LAYOFF AVERSION AND RAPID RESPONSE AS A BUSINESS SERVICE

Rob Gamble, Innovation Foundry

The Promise of the Workforce Investment System

When you need us most, we will be there .

Great Rapid Response Great Rapid Response begins with a question…

What is going on with your company?

It continues with another question:

What can we do to help your company?

Rapid Response Workforce Investment Act of 1998 •

Title 1, Subtitle A, Section 101, Paragraph 38

• Rapid Response Activity..., in order to assist dislocated workers in obtaining reemployment as soon as possible

The Envelope of Decreasing Opportunity The outer most line (red) represents Federal legislation.

The next line (blue) represents Federal regulations.

The third (green) represents state rules.

The last line (orange) represents local rules.

The distance between orange and red represents lost opportunities for innovation. Our mission is to get locals and states to maximize the flexibility allowed by law.

LAYOFF AVERSION Requirements  Innovative  Proactive  Flexible  Persistent  Knowledgeable

Layoff Aversion is a Mindset • Rapid Response should not only be thought of as a response to layoffs, but as a layoff aversion strategy • ETA views layoff aversion as much as a philosophical approach or mindset as a set of actions or interventions • Layoff aversion activities exist as a continuum of approaches

Layoff Aversion Options • • • • • • • Incumbent Worker Training Work Share Forecasting (early warning) Management Assistance Succession Planning Employee Buyouts (ESOP) Pre-feasibility Studies

Layoff Aversion • 665.310-Rapid Response activities must include: – Immediate and on-site contact with the employer, representatives of the affected workers and the local community, which may include an assessment of the:  Potential for averting the layoff in consultation with state and local economic development agencies, including private sector E.D. entities

Incumbent Worker Training WIA • Limited Money • Performance • • ETP State Money State rules

Forecasting The ability to predict layoffs before they happen and develop a strategy to avert or lessen the number of employees affected by downsizing and company closures

Early Warning Networks  Developing early warning networks and systems to understand economic transition trends within industries, communities, or at specific employers, and planning strategies for intervention  NUMMI; Supplier network with Manex

Pre-feasibility Studies and Buyouts • What are pre-feasibility studies?

• How can they be paid for?

• What is the intended outcome of them?

• Other info as needed

Incumbent Worker Training IWT is used to  increase the skill set of an existing workforce  Prepare current workers to continue employment using new technology and materials being brought into the workplace • Training takes place while maintaining existing employment • Frequently, though not necessarily, paid release time from regular employment duties • Expectation of continued employment is high

Examples Kaiser  File Clerks  Paperless Records (EPIC)

ACWIB

Myers Sound Laboratories  New Equipment  Common Language  VESL

ACWIB

Talent Recapture • Lessening the impact of the layoffs • Matching skills of employees that will be laid off with companies in need of skilled employees  Example; Biotech Pink Slip Parties

Workshare & Furloughs • Company’s attempt to avoid layoffs • Rapid Response works to assist companies throughout the furlough process • Result in formation of partnerships that will allow for future services

On-the-Job-Training • • • By contract and for service for a single individual May be used for workers at risk of dislocation  OJT at a new company  OJT at the existing company Expectation of continued employment is high though not assured unless stated in contract

Layoff Aversion Guide www.steelvalley.org/sub.asp?ID=15&subID=12

Layoff Aversion Rob Gamble Innovation Foundry (831) 246-3012 [email protected]