eOn the Road to Recovery.


How the engineering company GKN survived the recession and is now thriving, with a little help from its workforce.


Engineering a solution


The way that managers and trade unions at the global engineering company GKN worked together is a prime example of how flexibility and modern workplace relations can save jobs.


When the recession hit, GKN had to reduce its global workforce. Initially the company chose to release workers with temporary contracts. Then, however, it worked with unions and other employee representatives to agree freezes in salaries and temporary short- time working for 2,500 workers to manage the downturn while preserving jobs. “Those people are still working at the factory. They went through a lot of pain but they are still working for the company and are back to working normally,” says Doug McIldowie, group director, human resources. He says communication was vital. “We communicated regularly and at a local level.” Frank Duffy, senior union representative at GKN Driveline’s Birmingham plant, says agreeing the measures


was the most difficult thing he has had to do. “But if we hadn’t signed up to the short-time working agreement I think we would have certainly lost more jobs.”


Graph: Annual change in employment and GDP 1979-2009 GDP and employment - annual change


7 6 5 4 3 2 1 0


-1 -2 -3 -4 -5 -6 -7


1979 1981 1984 1986 1989 1991 1994 1996


Source: London School of Economics; Office of National Statistics GDP - annual change


Periods of economic contraction 1999 2001 Employment - annual change 2004 2006 2009


5


% change on year


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