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Downsize gently
By Lauren | October 9, 2009
Continuing my Friday series on ways to keep your business out of court, let’s talk about a topic that’s recently drawn lots of headlines in France: downsizing. According to news reports, the deputy chief executive of France Telecom resigned this week in the wake of two dozen employee suicides (and at least a dozen other failed suicide attempts). Under pressure to compete with its European competitors, France Telecom put in place a massive restructuring and modernization plan that included laying off about 22,000 people between 2006 and 2008. Unions for France Telecom workers condemn the restructuring and accuse management of brutalizing many of the workers who remained in an effort to force them to leave. They may be right; some of the suicides were reported to have been found dead in their workplace or to have left behind notes blaming the company for “management by terror.”
In France, the situation is an enormous scandal. In the U.S., it might well be grounds for a major lawsuit against the company.
It’s not illegal in this country for companies to make business decisions that are intended to save money. But it can be illegal for companies to downsize if they discriminate against workers on prohibited grounds (more on that next week). Companies need to avoid creating hostile working environments for their employees. They should also avoid intimidating, threatening or otherwise inflicting emotional distress on their workers. And if, like France Telecom, they discover that workers are so distressed by the way they’re being treated that they’d literally rather die than continue in their jobs, companies need to act immediately to make things better. It’s hard to imagine more compelling proof of an abusive work environment than a mounting body count.
As the recession drags on it will be tempting for employers to try to salvage the bottom line by cutting back on staff. If that’s your company’s business strategy, be humane about it. Consult your lawyer before you start handing out pink slips, and have a plan in place to help your laid off workers make as painless a transition as possible. It might take a little extra effort and cost a little more, but it’s the decent thing to do. As an added advantage, it could also keep your company out of court.
Topics: Business Ethics, Professional Ethics, Risk Management, corporate responsibility, ethics |