Rapid Response Service

Support for major redundancies

John DavisJobcentre Plus

Aims of Rapid Response Service (RRS)

A rapid, coherent and effective response to redundancies

To move people quickly into new jobs.

0

100

200

300

400

500

600

700

800

2000 2001 2002 2003 2004 2005

Redundancies 2000 - 2005

Total in '000s

Redundancies by industry: 2000 - 2005

Manufacturing

Construction

Distribution

Transport

Finance

Publicadministration

Workers made redundant by age: 2000 - 2005

16 - 24

25 - 34

35 - 49

50+

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Men Women

Numbers of men and women made redundant 2000 - 2005

Re-employment by age 2000 - 2005

16 - 24 25 - 34 35 - 49 50+

Employers’ responsibilities• Give advance notice:

30 days notice for 20+ redundancies90 days notice for 100+ redundancies

• Consult with employees and Trades Unions:

• Identify workers at risk of redundancy

• Provide support to workers who will be made redundant

What is a large - scale redundancy?

Impact on the local labour market. e.g.:

Significance of the employer in the local economy.

Strength of the local labour market

Do local job vacancies match the skills of the redundant employees?

Impact on supply chain companies

Standard support for a large-scale redundancy includes:

Advice and guidance about jobs and claiming benefits

Immediate access to help to apply for jobs.

Immediate access to training courses if employees’ skills don’t match with local vacancies.

Major redundancies and the Rapid Response Service

(RRS)

Partnership support for major redundancies

• Jobcentre Plus

• Learning and Skills Council

• Regional Development Agency

• Government Office

• Chamber of Commerce

• Local Authority

• Members of Parliament

• Trade Union representatives

Additional support funded by RRS includes:

Skills Transfer Analysis for employees under notice delivered by specialist providers

Job Focussed Training to provide training that cannot be delivered through standard Jobcentre Plus contracts

Action Fund payments to help individuals starting new jobs

Employers are always encouraged to provide support

e.g.

out-placement services to deliver advice, guidance and jobsearch support

Bring in financial advisers

Provide accommodation on-site for Jobcentre Plus or partners.

Demand – led provision

• Match the skills and knowledge of redundant workers to the needs of new employers

• Provide relevant training – may be essential for workers leaving traditional or manufacturing industries

• Target support on those who need it

Timing of support

• Deliver support before workers leave the companybut not before they are under notice to leave

• Or as soon as they become unemployed

The MG ROVER Experience

Impact

MG Rover Group in Administration

April 2005

5,300 immediate redundancies

Partners put support packages in place immediately

Economic

Estimated impact of up to 1% on GDP

Loss to Regional Economy alone of up to £500 million per year

Impact

Jobs

MG Rover – over 6,000 job losses

Supply chain – initial estimates of up to 10,000 jobs at risk

Impact

Employer Telephone Help LineJobs Fair:1,600 back in work

RRS and partnership support

Manufacturing and Engineering Hub - recruitment and skills retention support:1,005 back in work

RRS and partnership support• 2,800 in new jobs after re-training

• Support to suppliers across UK to find new markets

• Practical and financial support for workers starting their own businesses.

75% of employees back in work within 12 months

100 starting new jobs every week

Almost 50% back in manufacturing jobs

Less than 5% have become unemployed again

The future

• Further development of partnerships to respond more flexibility to major redundancies.