Contingency Planning

For Large Business Failure, Closure or Accident resulting in large numbers of redundancies September 2008

Contents Page

Introduction …………………………………………………….. 1

Main Components …………………………………………….. 1

Detailed Workforce Profile ………………………………….. 2

Intervention scale …………………………………………….. 2

Identifying intervention services, products and tools … 3

South Major Employers ………………………... 5

Breakdown of the 22 identified largest employers in …………………………………… 6

Conclusion ……………………………………………………… 7 - 1 -

Introduction

This report has been done as an action plan in case of business failure, closure or accident within the district. Large employers are defined as having over 100 employees and as such there is a risk that there could be a detrimental effect on the local economy. The action plan will assist officers and partners in delivering support should such a situation arise.

All redundancy situations are unique and elements of any local response must be developed in reaction to individual circumstances.

The key issues to consider is the role that each partner organisation can play and the tools they can apply to the situation they face. This can then be customised and developed into a strategy specific to the needs of each potential or confirmed redundancy situation.

Main Components

The main component, for a successful outcome to any redundancy situation, relies on good, rapid response from all appropriate agencies, and good communications between the company and all agencies.

The main components are:-  Protocol agreements on how the appropriate agencies will come together to establish leadership, agree strategy, and communicate with each other.  Regularly updated summaries of local labour market intelligence and workforce profiles  A protocol agreement on communications with trade unions, SKDC, the media and community at large, establishing a process to ensure that all external communications are vetted and agreed on by all relevant partners prior to general release. It should be recognised that most job losses will generate publicity and political interest at both local and national level. It is therefore important that all partners are fully briefed.  A checklist of the key issues for consideration in each major redundancy situation; the level of co-operation expected from the company; associated property issues; the expected impact on the local supply chain; and an assessment of the workforce profile against local labour market trends and opportunities.  An outline of the strengths that each agency can bring to a situation; the roles they can play; the procedures and time frames to which each agency is required to adhere to; the level of delegated authority empowered to designated representatives; and the key interventions that each agency can apply to adapt to redundancy situations.

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Detailed workforce profile

Acquiring a detailed profile of the potentially displace workforce (including information on skills, qualification, age, gender, location, length of service and income levels) can greatly facilitate a rapid assessment of how readily the displaced workforce are likely to assimilate into the wider labour market. The same information will play an important role in supporting any effort to market a site to potential inward investors. Where early warning systems are effective, some or all of this information may already have been acquired by individual agencies or maybe made available by the company responsible. If the information is not readily available it maybe acquired through the use of a confidential questionnaire.

Intervention scale

As soon as the workforce and local labour market profiles are compared and assessed, the scale of the problem i.e. the ease with which the displaced workforce are likely to be assimilated into the wider labour market. Some company closures will impact across more than one local boundary. In these circumstances it is essential to ensure effective communication, co-ordination and consistency of approach. The expanded areas most likely to be effected are Melton Mowbray, Newark & Sherwood and . However, most redundancy response strategies are likely to fall into one of the following categories:

1. Major intervention Where there is a major gap between the skills profile of the workforce and existing or projected need of local employers, major intervention and support will obviously be required. This may include a requirement for a broad range of support mechanisms including re-skilling and up-skilling training provision, vocational guidance and personal support. Where this is exacerbated by other factors, e.g. the age profile of the displaced workforce, other interventions designed to build self confidence and raise labour market awareness may also be required.

2. Significant intervention. Where there is a gap between the skills profile of some of the workforce and/or there are additional factors for a significant proportion (e.g. age), a fairly broad intervention strategy may still be required. This may include a redeployment programme which includes most of the above but only targeted at specific groups of workers, or which only covers specific interventions.

3. Limited intervention. All larger scale redundancies require some level of intervention. Even where the skills profile of the workforce closely matches the requirements of employers in the wider labour market, some intervention may be required to facilitate the effective assimilation of the workforce into the local labour market. This may be relatively minimal, e.g. ensuring that the displaced workers and local employers are fully aware of what each has to offer and/or effective match of individual skills to company needs.

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Identifying intervention services, products and tools

A wide variety of interventions are needed to support redundancy responses. Some of these are products, tools or initiatives are already in existence and have wider applicability beyond that of assisting redundant workers. Others need to be developed at local level in response to the perceived and immediate needs of a significant redundancy situation.

1. Financial advice and support This area of support is required in most redundancy situations, and may require the involvement of a range of agencies including the Benefits Agency, local authority welfare rights section, the Citizens Advice Bureau and finance companies.

 Housing Benefits and emergency housing. This is available through South Kesteven District Council.  Benefits advice. This is available through the JobCentreplus who can normally respond to a significant redundancy situation, working with groups and individuals to help them work out their benefit entitlement prior to becoming unemployed.  Welfare rights. This is available through South Kesteven District Council and/or Citizens Advice Bureau who can work with individuals to establish their entitlement to financial support in relation to both individual and family circumstances.  Money advice and debt counselling. This is available through the Citizens Advice Bureau, or other local voluntary organisations.  Financial/Pensions advice. This can be made available though either the agency responsible for a company pension scheme or independent financial advisers who can help individuals to look at all their financial commitments and needs, including pensions and mortgages, and, where appropriate, the safe investment of redundancy funds.

2. Re-deployment support This can take many forms and can be provided by a broad range of organisation including the Job Centre, employment agencies, Careers and Adult Guidance Services, education and training suppliers. Specific types and levels of re-deployment activity will be determined by the individual redundancy situation, and may include one or more of the following:-

 Job searching and matching. This is primarily the responsibility of the local Job Centre, this may also require the involvement of specialist organisation such as outplacement agencies, particularly where the skills held are of a specialist or high level.  Training Needs Analysis and Rapid Response Fund programmes will identify the training requirements.  Vocational guidance. In-depth and objective guidance is a key requirement of many redundant workers. The local Careers and Adult Guidance Service could provide this.  Raising awareness of labour market trends. Where a workforce has outdated skills and/or long periods of service they may be unaware of current labour market trend. This type of activity is best delivered alongside activities to raise awareness of real job or training opportunities. - 4 -  Raising awareness of employment opportunities. The best way of achieving this is through the Job Centre facilities and through the organisation of a “jobs fair”, to which employers with appropriate vacancies are invitee to meet individuals from the displaced workforce. Job centre in partnership with South Kesteven District Council can facilitate this.  Job search skills. Many individuals may need help with composing a C.V., covering letters, and interview techniques. This kind of support is available through the Employment Service, and agencies e.g. A4e.  Vocation training – up-skilling. This may include up-skilling the current skills of workers through on the job training or the provision of short tailored courses on training. Train to Gain or Learning Skills Council are best for this.  Vocation training – re-skilling. Where a significant proportion of the workforce has outdated skills, complete re-skilling for new occupations may be required. This can be a costly exercise and should only be delivered if it can be linked to real jobs and real employers in the local labour market. The best agency to approach would be Train to Gain.  Core skills training. There is evidence that employer’s value core skills in areas such as IT or customer care as much, if not more than vocational skills. Without at least basic skills in IT, many of those who are already at risk of being socially and economically excluded could be further disadvantaged, not least in the capacity to access and compete in the labour market. Where a reasonable proportion of the displaced workforce lack IT skills, therefore training should be made available. YES/ College run appropriate courses to cover core skills.  Self confidence and awareness raising. Where a worker has had a long period of service with a single employer and /or is over 40 years old, evidence suggests that the individual concerned will lack self- confidence or awareness of what they have to offer to a new employer. Some programmes to support individuals in raising self – confidence may be necessary prior to making vocational choices.  Employment and training incentives. These may be available from the Learning Skills Council, they can be customised to meet the particular needs of a redundant worker.  Skills transfer programmes. These are specialist programmes that have successfully been delivered in some areas to help company management make a smooth transition from one situation to another e.g. to help them make the cultural transition from large to small company and in doing so, support the local small business sector. ILM Leadership training through Enterprise may be available.  Language difficulties. Some workers may have language difficulties and adequate provision must be provided to overcome this barrier. Yes/ Grantham college can provide this service, - ESOL language training.  Gaps Where indentified as a barrier to employment SKDC will work with partners to provide a solution.

- 5 - 3. Self Employment Self employment support for redundant workers can be provided by appropriate, local delivery agents and can take two broad forms:-  Small business start-up support. This is normally available through local delivery organisations which have close links to both the Job Centre and South Kesteven District Council. The aim of these organisations is to support those interested in setting up as sole traders or small partnerships. The main agency for South Kesteven is Welland Enterprise/ Business Link. They provide impartial advice and assistance to individuals at all stages of the start-up process. 4. Redundancy Packs The range and role of support organisation can appear confusing and inhibiting to those facing redundancy. In response to this Redundancy Packs maybe produced. These should give immediate and comprehensive information on the range of support services available to local level and details of where and how these can be accessed.

South Kesteven Major Employers

Name of Company Location Approximate Nature of Business Employees

MPP Ltd Grantham 500+ Food Production Cummins Generator Stamford 500+ Engineering Technology Grantham Hospital Grantham 500+ National Health Service Bakkavor Bourne 500+ Food Production Warners plc Bourne 250+ Printers Asda Grantham 250+ Supermarket Bourne Textile Bourne 250+ Laundry Services Services Bourne Contract Bourne 250+ Cleaning Contractors Support Services Ampy Metering Ltd Market Deeping 250+ Engineering Downtown Grantham 250+ Retail Superstore De Vere Hotel Grantham 250+ Hospitality Pinguin Foods Easton 250+ Food Production Wm Morrison Stamford 250+ Supermarket Wm Morrisons Grantham 250+ Supermarket Stamford Hospital Stamford 250+ National Health Service Stamford College Stamford 250+ Education Grantham College Grantham 250+ Education Police HQ Grantham 250+ Police Service Stamford Endowed Stamford 250+ Education School Brake Brothers Grantham 250+ Food Distribution PAS Easton 250+ Food Production Autocraft Industries Grantham 250+ Engineering

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Main Agencies in South Kesteven

South Kesteven District Council 6 St Peters Hill Grantham NG31 6PZ 01476 40 60 80

Lincolnshire County Council Newland Lincoln LN1 1YL 01522 552222

Lincolnshire Enterprise PO Box 444 Lincoln NG6 3YL 01522 852390

Job Centre Plus – Derek Brown Crown House Lincoln 01522 343088

East Midland Development Agency Apex Court, City Link Nottingham NG2 4LA 0115 9888300

- 7 - Welland Enterprise Pringles Courtyard Stoke Rochford Grantham 01476 530173 Business Link Commerce House Outer Circle Road Lincoln LN2 4HY 0845 0586644

Grantham College/YES Avenue Road Grantham 01476 400200

Citizens Advice Bureau 1a Castlegate Grantham

Social Services 46 Union Street Grantham 01476 567572

Conclusion

The ability to respond cohesively, quickly and flexibly is crucial to the success of reducing the impact of large scale redundancies.

Good partnership working will avoid duplication by offering a “one door” approach. Providing an all encompassing service to employers and employees, will improve awareness of partners’ specialisms and expertise and will help with the pooling of resources.