Unions try to prevent layoffs through job retention, conversion and creation strategies. Long before layoffs become an issue, unions try to include job protections as part of regular bargaining.

Identifying early warning signs of layoff or closure can help unions launch a proactive response, including:

• coalition building, lobbying and political action to protect jobs and prevent layoffs and closure and press governments to act to save jobs
• bargaining efforts to reduce contracting out, reduce work time, facilitate possible early retirement options
• imposing requirements on the employer to consult and work with the union
• bargaining further commitments from the employer for job retention and adjustment

Some unions lobby for a new purchaser or consider worker ownership as an alternative to closure. This is particularly so when the closure of the major employer will severely impact the community as a whole. Unions recognize that the potential success of such efforts is directly affected by the economic factors leading to the closure, the availability of capital, and the level of cooperation (or hostility) from the employer.

What to watch for

In the public sector, government policies, decisions and budgets need to be continually monitored. In the broader sector, danger signs include such things as new Board members in non-profit agencies who are pro-privatization.

In manufacturing and some other industries in the private sector, the following checklist outlines signposts of trouble.

Mismanagement. Poor quality control. Bad labour-management relations. Marketing errors. Incompetent new supervisors. Nepotism, cronyism. Irregularities in promotions.

Management Instability. Poor treatment by corporate parent with poor managers. Turnover at plant manager, labour relations positions. For example: Canadian managers replaced by American in branch plant. New “consultants” directing staff.

Inadequate Research and Development. Poor product design. Failure to develop new products, new manufacturing processes. Losing ground to other companies in product design and quality. Lack of research to cut energy costs, overhead and inventory.

Physical Plant. Old building. Multiple stories. Physical design limits efficient production, rules out expansion.

Unidentified Visitors / Cosmetic Improvements. Equipment or building being surveyed or appraised. Cosmetic improvement such as office spruce-up, landscaping. “Consultants” or other visitors the employer won’t identify.

Declining Sales. General trend of decline. Drop in market share. Loss of major customers. Reduced sales staff. Trend counter to (or worse than) rest of industry.

Declining Employment. Long-term pattern of permanent layoffs. Specialty job positions being eliminated through attrition, with work being contracted out. Several job classifications being combined into one classification, reducing the number of positions.

Business Climate. Management complaints about taxes, energy prices, unions. Change in government regulation/deregulation, legislative environment, government attention.

Changes in Land Use. Rising land values, land development in the area. Neighbouring plants being sold and converted to non-manufacturing uses. Zoning changes.

Increase in Security. No satisfactory explanation.

Unusual Bargaining Positions. Severance pay offered. Heavy backloading of raises. Management asking for shorter or longer contract than usual. Long-term pattern of employer demands for concessions.

Environmental Questions. Affected by new environment regulations. Changes in waste disposal to save money by taking shortcuts.
Industry / Sector. Supplier of raw parts or materials to an industry affected by closures. Industry undergoing restructuring.

Ownership: Duplicate Capacity. Branch plant. Related plant(s) with ability to make same or related product. Movement of least-skilled work begun. Too much capacity.

Ownership Problems. Conglomerate owner. Change of ownership, new investment strategy. Merger or acquisition. No successor for aging owner.

Disinvestment. Lack of equipment, inadequate maintenance. Machinery not competitive. Change in upkeep. Profits used to improve or buy other plants. Excess dividends.

Removal of Equipment. Major pieces being shipped out or sold. Movement to a twin plant or selloff to a competitor. Loss of key equipment or minor pieces.

Cash Crunch. Supplies arriving COD. Shortages in supplies hurting production. Paychecks bouncing. Layoffs caused by cash shortage rather than slack work.

Sudden Changes in Management Behaviour. Trampling on contract. Odd new “Mr. Nice Guy” actions. Actions by managers indicating they won’t be staying long.