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Contingency Plan

Suggested framework for local contingency plans

This framework outlines the key issues that local response teams should consider in developing a local contingency plan.

1. Key role of each partner

Please outline the strengths that each agency can bring to a redundancy situation. The protocol agreements on the role and responsibilities of each Local Response Team (LRT) member may contain some of the information requested in this section. If so please refer to that document. Details of the following should be provided:

  • The roles each agency can play;
  • The procedures and timeframe to which each agency is required to adhere and within which specific actions will be undertaken;
  • The level of delegated authority empowered to designated representatives;
  • Identification of potential co-optees and at what stage they might be involved.
2. Contingency planning

One of the key conclusions of PACE is that precautionary planning is all important. In that respect the establishment and work of the LRT is essential to ensuring the success of PACE. The LRT should therefore be proactive in the identification of potential redundancy situations and should consider the following issues:

2.1 Vulnerable companies/sectors

The PACE document recommends that local agencies must put greater emphasis on identifying and targeting companies that may be vulnerable to predicted market changes. It is therefore important to agree strategies for working with companies where appropriate, to prevent or minimise job losses at the earliest possible date. Such a strategy would outline the remit, role and parameters within which each LRT member can work in the context of potential job losses. Please provide details of actions already taken/to be undertaken in each area to identify and assist such companies.

2.2 Local labour market intelligence

It is important that each LRT collates, updates and shares data on labour market intelligence in order to effectively identify and intervene in potential redundancy situations. Please give details of how this will be achieved.

2.3 Work profiles

It is important that each LRT has up-to-date workforce profiles on those companies that are most at risk. If this is not possible then the LRT will need to have in place a plan for obtaining this information quickly in the event of a redundancy announcement. Please give details of the current position in your area.

2.4 Intervention Tools

Each LRT should identify what intervention tools can be readily accessed through mainstream provision and budgets, for example, job matching through Jobcentre Plus or training incentives through LECs.

3. Action plans

The key objective of LRTs is to ensure that in the event of a significant redundancy announcement, immediate steps can be taken to provide assistance both to workers and the company. The production of an action plan at this stage is essential, and should ensure that implementation is relatively straightforward. LRTs should produce an outline action plan that takes account of the following:

  • Adheres to the local contingency plan;
  • Highlights the scale of the problem and key issues that have been considered;
  • States the key objectives of the strategy;
  • Demonstrates clear targets and anticipated outcomes;
  • States what interventions will be made;
  • States how and when each intervention will be delivered and by whom;
  • States how the strategy will be monitored and evaluated.
4. Redundancy situations

The definition of a significant redundancy will differ from area to area. It would be useful if each LRT could provide a definition of what they consider to be 'large scale'. Any plan should contain the key issues to be considered when job losses become inevitable. For example:

  • The anticipated level of company co-operation or commitment;
  • Any property issues to be considered;
  • Impact on local supply chain companies;
  • The wider economic impact on the local area of a significant redundancy;
  • The profile of the displaced workforce against local labour market trends and opportunities;
  • The most appropriate types and level of intervention relevant to the particular redundancy and local circumstances;
  • The identification and effective involvement of additional partners relevant to particular redundancy situations;
  • Some company closures will impact across more than one LRT area. In these circumstances it is essential to ensure effective communications, co-ordination and consistency of approach across boundaries;
  • Establish one or more sub-teams relevant to the specific types of redundancy and levels of intervention required.
5. Monitoring

Each plan should be subject to regular review and amended to reflect any changes to circumstances be they local or national. Please provide details for monitoring and updating the plans.

6. Communication

A communication strategy must be agreed, identifying how members will communicate with each other, with the company and employee representatives, with the Scottish Executive, and where appropriate local and national politicians, the media and the community at large.

Page updated: Thursday, June 30, 2005