“Despite cost cuts and layoffs, the crisis helped improve cooperation between the employees and management in Tønder. We informed and listened to each other and took actions together. This gave us an even stronger team in 2010 and going forward.
We got through the crisis by examining the things we could influence. We did it through close cooperation between management and employees, and with that, we actually came into 2010 stronger than before. Like everyone else, we had to make cuts during the crisis and lay off competent colleagues. But employees and management stood together and we were able to start 2010 even stronger, united.”
Kirsten Hansen and Kenneth Enemark (employee representatives), and Mads Bonde (managing director), Extruded Products, Tønder, Denmark.
What have been the key areas of improvement?
Enemark: We in the maintenance department have not been forced to make significant cuts in our maintenance of equipment, and that could have been the case. We have continued to improve and to maintain the equipment, which is our job to do. In that way, our equipment has been prepared to move into higher gear at any time, when needed. In our department, we could see potential savings with regard to external tradesmen on-call. As a result, we agreed for a longer period to handle all the call time ourselves in order to save.
Hansen: We went home without pay to help the company and secure our jobs as long as possible.
Bonde: We haven’t spent time worrying about issues in the crisis that we could not influence, but instead focused on the areas that we could do something about. This is necessary when production volumes decrease by 25 percent. We improved our safety level in 2009 and 2010. An extra effort is needed when you have conditions that make employees less concentrated. We worked aggressively with product quality and have reduced the number of customer claims. Another important area is customer relations, which we measure regularly. Our figures show that we improved here as well during the economic crisis.
How did you implement the layoffs in a manner acceptable to employees and unions?
Enemark: The unions and employees here worked together to find solutions, where we could delay the layoffs as long as possible. This gave people a sense of the seriousness of the situation, and helped prepare them. We were fortunate in that we had to make only a few adjustments, and I believe that there was a general understanding about the reasons behind these.
Hansen: Everybody knew about the crisis, so when we were hit on the national plan, everyone knew we would not be able to avoid it either. Everyone who lost their jobs knew that it wasn’t their fault individually, but a result of the situation. And many have come back to work since then.
Bonde: With layoffs, a lot of communication is required. It has to be visible, and have emphasis on openness and dialog, especially with employee representatives. But it is also necessary to be clear about the fact that leadership also means making decision, even when they are unpleasant. We concentrated on using many different instruments, like reducing work hours, so that as few jobs as possible would be lost.
From the union point of view, how important is open communication and dialog when you are in the middle of a crisis?
Enemark: In general, it is very important for our employees to know where they stand in connection with a crisis. Many of them are dependent on their jobs, and here in Tønder, the possibilities of finding new work or activity is quite limited. Clarification and honesty provides one with the understanding that you need, mentally, to be able to pull yourself through such a crisis.
Hansen: The communication has been good and open, both from the company and from the 3F trade union. It has meant a lot to be able to give and get answers to many questions. The cooperation has been excellent.
