices in Washington DC. Members of AOCFI provide a wide range of services: career management, human resource consulting, executive coaching, leadership development, succession planning, OP, workforce deployment, and assessment.

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Case of Collective outplacement in León The case concerns the closure of a production line factory in León. The management of this multinational company, with its headquarters in Germany, decided to move the plant to another area in Spain. It therefore offered its 25 employees the opportunity of moving to the new location. Most of the employees rejected this proposal and the company offered a four-month outplacement programme to the employees. This was finally accepted by all the actors involved. According to the consultant interviewed, such an intervention should last a minimum of 6 months (3 months working exclusively with the participants and another 3 months assisting the participants in their search for employment). However, the company only accepted a four-month programme. The personnel were mainly production line operatives (56%), technicians and administrative personnel (20%) and maintenance workers (12%). Their average age was 35; most of them had a secondary education level, and they had been in the company for an average of about 11 years.

5.1.2 Overview of measures: components and scope MOA temporarily moved two of its consultants from Barcelona to León. It also hired a person from the area, whose main duty was job prospecting. This person’s task was to research labour market conditions and employment demand in the area, make initial contacts with companies and employment agencies and, in general, gather information which was then passed on to the participants in their search for employment. Therefore three people worked in the intervention programme, plus those consultants who sporadically travelled from MOA’s permanent offices to León to contribute in some specific areas of the training programme. At the beginning, the intervention took place on site at the factory. Some weeks later, and once the factory finally closed, MOA moved its installations to a building situated in the centre of the city of León. In both cases, MOA offered the participants the following facilities: a general room; a training room; a computer room with two computers, a printer and free connection to the Internet; all the facilities available in a standard office such as a telephone (with an exclusive line for their own use), fax and photocopy machine; all the daily newspapers (both local and national) were available, and different kinds of reports about job transitions, lists of companies, etc.

The programme included the following elements: Pre-start: Due to the fact that the production plant was going to be moved from León to another city near Barcelona, and that the company was interested in moving its employees, too, the first task of MOA’s consultants was to carry out basic research into this new area, such as housing conditions, renting, schools, etc. All these data were presented in León in a seminar open to all the employees (while they were still working). This was the first contact that MOA made with all the employees. Furthermore, the works council visited the relocation area, in order to get to know personally the new factory and the area in general. According to the consultant interviewed, in this first contact with the employees she found that in general they had resignedly accepted the closure of the factory and many of them were seriously considering the possibility of moving to the new area.

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However, in the end none of the employees were willing to move, because they felt very rooted to León5. Welcoming and start phase: During this phase, which lasted from mid November 1998 to the 11th January 1999, the consultants introduced to the participants the objective, plan and timing of the outplacement intervention. They also had a preliminary interview with each employee in order to know whether he was interested in following the programme. In this first set of interviews the consultants also collected some general information from each participant in order to make a first evaluation and therefore to define an individual profile for each participant. In the interview the consultant mentioned that one of the initial problems was to make the participants understand that they would help them look for employment but that they would not find work for them. She also mentioned that she was a bit worried that participants might lose interest during the Christmas holidays and would not return to the programme. Counselling and training: At this time the factory was already closed. This phase and the following interventions were held in offices that MOA had at its disposal in the centre of León city. According to the consultant, this change of location was positive because it helped the participants to break with the past. This phase lasted from 11th January to 15th March 1999. According to the consultant, the main objective of this phase was to prepare the participants to assure the effectiveness of their actions in the search for a new job. The phase had two kinds of actions: group seminars6 or workshops, where the consultants introduced the central techniques, i.e. professional balance, communication strategies, validation of alternatives, etc. These group workshops were held twice a week and each session lasted for about three hours. At the same time, the consultants held individual interviews, generally for about one hour per week. Most of the counselling and training was given in the seminars; in the individual interviews the consultant focussed on finding out how each participant was reacting to the programme. Through both, the individual as well as the group sessions each participant developed his own ‘balance of abilities’, i.e. gathered an analysis of his professional background and career including his professional as well as personal knowledge and abilities. During this phase the consultants already started to encourage the participants to initiate their search for a job. According to the consultant, “the activation [of the job searching process] is the best ‘antidote’ against inertia … one's own experience is the most efficient path for learning”. In these workshops the participants also studied job advertisements published in the media, which could be of interest for some of them; they applied the technique of role-playing interviews, i.e. participants practised how to participate in a job interview. They also received some general knowledge on

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It is important to note that there are important cultural differences between the old and the new location, which also includes another language. The consultant classified the participants into three different groups of about eight people in each group. One group consisted of technicians and administrative personnel, whereas the other two groups consisted of production line workers. The two latter groups were made on the basis of personal affinity.

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Due to the interest shown by some participants, MOA offered a seminar on selfemployment. However, although almost all participants attended this one-day seminar, at the end of the programme only one participant decided to start her own business. In order to link the professional balance of some participants with the project, the consultants also recommended these participants to take specific training courses (outside the programme) in order to increase their employability and therefore their possibilities of re-entering the labour market. Communication strategies: This part of the programme consisted of developing a number of activities addressed to making links between the participants and the sociolabour surroundings. The consultants made contacts with several institutions and organisations, such as INEM7, Junta de Castilla y León (the autonomous government of the region), regional job placement centres, unions, the Board of Trade, and private employment agencies and companies which from their characteristics could offer jobs to the participants. The programme ended on the 15th of May. However, the consultant maintained some telephone contact with all the participants for some weeks after that date.

5.1.3 Evaluation Different aspects or elements should be taken into account when evaluating the success of an outplacement programme. One aspect refers to the number of participants that have re-entered the labour market during or just after the intervention. Another aspect, more difficult to measure, refers to the amount of new knowledge that participants have gained from the programme, such as knowledge that might not be used during or just straight after the outplacement programme, but which becomes part of the participant’s know-how and can therefore be used for the rest of his professional career. This could be identified as an enrichment of the employee’s resources. Another element, even more difficult to measure, refers to the extent to which the intervention has psychologically contributed to easing the job transition of the participant. In this case study, throughout the programme, the consultants constantly evaluated each participant’s development. Once a week, the team of consultants filled in the socalled activity notebook, in which they wrote what each participant had done during the week. They also wrote down several indexes, such as the number of employment offers 7

Instituto Nacional de Empleo, i.e. the National Employment Office.

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the participant had received, number and type of courses he had attended, reemployment rates, etc. Furthermore, at the end of the programme, the co-ordinator of the consultancy team wrote an extensive final report, which presented a general evaluation of the programme as well as a short evaluation of each participant. According to this report, at the time of the intervention the labour market in the area of León was dire: lack of economic dynamism and industrial stagnation. Despite these difficulties, 15 participants had found new jobs by the end of the intervention, and several companies showed their interest in hiring more participants within a few weeks after the end of the programme; 5 participants opted for further education, and only 5 did not have any job offer at the end of the outplacement intervention. The report concludes: “Despite the real difficulty in the area, the determination and the effort on the participants behalf has given positive results, with almost 70% of the employees successfully re-employed, a result similar to the percentage of other cases carried out in other more dynamic provinces of Spain and where the outplacement intervention had lasted longer”. According to the same report, all participants followed the programme with regularity and interest, and when some of the participants could not go to one of the sessions, they justified their absence. The report also presents a brief summary of the actions followed by each participant. This summary includes the number of individual as well as group sessions in which he participated; the number of job applications and CV’s which had been sent during the programme, the number of interviews to which the participant had attended, and finally whether the participant had found a job during or at the end of the programme. The summary also includes a few lines about the evolution of each participant through the programme. At the end of the intervention the participants were pleased with the programme. A party was held in the offices where the outplacement intervention had taken place and in general all participants showed their gratefulness towards the three consultants. They therefore felt that the company had fully carried out its responsibility towards the employees, and they evaluated very positively the knowledge they had received from the consultants.

5.2 Examples of good practice: CREADE 5.2.1 Characteristics of the company Creade was founded as a private company in Barcelona in 1988 with the aim of “supporting organisations in their processes of change and, at the same time, to helping those professionals affected by change to continue their career development”. In its presentation leaflet it says that Creade has provided services to more than 365 different companies and organisations in a variety of fields (multinationals, national, public companies, administration, etc.) and provided more than 4,000 programmes that participants, from different professional levels, have participated in. Creade is a founding member of AECO and member of AOCFI. In the year 2001 Creade became the founding partner of Arbora Global Career Partners. It currently has offices in Barcelona, Madrid, Zaragoza and Vigo and is planning to expand to Portugal and also to Latin America in the near future. In the year 2000 Creade’s annual revenue was 1.5 million euros.

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Its current team is formed by 22 people (13 consultants and 9 staff). In their main office in Barcelona there are 10 employees (7 consultants and 3 staff). About half of them are psychologists, whereas the rest come from different fields. Most of them have been working in the Human Resources field for ten or more years. The consultant we interviewed for this case has a background in philology and first worked in the financial industry before he changed to training and career development in both, the U.S. and Spain. She has been working with Creade since 1990 and she currently occupies the post of Director in the area of outplacement. According to the consultant, about 85% of Creade’s customers are multinational companies, i.e. companies that have introduced outplacement as part of their employment strategies. However, she emphasises that in the last few years there has been a remarkable increase in the number of national as well as middle-level businesses amongst their customers. Public administration is also starting to become a regular customer.

Case of collective outplacement The case study we present here refers to an Italian pharmaceutical company, which in November 2000 made public its plan to transform the production of its factory in Barcelona. According to the consultant, this company decided to use the services of Creade for two main reasons: a) to have an instrument to facilitate the management of the company’s change, and b) to assist those employees who were affected by this change in the sense of facilitating their professional transition. In relation to employee assistance, the company had a double need: a) to assist those who would be relocated within the same company, and b) to assist those who would be dismissed (this is the group on which we are mainly focusing on for this case.). The financial costs of these services were fully paid by the company that hired Creade. The staff working on the intervention were three consultants: a managing consultant, a consultant who directly assisted the participants, and a third consultant whose main aim was to work on the task of labour prospects (in conjunction with the candidates). Furthermore, there was the support of administrative as well as telemarketing staff.

5.2.2 Overview of measures In April 2000 the company made the first contact with Creade. It was six months later, in October, when Creade started the direct intervention with the employees. During these first six months Creade developed a programme based on the objective of getting to know in detail the company’s objectives as well as to plan, together with the company’s HR department, a suitable intervention for all the employees affected by the plan. The consultant emphasised the positive advantage of having these months for planning, because it gave them the opportunity to get to know the whole situation and therefore to plan the intervention thoroughly. We must take into account that the company’s plan was to gradually stop the production of the whole factory and then to reopen it again with a new kind of production. This whole process of re-structuring was to last about a year, and the company planned to dismiss a large number of employees,

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retaining some of the employees, in order to carry out this process of transformation as well as to (re-) train them to make them suitable for the new production system. This complex situation required the need on behalf of the consultants to develop an intervention programme on two different, although intertwined, levels. On the one hand there was a programme specifically addressed to training those workers who would remain in the factory. This programme put its main emphasis on counter-acting the levels of de-motivation amongst this group of employees. On the other hand there was a programme of outplacement specifically addressed to all those workers who were dismissed and therefore needed job transition counselling. The whole process involved about 80 employees, although only 61 of them were to be dismissed. From the group of 61 workers who were dismissed, 4 employees were eligible for an early retirement scheme and 41 joined the collective outplacement programme: 14 candidates (managers and administrative personnel) received individual guidance, 27 factory workers participated in a short, 3-month group outplacement programme. 16 employees did not take the outplacement programme: 10 of them because they found a new job before the programme was up and running, and the other 6 out of lack of interest (primarily women who wished to temporarily abandon the workforce). 19 employees were retained by the company. Most were technical staff and were retained because of the difficulty and cost in recruiting this kind of employees and the fact that they could also be used in dismantling and setting up a new operation. Most of the participants in the outplacement were women, between 30 and 40 years old, with low qualifications and who had been working in the factory for ten or more years. From April to August 2000 Creade’s team worked together with the general management of the factory, with its HR department and also with the communication department. The consultant argues that in processes such as these, which involve long and rather complex interventions, the way information is spread, both internally and externally, becomes very important. The company agreed with both the employees and Creade to offer an outplacement programme of three months (from October to January) for the majority of the employees who were going to be dismissed (and six months for a few managers and administrative personnel). According to the consultant, three months is a very short time span, which meant that consultants had to plan a programme that would emphasise the aspect of training how to get a job. Therefore the intervention went as follows: The first direct action with the participants was a personal interview in which the consultant talked to each employee. In this interview the consultant explained the objectives as well as the procedures of the interventions and also got to know the situation, context and plans of the interviewee. This first interview was therefore to give the consultant a chance to establish initial contact with the group who would participate in the outplacement programme and to get to know their real expectations and plans. This first interview also gave the consultant the chance to get to know other aspects that could be important for the development of the outplacement programme, such as motivation, individual economic situation, etc. There is a set of initial questions addressed to getting to know the feelings, context, plans, etc. for each participant. In this case, for example, some employees saw the dismissal as an opportunity to have children; others decided to use it as an opportunity to do other things.

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One of the consultants also conducted personal interviews with each of the members of the group who were to be relocated to other jobs in the company. The objective was to get to know their fears and worries, taking into account that they would have to see the majority of their fellow workers leave the company. In this case, after a first personal interview, the consultancy team decided to develop a programme of coaching in groups. Secondly, the consultants organised and presented several group workshops (20 hours in total) addressed to training participants in different techniques of job searching, such as a course on practical computer skills training, directly linked to job prospecting. These workshops were arranged together with the production management since the sessions took place in the factory and the participants were therefore using facilities offered by the company. Groups were organised taking into account both the moments participants were leaving their jobs and also their qualifications. The consultant argues in favour of creating groups because it is economically more feasible; and also, because the group dynamic is generally very productive in terms of self- and group motivation. In the phase of professional balance or self-analysis (which, according to the consultant, is the key factor in an outplacement intervention), for example, consultants find it very helpful to hear participants commenting on each other’s abilities and skills, some of which the participants themselves may not have been aware of. In the third and last phase (at the time all participants had already been dismissed), consultants gave further training on techniques such as ‘how to deal with job interviews’, ‘how to conduct a test’, ‘how to write a letter’, ‘how to present yourself’, etc. It is worth mentioning here that in this case there was no training in selfemployment simply because none of the participants showed any interest in this aspect. The outplacement intervention ended at the end of January. However, Creade retained contact with all employees that did not manage to find employment.

5.2.3 Evaluation For each outplacement intervention Creade writes a report summarising their procedures and evaluating the results. A copy of this report is always given to the company that paid the costs of the programme. A questionnaire is completed by all participants during as well as at the end of the programme. In these questionnaires, participants are asked to evaluate each individual intervention as well as the programme as a whole. According to the consultant, this data is analysed by Creade in order to be able to constantly adapt the programme to the participants’ needs. The final report is also used by Creade to make improvements to the company’s know-how. Unfortunately, we only received a brief summary of this report, from which we have taken the following data: Two months after the intervention, from the 41 participants who participated in the programme, 34 were successfully re-employed; five participants were still searching for a job; and the other two were women who decided not to work. The consultant coordinator of the programme regards these results as very positive, taking into account the low level of qualifications of most of the participants and therefore their low employability.

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Other information from the report we received from Creade were the results obtained from a questionnaire answered by the participants in relation to the quality of the intervention, as indicated in table SP-3. Table SP-3:

Creade intervention: Mean ratings on the basis of 41 participants

In relation to the consultant*: Attention received Psychological support Support during auto-analysis Assistance in writing CVs Consultant’s availability for personal interviews Number of personal interviews with the consultant Assistance in the preparation of job interviews Average evaluation of consultant

5.94 5.19 5.56 6.00 5.44 5.60 5.56 5.61

In relation to the company (Creade) Workshops Resources offered by the company Job research (prospecting)

5.50 5.75 5.25

*

The level ranges from 1 (the lowest) to 6 (the highest).

In relation to the evaluation, it is worth mentioning that both consultants and participants interviewed emphasised the good relationship between both parties. Both considered this contributed very helpful to easing the effects of job dismissal and furthermore, it motivated the participants’ interest in assimilating and putting the programme into practice. We must add that according to the consultant, having the chance to plan the intervention in time and actually starting the intervention some weeks or even months before the first dismissals took place enabled the outplacement consultants to make the employees focus more on their future in a constructive way rather than allowing all the rumours and anger to develop too far. The consultant argues that if this early intervention had not taken place, the company would probably have had to face more problems of de-motivation amongst those who were to be dismissed as well as of those who would have to go through the process of staying on. According to both the consultant in charge and three of the employees interviewed by us, the psychological guidance and the development of self-confidence amongst the participants was one of the most valuable actions of the outplacement programme. The consultant argues that the intervention had to focus very much on this aspect, since it was rather short (the whole intervention lasted for three months, and some participants were still working up to the end of the second month). This means that the most valuable aspect was to give the participants instruments to find a job on their own, for which self-confidence was a crucial aspect. It is also worth mentioning that for the consultant, the trust and transparency that the company offered the team of consultants was of great value, since it facilitated their job and the participants ultimately benefitted at the end. The participants interviewed strongly emphasised the knowledge that their consultant had about each participant, and how the consultant could work very quickly on their professional and personal strengths

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as well as their weaknesses. The consultant argues that this was thanks to the company’s openness during the preceding six months before the direct intervention with the employees started. This also had another advantage: In general participants felt very sceptical about outplacement. They did not know what outplacement was; before they started, they identified the outplacement consultant as part of the management of their company, towards which most of the participants felt resentment or even hostility. The participants interviewed by us mentioned that they joined the outplacement and went to its first meeting only because it was during working hours and therefore they would not have to work for a few hours.

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General discussion

The systems of production as well as the ways of understanding economic relations in Europe and in the world are undergoing a significant transformation. On the one hand, new technologies (very much related to the telecommunication revolution) have generated gains in productivity and automation, the globalisation of the market economy and with it the transformation of labour relations. On the other hand, and especially since the 1980s, neoliberalism has spread considerably and many governments (European but also from many parts of the world) are in the process of transforming their socioeconomic policies. Spain is not exempt from this socio-economic process of change. The opening of the Spanish economy to the European and global market has caused and is causing an increase in occupational transitions, which consequently bear the risk of social exclusion (which is already very high in comparison with other European countries). These effects pose psychological difficulties, especially on those segments of the population that have the lowest probability of possessing adequate personal and social resources to cope with such a situation. Despite the general recognition of these profound changes in the Spanish society in general and in its labour market conditions in particular, the instruments to tackle the new problems still remain the traditional ones, predominantly based on financial support. The Spanish labour market is probably the most precarious one in Europe: It has the highest unemployment rate as well as the highest rate of temporary contracts. At the same time, while other European countries have developed new instruments to tackle the problem of unemployment in Spain these are still highly unknown. We have presented several arguments which emphasise this low level of knowledge and use of the outplacement/replacement concept in Spain and which could be summarised in two main intertwined aspects. One is the legal aspect: The current labour law in Spain does not make a single reference to the concept of outplacement/replacement; in other words, companies’ legal obligations when dismissing an employee are reduced to the process of notification of the dismissal and economic compensation. The other aspect is what we could call the cultural one. In general, both employers and employees reduce their relationship to terms of work only. Other aspects such as increasing the employability of the employees or support in the process of job transition are socially understood as

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the responsibility of the individual employee. As mentioned in the first part of the report, employees only expect stable employment from their companies. Once there is a crisis in the company, they first tend to react by putting pressure on the managers to reintain the workforce. If a (mass) dismissal is understood as unavoidable, then both the employees as well as the employers rely on the traditional economic support from the state’s welfare system. We must add, however, that lately there have been some changes in this aspect, and employees and employers are becoming more aware that both sides share the responsibility in promoting sustainable employability and in offering other kinds of support (apart from traditional financial support) to make the process of job transition as little traumatic as possible. The concept of outplacement/replacement could lead to a transformation of the concept of responsibility, involving employees, employers, public institutions and other social actors in a more complex relationship. Above all, this new relationship should be based on mutual interest by increasing sustainable employability and offering social convoy through the professional life of an individual. From the data presented in this report, we can conclude that the success of this new concept of labour relations is intrinsically related to other factors, such as communication, trust and the sense of justice amongst all the parties involved. Nonetheless, we should not underestimate the complex relationship between individual characteristics (age, qualifications, attitude, motivation, etc.) and external conditions (such as variable economic dynamism), which also play a part. We could affirm, however, that the concept of outplacement/replacement aims to integrate these external conditions to make the unavoidable processes of job transition socially and individually less stressful. The concept of outplacement/replacement emphasises the rational strategies in response to the new socio-economic conditions which are transforming the labour market. Above all, it aims to offer new elements of analysis and intervention, in order to retain and improve citizens’ quality of life. This is important in societies where, such as in Spain, changes in the production system are rapid and where there is a large group of unemployed people as well as people whose situation within the labour market is vulnerable. Outplacement/replacement can become a very useful instrument in making the new (global) socio-economic context compatible with social stability. To make progress in this sense, however, requires the interest and the commitment of society in general (with all its actors) and governments in particular, which are specifically responsible for the implementation and regulation of what is considered to be a social interest.

References

Arbeidsblad (1994). Outplacement: de maat genomen [Outplacement: taking the size]. No. 13. Brussel: Ministrie van Tewerkstelling en Arbeid. Bundesverband deutscher Unternehmensberater BDU e.V. (2000). Outplacement-Beratung in Deutschland 1999/2000 [Outplacement Consulting in Germany 1999/2000]. Bonn: Author. Bundeszentrale für politische Bildung. (1999). Datenreport 1999 [Data report 1999]. Available under: http://www.destatis.de/presse/deutsch/pm2000/p0930231.htm [2005-08-30]. CES (Consejo Económico y Social). (2002). Economia, Trabajo y Sociedad. Memoria Sobre la Situación Socioeconómica y Laboral 2001 [Economy, Labour and Society. Report on the socioeconomic and labour situation 2001]. Madrid: Author. De Witte, H. & Vandoorne, J. (2002). In het ongewisse. Over het voorkomen en de gevolgen van jobonzekerheid in Vlaanderen [In a state of uncertainty. The incidence and the effects of job insecurity in Flanders]. In G. Vandenbroucke (Ed.), WAV Dossier. Arbeidsmarktonderzoekersdag 2001. Verslagboek. Leuven: Steunpunt: WAV. Denolf, L. & Denys, J. (1999, January). Collective outplacement and the trade unions. Paper presented at the congress ‘Plant closures and downsizing in Europe. How do European workers and the trade union movement react towards job insecurity and the threat of becoming unemployed?’ Leuven, Belgium. Denolf, L., Denys, J., De Vos, A. & Buyens, D. (1999). Collectief outplacement: gewikt en gewogen. Onderzoek naar de omvang en de impact van groepsoutplacement [Collective outplacement: weighted and measured. Research into the scale and effect of collective outplacement]. Leuven/ Gent: HIVA-K.U. Leuven/ Vlerich Leuven Gent Management School. Doodeman, Th. J. J. & Halfhide, Y. F. (1997). Rapport statistiek en onderzoek [Report on statistics and research]. Available under: http://www.uwv.nl/cba/module8/meta20114.htm [2005-08-30]. Doyen, G. & Lamberts, M. (2001). Hoe zoeken werkzoekenden? [How do job seekers look for work?]. Leuven: HIVA. EPA (Encuesta de la Población Activa) [Labour Force Survey]. Available under: http://www.ine.es/tempus/cgi-bin/itie [2002-02-21] Frese, M. (1997). Dynamic self-reliance: An important concept for work and organizational psychology in the 21st century. In C.L. Cooper & S.E. Jackson (Eds.), Creating tomorrow’s organizations: A Handbook for future research in Organiszational Behaviour (pp. 399-416). Chichester: Wiley. Gazier, B. (1998). Employability. Final Report 1998 [Employment Observatory. Research Network]. Berlin: Institute for Applied Socio-Economics. Gazier, B. (1991). Economie du Travail et de l’Emploi [Economy of work and unemployment]. Paris: Precis Dalloz.

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Heinz, W. R., Krüger, H., Rettke, U., Wachtveitl, E. & Witzel, A. (1987). “Hauptsache eine Lehrstelle“. Jugendliche vor den Hürden des Arbeitsmarktes [“The main thing is a traineeship”. Young people facing the barriers of the labour market]. Weinheim: Deutscher Studien Verlag. Huertas, F. (2001). Presente y futuro de los servicios de reorientación de carrera o outplacement en España [Present and future of the career reorientation services or outplacement in Spain]. Unpublished paper. Huguet, A. (1999). Segmentación en el Mercado de Trabajo Españo [Segmentation of the Spanish Labour Market]. Madrid: CES. Kieselbach, T. (2001). Berufliche Transitionen unter einer Gerechtigkeitsperspektive [Occupational transitions under the perspective of justice]. In M. Kastner (Ed.), Wirtschaftlicher Wandel und individuelle Bewältigung [Economic changes and individual coping] (pp. 25-59). Dortmund: Pabst. Kieselbach, T. (1998, May). Unemployment and health: A future scenario for coping with occupational transitions. Paper presented at the International Symposium “Restructuring Work and the Life Course”, University of Toronto, Typoskript. Kieselbach, T. (1997). Unemployment, victimization, and perceived injustices: Future perspectives for coping with occupational transition processes. In T. Kieselbach (Ed.), Job loss, unemployment, and social injustices [Special issue]. Social Justice Research, 10 (2), (pp. 127-151). Kieselbach, T. & Klink, F. (1997). Interventionen bei Arbeitsplatzverlust und Arbeitslosigkeit [Intervention schemes related to job loss and unemployment] In L. v. Rosenstiel, C. M. Hockel & W. Molt (Eds.), Handbuch der Angewandten Psychologie [Applied psychology manual] (chap. 5.6.4). Landsberg: Ecomed. Kieselbach, T. (1989). A multisectoral approach for the improvement of the psychosocial situation of the unemployed. In B. Starrin, P.-G. Svensson & H. Wintersberger (Eds.), Unemployment, poverty and quality of working life – Some European experiences (pp. 295-334). Berlin: Edition Sigma. Kieselbach, T., van Heeringen, K., La Rosa, M., Lemkow, L., Sokou, K. & Starrin, B. (Eds.). (2001). Living on the edge: An empirical analysis on long-term youth unemployment and social exclusion in Europe. Opladen: Leske + Budrich. Kluge, S. (2000). Empirically grounded construction of types and typologies in qualitative social research. Forum Qualitative Social Research, 1(1) [On-line journal]. Available under: http://qualitative-research.net/fqs/fqs.htm [2002-06-21]. Kuckartz, U. (1999): Computergestütze Analyse qualitativer Daten. Eine praktische Einführung in Methoden und Arbeitstechniken [Introduction to computer-based analysis of qualitative data: An introduction to methods and techniques]. Opladen: Westdeutscher Vlg. Kühn, T. & Witzel, A. (2000). The use of a text database in the process of analysing problem-focused interviews. Forum Qualitative Social Research, 1 (3) [On-line journal]. Available under: http://qualitative-research.net/fqs/fqs.htm [2002-06-21]. Miguélez, F. (1995). El mercado de trabajo en España y la persistencia de las diferencias con la Unión Europea. ¡un modelo en expansión? [The labour market in Spain and the Persistence of the Differences in comparison with the European Union]. Economía y Sociología del Trabajo, 27-28. Mönnich, I. & Witzel, A. (1994). Arbeitsmarkt und Berufsverläufe junger Erwachsener. Ein Zwischenergebnis [Labour market and occupational biographies of young adults: intermediate results]. Zeitschrift für Sozialisationsforschung und Erziehungssoziologie, 14 (3), 263-278. Pin, J.R. & Sáenz, E. (2001). Informes sobre los servicios de outplacement [Report on outplacement services]. Unpublished paper. Rogers, G. & Rogers, J. (Eds.). (1989). Precarious jobs in labour market regulation: The growth of atypical employment in Western Europe. Brussels: International Institute for Labour Studies (ILO). Sáenz, T. (2000). Outplacement: Una renovación para el futuro que consolida el presente [Outplacement: A renovation for the future which consolidates the present]. Capital Humano, 133, 28-38.

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Klein-Schneider, H. (2001). Personalplanung, Betriebs- und Dienstvereinbarungen, Analyse und Handlungsempfehlungen [Human resources planning, employer/works council agreements, service agreements, analyses and recommended actions]. Dortmund: ed. Hans-Böckler-Stiftung (Eds.), No. 47. Statistisches Bundesamt (ed.). (1999). Datenreport 1999. Zahlen und Fakten über die Bundesrepublik Deutschland [Statistical Report 1999. The Federal Republic of Germany in Facts and Figures]. Bundeszentrale für Politische Bildung. Tesch, R. (1992). Methods of computer-based qualitative analysis. [Verfahren zur computerunterstützten qualitativen Analyse]. In G. L. Huber (Ed.), Qualitative analysis [Qualitative Analyse] (pp. 43-70). Munich, Vienna: Oldenbourg. Tesch, R. (1990). Qualitative research analysis types and software tools. New York: The Falmer Press. Witzel, A. (2000). The problem-centred interview. Forum Qualitative Social Research, 1 (1) [On-line journal]. Available under: http://qualitative-research.net/fqs/fqs.htm [2002-07-22]. Witzel, A. (1996). Auswertung problemzentrierter Interviews: Grundlagen und Erfahrungen [Analysis of problem-centred interviews: Basics and experiences]. In R. Strobl & A. Böttger (Eds.), Wahre Geschichten? Zur Theorie und Praxis qualitativer Interviews [True stories? Theorie and practice of qualitative interviews] (pp. 49-76). Baden Baden: Nomos. Witzel, A. (1987). Das problemzentrierte Interview [The problem-focused interview]. In G. Jüttemann (Ed.), Qualitative Forschung in der Psychologie [Qualitative Research in Psychology] (pp. 227256). Heidelberg: Asanger. Witzel, A. (1985). Das problemzentrierte Interview [The problem-centred interview]. In G. Jüttemann (Ed.), Qualitative Forschung in der Psychologie: Grundfragen, Verfahrensweisen, Anwendungsfelder [Qualitative research in psychology: Basis questions, methods, applications] (pp. 49-76). Heidelberg: Asanger.

Annex

Annex 1 to 3 will present the interview schedules that were developed for the different target groups: employees in insecure job situations; employees who had successfully been re-employed after outplacement counselling; and experts in the field of outplacement counselling. With regard to the extensive material that resulted from these qualitative studies, we have tried to select some issues for a more formal comparison. These elements are presented in charts in annex 4 to 8.1 For the remaining details – and for questions which might arise – one may refer to the individual National Reports found at http://www.ipg.uni-bremen.de/socose.

1

We would like to thank Mayank-Kumar Golpelwar from the University of Bremen for his assistance in the assembly.

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

Annex I Interview schedule for those respondents who – at the time of the interviews performed - were in an insecure job situation Introduction • • • •

Duration of the interview: approximately 1 hour (not more than 75 min.) Aim of the research: European research (international comparison) concerning the experience and consequences of job insecurity, and the way in which the negative consequences of possible dismissals can be alleviated. Target groups: (1) employees in (possible) insecure jobs and (2) successfully reemployed workers Explicit guarantee: The results of the interviews will be made anonymous and are not communicated to the company. The tape recording will be used for research purposes only.

Demographic Data • • • • • • •

Age Gender Marital status Composition of your family Your wife/husband’s occupation Formal education Description of the present occupational position, e.g.: • job description • tenure with the company • some general information about the company (e.g. branch, number of employees [world-wide, own site])

1.

Thematic Field: Exploration of the actual situation in the company

Are there plans to reduce personnel in your company/ rumours about future dismissals ? 1.1 How are the economic perspectives of your company, concerning: • • • • • •

recent dismissals necessity of downsizing possible mergers or restructuring What about your department's future changes? What are the reasons given by the company for intentions to dismiss employees? Does the company consider alternatives to dismissals?

1.2 Do you have concrete experiences with dismissals in your company? lf yes, could you please explain to me what happened? • •

recent dismissals of colleagues (and friends), individual or collective personal experience of recent dismissals: what happened and why?

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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1.3 Has the work atmosphere changed due to (rumours about) dismissals? • • •

2.

competition versus co-operation within the company or department job commitment of employees (more activity vs. tendencies of inner withdrawal/focusing on family affairs?) collective behaviours (e.g. trade union participation, such as meetings, strikes,…)

Thematic Field: Perception and consequences of job insecurity for the interviewee

Do you personally feel that you might be dismissed/lose your job? 2.1 Why? [Check reasons for (not) feeling threatened with job loss] 2.2 How important is it for you to have a job? And what kind of job? • •

personal importance of a job importance for others (e.g. family): necessity to work

2.3 Would it be difficult for you to find another appropriate job? Question 2.4 only for those who ‘feel insecure’ 2.4 How does it make you feel? • • • • •

health and well-being in general job satisfaction and well-being at work work motivation attitude towards the company attitude towards trade unions

Next question for everyone 2.5 In the branch of your company, jobs are no longer as secure as they were in the past. How do you react to this? Does this influence your behaviour? • • • • • • • •

work performance and involvement (‘does it affect the way you work, and why’?) absence (‘sickness leave’) intentions to change job active future career plans investing in training and career (‘employability’) relationships with colleagues and superiors (and subordinates, when appropriate) (intention to) participation in trade union activities behaviours outside the company: family, friends,…

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3.

Thematic Field: The process of downsizing or restructuring

This topic only applies to those who said that there are plans for dismissals, or downsizing, mergers, restructuring,… “You said that there are plans to reduce personnel in your company. I would like to return to that topic“ Could you tell me more about these plans and about the introduction of these plans to the employees? 3.1 Content of these plans: what did the company offer to the employees? • • • • •

Compensations: financial and non-financial Guidance and counselling (out/replacement): what exactly? Training: what exactly? Support for self-employment Evaluation by the interviewee: did the company offer enough help?

3.2 Communication of these plans • • • • •

How did you find out about these plans? Did the company communicate these plans to the employees? What exactly did they say? When? (timing of communication) Evaluation of the communication by the interviewee (‘interactional justice’): did they get the needed information at the time it was needed?

3.3 Participation of employees • • • • •

Are the employees involved in the process of dismissals/restructuring? In what way? (what is their role?) By whom? (e.g. who took the initiative: company, trade unions,…) If not: would you like to be involved? Evaluation of participation by the interviewee: did the employees have the possibility to influence or change the process and its consequences?

3.4 Evaluation of fair treatment • • • •

Did the company treat you in a fair way? Why (not)? What do you think about the procedures that are used (e.g. selection criteria, criteria for decisions, …;’procedural justice’) How do you evaluate the result of these procedures (‘distributive justice’)?

3.5 Are the trade unions involved in this process? • •

In what way? How do you evaluate their contribution?

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3.6 Who else is involved, apart from e.g. the company, unions and the employees? • •

In what way? How do you evaluate their contribution?

4.

Thematic Field: Responsibilities of the company and individual employees during downsizing or restructuring

Question for everyone: What do you think should be the responsibility of the company when laying off personnel? 4.1 Content: what should the company offer to the employees, and why? • • • •

Compensations: financial and non-financial Guidance and counselling (out/replacement): what exactly? Support for self-employment Other kinds of support

4.2 Communication of these plans • • •

Should the company communicate about these plans with the employees? In what way? When? (timing of communication)

4.3 Participation of employees • • • •

Should the employees be involved in the process of dismissals/downsizing/restructuring? Why (not)? In what way? (what is their role?) Who should take the initiative? (e.g.: company, trade unions,…)

4.4 Should one involve the trade unions in this process? • •

Why (not)? In what way?

4.5 Who else should be involved, apart from e.g. the company, unions and the employees? • •

Why? In what way?

Which concrete aspects have perhaps already been realised in your company? 4.6 Have you performed many different tasks during the past years? •

What tasks?

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4.7 Has your employer offered you any training? •

What tasks?

4.8 Have you received any kind of career counselling? •

What specific offers?

4.9 What could your company have done to improve your labour market situation?

5.

Thematic Field: What do you think should be the responsibility of the individual when confronted with the possibility of a dismissal?

• • • •

Searching for alternative job offers Investing in training and career (‘employability’) Efforts to create new job opportunities Other activities, such as…

Annex II Interview schedule for those respondents who had successfully found new employment after outplacement/replacement counselling Introduction • • • •

Duration of the interview: approximately 1 hour (not more than 75 min.) Aim of the research: European research (international comparison) concerning the experience and consequences of job insecurity, and the way in which the negative consequences of possible dismissals can be alleviated. Target groups: (1) employees in (possible) insecure jobs and (2) successfully reemployed workers Explicit guarantee: The results of the interviews will be made anonymous and are not communicated to the company. The tape recording will be used for research purposes only.

Demographic Data • • • • • • •

Age Gender Marital status Composition of your family Your wife/husband's occupation Formal education Description of the present occupational position, e.g.: • job description • tenure with the company • Some general information about the company (e.g. branch, number of employees [world-wide, own site])

1.

Thematic Field: The process of downsizing in the previous company and the responsibilities of the company and individual employees during downsizing or restructuring

Please let us begin with the situation in your former company 1.1 Can you describe the situation during the time when your previous company planned to dismiss employees? That means, we are going back in time, before the start of the outplacement counselling. • • • •

Had the work atmosphere changed due to (rumours about) dismissals? (should be asked only regarding the dismissal that led to the outplacement/ replacement process and not to possible earlier dismissals); Check: competition versus co-operation within the company or department job commitment of employees (more activity vs. tendencies of inner withdrawal/focusing on family matters?)

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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collective behaviours (e.g. trade union participation, such as meetings, strikes,…)

1.2 Content of these plans: what did the company offer to the employees ? Check e.g.: • • • • • •

Compensations: financial and non-financial Guidance and counselling (out/replacement): what exactly? Training: what exactly? Support for self-employment Evaluation by the interviewee: did the company offer enough help? What do you think the company should have offered?

1.3 Communication of these plans; Check: • • • • • •

How did you find out about these plans? Did the company communicate about these plans with the employees? What exactly did they say? When? (timing of communication) Evaluation of the communication by the interviewee (‘interactional justice’): did they get the information needed at the time when it was needed? How do you think a company should communicate about such plans?

1.4 Participation of employees • • • • • •

Were the employees involved in the process of dismissals/restructuring? In what way? (what is their role?) By whom? (e.g. who took the initiative: company, trade unions,…) If not: would you have liked to be involved? Evaluation of participation by the interviewee: did the employees have the possibility to influence or change the process and its consequences? Should employees have got the possibility to participate in the implementation of such plans?

1.5 Were the trade unions involved in this process? • • • • • •

In what way? Was the outplacement treatment part of a collective bargaining? Was there any other help from the unions? Do you think you had sufficient support from the unions/what was lacking in your opinion? How do you evaluate the contribution of the unions? What do you think a union should do in such a situation?

1.6 Who else was involved, apart from e.g. the company, unions and the employees? • •

In what way? How do you evaluate their contribution?

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What do you think should be the responsibility of the individual when confronted with the possibility of a dismissal? 1.7 Check: • • • •

Searching for alternative job offers Investing in training and career (‘employability’) Efforts to create new job opportunities Other activities, such as…

2.

Thematic Field: Evaluation of the OP/RP counselling

Please describe what kind of support you received from side of OP/RP agencies or other institutions with regard to your occupational reintegration. 2.1 How was the procedure of the scheme? Check: • • • •

Criteria for inclusion in the program the course of the scheme (individual vs. group counselling) elements: training, guidance and counselling, support for self-help activating intensity (duration, amount of session)

2.2 How would you evaluate the scheme of the OP/RP agency? Check: • • • • •

in general (positive/negative) what did you expect from this support when you were dismissed? have your expectations matched reality? effectiveness with regard to the reintegration reducing of the negative effects of job insecurity

2.3 Do you believe the OP/RP counselling has helped you? Check: • • • •

in overcoming the negative experience of being dismissed? in improving your skills and qualifications? in improving your self-esteem, motivation, personal activity? in finding a better job (than without counselling)?

2.4 Would you recommend this kind of counselling? 2.5 How does the new job make you feel? Check: • • • •

(changes in) health and well-being in general; attitude towards the previous company attitude towards the current company (distrust) (changes in) attitudes (and behaviours) towards trade unions feelings of job insecurity in current job

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2.6 Employability; Check: • • •

satisfaction with the current job (quality, comparison to previous job) increasing of future chances in the labour market in general (employability) change of work attitude (motivation, productivity)

If you consider the whole process of dismissal and the treatment by the previous company, how do you think about it? 2.7 How was the decision made as to who should be dismissed? Check: • •

was it a right decision to dismiss those who were dismissed? criteria for selection: efficiency, taking into account social needs, personal merits? (distributive justice)

2.8 What do you think about the procedures that were applied to make this decision? (consistency of procedures, independence of particular interests, on the basis of precise information, possibility to correct the decision, taking into account the interests of all participant parties)

2.9 All in all, did the company treat you in a fair way? 2.10 Why (not)?

Annex III Interview schedule for persons who were responsible in the process of implementing outplacement/replacement counselling schemes For one concrete intervention, please collect 1.

Information about the institution

• • • • •

description of the institution history of establishment (age of institution) organisational structure qualification of counsellors target groups

2.

Description of intervention (strategies and methods)

a) Framework of the intervention • • • • •

general goals of the intervention financing cooperation structure (actors involved, internal/external, quality of cooperation) staff working on intervention (number, qualification level, permanent vs. temporary staff) participants (number, age, qualification)

b) Content of the intervention •

single elements of OP/RP measure • specific goals of the intervention (e.g., psychological stabilisation, strengthening of employability etc.) • proven aspects of the intervention • innovative elements of the intervention (in comparison with other OP/RP interventions)

•

justice considerations in the implementation and execution of the OP/RP intervention • presentation of the intervention as an act of justice (company takes over responsibility; counter-balancing the experiences injustice of dismissal) • focusing on or explicitly emphasising “just treatment” in the course of the intervention (frame of justice for the intervention)

•

evaluation of the intervention • systematic evaluation (criteria for effectiveness) [Æ if yes, please ask for report] • continuous adaptation of the elements as a result of evaluation

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

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possible structural barriers for the intervention (on side of participants, institutions, social and legal framework) • suggestions for improvement from the perspective of the respondent

3.

Transferability of the elements of the measure

4.

Future perspectives for the institution/intervention

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

Belgium Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Netherlands Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Germany Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Italy Case 1 Case 2 Case 3

1994 Q3Q4

1995 Q1Q2

1995 Q3Q4

1996 Q1Q2

1996 Q3Q4

1997 Q1Q2

1997 Q3Q4

1998 Q1Q2

Onset and end of the cases of outplacement counselling selected

Annex IV 1998 Q3Q4

1999 Q1Q2

1999 Q3Q4

2000 Q1Q2

2000 Q3Q4

2001 Q1Q2

2001 Q3Q4

1995 Q3Q4

1996 Q1Q2

1996 Q3Q4

1997 Q1Q2

Implementation of outplacement (to be) completed Implementation is still continuing / follow-up

1995 Q1Q2

1997 Q3Q4

1998 Q1Q2

Q1 Q2 Q3 Q4

1998 Q3Q4

1999 Q3Q4

2000 Q1Q2

2000 Q3Q4

2001 Q1Q2

First quarter of a year (January - March) Second quarter of a year (April-June) Third quarter of a year (July-September) Fourth quarter of a year (October-December)

1999 Q1Q2

2001 Q3Q4

The minimum period indicated in the table is six months for each cell. Beginning and end of any intervention might be somewhere within the respective cell. For exact dates please refer to the National Reports.

Remark:

Legend:

Case 4 Case 5 Case 6 Case 7 Case 8 Spain Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8

1994 Q3Q4

case 6 case 7

Janssen Pharmaceutica

Kredietbank, Cera, KBC Bank Glaverbel (glass production) Levi Strauss

case 1 case 2

case 3

case 4 case 5 case 6

case 5 case 6 case 7 case 8

Insurance company

Outplacement agency, overview on general practices See 6 Stadtwerke Bremen (swb) AG (Regional energy provider)

case 1 case 2 case 3 case 4

case 5

case 6 case 7 case 8

Océ-Technologies B.V

case 2 case 3 case 4

case 6 case 7 case 8

case 5

case 1

Company for veterinary products Company for alcoholic drinks Assistance of Spanish sportsmen (MAESTRO programme)

Beer factory

Company from the automobile sector

case 4

The Netherlands

Rotterdamsche Droogdok Maatschappij (RDM) (metal engineering company) Trega International B.V (ceramic tiles producer) Solvay Chemicals Ericsson

Production line factory Dairy production plant Pharmaceutical company

Agricultural and manufacturing industry (Mugello) Chemical-pharmaceutical multinational company Mawer Telecommunication company

Food company (Galbani) Small-sized credit institute in Southern Italy Multinational company specialised in services for the exchange of holiday lodgings IT company

KLM Royal Dutch Airlines Royal Philips Electronics

case 1 case 2 case 3

Spain

case 4

KAB (coal-oil plant) Emil Brinkhoff GmbH & Co. KG Hypo Vereinsbank Deutsche Bundesbahn AG, Deutsche Reichsbahn

Germany

case 1 case 2 case 3

Italy

case 5

Renault Vilvoorde Gates Europe

Belgium

Description of cases

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

Case 2 Case 3 Case 4 Case 5 Case 6 Netherlands Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Germany Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Italy Case 1

39

++++

++++

++++

++++

++++

15

++++

+++++ +++++ +++++ +++++

++++

+++++ +++++ +++++ +++++ +++++ +++++

++++

++++

28

++++

20

+++++ +++++

14

+++++ +++++ +++++

No. of 10 Participants Æ Belgium Case 1

++++

+++ +++++

++++

+++++

55

++++

49 +++++

+

40 +++++

45

77

++++

+++++

57

+++++

108

211

161

295

413

125

160

180

++++

100

++++

++++

+++

+++++ +++++ +++++ +++++

96

90

+++++ +++++ +++++ +++++

151

400+

+++++

+

578

600

1133

1586

+++++ +++++ ++

471

809

Number of participants and qualification levels regarding the outplacement/replacement interventions selected

Annex V

1200

1000

2220

1650

1945

++++

7 ++++

++++

+++++++++++++++

+++++ +++ ++++ ++++

5 +++++ +++++ ++++ ++++

+ +++++ +++++ ++++ ++++

20

14

10

39

++++

++++

51 ++++

++ +++ 31

++++

41

+

77

+++++

55

Skill level mixed or not clear Low to middle skilled Highly Qualified

++++

25

+++++ +++++ 18 ++++ ++++ ++++ ++++

28

++++

60

+

56

108

+ 100

79 80

88

151

123

211

295

413

578

809

1133

1586

NL - case 6: NL - case 7: GER - case 1:

one fourth (partly) work disabled skilled and experienced only relating to needs of the current company -“-

The horizontal axis represents the number of participants in a cumulative and logarithmic manner. The end of the first block represents 10 participants. The end of the second (rounded figure (10*1.4)=) 14 participants, including the first 10. The end of the third block represents (rounded figure (14*1.4)=) 20 participants, including the previous 14, and so on. This accommodates the wide range of participants (from 1 to 1945) on an A4 size paper, while allowing comparisons at a glance. “1.4” is an arbitrary figure. The numbers on the right sides of the bars indicate the total number of participants each. Unless separated into different skill levels, the bars represent the majority constitution of the group (when the text said, e.g. “mostly low skilled”).

Remarks:

Legend:

No. of Participants Æ Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Spain Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8

2220

SP - case 5: SP - case 6: SP - case 8:

one woman out of 7 participants who all received individual counselling outplacement aimed at professional sportsmen who have to give up their career; other skill levels are assumed to be mixed in 2001, 100,000 people are said to have participated nationwide

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

Germany

Case 7

Case 6

Case 5

9

9

9

9

9

9

9

9 9

9 9 9

9

An examination commission with representatives of company and the labour unions was established to verify the progress of the outplacement programme. Unions were part of joint evaluation commission (with employers and governmental authorities). Unions supported the whole programme.

Unions were part of steering committee for co-ordination, supervision and evaluation of the project. Works council, labour unions, and company jointly chose outplacement agency. Unions were involved during negotiations.

Unions were involved in establishment of social plan and were represented in compliance commission. Unions formed part of the re-employment cell. Communication to union delegation every two weeks. Agreement with unions: no dismissals in the first few years; in exchange, change of functions and locations among employees. Company and trade unions co-operated towards a smooth process. Supervision of outplacement jointly by employer and trade unions.

Trade Union Comments Involvement

9 No Information No Information 9

9

Case 2

Em-

9 9

9

9

9

9 9

9 9

Case 5 Case 6 Netherlands Case 1

Case 3 Case 4

9 9

9 9

9 9 9

9

Public ployment Services

Case 2 Case 3 Case 4

Outplacement company

Implementing Agencies

9

Dismissing company

Belgium Case 1

Actors involvedÆ

Major actors involved in the frame of counselling in the cases selected

Annex VI

9

Italy Case 1

9 9

9

Case 6 Case 7

Case 8 Spain

Case 5

9 9 9

9

Case 8

Case 2 Case 3 Case 4

9 9

Case 6 Case 7

9

9

9

Labour Ministry

Initial discussion jointly with employees, head of department, and works committee; works committee itself provided extensive information.

Unions were involved prior to the concrete intervention as they contributed to the agreements on which this intervention was based. Works committee agreed to social plan only after long period of negotiation.

No

9 9

9

9 No 9

9

Union agreement was signed in July, 1997. As regards the concrete intervention, 1 - 2 internal employees + external consultants worked in the operative centres of each individual factory of the company. Unions had initially proposed OP. Union was not interested. Union insisted to participate in the selection of workers that had to be dismissed. General Federation of Italian Trade Unions were the promoters of the intervention. Union agreement led to the offer of OP to all dismissed workers. Management of the intervention was assigned to a joint committee of local institutions (province, commune) and social parties (union members, associations of entrepreneurs). Unions had not been asked by employees.

No Information 9 Request for outplacement from companies as well as from works councils. No Information No information Employees had explicitly formulated need for extensive counselling and guidance instead of merely financial reimbursement; active support from works council.

9

Case 4

Case 5

9 No Information 9

9

9

Em-

Case 2 Case 3

Public ployment Services 9

Outplacement company

Trade Union Comments Involvement

9

Dismissing company

Implementing Agencies

Case 1

Actors involvedÆ

9 9

9 9

9

Case 8

9

Case 6

9

9

Case 5

Public ployment Services

Case 7

9

Case 4

9

Case 2 Case 3

Outplacement company

9

Dismissing company

Implementing Agencies

Case 1

Actors involvedÆ Em-

No Information No Information

No Information 9 No Information 9

Jointly established by the Catalan Employers’ Association (CECOT), the public administration and the Catalan labour ministry; experimental programme financed by the European Social Fund Co-financed by the European Social Fund and the Spanish administration; co-operation with private centres of labour and local councils

Outplacement was result of joint agreement between staff and company. One of the consultants was the former human resources manager of the dismissing company who was temporarily hired for this new task. Employees and management agreed upon procedures and also outplacement. It is argued that OP was not introduced because of employee or union pressure, but it was considered part of the company’s philosophy to offer assistance. Therefore, they contacted an external outplacement company.

Trade Union Comments Involvement

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

co-ordination of outplacement and inplacement efforts Outplacement Blueprints for individual departments follow-up/continuous guidance

secretarial/administrative support

self analysis/personal action plan

Belgium Netherlands Germany Italy Spain 123456 1234567 12345678 12345678 12345678

The components listed in the first column are the ones which have been reported in more than one of the cases selected. For more details, please refer to the National Reports. Whenever a component was mentioned, the respective cell is marked. Spain - case 8: components vary according to previous knowledge and skill level

note:

cases Æ

creation of employment search cell/active job search by counsellors additional training to apply for jobs and for skills required in future psychological support

individual guidance

OP Components provision of a preparatory/information stage creation and maintenance of individual profile group guidance

Components of the outplacement interventions studied

Annex VII

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

129/180 */90 34/38 */160 48/57 119/125 */*

59/64 33/49 20/25 */* 70/100 */*

92% unknown 90% unknown 84% 95% unknown

92% 75% 80% unknown 70% unknown

75%

Case 7

*/*

1515/1601 161/161 */45 */1650 40/40 297/471

95% 100% unknown unknown 100 63%

Belgium Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Netherlands Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Germany Case 1 Case 2 Case 3 Case 4 Case 5 Case 6

percentage actual figures (re-employed/total participants)

Re-employment rates

Re-employment rates

Annex VIII

Based on records after two years. Evaluation still in progress. Results not yet available. Projected figures from ongoing evaluation. Approx. 400 cases of individual counselling and 400 to 1,200 participants in group outplacement per year. No information on re-employment available. Between 400 and 500 cases of individual counselling, and 800 too 1,000 participants in group counselling per year. Only estimated figures available from ongoing evaluation.

Based on records after 24 months. Process still continuing. Evaluation results not available. Based on records after 12 months. Process still continuing. Evaluation results not available. Based on records after 6 months. Based on records after 12 months. Process still continuing. Evaluation results not available.

Based on records after 18 months of intervention activity. Based on records after 7 months of intervention activity. Process still continuing. Process not complete. Data not available. Process still continuing. No dismissals till date. Based on records after 17 weeks of intervention activity. Based on records after 14 months of intervention activity.

Comments

1020/1200 5/5 35/56 9/9 */51 79/88 25/31 60/60

17/25 66/80 66/79 64/80 1/1 116/123 */* */*

85% 100% 62% 100% unknown 90% 80% 100%

70% 83% 84% 80% 100% 95 % 80% Only 4 of the participants obtained permanent contracts No information available

72% right at the end of interventions. Additionally, 4 % self-employed, 4 % started to study; 11 % still unemployed. 1 example out of 7 (formerly 12; 2 found other jobs, one was kept in company; two opted for later OP).

Plus additional options for a certain number.

many re-hired in temporary contracts; no exact data available

Evaluation results not available.

Comments

Figures include inplaced and outplaced employees and exclude the figures for employees choosing options such as voluntary retirement and further training.

Remark:

Case 8 Italy Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Spain Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8

percentage actual figures (re-employed/total participants) unknown */400

Re-employment rates

About the authors

Bagnara, Sebastiano (1944), presently the Secretary General of the International Ergonomics Association, is chair of Cognitive Ergonomics at the Politecnico di Milano. Previously, he was chair of Cognitive Psychology at the University of Siena, where he was Director of the Department of Communication Science. He was also Director of the Institute of Psychology of the Italian National Research Council. He has published various papers on human computer interaction, stress and work organisation. He is member of several international scientific societies and of the Editorial Board of Cognition, Technology and Work, Human Factors and Ergonomics in Manufacturing, International Journal of Applied Psychology, International Journal of Human Computer Interaction, Travail Humain and Associate Editor of Theoretical Issues in Ergonomic Sciences. Bakker, Arnold B., is associate professor at the Department of Social and Organisational Psychology, Utrecht University, The Netherlands. He graduated at the University of Groningen, and has published several articles on the job demands resources model, attitudes and burnout. His research interests include work engagement, crossover of stress and happiness and organisational performance. Bargigli, Leonardo, did his PhD in Economics under the research programme on “Telematics and Information Society” at the Department of Electronics and Telecommunications of the University of Florence. Since 1995 he has contributed to the realization of more than 30 research reports on different aspects of the economy and society of Tuscany. His main research interests are: labour economics and industrial organisation, industrial dynamics and evolutionary economics, computational economics and agentbased computational modelling, applications of graph theory to social networks.

T. Kieselbach et al. (Eds.), Coping with Occupational Transitions, DOI 10.1007/978-3-531-91694-1, © VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden 2009

352

About the authors

Beelmann, Gert (1971), did his doctoral thesis in 2003 in Psychology at the Institute for Psychology of Work, Unemployment and Health (IPG) at the University of Bremen. His main area of research is unemployment research and concepts for creating occupational transitions. He has been working in two European projects on “Youth unemployment and Health” (YUSEDER, 1998-2001) and “Outplacement/replacement counselling” (SOCOSE 2001-2004). Since 2005 he is the executive manager of an outplacement agency. de Witte, Hans (1957), is professor at the Department of Psychology of the Katholieke Universiteit Leuven. He teaches Work (and Organisational) Psychology and is member of the Research Group on Stress, Health and Well-Being of his Department. His research includes the study of the psychological consequences of unemployment, job insecurity, temporary employment and downsizing, as well as attitudes towards work and participation in trade unions. Other topics include the impact of job characteristics on social attitudes (such as working class cultures and political attitudes). On the national level, he is involved in research regarding temporary contracts, restructuring of plants, mergers of banks, mobbing and well-being at work. On a European level, he is involved in some projects funded by DG XII (5th framework), such as ‘Psychological Contracts Across Employment Situations’ (PSYCONES), next to the SOCOSE-project. He also participates in the international project ‘European unions in the wake of flexible production’. Espluga, Josep (1964), has a degree in Sociology and Industrial Relations, as well as a PhD in Sociology. He did postgraduate courses on environmental and social issues at the University of Venice (Italy), and he was working as a researcher in the Spanish National Institute of Occupational Health (Instituto Nacional de Seguridad e Higiene en el Trabajo). He is currently teaching at the Department of Sociology of the Autonomous University of Barcelona. His main involvement is in the area of sociology of health and environment, with a special focus on occupational health issues and the social perception of risk. He has also been working on sociolinguistic and in citizen participation and governance topics. Recently he was participating as a researcher in a UE project about youth unemployment and social exclusion (YUSEDER) coordinated by Professor Thomas Kieselbach at the University of Bremen. He has done extensive research using qualitative methods. Heuven, Ellen, after completing her studies of Sociology and Management of Art, she worked as an occupational health consultant for various companies in the Netherlands for several years. Subsequently, she worked as a researcher in the field of employment and reintegration for the Utrecht University and the Institute for Applied Sciences (TNO). She currently runs her own company in scientifically based career-management training and is completing her PhD on emotional labour among cabin attendants this year.

About the authors

353

Kieselbach, Thomas (1944), is psychologist and head of the Institute for Psychology of Work, Unemployment, and Health (IPG) at the University of Bremen (Germany). The IPG has concentrated on research in the areas of unemployment, socialisation to work and health promotion during the last 20 years. The focus of his work lies in the area of work and health psychology. From 1993-98 he was professor for Health Psychology at the University of Hannover. He has published 22 edited books and over 200 articles in national and international journals. Furthermore, he is editor of the book series “Psychology of Social Inequality” at the VS – Verlag für Sozialwissenschaften. He serves as a reviewer for various international and national journals. During the 80s he served as temporary adviser to WHO-Euro in the area of Social Inequities and Health. He coordinated two EU funded research consortia, one on “Youth Unemployment and the Risk of Social Exclusion“ (YUSEDER, 1998-2000), the second one on “Social Convoy and Sustainable Employability: Innovative Outplacement/ Replacement Counselling Strategies” (SOCOSE, 2000-2003). He also participates in several European research projects as a national partner. Research areas: Unemployment and health, evaluation of interventions, community psychology, health psychology, occupational health. Since 2000 he is chairman of the Scientific Committee “Unemployment and Health” of the International Commission on Occupational Health (ICOH). Lemkow, Louis (1947), national coordinator of the Spanish SOCOSE research group, is a sociologist, professor of sociology at the Autonomous University of Barcelona. His research areas are social inequity and health, submerged economy, social exclusion, and social policies, with a special focus on environmental and technological risk perception and sociology of health. He has cooperated closely with the Regional Office of WHO/Europe for research in the area of inequalities and health. He was coordinator both of the Spanish team of a TSER project entitled Social Strategies in Risk Society, and of the Spanish team for another TSER project on Youth Unemployment and Social Exclusion. He belongs to the editorial boards of Social Science and Medicine, Health Promotion Inernational, Revista Internacional de Sociología and Revista de Sociologia. He has been the coordinator of WHO working groups on Inequalities in Health in Southern Europe, and Submerged Economy and Health. He has done extensive research on inequalities and health, unemployment and health, an the submerged economy as a survival strategy. Mader, Sabine, is psychologist and works at the Faculty of Human and Health Sciences at the University of Bremen. She has worked as a project manager for the European research project “Social Convoy and Sustainable Employability: Innovative Strategies for Outplacement/Replacement Counselling” (SOCOSE). She has also worked in research projects on new forms of work and work organization as well as environmental behaviour issues and risk communication. She now works at the Student Resource Centre, where she is coordinating new study programmes and offers related support to staff and students.

354

About the authors

Schaufeli, Wilmar B. (1953), is full professor for Clinical and Organisational Psychology at the Psychology Department of the Utrecht University, The Netherlands. He worked in the areas of Clinical Psychology and Work and Organisational Psychology at the University of Groningen and the University of Nijmegen. In addition to over two-hundred scientific publications about unemployment, job stress, professional burnout and absenteeism, he is involved in organisational consultancy and treatment of burned-out employees. Currently, he is scientific director of the inter-university research institute for Psychology and Health, and member of the executive committee of the European Association for Work and Organisational Psychology (EAWOP). Sentmartí, Ramon (1966), has a degree in Sociology and Political Sciences (Autonomous University of Barcelona) and MSC on Political Sociology (London School of Economics). He is currently working at the supralocal Catalan administration on labour market policies, and doing his PhD on active labour policies in Europe. He has been working in several European projects on biotechnology and society, on youth unemployment and social exclusion, and on social and national identity issues. Vandoorne, Jan (1973), studied Sociology at Ghent University and was researcher at the Higher Institute of Labour Studies, Katholike Universiteit Leuven, Belgium. His main research interests include the consequences of job insecurity and unemployment, job satisfaction and social and political attitudes. Wagner, Olaf (1963), Economics and Psychology studies at University of Bremen following his training as a forwarding agent and time in the army as a regular soldier. 1997 Diploma in Economics, 2000 Diploma in Psychology. 2000-2003 Research Assistant working on the SOCOSE project. At present, he works as a vocational school teacher. Field of work: work psychology, employability.