PACE Seminar, June 12th 2003 Supporting Redundancy within Clyde Shipyards - October 2001 to present Julie Macdonald, HR Advisor

PACE Seminar, June 12th 2003 Introduction to BAE SYSTEMS, Naval Ships u Company was founded by Alfred Yarrow on the Thames River, Isle of Dogs, in 1865 and moved to the River Clyde in 1906 u During a period of expansion between 1965 and 1974, there were many re-organisational changes as they moved from being family owned, to re-grouping into Upper Clyde Shipbuilding (1967) u Re-privatisation (1971); Nationalisation (1977) then followed u De-nationalisation and acquisition by GEC plc in 1985 u Became part of Marconi Naval Systems in 1998 u Re-named BAE SYSTEMS Marine Limited (after merger) in 1999 u Acquired Kvaerner Shipbuilding, Govan, later that year

PACE Seminar, June 12th 2003 Process of Shipbuilding Concept Build Design Launch Outfit Trial & Commission Customer

PACE Seminar, June 12th 2003 Redundancy facing Clyde Workforce - July 2001 Clyde Taskforce Strategy Strand Outplacement StrandSkills Strand

PACE Seminar, June 12th 2003 Outplacement Strand (Redundancy Management Programme) “ ….to bring forward and implement a full series of measures designed to assist workers threatened with redundancy to move into alternative employment or training either prior to, or as close to, the point of redundancy…. ”

PACE Seminar, June 12th 2003 Redundancy facing Clyde Workforce - July 2001 u 1,000 redundancies announced July 2001 (30% of workforce) u Clyde Shipbuilding Task Force established u Benchmarking exercise by HR Dept of external & internal redundancy management centres u Employee Support Centres set up in both Scotstoun & Govan with the support of our Trade Unions u Centres first of kind for Clyde sites - investing in leavers

PACE Seminar, June 12th 2003 The Team  Right Coutts– outplacement consultants under contract to BAE SYSTEMS  The Glasgow PACE Team –Scottish Enterprise Glasgow –Glasgow City Council –Employment Service –REACT

PACE Seminar, June 12th 2003 Redundancy facing Clyde Workforce - July 2001 u Voluntary redundancy offered - with nearly 350 employees taking this option over the following months u Centres opened in October initially supporting volunteers u 150 Compulsory redundancies of steelworkers and supervisors,took place January to May 2002 u Approx. 500 Job losses were mitigated by a number of in-house initiatives such as re-training (steelworkers to electricians, trades to draughting engineers); redeployment and re-allocation of work from Barrow to Clyde

PACE Seminar, June 12th 2003

Holistic approach - ‘fit for the future’ Based on the existing service provision of Employment Service and REACT, services were project managed by Right Coutts -and included: u One-to-one coaching to enable/motivate self-help u Vocational guidance interviews to establish possible career change or development options; CV Workshops; Pre-retirement courses u Personal Development Programmes u Job Seeking Skills Workshops u Access to the Job Transition Scheme Action Fund which can support individuals towards sustainable outcomes

PACE Seminar, June 12th 2003 Services provided contd..  Common shared registration and client database systems  Help line / call centre  Access to national and local training programmes  Job Fairs on site  Employment service job database available in both centres  Access to independent financial planning advice  Access to Welfare Benefits advice  Redundancy counselling for employees and their families

PACE Seminar, June 12th 2003 Challenges  Timescales for the Redundancy Programme constantly changing - BAE SYSTEMS release dates shifting  Low utilisation of the Call Centre/help line  Extensive active encouragement of ex-employees to use the Centres - former employees live throughout the Strathclyde region  Motivation of employees to change careers/location  Gas services (Transco) training centre moved from Anniesland to Paisley - resulted in a funding issue and severe delay in commencing training

PACE Seminar, June 12th 2003 Right Coutts Contract Targets Example:  Within 90 days of being made redundant, 50% of employees either - in a new job, - registered for training, - self employment or - business start up  Within 180 days of being made redundant, 75% of employees with one of the above

PACE Seminar, June 12th 2003 Outcome u Successful partnership overall, well managed Centres u Regular meetings held throughout the Redundancy Programme, with all partners represented u 220 registrations with the Employee Support Centres - Over 70% of employees were settled into employment, self- employment, re-training or further education - 5% retired & 12% did not wish to seek further employment u BAE SYSTEMS, Naval Ships, chose the same format when 265 redundancies were announced February To date there has been no compulsory redundancies.