Ashley B.

Hilliard
258-10-0169
July 5, 2010-October 22, 2010
MG 665
Lesson#3, Assignment 2

Cover memo to Harrison:

Dear Mr. Harrison:

This letter is being written to address the need for immediate cost cutting measures at Weymouth Steel
Corporation. It has been made clear that the corporation has in the past done all that was possible to reduce
costs, but the time has come for the need for 2000 staff member reduction. Nearly 1000 of these staff reductions
will come through normal attrition, early retirement, and transfers. We must address the other 1000 positions,
both salaried and hourly that must be cut. I think we all learned how bad things can go after we let go 10,000
hourly employee utilizing the traditional method of communication. In addition there is good news for those not
being laid off there will be salary increases as well as improved benefits. And it is important to convey both
messages in a public form as not to distort the message and having the workforce focus on the layoffs.

The news must be related quickly and thoroughly to all staff that are to be affected. That is why it is important
for the Chairman of the Board, Carl Weymouth communicate the news. I propose that our primary audience, the
employees need to be told of the news in a town hall meeting. Mr. Weymouth will advise the salaried work
force of the current economic position of the company and how we are going to survive the industry downturn
and come out of it as a much stronger company. As well as communicating the good news of increased pay and
benefits and explain the reason for such increases. Department heads should meet with all salaried employees
first as this lay-off will have the greatest effect on them. After the salaried staff has been informed then the
hourly staff must be told. This should happen within a relatively short period of time. A letter explaining the
lay-offs and the reasoning behind them should include:

• Statistical data pertaining a 25% reduction in business

• Lay-off structure
• Benefit information
• Contact person for questions

This letter should be distributed at the meetings and placed on the company’s web-site and a
hard copy placed in all paystubs for that week. A press release should also be issued to inform the community
of the situation and to decrease misinformation. Bottom line is the Weymouth must show tact, but also, concern
for the employees whom the situation affects. This is not the time to or the letter to relate that information.
Saving that good news for after the lay-offs may be the morale booster that Weymouth needs.
Thank you for your time Mr. Harrison and for asking me to consult with you regarding Weymouth Steel
Corporation.
Sincerely,

Ashley B. Hilliard
SUBJECT: Memo to the salaried employees and
This letter is to provide information for salaried employees and the media in regards to the pending layoffs at
Weymouth Steel Corporation. As you are aware, over the past few years, Weymouth has initiated the following
major cost-cutting measures for example, shutting down several smaller and less efficient mills and processing
plants, restricting the use of overtime and the hiring of temporary salaried employees. Layoff will begin by
October 31.

In an effort to improve operational efficiencies at Weymouth we are faced with the regrettable task of laying off
2,000 of our most valued employees. However, before the layoff process begins, we will look at all possible
alternatives, such as normal attrition, early retirements, transfers, and leaving positions vacant. Regrettably,
there will still be 1,000 salaried employees that will be affected by the layoffs.

There were many reason for the drastic cuts including a estimated 25% fall in business and the anticipated
capital spending expenditures of $2 billion a year. Also for the company to become more completive in the
European and Japanese markets Weymouth needed to purchase and install new processing machines and to
construct state of the art rolling and hot-strip mills.

Weymouth Steel Corporation prides its self on having competitive wages and great benefits. I know that news
comes on the heels of such sorrow news for some, but we at Weymouth feel that is important step to take it
ensuring the company’s longevity.

While salaried employees make up a total of 20 pay grades. While the company regretted having to reduce staff
it was evenly spread out among pay grades. A salaried employee with 1 or more years of service will be eligible
for a termination payment. The employee will also be paid for unused vacation for 2004 and vacation accrued
for 2005. Insurance coverage will continue for 1 month after layoff and could continue beyond 1 month by
Weymouth at a reasonable rate. Members of the United Steel workers of America will receive a substantial
portion of their base pay between Supplemental Employment Benefits (SUB) and state unemployment for up to
2 years depending on service to the company.

I understand that this can be a very trying time for employees. As an employee we at Weymouth Steel
Corporation encourage employees to contact the personnel department, which Sandra Berstein leads with any
questions or concerns during this process.

Thank you for your time.

Sincerely,

Carl Weymouth

Board Chairman