Case Study

Consumer Goods Manufacturer

Corporate Communications

Situation

 

Union regulations required a major consumer goods manufacturer to notify its shop stewards and employees six months in advance of even considering closing a factory and laying off workers. In addition, a controversial gubernatorial recall campaign was raging in the media. Factory closings and moving out of state had become a divisive political issue.

Problem

 

How does a company close a 78-year old factory, layoff 275 workers (one of whom was an ethnic minority on the job for 52 years), and relocate operations in another state without loss of productivity or becoming a pawn in a political debate.

Solution

 

Carefully plan and meticulously execute strategic internal and external communications that rapidly announce and explain to all concerned stakeholders the reduction in force (RIF) and relocation strategy. Develop and execute targeted messages for each audience (senior executives, management, supervisors, workers, union reps, dealers, vendors and the media) that win over each group to the company's point of view.

 

Result

 

Over 1,500 employees in multiple locations nationwide learned of the plant closing through company-sanctioned communication channels in less than two hours, preventing rumors and panic. Everyone embraced the corporate agenda. The company stayed out of the political debate, and most importantly, productivity increased twenty percent as operations wound down and workers were re-deployed or transitioned into new jobs