The Business Case for Change: Redundancy Support

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Redundancies are one of the most sensitive and legally complex areas of HR. Mistakes can lead to costly third -party interventions and reputational damage.

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Case Study: Collective Redundancy at manufacturing company

Company Overview

Industry: Manufacturing
Location: Dublin, Ireland
Employees: 220

Business Challenge / Business Case for Change

The manufacturing site in Dublin faced a sudden downturn after losing two of its largest European contracts due to market shifts. The company experienced a projected 30% drop in revenue and an unsustainable production surplus so intended to move the surplus production to one of its other European sites which access to different markets.

A decision was made to reduce headcount by 40 roles across production, warehouse, and administrative departments. This triggered the collective redundancy obligations under the Protection of Employment Act 1977-2014, the Redundancy Payments Acts 1967-2014 and the Employees (Provision of Information and Consultation) Act 2006, requiring consultation, notification, and a structured process.

Implementation Process

1. Ministerial Notification & Planning

Formal notification was submitted outlining affected roles, timeframes, and rationale. Legal timelines for consultation were mapped and communicated.

2. Employee Representation & Consultation

Engaged with elected employee representatives (non-union roles) and the Union were engaged for a minimum 30-day consultation period. The rationale, alternatives explored, and severance package options were presented.

3. Selection Criteria Conflict

Management proposed a performance-weighted matrix. The union demanded traditional “last in, first out” (LIFO). After WRC-conciliated talks, a hybrid model was agreed:

  • 50% weighting to tenure
  • 50% to documented appraisals from the last 2 years
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Monitoring and Adjustment
  • Weekly consultation meetings with Union and employee representatives
  • Daily communications on FAQs and process updates
  • HR audit of selection scoring to validate fairness and consistency
Adjustments included
  • Extended timelines for at-risk staff to apply for internal vacancies
  • Increased investment in outplacement services for impacted employees
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Outcome
  • 38 redundancies completed without any WRC claims
  • Two employees successfully redeployed internally
  • Staff exit interviews showed 87% felt the process was “fair or very fair”
  • Reputation with the Union improved due to transparency and flexibility
Value and Impact
  • €1.2m in cost savings over 12 months
  • Process alignment with legal requirements avoided regulatory scrutiny
  • No productivity loss or disruption during the transition
  • Strengthened management-union trust for future negotiations
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Conclusion

Collective redundancies in Ireland require more than compliance, they demand early planning, structured consultation, and genuine engagement. This case demonstrates the importance of a genuine business case, procedurally fair consultation, and clear documentation throughout the process. By adapting to feedback, balancing legal risk with employee wellbeing, and involving the conciliation services of the WRC, the company avoided legal action and built long-term organisational resilience.

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