Rapid Response Service Support for major redundancies John Davis Jobcentre Plus
Aims of Rapid Response Service (RRS) A rapid, coherent and effective response to redundancies To move people quickly into new jobs.
Employers’ responsibilities Give advance notice: 30 days notice for 20+ redundancies 90 days notice for 100+ redundancies Consult with employees and Trades Unions: Identify workers at risk of redundancy Provide support to workers who will be made redundant
What is a large - scale redundancy?
Impact on the local labour market. e.g.: Significance of the employer in the local economy. Strength of the local labour market Do local job vacancies match the skills of the redundant employees? Impact on supply chain companies
Standard support for a large-scale redundancy includes: Advice and guidance about jobs and claiming benefits Immediate access to help to apply for jobs. Immediate access to training courses if employees’ skills don’t match with local vacancies.
Major redundancies and the Rapid Response Service (RRS)
Partnership support for major redundancies Jobcentre Plus Learning and Skills Council Regional Development Agency Government Office Chamber of Commerce Local Authority Members of Parliament Trade Union representatives
Additional support funded by RRS includes: Skills Transfer Analysis for employees under notice delivered by specialist providers Job Focussed Training to provide training that cannot be delivered through standard Jobcentre Plus contracts Action Fund payments to help individuals starting new jobs
Employers are always encouraged to provide support e.g. out-placement services to deliver advice, guidance and jobsearch support Bring in financial advisers Provide accommodation on-site for Jobcentre Plus or partners.
Demand – led provision Match the skills and knowledge of redundant workers to the needs of new employers Provide relevant training – may be essential for workers leaving traditional or manufacturing industries Target support on those who need it
Timing of support Deliver support before workers leave the company but not before they are under notice to leave Or as soon as they become unemployed
The MG ROVER Experience
Impact MG Rover Group in Administration April ,300 immediate redundancies Partners put support packages in place immediately
Economic Estimated impact of up to 1% on GDP Loss to Regional Economy alone of up to £500 million per year Impact
Jobs MG Rover – over 6,000 job losses Supply chain – initial estimates of up to 10,000 jobs at risk Impact
Employer Telephone Help Line Jobs Fair: 1,600 back in work RRS and partnership support Manufacturing and Engineering Hub - recruitment and skills retention support: 1,005 back in work
RRS and partnership support 2,800 in new jobs after re-training Support to suppliers across UK to find new markets Practical and financial support for workers starting their own businesses.
75% of employees back in work within 12 months 100 starting new jobs every week Almost 50% back in manufacturing jobs Less than 5% have become unemployed again
The future Further development of partnerships to respond more flexibility to major redundancies.