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Apex Car Parts Compulsory Redundancy

Running head: Apex Car Parts Compulsory Redundancy

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Apex Car Parts Compulsory Redundancy

Introduction
With the changing economic and technological environments, redundancy is becoming
part of most businesses. Redundancy in most cases arise in the whenever the employer wishes to
close a business, or move all part. An employer may also wish to make cost saving, with the aim
of increasing efficiency, or meeting the economic demands. Introduction of new technology
within a business may also trigger and employer to consider redundancy. Redundancy requires
legal proceedings, especially when an employer is proposing making redundant more than 20
employees, within 90 days. The employer must act within the set laws and regulation. This
means that an employer must apply consultation. Effective and good communication is the key to
a successful organization. The employer must give the employees, and the employees
representatives adequate information about the proposed changes within the organization. This
will give them a chance to raise their views, on the best way forward. This way, employees can
gain adequate information about the main reasons for the proposed change, and the unions and
other representatives can get adequate time to act. When an employer follows duly the laid
procedures when carrying out redundancy, there is a greater chance of motivating the employees,
through employee engagement. The wellbeing of the employees is also protected, since it is a
great deal to lose a job, or to break the news to the remaining team. This way, a business is posed
to survive any future plans even with the remaining employees.
Apex Car Parts specializes in manufacturing auto spare parts. Just like any other
company, Apex is considering reducing staff costs, and the only way is making some of the staffs
redundant. With some of the employees being part of the GMB union, this is not going to be an
easy task for Apex. Meaning Apex must a bid by the set rules and regulation in terms of carrying
out redundancy. This paper will look into how Apex should minimize the number of compulsory

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redundancies, and the processes that Apex must join to achieve this. Second, this paper will look
at the process needed to manage any redundancies making sure that Apex functions effectively,
while still looking at the future needs. Lastly, this paper will look at how GMB union will look at
the wellbeing of its members, and how they will deal with the proposed redundancy.
Task 1
1.1 Minimizing Number Of Compulsory Redundancies
As the human resource manager, I value each and every employee within the Apex working
environment. I equally value the growth of Apex, especially during this hard economic time. I
other words, I do not take for granted any effort by the management, or by the employees, in
regard to the growth and achievement of Apexs strategic plans (Firth, & Nickson, 2003). To take
care of the needs of employees, various alternatives to redundancy can be considered as part of
the redundancy process. Making people redundant is an issue affecting many organizations. This
is calling for creativity, and options that will keep the business afloat, and profitable.
Redundancy process may mean future processes of hiring and recruitment (Firth, & Nickson,
2003).
Recruitment and hiring are expensive activities within any organization. Therefore, Apex
should consider my recommendation in avoidance of redundancy. While still looking at suitable
alternatives, Apex should first look at the best ways of avoiding redundancy (Simpson, 1991).
This is very important part during the process of redundancy, since it reduces chances of unfair
dismissal claims. Coming up with these process will require involvement of the employees, since
they may propose ideas that may avert redundancy. The following are some of the ways through
which compulsory redundancy may be minimized (McMullen, 2011).

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1.1.1 Recruitment Freezes


Just like any other company, Apex may have future plans to recruit new employees, due
to emerging skills and technology. Recruitment is one of the most expensive activities within an
organization. This is due to the fact that the organization must come up with mean of training the
new employees, and managing them to achieve the required productivity (Firth, & Nickson,
2003). Apex like other auto companies needs new and skilled employees (Ness, 2013). This is to
boost the tasks performed by the 10% technical staffs in design, and engineering. However, for
Apex to save and reduce staff cost, as well as minimize redundancy, take the action of
recruitment freeze (Firth, & Nickson, 2003).
Recruitment freeze is stopping any hiring within Apex for a period of time. This means
that Apex must address and come up with new methods of improving skills of its current
employees. This can be achieved through automation or outsourcing. Meaning Apex should look
for a new partner to outsource some of its operations (Lewis, 1986). Outsourcing will reduce
management cost within Apex. It will also improve the quality of auto parts processed, since
Apex will have the time to concentrate on other operational activities. This way, Apex will gain
form skills and knowledge of other companies, hence reducing chances of employee redundancy
(Aylott, 2010).
1.1.2 Pay Freezes and Cuts
Within any organization, pay rise is seen as a tool to motivate employees, and boost
productivity. This is the same case at Apex. However, after employee consultation, they may opt
to have pay freeze, or pay cuts, instead of losing their jobs. Job security is more important to an

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employee, since he or she may understand after consultation that the Apex is under tight financial
crisis (Bratton, & Gold, 2000).
To implement pay cuts, Apex must consult widely within all ranks of its employees. This
is to make sure the process is managed fairly and with the interests of all the employees. This
means that Apex must come up with a time flame when the pay freeze will be effective. Second,
Apex should come clean about various challenges and the main reasons for coming up with pay
freeze. This way, tense and suspicious environment will be minimized (Chell, 1985). Third, the
pay freeze should be implemented from the top management. This way, the junior staffs will feel
Apex is inclusive in decision making, without favor. Apex should in turn reward its employees,
for accepting to take pay cuts. This can be done without using any money, and it can be a way of
motivating (Drummond, 2013).
1.1.3 Remove Overtimes and Early Retirement
Overtime is a crucial part in any organization, especially when it comes to increasing
productivity. However, this is one activity that takes away organizational resources. Apex may
consider removing overtimes. This can be achieved through maximum utilization of the available
time within the scheduled work time (Aylott, 2010).
On the other hand, early retirement may be an option to the Apex financial crises. This
would create new vacancies within the organization (Reitz, 2007). This means that instead of
Apex terminating employees jobs, they can redeploy them in the vacant positions. When
exploring this option, Apex should critically evaluate age discrimination legislation. In other
words, this option may be risky to Apex since it can lead to legal crises (Drummond, 2013).
1.1.4 Reduction in Agency Staffs and Retraining

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Apex may consider eliminating, or reducing use of temporally staffs. This can be
achieved through concentration with the permanent employees. This way, Apex can reduce
chances and risks related to redundancy. Retraining on the other hand means that Apex avoids
any chance of hiring new employees, even if there is an open chance (Firth, & Nickson, 2003).
This means that Apex can offer the new opportunity to an existing employee. This can be
achieved through training the employee, in order to fit the new role. This way, Apex would save
any cost of hiring, and at the reduce chances of redundancy (Drummond, 2013).
1.1.5 Cutting Bonus and Pension Payments
It is at the benefit of employees to have their bonus and pension cut, than have their
employment terminated. Therefore, Apex should consider cutting employee bonuses and
pension. This must be done after a thorough consultation with the employees (Ness, 2013). There
must be an agreed time of reduced bonus, or pensions. This period must be agreed by each and
every Apex employee, and they must apply to all employees from top to bottom (Aylott, 2010).
While minimizing compulsory redundancy, Apex should consider various laws governing
redundancy. According to employment laws, an employee has the right to be consulted when the
employer proposes redundant of more than 20 employees (Firth, & Nickson, 2003). Informing
the employees must be done in a formal way. This is through writing, which must be approved
by the employee. The employer must also allow employee representatives to gain access to
information in relation to the process of redundancy (Firth, & Nickson, 2003).
Under employment equality legislation, redundancy may be termed as discriminatory. This is
when an employee is terminated on ground of sex, gender, age, or religion. Therefore, Apex need
to show that the process they choose to avoid redundancy is not in any way discriminative

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(Chell, 1985). Lastly, minimizing redundancy shows that an employer is caring to the needs of
the employees, and this can impact on growth and motivation of employees (Drummond, 2013).
1.2 Managing Redundancy
For Apex to manage redundancy effectively, they must apply various decision making
processes. This will only be successful if Apex has established a strong system through which
employees can be consulted. In most cases, employers have no knowledge of tackling
redundancy, or they are not sure of what they are doing. For Apex to successfully implement its
redundancy procedure, the management must focus on the needs of the employees, instead of
giving much attention to the entire redundancy process (Drummond, 2013).
1.2.1 Consultation
The first step is to understand the importance of consultation, and when it should start. In
case Apex is planning on dismissing more than 20 employees within 90 days, consultation must
be done 30 days before dismissing any employee. In case it is planning in dismissing more than
100 employees within 90 days, then consultation must be done 45 days before any dismissal
(Chell, 1985).
Consultation is the backbone for good communication within any organization.
Consultation shows the employees that the employer is engaging them in decision making. This
is a major catalyst for good employee relation and strong organizational culture. Consultation is
crucial since it is one way of abiding with the set laws (Firth, & Nickson, 2003). These are laws
that states that an employer must consult with any trade union or employees. The consultation
must start early enough within 30 to 45 days before dismissal. The employer must consult way of
avoiding dismissal, and avoiding the number to be made redundant. An employer must mitigate

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any prevailing effects of the dismissal. The employer must in writing give detailed information
about the proposed dismissals (Aylott, 2010).
When Apex consults with its employees, there are high chances of reducing the need for
redundancy. This is due to the fact that employees or trade unions may suggest new methods of
avoiding dismissal. Consultation will also save Apex money. In case Apex goes ahead without
consulting, this can be costly in future, in case an employee sues. Apex may be required to pay
heavy protective awards to dismissed employees. In case Apex decides to keep its employees in
dark, various effects may be witnessed within the business environment. First, employees
motivation and productivity will be affected (Commander, & Coricelli, 1995).
Consulting with the employees on the other hand will be helpful to the employees. This
will help Apex employee to plan for the future in regard to their careers. It will also allow Apex
to introduce change within the organization in a rational way (Chell, 1985). This will avoid
unnecessary confrontations, which may affect daily transactions with Apex. However,
consultation may affect the morale of employees, especially when the process takes too long
(Drummond, 2013).
1.2.2 Establishment
Apex must propose the 20 or more employees to be redundant. The employees to be
redundant depend with their establishment. This is their duty within the organization. This means
that Apex should assess its organizational departments, and check from which departments
cutting the number of the employees will not affect the productivity of the entire organization
(Firth, & Nickson, 2003). This is through looking whether the department is a distinct entity,
whether it has a degree of stability and permanence, whether it has the ability of carrying out

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assigned tasks, or does it has technical means and organizational structure. In this case, Apex
should check individual employee contract, and whether each employee complies with the
contract expectations and guidelines (Aylott, 2010).
1.2.3 Employees Involved In Redundancy
Apex should understand that when calculating potential redundancy, they must put into
consideration.
1. Voluntary redundancy. Meaning if form involuntary redundancy 10 employees volunteers
for redundancy, they must be counted and consulted.
2. Any form of redeployment or retraining must be counted as redundancy.
3. In case an employee is on a contract that is coming to an end, that employee does not
count as redundant.
When considering redundancy, Apex must consult with the employee representatives. That is
they must consult with the GMB union, and the union Prospect. They may also consult with
other elected employees. When consulting, it may be hard to understand the amount of
information to provide to the employees or employees representatives (Firth, & Nickson, 2003).
This is especially sharing the main reason for opting to dismiss some employees. In such
situations, there are cases of mistrust or frustrations (Drummond, 2013).
Too much information can take a lot of time for the entire process, while little
information can lead to mistrust and a feeling of alienation among employees (Aylott, 2010).
Apex may be opting to restructure its business model, and it does not wish to share the
information in case the information gets to the competitors (Drummond, 2013). In such a case,
Apex may not share its information. However, for the success of redundancy process, Apex
should be open as possible, in order to make the process of consultation to be smooth. Therefore,

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Apex should in writing disclose reasons for dismissal, number of employees to be dismissed,
methods of selecting employees for redundancy, process of carrying out redundancy, and
methods of mitigating the redundancy (Chell, 1985).
Apex should aim at creating good working relationship with employees, and other
representatives (Aylott, 2010). Meaning they should not see the representatives as formalities to
slow down the entire process. Apex should understand that consultation is part of organizational
change. Consultation should be aimed at creating no chance of surprises, where the employees
are in dark until they are dismissed. With consultations, the employee has some information
about whet the organization may do in future. Apex will also promote awareness in relation to
organizational policies and procedure (Zammit, & Rizzo, 2002). This means that trust and
cooperation will be formed. In other words, Apex should have a collaborative approach, rather
than an adversarial approach (Gold, 2010). This will minimize future confrontations, which
might cost Apex time and money (Drummond, 2013).
Apex should come up with a collective redundancy procedure. This procedure will help
Apex to come up with arrangements on ways of avoiding redundancy, selection criteria and
alternative work. Collective redundancy procedure will help Apex to indentify employees at risk
of losing their jobs, or pool of selection (Chell, 1985). This is crucial since it will help Apex to
choose employees fairly. This criterion may include attendance record, disciplinary record,
standard of work performance, and skills of experience. Apex should also come up with appeal
procedure where employees can raise their concern and grievances. This is one way of reducing
chances of employees taking their issues to the employment tribunal. In other words, this reduces
chances of automatic selection, which is unfair and discriminative (Aylott, 2010). For instance,
choosing an employee based on age, sex, pregnancy, memberships of trade unions, or working

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hours. If for any chance Apex makes its decision based on these criteria, they may be sued. Apex
must come up with alternatives jobs for the redundant employees, as a way of looking at the
wellbeing of its staffs. This may be through counseling, redundancy pay, benefits, and pensions
(Drummond, 2013).
Apex should look at those employees who are still employed. Redundancy may have
some effect on their performance. This means that these employees require one on one
communication, or counseling. Apex should consider the workload of the remaining employees.
These employees are likely to feel guilty, and have a low self esteem (Chell, 1985). This might
undermine work productivity and teamwork. Understanding this, Apex should have a team ready
to take care of the remaining employees psychologically and mentally. This will be the
foundation of restructuring the business hence open new means of communication. This will get
the employees committed, flexible, and open to the organizational future (Aylott, 2010).
2.1 Role of Trade Unions in Redundancy
As a representative of the employees under GMB, my work will be looking at the best
case to protect employees from any form of unfair treatment by Apex. Apex failed to consult
with GMB and Prospect, when proposing redundancy. This is even after the fact that about 30%
of the manufacturing employees belongs to GMB, while 10% of the technical staffs belong to the
union Prospect (Geraghty, 2010).
First my role will be offering advice to employees in relation to redundancy. In most case,
employees are not aware what entails redundancy, and their rights in regard to this. In additional,
the laws surrounding redundancy are complex, and it is hard for Apex employees to go through
them and understand (Geraghty, 2010). Therefore, I would take the first step to educate the

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employees about their rights and the legal process when addressing redundancy. With the rumors
of the redundancy in Apex, time would be the most crucial asset. This is time to inform the
employees about the expected redundancy, and what they expect and how their employment may
change. This way, I will prepare employees psychological, and emotionally (Bratton, & Gold,
2000).
Second I will negotiate with Apex about their action. Since redundancy is a serious
action, which can impact organizational public relation, Apex in most cases will be willing to
negotiate. This will mean forcing Apex to go for consultation with the employees. This is with
the aim of involving the employees within the process of redundancy. When we involve the
employees, there are higher chances of employees offering their solution in regard to redundancy
(Geraghty, 2010). As the trade union representative, I would argue for processes that will reduce
redundancy. This mean adopting measure that will see current employees sustained. It would be
my duty to get the organizations reasons for conducting redundancy (Gold, 2010). This is
through assessing if these reasons are legal, and if they warrant redundancy. In case they do not
warrant redundancy, I would present my case to the employment tribunal. In case Apex fails to
present reasons for redundancy, it would be my duty to seek this crucial information. The
organization must give a conclusive and detailed reason for carrying out redundancy (Deery,
1982).
Third, any form of victimization by Apex must be brought to the right. This means that
Apex must abide by the set laws and regulations when carrying out redundancy. This means that
employees chose for redundancy must be chose based on their performance, and not based on
any form of discrimination. In most cases, trade union members may be singled out to leave the
organization (Geraghty, 2010). This is unfair and contrary to the employment regulations. In such

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instances, the trade union must follow the procedure followed by Apex when terminating
employees (Aylott, 2010). In additional, Apex must give employees adequate time and notice
before they terminate their contract. This notice must be in writing, and it must be within 30 to
45 days. Failure to this, the whole process must be restarted to accommodate the needs of the
employees (Deery, 1982).
Fourth, it is the responsibility of the trade union to come up with a collective redundancy
procedure. This is in order to come up with a procedure that will aim at avoiding reducing and
mitigating redundancy (Geraghty, 2010). This procedure will also help to formulate the selection
criteria, and make sure no rule or law is broken in the process. This procedure will also make
sure Apex comes up with alternative work for the dismissed employees. Lastly, this procedure
will make sure that the retained employees are taken care of both psychologically and mentally
(Bratton, & Gold, 2000).
The selection criteria for redundancy must be based on attendant record, disciplinary
record, skills or experience, and the standard of work performance. This will be applied to reduce
any chance of unfair selection, or biased selection (Flanders, 1968). Apex must also come up
with an appeal process, where employees will have their chance to explain their actions (Deery,
1982). This appeal must be independent, or it should be managed by both employee
representatives, and Apex representatives. This will make sure the judgment passed is fair
(Geraghty, 2010).
Apex must come up with a procedure to help redundant employees get employment.
Although this is not part of the procedure, the union must make SURE Apex has an alternative
for the employees. This may be either through redundancy payments, pensions, and other

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benefits (Geraghty, 2010). In case of redeployment, the employee must be consulted, and his or
her skill must be considered. He should be retrained for the post, and he has the power to refuse
where the post is against his will or causes domestic upheavals (Drage, 2005).
Apex must give redundant employees time to look for new and alternative jobs (Aylott,
2010). This is applicable to all employees who have been working with Apex for more than two
years. Apex must pay these employees at least 40 % of their pay. Redundant employees should
be accorded additional assistance. This is due to the torture caused during the process of
redundancy. Therefore, Apex must come up with psychology and counseling programs (Deery,
1982).
In case of any dispute that may arise from redundancy, the trade union can help the
employees to raise these grievances to the relevant body. This is connecting the employees to the
employment tribunal, and advocating raised grievances. Lastly, it is the responsibility of the trade
unions to fight the looming redundancy in Apex tooth and nail. This can be done through putting
Apex at a bad public view, if it fails to utilize fair process during redundancy process (Chell,
1985).
Conclusion
Organization management requires strategic planning, in order to come up with plans to
reduce cost, and increase productivity. While doing this, it is important for any organization to
realize that human resource is the most important organ. Therefore, this organ should be handled
with care, and with the respect it deserves. Hence, when an organization is cutting the cost of
staffs, alternative ways apart from redundancy should be considered. This way an organization

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can save itself from rooming cases and fines, as well as poor public image. Redundancy should
be the last option when an organization is restructuring.

References
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Bratton, J., & Gold, J. (2000). Human resource management theory and practice (2nd ed.).
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Press.
Ness, A. (2013, September 27). Alternatives to compulsory redundancy. FPB News RSS.
Retrieved April 29, 2014, from
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