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1992 Report of the Auditor General of Canada

1992 Report—Chapter 7

Exhibit 7.8—Case 1—A Planned, Co-ordinated and Integrated Approach to Managing a Work Force Reduction

In this unit, managers were required to reduce the work force by 32 permanent employees with the objective of transferring responsibilities to external organizations.

Management took advantage of the opportunity to proceed with a much-needed reorganization as well as to redefine its relationship with the external organizations.

Early in the process, the manager of the unit informed all staff that a review would be undertaken. A committee of managers was set up to develop a strategy on how to address downsizing and to prepare a proposal to implement the reduction. A work force adjustment team composed of managers and personnel was also established.

Once the proposal had been developed, senior management visited each location and made presentations on the reorganization and plans.

The team met with the Public Service Commission and union representatives to explain the reorganization. Sessions were held with employees to answer questions about the Policy. Counselling was provided to individual employees upon request. A redeployment strategy was developed to ensure the orderly placement of employees. Employees were declared surplus in stages as the reorganization proceeded.

Redeployment activities were monitored, and steps -- such as controls on staffing activities and release of term employees -- were taken to maximize employment opportunities.

Twenty-one employees were redeployed, eight received payments in lieu, two retired and one was laid off. Payments in lieu examined were well founded and in keeping with the intent and letter of the policy.