Investing in Retrenchment: Avoiding the Hidden Costs

The NHS structure described in the article refers to the situation following the 1974 Reorganization.

See, for example, Gordus J.P. Jarley P. Ferman L. A. , Plant Closings and Economic Dislocation (Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, 1981); Greenhalgh L. , “Managing the Job Insecurity Crisis,” Human Resources Management, 22/4 (1983):431–444; Luce S. , Retrenchment and Beyond (Ottawa: The Conference Board, 1983); Portis B. Suys M. , A Study of the Closing of the Kelvinator Plant in London, Ontario (London, Ontario: University of Western Ontario, 1970); Sutton R.I. , “Managing Organizational Death,” Human Resources Management, 22/4 (1983):390–412.

Carroll A.B. , “When Business Closes Down: Social Responsibilities and Management Actions,” California Management Review, 26/2 (Winter 1984): 129; Also, see McKenzie R.B. , Plant Closings: Public or Private Choices? (Washington, D.C.: The Cato Institute, 1982).

Carroll , op. cit., pp. 125–140; Bluestone B. Harrison B. , The Deindustrialization of America (New York, NY: Basic Books, 1982); Folbre N.R. Leighton J.L. Roderick M.R. , “Plant Closings and their Regulation in Maine, 1971–82,” Industrial & Labor Relations Review, 37/2 (1984): 185–196.

The Conference Board, Company Programs to Ease the Impact of Shutdowns (New York, NY: The Conference Board, 1986).

Buss T.F. Redburn F.S. , Shutdown at Youngstown: Public Policy and Unemployment (New York, NY: State University of New York Press, 1983); Harrison B. , “Plant Closures: Efforts to Cushion the Blow,” Monthly Labor Review, 87/6 (1984):41–43; Kochan T.A. McKersie R.B. Cappelli P. , “Strategic Choice and Industrial Relations Theory,” Industrial Relations, 23/1 (1984): 16–39.

Carroll , op. tit., pp. 125–140; Batt William L. , “Canada's Good Example with Displaced Workers,” Harvard Business Review, 6/22 (July/August 1983).

In Britain, redundancy compensation is mandatory. Minimum requirements are 1/2 week's pay per year of service while age 18–21; one week's pay per year of service while age 22–41; 1 1/2 week's pay while age 42–65. This is for employees with more than 2 years of service up to a maximum of 20 years of service. The state reimburses 41% of this amount.