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LAYOFF AVERSION ANDRAPID RESPONSE AS ABUSINESS 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
•Title 1, Subtitle A, Section 101, Paragraph 38
•Rapid Response Activity..., in
order to assist dislocated
workers in obtaining
reemployment as soon as
possible
Workforce Investment Act of 1998
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
RequirementsInnovativeProactiveFlexiblePersistentKnowledgeable
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• PerformanceETP• 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 Incumbent Worker TrainingTraining
IWT is used toincrease the skill set of an existing workforcePrepare 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
KaiserFile ClerksPaperless Records (EPIC) ACWIBMyers Sound LaboratoriesNew EquipmentCommon LanguageVESL 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 dislocationOJT at a new companyOJT 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
