Chapter 30. Firings, Layoffs, and Cutbacks
Annual letter to employees in difficult year
To: Employees of Rolling Meadow Lumber Company
From: Jonathan Neal, President
As this difficult year comes to a close, I want to take this opportunity to thank all of you for the dedication and hard work you have given to Rolling Meadow Lumber Company.
It has not been an easy year for our company, and I am sure all of you have experienced personal difficulties. It is no secret that sales are down and we experienced our first operational loss in company history.
The good news is that we have all pulled together to find ways to reduce our costs without having to lay off employees.
I know you will all join with me in looking for ways to make our way through the coming year in expectation of a return to more normal financial conditions.
Please accept my best wishes for a healthy and prosperous new year.
Addressing rumor of layoffs
To: Employees of Rolling Meadow Lumber Company
From: Jonathan Neal, President
In this time of economic difficulty, I would like to address some widespread—and incorrect—rumors that are circulating throughout the company.
At this time, there are no plans for reorganization or layoffs at our Rolling Meadow factory. It is our hope that the cost reductions and production efficiencies already in effect will allow us to keep our company and family of employees intact.
As I stated in our recent annual meeting, if the economy and our sales continues to decline we will seek to find ways to reduce working hours across the company rather than lay off employees. We hope we are not forced to do that, but we feel this would be in keeping with our core values.
I promise to keep all of you informed of any major changes in our situation, and I welcome suggestions from anyone in the company about ways to weather this economic storm.
Announcing closing of office
To: Employees of Rolling Meadow Lumber Company
From: Jonathan Neal, President
We are announcing today that our satellite shipping center in Waterford will be closed effective March 15.
We have determined that we can make significant cost savings by incorporating that small office into our main facility in Rolling Meadow.
All employees currently working at the Waterford office will be offered jobs performing the same duties at our main plant. Our human resources department is meeting with all affected staffers today.
I want to reiterate to all of our family of employees that it will always be our goal to seek budget savings in operational costs before considering layoffs or reduction in working hours.
Asking supervisors to curtail overtime
To: All Supervisors
From: Ed Miller, Director of Operations
Effective immediately, all overtime hours must be approved in advance by department heads.
In these difficult times, it is our goal to avoid layoffs among full-time staffers; one way to do this is to sharply curtail or eliminate overtime pay.
In general, overtime will only be approved in the event of emergencies or to fulfill unanticipated customer orders.
Please feel free to contact me to discuss this matter or any other payroll issue.
Cutting salaries across the board
To All Salaried Employees,
It is with regret that I must inform you that, effective January 1, we will be reducing all salaries and hourly wages by 5 to 10 percent.
We do not take such an action lightly; we realize this will be difficult for all our valued employees.
This reduction will save the company about $2 million per quarter; it will also allow us to stay at full employment. Without the reduction in salary and wages, we estimate we would have had to lay off about 100 people, and that is something we will always seek to avoid.
Your department head will meet with each of you individually in the coming days to discuss this matter. The amount of the salary reduction will be on a sliding scale with those in the highest wage bracket seeing the largest reduction.
It is our hope that the economy will begin to recover soon, and it is our promise that once we return to profitability we will begin to return salaries and wages to their previous levels and to progress from there.
And for the record, members of the executive committee are also affected by this reduction, including me.
Kevin Jeffers, President
Notification of layoff
C. John Kent, shipping department
Dear Mr. Kent,
It is with regret that we must inform you that your full-time employment will end effective March 1.
As you were informed by your supervisor, economic conditions force us to reduce our work force by 10 percent; with the exception of certain employees determined to be essential to operations, we have made layoffs beginning with those most recently hired.
Although we cannot make any promises at this time, it is our intention that when conditions permit us to resume hiring we will first offer jobs to former employees.
Your supervisor has asked you to contact the human resources department by the end of the day to schedule an appointment to review your available benefits, eligibility for severance pay, accrued vacation time, and information about unemployment payments.
In addition, the company will be working in cooperation with the Rolling Meadow Chamber of Commerce to establish a local web-based job bank listing available positions in the area.
Again, on behalf of all of us, please accept our apologies for this unfortunate situation.
Advising of company-wide layoffs
To All Employees,
I am afraid it should come as no surprise that Wilson Textiles did not meet its financial goals for the past year. We expect that the coming year will not be quite as bad, but we are already in a hole.
I have always promised to be truthful and upfront with all of our employees, and I wanted you all to hear the whole story from me instead of from the rumor mill.
It is our intention to continue to look for ways to trim as much from our spending as possible and to hold on to as many of our employees as we possibly can. At this point, I expect that we will have to lay off about 100 of our staff, a decision that pains all of us greatly.
In keeping with company policy, job cuts will be made based on seniority; this means we will have to lay off some of our most promising young staffers. The only exceptions will be in positions that we deem to be essential and for which we do not have a more experienced employee.
Although we must—in fairness—call this a layoff, it is our hope that it will be more of a furlough for many of those affected. We promise to offer jobs to those laid off before any outside applicants are considered.
Anyone laid off will be entitled to all company benefits as promised in the employee handbook as well as any state unemployment payments.
We expect we will have a plan ready to announce in about two weeks.
I wish the news was better. I hope everyone here at Wilson understands that this action is in no way a reflection on the fine work and dedication that all of you have shown.
Marylou Arnott, President
Notice of salary freeze
To All Employees,
The final budget for the next fiscal year has been approved by the Board of Directors.
Your department heads will be advising you of various changes to our budgets that will affect marketing, promotion, capital expenditures, and office supplies. We welcome suggestions from any employee on additional ways to save money.
It is our belief that our family of workers is our greatest asset and needs to be protected. It has been our goal all through this difficult year to find ways to trim our operating costs and expenses while avoiding layoffs.
Effective immediately, all salaries and hourly wages will be frozen at their present level. We hope that better results in the coming year will permit us to lift this freeze.
Thank you.
Marylou Arnott, President
Reducing work week for employee
Peter Hall
Rolling Meadow
Dear Peter,
I regret to inform you that, effective May 1, we will be reducing your work schedule from thirty hours per week to twenty-four hours per week.
This change is in no way a reflection on the quality of your work. You are an excellent worker with a great attitude and a commitment to the team.
As you know, in this poor economy our sales have fallen off dramatically. We hope for a change in the coming months, and we will certainly try to give you more hours when we can.
We understand that this will present difficulties to you. Please discuss with me the best schedule for your reduced hours; we would fully understand it if you were to seek a second job elsewhere, and we will do everything we can to accommodate your needs.
Sincerely,
Greg Wilson
Canceling bonuses
To All Employees,
As we reach the end of this difficult year, I want first of all to thank everyone for their dedication and hard work all through the year.
Sadly, though, I must report that we will not be able to give bonuses this year. The numbers are just not there to support it; we ended the year with a loss.
We had to choose between paying bonuses and laying off staff, and I’m sure you will agree with me in our decision. As always, the staff at Curtis Department Store is like family to each other, and that will always be our goal.
The good news is that we will enter the New Year with our present work force intact and with high hopes for better results.
My very best to you and your family; keep up your excellent work and thank you again.
Sincerely,
Patrick Curtis
President, Curtis Department Store
Notifying employee of elimination of job
Dear Sarah,
I am sorry to inform you that your position as assistant cashier will be eliminated effective March 31.
We are forced to take this action because of a sharp decline in business; your job is one of about twenty positions we have had to remove from our budget.
We were extremely pleased with the quality of your work and are very sorry to lose you. When economic conditions improve, we would hope to be able to offer you a job.
Please don’t hesitate to use my name as a reference for other jobs you might seek.
You are entitled to certain benefits and accrued vacation pay. Please make an appointment to see Mary Mulligan in human resources as soon as possible.
Notice of termination
Jim Boehner, receiving department
Your employment with Rolling Meadow Lumber Company has been terminated, effective immediately.
As stated in the employee manual, any member of the staff may be terminated for any lawful reason at any time.
Your department head will escort you to the human resources department immediately to discuss arrangements for issuance of your final paycheck and any benefits for which you may be eligible.
You will be expected to clear your desk and remove any personal effects and leave the building immediately after your appointment at human resources.
Asking for resignation
To Charlotte Flannigan,
As you are aware, your employment at Consolidated Manufacturing will terminate on May 16. We have already discussed the reasons for this decision by the company.
As your immediate supervisor, I am giving you the opportunity to voluntarily resign your position before that date. By exiting in this way, your employment record will not indicate that you have been terminated for cause.
This may help you find a job that is a better fit for you. I would suggest you meet with human resources to discuss this option, including its effects—if any—on your benefits.
Adding fee for childcare benefit
To All Employees,
We have been pleased to be able to offer on-site childcare to full-time employees for the past ten years. We are very proud of our facility and intend to maintain it at the highest level.
However, in this economy, we find it necessary to impose a daily fee to partially defray the cost of operations of the childcare center. Although we realize this may cause some difficulty for employees who make use of this benefit, in fairness we feel that users should bear some of the cost.
Effective March 1, we will deduct from paychecks fees for use of the facility. The charges will be on a sliding scale, based on the pay rate of each employee and the number of children in care.
Please read the enclosed rate schedule. For further information or to ask questions about this policy, please contact the benefits office.
Discontinuing vision care benefit
To All Employees,
We regret to inform you that, effective April 15, we will be discontinuing the vision care benefit included in the health care package offered to all full-time employees.
The costs of health care continue to rise sharply, and we are determined to find ways to reduce our expenditures in all departments in order to avoid layoffs.
The savings to the company realized by discontinuing the vision care option will be applied to the overall cost of the health care benefit.
Please consult the benefits office if you are interested in purchasing a vision care add-on to your company-provided health care plan.
Announcing increase in health insurance cost
To All Employees,
Effective March 1, the employee contribution to the cost of company-supported health insurance will increase between 5 and 7 percent. Rates will vary based on the number of dependents covered and any options you may have selected.
As you know, medical costs continue to increase rapidly. Rolling Meadow Lumber Company is committed to providing our employees with the best possible package of benefits, and we will continue to subsidize the health insurance plan.
We apologize for having to pass along the increase in costs. Once again, we are in a situation where we must either reduce costs or consider layoffs of staff.
Please contact the benefits office if you have any questions about the new rates or if you want to find out about alternative plans that may be less costly. Please note, though, that lower-cost plans may require higher copays or deductibles.
Suspending tuition reimbursement program
Dear Valued Employees,
I am sorry to inform you that we have decided to suspend our tuition reimbursement program, effective immediately. Any employee currently enrolled in an authorized course will continue to receive payments through the end of the class.
Although we very much want to support our employees in furtherance of their education and training, we have decided to apply the money in this account to salaries for the coming year. In this way we expect to avoid or reduce any possible layoffs.
It is our hope to resume this program and others recently ended as soon as possible.
Thank you for your understanding.
Bill Princup, President
Announcing closure of business
To Our Valued Patrons,
The Bartlett family has been honored to be a part of the Rolling Meadow community for the past twenty-three years.
Running the Tavern on the Square has been a labor of love for three generations of our family.
It is with regret, though, that we must announce that we will be closing our doors on May 31. We have found we can no longer compete financially against the many chain restaurants that have come to town. We believe we offered the best food at the best possible prices, but this battle was one we could not win.
All of us will be working for the next two months. We hope that our customers—many of whom have become like part of our extended family—will come by for a few more meals before the kitchen closes.
Sincerely,
Tom Bartlett
Seeking alternative to letter of resignation
Dear Helen,
I was sorry to receive your letter of resignation from the position of sales supervisor in our sales and marketing department.
Before I accept it, I would like to see if there is some way we can address your concerns and persuade you to stay.
As your supervisor, I feel that you have performed quite well in your brief time with the company; your departure would be a big loss to us all.
In your letter you make reference to personal conflicts you have had with some of the others in our department. With your permission, I would like to ask the human resources department to become involved and to look for a way to improve the working environment.
Please advise me by the end of the day whether you would like to explore this opportunity. I hope you will allow us to try to keep a valued employee.
Shelia Kelly, Sales and Marketing Director