Memorandum l Franksen plc Prince of Wales Road, Sheffield s9 4ex

to All employees Date: 15 July 20—

From: The Managing Director

Cutting output and redundancies

The company has been running at a loss for the past three years, due to rising costs of production and a fall in demand for our products because of the economic situation.

It is therefore with regret that we have to announce that one third of the work force will be made redundant over the next month as production will be cut by forty per cent.

Those employees affected will be advised within the next fortnight and will receive full severance pay, plus holiday pay, which, we hope, will help them until they find new jobs.

We express our sympathies to those affected and would like to thank them for their help in the past and their co-operation in these unfortunate circumstances.

L. Franksen

Managing Director

15.2.5

Redundancies

Questions

1. Why is the company making redundancies?

2. How many people will be affected?

3. What is going to happen to production?

4. What compensation is offered to those affected?

5. When will those being made redundant be advised?

15.2.6

Take-over of the company

This faxed memorandum is to the staff of a company that is about to be taken over. In this case, it is essential to explain exactly what is hapening and what is going to happen, as employees will naturally want to know about their job security. Notice how the main points are carefully laid out, and that the memo is written almost immediately after the take-over to prevent rumours spreading. Employees are also encouraged to ask supervisors and union representatives questions. It is bad industrial relations not to advise employees immediately in this situation, as secrecy only creates suspicion, and even those with secure jobs might leave for fear they might be dismissed.

MEMO FAX Bedix Calculators Ltd.

Fax: 071 940 6668 Bedix House. Richmond, Surrey TW9 1DW

to All employees in all branches Date 21 October 20—

From. J.L. Bedix, Director Subject: Control of Bedix Calculators

by Prendall Industries

You are probably aware from reports in the press that Bedix Calculators has been taken over by Prendall Industries and is now part of the Prendall group of companies.

Details of the take-over and how it will affect employees will be sent to everyone before the end of the week. However, this memo is being circulated to reassure you of the following:

1. There will be no redundancies as a result of the take-over, although there will be some reorganization.

2. Reorganization will take place over the next year as Prendall intend to expand Bedix Calculators' production so that it will become a major electronic component supplier to their own industries.

3. Salaries and wages will not be affected.

4. Management positions will not be affected, although Organization and Management Consultants will be looking at our methods of production with a view to improving efficiency.

5. Bedix Calculators will retain its own name and identity and fulfil all contracts and obligations it was committed to prior to the take-over.

The Board of Directors, management, and Union representatives of Bedix Calculators have already met with Mr Prendall, who has given us the above undertakings both verbally and in writing. However, if you wish to ask your supervisors or Union representatives about anything regarding the new situation, please do so, and I am sure they will clear up any doubts or misgivings that you might have.

J.L. Bedix,

Director

15.3