How we partnered with a global manufacturer to support them through a major redundancy and redeployment exercise L’Oreal
Service Line:
In December 2008, L’Oreal UK Limited announced a fundamental change in its manufacturing strategy within the UK. A key outcome of this was the transfer of production of many products to other L’Oreal manufacturing facilities and the transfer of the UK manufacturing facility to an outsourced partner, leaving L’Oreal to focus on the value added areas of market branding and customer service. These changes resulted in a transfer of the manufacturing site based in South Wales to the new outsourced partner.
Background
L’Oreal had been present in South Wales since the early 1970’s producing shampoos, conditioners and styling products for the UK market as well as Europe. A strong employer brand and a major employer in the area, the Pontyclun site had consistently reviewed its operating practices and adopted latest thinking in terms of lean manufacturing and continuous improvement initiatives. The site had benefited from continual investment and was seen internally as a “can do” business with new equipment and adaptation to new market realities. Despite several restructurings over the previous years the site had always managed to achieve and even exceed its Key Performance Indicators and always collaborated well to continue with its presence in South Wales.
However, more than two thirds of its production was being exported and the continuing decline in the UK supplier base meant that 70% of raw materials and components were being imported to Llantrisant. The combination of these two factors meant that the factory was no longer sustainable from an economic, logistical or environmental perspective within L’Oreal’s manufacturing organisation.
The requirement
As a result of the change in strategy, L’Oreal entered into a formal 90 day consultation programme with all 263 employees at the site, confirming that a new owner would take over the manufacturing facility in July 2009 with a residual 66 roles required with the new outsourced partner to meet the production being retained in the UK. Therefore, 197 roles would no longer be required and for the first time at Pontyclun, some compulsory redundancies may take effect at the end of the programme.
The Senior Management team were concerned that many exiting employees would be feeling very vulnerable about the future, particularly as many were long serving employees with little knowledge of the external job market and an increasingly worsening economic situation being reported in the media.
The Senior Management team collaborated with Penna to create a solution to support people from announcement day through the 90 day consultation period and beyond with the main focus for all activities being a Resource Centre based at the Pontylcun Site.
Our approach
It was clear that the best way to deal with how people were feeling and help build their confidence was to bring the support to the familiar work environment. A location well known to all employees was chosen and L’Oreal and Penna agreed and set up the necessary infrastructure, that is, computers, printers, library materials, job notice boards, conference room and confidential 1:1 meeting rooms. From this set up, Penna became the “one stop shop” for all activities related to Career Transition and engaged in the key activities of Group Workshop, 1:1 follow up support, external job researching and setting up of Careers Fairs and Recruitment Days with those employers local to Pontyclun who would be interested in the skill sets coming into the external job market. A strong working arrangement was also established with the on-site union Unite.
All Group Workshops for the 197 employees were delivered at the front of the programme shortly after the expiry of the 90 day consultation programme and when the final business decision was confirmed Penna then focussed on the liaison with all external companies and local government agencies (Job Centre Plus, Department for Work and Pensions, Careers Wales and Welsh Assembly Government) to co-ordinate the retraining funds that are available in projects such as these.
The results
The Group Workshops were very well received with all feedback scores in the Good/Excellent category against the following criteria:
- Quality of Event
- Quality of Handout and Supporting Materials
- Clear and Logical Style
- Tailored Event to Group Needs
- Created an Open and Participative Environment
- Responded to Questions from the Group
- Knowledge of the Topic
L’Oreal Senior Management team were highly delighted with this result and continued to be very pleased with how the whole project was being managed by Penna, adding value to the whole programme with the knowledge of the local area and networks and helping people work through their own career challenges in a positive environment.
In April 2009, the first phase of redundancies took place and at the time of measuring 80% had achieved a landing of their choosing with the remaining 20% continuing to receive the support they needed from the Resource Centre based at Llantrisant.
The main programme concluded in June 2009, with the new owner taking over the site production and an 80%+ landing rate. Post conclusion L’Oreal were keen to record final outcomes and how people were feeling after the business decision had been carried out. Final landing figures for the whole programme were:
- 17 successfully redeployed within L’Oreal worldwide (everyone who had sought this option)
- 49 electing for early retirement or entering full time education
- 111 finding new jobs outside the organisation (including self employment)
- 20 individuals still “in campaign” or taking a career break
With this final phase completed, the landing rate has been improved to 92% and L’Oreal continue to support those that are still “in campaign” through Penna’s Cardiff office and remain committed to that support for as long as is needed.
Media Coverage
The L’Oreal project attracted national coverage on the announcement day and over six months later were available to engage with the media to demonstrate how successful the support programme had been in such a challenging environment. In July 2009, L’Oreal and Penna engaged with BBC Wales to produce a programme that focussed on how people coped with the dramatic changes in their working lives and celebrate the new chapter in their careers.
For more information
Please contact Paul Harris on 07780 991945 or paul.harris@penna.com
