6. Voluntary Redundancy: A Preliminary Investigation
| Pages | 39-44 |
| Date | 01 May 1986 |
| Published date | 01 May 1986 |
| DOI | https://doi.org/10.1108/eb055083 |
| Author | Paul Lewis |
| Subject Matter | HR & organizational behaviour |
6. Voluntary Redundancy:
A Preliminary Investigation
by Paul Lewis
Introduction
Voluntary redundancy (VR) has become
a
widespread phenomenon in British industrial
relations. It has been a factor — perhaps one of some importance — in allowing
redundancies to occur on a substantial scale without a great deal of accompanying
unrest. The combination of VR and redundancy payments has removed the obstacles to
industrial restructuring, even if the displaced workers have not been retrained for the new
and expanding sectors as was once envisaged[1]. It is surprising, therefore, that no
attempt has been made to define the concept of VR in any precise way, nor to analyse
and explain the process that is involved. As
a
result, the significance of VR has not been
investigated. The research described here is a preliminary attempt at remedying these
matters. Such an attempt is necessary not only because we need to know how
and
why
VR is used, but also because we must assess its impact. The research is based on case
study material drawn from a large number of organisations in different industries and
services.
The Redundancy Process
Traditionally, redundancy has been classified as either compulsory or voluntary, but
such a simple distinction is not adequate. It does not give us sufficient help in trying to
understand the process of redundancy
—
that
is,
the method
by
which redundancies are
effected.
Yet
the redundancy process
is
important because it
is
one of
a
number of factors
which influence the way employees and their organisations react to redundancy, and
consequently, the incidence of industrial action associated with redundancies. As
Daniel and Millward[2] noted, the incidence of industrial action over redundancy was
affected more by the method of implementation than by its existence or severity.
The idea that there are two distinct concepts
—
compulsory and voluntary redundancy
—
obscures the complexity of redundancy
and
provides no guidelines for analysis. What
is necessary is
a
conceptual development which enables us to investigate the full range
of variables attaching to the redundancy process. The notion of a redundancy
continuum
—
one end of which signifies VR, and the other compulsory redundancy
—
may be of assistance here because it prompts consideration of the variables which
are
at
work and allows the redundancy process itself to be analysed. The following factors
might warrant inclusion in such an analysis:
(a) whether the employee's job has disappeared;
(b) the extent to which redeployment is available, and is sought
(c) the redundancy context
—
including job changes and earnings reductions, and
the resulting dissatisfaction felt by employees, and
(d) the extent to which management puts direct pressure on employees in order to
get them to accept redundancy.
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