Wednesday, April 26, 2006

[IWS] EMCC: COMPANY RESTRUCTURING CASE STUDIES (3) [20 April 2006]

IWS Documented News Service
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Institute for Workplace Studies Professor Samuel B. Bacharach
School of Industrial & Labor Relations Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor Stuart Basefsky
New York, NY 10016 Director, IWS News Bureau
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European Monitoring Centre on Change (EMCC)

Danish Steel Works: (20 April 2006)
http://www.emcc.eurofound.eu.int/content/source/dk06001s.html

Provides the Case Study of the closure of the Steel Works, and presents the restructured enterprise, DanSteel, that subsequently emerged.

Abstract:
Iron and steel production belong to the traditional industries in Denmark, although this industry has not been a dominant player in the European market. Nonetheless, changes in the sector at European level over the last 20 years have negatively impacted on the industry in Denmark and contributed to the poor economic situation of the Danish Steel Works at the beginning of this decade. In June 2002, it became evident that the company would have to cease operations. This case study documents the context and details of the closure of the Steel Works, including actions taken at local and national level, and presents the restructured enterprise, DanSteel, that subsequently emerged.


Swedish Postal Services: (20 April 2006)
http://www.emcc.eurofound.eu.int/content/source/se06002s.html

Provides the Case Study of the downsizing strategy of the Swedish Postal Services, Posten AB, which is an example of a long-term and ongoing restructuring process.

Abstract:
Few industries have experienced such fundamental changes as the postal services since the 1990s. This case study examines the downsizing strategy of the Swedish Postal Services, Posten AB, which is an example of a long-term and ongoing restructuring process. It focuses on the development of the Futurum Programme in 2000, a separate outplacement service of Posten, which aims to facilitate a faster and smoother restructuring process. There are clear benefits to each participating employee and hence the negative effects associated with long dismissal notices are minimised.


Ericsson Microwave Systems: (20 April 2006)
http://www.emcc.eurofound.eu.int/content/source/se06001s.html

Provides the Case Study of facing the challenge of reducing its employee numbers by 25%, which meant cutting 500 of the 2,000 jobs that existed in 2003.

Abstract:
In 2003, Ericsson Microwave Systems faced the situation of a predicted sharp decline in activity in the period ahead. The company's business model was based on the development and manufacture of sensors, services and information network solutions for the Swedish National Defence, alongside its selling of proven products and services to the export market. The first activity was strongly linked to national defence expenditure, which was expected to decline steeply in 2004-2005. The Ericsson Microwave Systems' division had the challenge of reducing its employee numbers by 25%, which meant cutting 500 of the 2,000 jobs that existed in 2003. This case study analyses how, in 2003-2004, Ericsson Microwave Systems created and implemented a 'competence shift process', which aimed to reduce the total headcount of the division by almost 25%, without using traditional large-scale lay-off methods.

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Director, IWS News Bureau *
Institute for Workplace Studies *
Cornell/ILR School *
16 E. 34th Street, 4th Floor *
New York, NY 10016 *
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Telephone: (607) 255-2703 *
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