Wednesday, June 25, 2008
- Downsizing refers to the reduced number of employees in a certain company that undergone temporary suspension or permanent termination of employment for a reason that certain positions are no longer necessary or there is a business slowdown.
improve the image of the firm among the stockholders or investors and to become
more competitive.
One of the downsized company is Clipsal.
Last June 12, 2008, the South Australian-based manufacturing company Clipsal announced it would sack 200 permanent workers and close its Nurioopta plant based in the Barossa Valley. The company indicated that there would likely be unspecified “flow on” job cuts in its labour hire workforce.
The sackings will take place when Clipsal closes its Nurioopta plant
along with a second plant in the city’s fringe at Bowden. Clipsal will
consolidate its operations at Gepps Cross in Adelaide’s north.
Permanent employees will be offered new jobs in the Gepps Cross plant,
an 80-kilometre round trip for workers living in the Barossa.
Management stated that permanent employees who cannot move from
Nurioopta to Gepps Cross will be made redundant, but not those from the
Bowden plant. The move will start later this year and continue through
to 2009.
A June 13 ABC Online report quoted the Australian Workers Union (AWU)
official Wayne Hanson condemning Clipsal’s decision, saying that
management has broken its word.
Clipsal was recently bought by the Scheider company which promised that
no regional Clipsal plants would be shut down. Hanson told the ABC
Online that, when the Schneider company bought the Clipsal cartel it
gave very firm commitments to the continuation of manufacturing in the
regional areas.
Reference: http://www.greenleft.org.au/2008/756/39085
1 Comment:
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August 7, 2008 at 12:47 AM
downsizing in old times is due to a company's way to escape bankruptcy but nowadays its also because of company sectors being automated and reducing company costs.
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