Subject: A Required Layoff
Date: November 9, 2010
After our meeting last week, I began a research and investigation of plant shutdowns and the issues that arise from such transactions. I have compiled a summary of implementations regarding the closure of the Kenwood plant.
I broke the news to each of the HR managers from the other plants, inquiring about which positions are currently available. As expected, there is currently limited employment opportunity at these plants. The few positions that are available are hourly labor positions in the plant. Those positions might prove a good fit for some of our employees, if they are willing to move. There are no supervisory or management positions available however, so this would unlikely be a beneficial move for any of our supervisors and management staff. Regardless, it is important that we offer these positions to all of our employees first. I have asked each of the HR managers to put a hold on hiring until I have had a chance to talk with you.
Some of the issues we will need to discuss regarding any possible employee transfers are severance pay and whether or not BAI should provide any moving costs. It is unreasonable to expect an employee to be able to move and get settled in to one of the other plants without a pause in their paycheck. To help them with the transfer, I would recommend 2 weeks of severance pay, with the stipulation that they first must use any available vacation days. If they have 2 weeks of paid vacation, they would use that instead and no severance pay would be allotted. I recommend covering part of the moving costs for two reasons. First of all, because of the circumstances under which the employee has to make the move. And secondly, because there would actually be a cost savings to the company if a transfer took place rather than a new hire, due to training. I recommend covering 100% of the cost of moving to include travel, hotel, and vehicle... [continues]
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