REACTION TO THE previous  PROPOSAL by the two partners of Hansen management consultants

Q David If I understood you correctly, you intend to relocate all of our production facilities in South East Asia. Could you perhaps be a little more specific, then? Which country do you have in mind?

A Brown: Maybe I was not clear enough on that point. When I mentioned South East Asia, I was thinking of Taiwan or Malaysia. We have helped other European companies to relocate there. And they are satisfied with the result.

Q Pam: I'm sorry but I fail to understand how we could manage to save money by producing so far away from our European market. You seem to have forgotten that the resulting transport costs would be enormous.

A Christina: I see what you mean. The transport costs may seem enormous at first sight but if we take a closer look we realise that it is compensated for by the amount of money saved as a result of the low cost of labour and raw materials. In any case, the merchandise will be transported by containers on board ships, which , you will agree, is not too expensive.

Q Pam: I must say that there is one point that worries me.
What will happen to the workers who will be inevitably laid off in Europe as a result of the decreasing level of activity? Frankly, the effect could be disastrous.

A George : I understand your concern. But let me explain how we plan to tackle the question of personnel.
As I said before, your activity in Europe will be..... not so much be reduced .....as concentrated on assembling the casing and on packaging. I'd like to remind you that,in the past, those two activities were subcontracted to other firms.
We should not forget either that accessories such as toner cartridges for the photocopiers or printers could also be produced at your present European sites.
Inevitably,  there will be lay offs ....but you could offer early retirement bonuses to older workers. As for the other workers, they would be retrained to produce casing, packages and accessories. Does that answer your question?

Q David: Well, I agree with you that producing accessories, casing and packaging could minimize lay offs and that's a good point. Having said that, I am still not so sure that there won't be massive redundancies.

A Chritina: I understand your concern and I can assure you that we have given a lot of thought to the question of personnel. Indeed, we have carried out a detailed study and I am convinced that the effect of the relocation and of the restructuring on the personnel will indeed be minimal.
Last modified: lundi, 15 juillet 2013, 12:52