Assignment # 3: Human Resource Downsizing

Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizingdownsizingdownsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector. For employees, downsizing can be very unnerving and upsetting.

We really cannot deny the fact that a lot of companies are downsizing their workforce in order for them to gain profit. Sometimes, downsizing is the last resort to save the company. BMW is an example of a company that has downsized it's workkforce several times.

1956

Due to meager sales of the newly released models and economic decline, BMW laid off 600 of its employees due to economic decline shrinking motorcycle production from 23,531 in 1955 to 15,500 in '56. With warehouse surplus for the bigger machines growing and the oil shortage caused by the Suez Crisis compounding matters, BMW shifts its focus to fuel-efficient machines.


Now in 2008:


Thousands Of BMW Workers Temporarily Laid Off
LONDON -- Unite members at BMW in Cowley have temporarily been laid-off because of Spanish fuel protests.3,000 workers at the site in Oxfordshire were sent home on full pay on Friday 13th June, in line with the Working Time Account when production ground to a halt after component parts they rely on could not be shipped from the continent.

The Working Time Account allows members to bank hours and also in situations like these they can go in to deficit. Contractually they can owe up to 200 hours but must pay these hours back to BMW at a later stage.

"Although our members are getting paid this is a very frustrating situation for them. No one wants to owe hours as they will have to make these up,” said Ray Dillon, Unite Regional Official."This proves that relying on shipments of parts from abroad is risky and that moving manufacturing to Europe to save money does not always pay off," he continued.

Production staff were turning out 49 cars per hour. BMW has lost 45 hours of production and in excess of 2,000 cars this weekend.
The shipment Cowley is waiting on contains rear lights and brake pads.


reference(online)
http://www.wisegeek.com/what-is-downsizing.htmhttp://www.bmwmotorcycles.com/bikes/history_content.jsp?t=year&y=1956&d=1950http://manufacturing.net/News-Thousands-Of-BMW-Workers-Temporarily-Laid-Off.aspx

(company website)
http://www.bmw.com/com/en/index.html[list][*]