Rachiel Dian Santua

MBA 103- Business Communication

23 November 2014
Great Lakes Garments, Inc.
Facts of the Case:
The company is facing a problem on paying their financial obligations. One of the
considered strategies is to layoff some employees which includes newly hired and even
a few of those who have been with the company for 5 years. The management
employees are subject to pay freeze. With this seen problem and proposed downsizing
strategy of Richard J. Gidley, the President, he tasked the Vice President of Corporate
Communication to prepare a letter addressed to those employees who will be laid off for
his signature.
Problem Identified:
Who should deliver the message about the layoff strategy of the company? How to do it
and should the President be personally involved in this?
Alternative Courses of Action:
1. The Human Resources Department should conduct a forum to be attended by
the employees who are candidates to be laid off before giving out the letter. This
will inform them beforehand what the current situation of the company is. Being
informed would lessen the further explanations once complaints are raised after
receiving the letter. In the forum, questions should be raised and be answered by
the management without any hint of promise.
2. The Corporate Communication Vice President should hand the letters signed by
the President to the supervisor which the employees to be laid off is under. He
will only prepare the letter and orient the supervisor how to approach the
employees. The supervisor is more familiar with the background and attitude of
the employees under them thus knows better how to handle them.

3.

The company President should issue a memorandum regarding the GLG layoff
addressed to the entire workforce pre-cleared by the Corporate Communication.
This will cover the current situation of the company. The benefits to be received
will be itemized on the letter to be given personally to the employees who are to
be laid off and address other concerns to be raised during the giving of letter. The
entire workforce will be aware on what is going on, not only the employees
subject to layoff. This might scare the employees who are not candidate for layoff
therefore, this must be covered and explained appropriately in the memorandum.

Recommendation/Conclusion:
I recommend alternative course of action number one (1). This action will inform the
employees the situation that the company is facing. There will be greater opportunity for
question and answer portion. The primary concerns of the concerns may be addressed
promptly since there is a discussion. The Human Resource Personnel are the right
people to deal with the employees since they have a better capability on dealing with
different personalities and more familiar on the collective bargaining agreement with the
International Ladies Garment Workers Union (ILGWU). The company must see to it that
no violations are made with the ILGWU contract. This matter should be handled by the
department in accordance to the advisory with the senior management. The Corporate
Communication should also work closely with the HR for further communication support
needed by them. The letter will be given personally by the HR personnel. Please see
Exhibit 1 for the letter.
The progress on the downsizing strategy should be communicated immediately to the
President for this to be discussed during the board meeting. There must be continuous
communication with the ILGWU updating them about the laid off employees if there is a
new job opportunity or if to be recalled. The company must give assurance to the
remaining employees that their job is secured. After the layoff, the company
management should closely monitor their cash flow so to avoid the same mistake to
happen again.

Exhibit 1
Letter to the Employees to be laid off
(Todays Date)
Dear (Employees Name):
This is to notify you that your position will be eliminated on (date). You will be laid off at
the close of business on that date. Due to the reason of heavy financial obligations, the
company has decided upon reduction of workforce substantially.
Important things to remember:
You will be eligible to apply for unemployment benefits after you are laid off.
Continuation of your medical insurance benefits is available, on a self-paid basis.
Companys Employee Assistance Program, is available for consultation on
financial, emotional and other issues.
The enclosed survey is provided by Employment Security. Please complete the
survey and return to Human Resources. Your response will help Employment
Security tailor future training sessions. All responses are kept confidential.
Your service to Great Lakes Garments, INC. is greatly appreciated. It is my hope that
the company will receive additional funds and will be able to recall many employees.
If you have any questions whatsoever, please do not hesitate to contact the Human
Resource Department or your direct supervisor.

Sincerely,
(Signed)
Richard J. Gidley
President