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Parceline plan leads to job losses

21st September 1989
Page 19
Page 19, 21st September 1989 — Parceline plan leads to job losses
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Which of the following most accurately describes the problem?

• Parceline is to make 29 staff redundant following a decision to restructure the company into five regional divisions.

The job losses are all in the data preparation department of Parceline's Newbury office. Personnel and training general manager Ron Smith says the axe fell on this department "because the work they do falls easily into depot activity". Ten of the personnel involved will be redeployed at the same office.

Most of the redundant workers were not entitled to redundancy payments, because they had not been with Parceline for long. But Smith says they have been financially compensated "well in excess of the legat requirements". He describes the losses as "positive redundancy because this has happened as a result of expansion".

The reorganisation will create 20 managerial positions and each management team will run its region as a devolved business unit.