The Issue: Due to loss of a contract the Company needed to reduce the number of warehouse operatives by one person.
The Process: The redundancy consultation process with the affected employees was started by Effective People and all of the Warehouse Operatives were eager to avoid the need to make redundancies. As an alternative to redundancy one of the options presented by Effective People was that all Warehouse Operatives reduced their working hours by four hours per week, as with the number of staff involved this produced the cost savings required. Although this would result in a reduction of pay for the entire group, the Operatives thought this was the best and fairest solution. Following consultation and agreement, the Operatives accepted this change to their terms and conditions of employment.
The Outcome: The Operatives all got to keep their jobs and the Company did not lose any of the valuable experience out of their organisation. The Company also avoided having to make redundancy payments or risk any claims for unfair dismissal, but managed to make the cost savings necessary to sustain the department. Fortunately, after a few months, business picked up and all Operatives reverted to their previous hours of work.
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