Demystifying Layoff

Aversion

Introductions

California Manufacturing Technology Consulting

Kathleen Webber, San Diego Business Liaison

Rocio Leon, Manager of Workforce Partnerships

San Diego Workforce Partnership

Robert Chu, Business Programs Specialist

Why conduct Layoff Aversion?

“direction and guidance for conducting layoff

aversion activities as required by the federal

Workforce Innovation and Opportunity Act (WIOA)”

WSD16-04

But it’s more than a requirement…

Unemployment Rate

7.8%2013

Problem 1

High unemployment rates meant we had more

money to spend in addition to our general Rapid

Response activities.

We couldn’t hire people because funding

fluctuated year to year.

Problem 2

• ~3,200 manufacturing companies in SD County

• 82% of SD manufacturing companies have fewer than 20 employees

• Companies with 50 or more layoffs are required to issue a WARN

• Majority of SD manufacturing firms did not report layoffs

Layoff Aversion Services (LAS) addresses

these issues.

Is this why we partnered with

CMTC?

No, it was a coincidence.

It happened once upon a time at a conference

just like this one…

SDWP and CMTC, two California-based

organizations, connected at a conference in

Washington, DC.

So how did we implement Layoff Aversion

Services?

In order to start a new partnership, we first had to

fix how we did business with

vendors/contractors.

We used to treat them like subrecipients.

Problem 1 (again)

At the time, our current Rapid Response (RR) contractor was treated as a subrecipient; they had to track every penny, nickel and dime.

This limited competition:

• Incumbent won every RR Request for Proposals (RFP)

• Barriers to entry for other organizations

Solution 1

We changed our Rapid Response contracts from

cost reimbursement to pay-for-performance

• Benefit 1: Increased competition for Rapid

Response vendors

• Benefit 2: Made it easier to do business with

companies from year to year

Problem 2

Everything must be competitively procured,

which meant an RFP had to be released.

Solution 2

We copied San Bernardino’s RFP.

You can copy ours.

Remember…

• Rapid Response funding fluctuates so you

want to spend as little money as possible on

unnecessary things (like administrative costs)

• Layoff Aversion service agreement with CMTC

can be drafted in less than an hour

What did we get from working with

CMTC?

• Benefit 1: They do all the paperwork with

employers

Data Intake Form

San Diego WDB At-A-Glance and Intake Form Rev 2017-08-24

Workforce Development Board Data Intake Form

Date Submitted 11-27-17

Company Name:

Address:

Product/Industry: Custom Hose & Gasket

Company Contact Name: Contact Title:

Contact E-Mail: Contact Phone:

CMTC Account Owner: Kathleen Webber Union Shop? [ ] Yes [x] No

Current Number of Full Time Workers: 35 Current Annual Sales: 13M

Number of Full Time Workers One Year Ago: 37 Annual Sales 1 Year Ago: 13M

Number of Jobs at Risk: 13 Minimum Commitment of Jobs to Retain*: 10

Top three to four Early Warning Signs that apply to customer (cut and paste from Early Warning Signs checklist):

1. Market Issues: Lack of competitive advantage

2. Quality – barrier to entry without ISO Certification

3. Business Climate – Increase in employee costs, tax uncertainties

*A retained job equal someone that remains in full time employment for 90 days after project completion Company background:

supplies both custom and off the shelf hose and gasket products. Founded in 1979 has proudly served customers for over 35 years. Their reputation of quality and integrity

assures clients of reliable and cost effective solutions. As a refurbishment resource for the defense and industrial industry they are expert at solving material requirements and expedited turnaround times.

They are proud of their bedrock principles of fair pricing, quality products, expert advice, and by standing behind what they sell. They are number one in Southern California because they have never compromised these values.

Problem statement:

is losing critical contract opportunities because they lack the necessary ISO 9001:2015 certification required by an increasing number of companies, including current customers. ISO certifications will continue to be required and without meeting these manufacturing requirements,

will be unable to meet the demands of current and potential clients. Many companies turn to for fabrication and repair of critical hose and gasket assemblies. Due to their lack of a certified ISO9001:2015 certification they are unable to secure valuable contracts. This year alone they lost a contract with for a 50K per year long term contract due to lack of certification. Without ISO certification, potential and existing customers will not send work to Westflex.

laid off 2 employees this year to help stabilized their decline in margins. Sales have been flat for the last 2 years. ISO certification will mitigate the need for additional reductions in staff. They are eager to gain back the reduction in margin by improving their quality system and securing new contracts to avert additional layoffs.

CMTC Proposal and Anticipated

Outcomes

San Diego WDB At-A-Glance and Intake Form Rev 2017-08-24

Proposed solution (CMTC service): CMTC will provide assistance in preparing the company for ISO certification, including: 1. Quality System Analysis 2. Creating and/or modifying the company’s quality management system documentation 3. Documentation Review of the company’s Quality Manual, Procedures, Templates and Forms 4. Third party audit prep audit Positions Impacted: Sales, Production, Quality Estimated Completion Date: May 2017 Estimated LOA Costs: $10,000.00 Anticipated outcome (quantified impact):

• Retain at-risk employees

• Ability to penetrate the market based on ISO 9001 Certification

• Satisfy customer requirements that lead to retention

• Ability to meet current customer demands and retain customer base

What did we get from working with

CMTC?

• Benefit 1: They do all the paperwork with

employers

• Benefit 2: They track every metric so we look

good

Thank You Letter

What did we get from working with

CMTC?

• Benefit 1: They do all the paperwork with

employers

• Benefit 2: They track every metric so we look

good

• Benefit 3: They develop strong relationships

with employers on our behalf

• Once companies recover, we can outreach

to them for other business services (e.g.,

internships, Customized Training and

placements)

Success Stories

Q & A

Contact Information

California Manufacturing Technology Consulting

Kathleen Webber, kwebber@cmtc.com

Rocio Leon, leon@cmtc.com

San Diego Workforce Partnership

Robert Chu, RobertChu@workforce.org