The bottom line is that for many businesses a major cost (if not the major cost) is labour. The first thing an employer has to think about is whether they need to reduce the number of hours to be worked by their staff? Do they have too many staff?? If the answer is yes, then they have to sort out a process by which this issue is going to be addressed. .
It is vitally important that an employer have in mind a draft plan of attack. There is no point in going to staff with an incomplete or airy fairy proposal; this only loses the respect the staff may have for the employer. The better prepared the employer the more likely is the “buy in” from staff.
Having said that no decisions should be made before the employer consults with the employees that may be affected. Employers need to talk to their staff (and their representatives) about the situation and be get feedback before any decisions are made.
Be open minded – ultimately your staff may provide feedback that alters your initial thoughts – that’s the whole reason you consult!!!
Give staff a reasonable time to think about any proposals and to come up with alternatives. It’s no good marching in on Monday at 9am and asking them for feedback by 11am. What that says is that you have already made up your mind.
Listen to what they have to say and be prepared to incorporate their ideas into your plan. Remember that the boss doesn’t have a mortgage on the best ideas.
Once you have finalized a plan go back to the staff and give a reasonable period of time to implement it. (For redundancy the period of notice will be set out in the Individual Employment Agreement). Remember an employer is entitled to change things to manage their business more efficiently as long as they give reasonable notice and follow a correct procedure. It is the procedure that trips most employers up.
This article originally appeared in the Southland Times Work To Rule column. Mary-Jane Thomas is head of Preston Russell's employment law team. Contact her by clicking here
