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RIFs, layoffs, cutbacks - Do's and Don'ts

by Jim Pinto | from Pinto's Archive


Just this past week I saw the HBO documentary: "The Last Truck - closing of a GM plant". GM employees who had been with the company for 20 to 30 years sadly followed the last truck as it rolled down the assembly line. Reactions ranged from philosophical to sentimental; many could not speak as they became overwhelmed by tears.

The late-1950's bestseller, William H. Whyte's "Organization Man" described General Motors. People not only worked for the organization, but sold their psyches as well. They willingly subordinated their personal goals and desires to conform to the demands of the corporation. Half-century later, here was the demise of GM, the model company Whyte's book was describing.

During these recessionary times, big layoffs seem to be the only solution to our economic woes. Already many states have unemployment rates of more than 10%, and the national average is nearly that.

There are several expressions used to make the nasty job of layoffs more palatable - cutbacks, downsizing, reduction-in-force (RIF). Consider this: When your colleague is RIFd, it's a Recession; when YOU are RIFd it's a Depression!

Most employees who are let-go are given "the standard company severance package". In the US, it is usually a week per year of service. In Europe it is much more difficult (and expensive) to layoff anyone who has been employed for a few years.

There are strict laws involved, usually covered by making exiting employees sign a document waiving any further claims before they receive their final check. Under these difficult circumstances, few have the knowledge or the fortitude to really read the document; many simply sign away their rights in order to accept immediate payment. Most companies tread the fine line between decency and legality in the layoff process.

Rockwell had some layoffs during the past few months at their plant in Cambridge, Ontario, Canada. It's insightful to read employee comments on the weblogs. The company handled it as well as could be expected. But still, it's heartbreaking for many long-term employees who are told suddenly that they are no longer needed. It's tough for everyone: the company, the exiting employees and the ones remaining.

Here's my own list of Do's and Don'ts for laid off employees:

  1. Don't take it personally.
  2. Don't blame anyone.
  3. Don't simply look for another similar job, at a similar pay.

  4. Do your best to stay positive.
  5. Do use this opportunity to re-educate and modernize yourself.
  6. Do find something you enjoy; hey, maybe start your own business.
You know what? Being laid off could be the step that pushed you into something you'll enjoy much more. Develop a NEW YOU - Version 2.0. You might end up with an occupation that is much better than anything you thought possible.

My mother told me long ago: "People like to do what they're good at, and are good at what they like to do." Find something you're good at, and you'll like doing it.

RIF or Layoff: What Difference Does it Make?

How Is Severance Pay Determined?

The Days the Plant Died - Closing of a GM Plant

10 steps to finding the right job

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