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Luis M.

Bimbo, Vice-President
Corporate Communications
Great Lake Garments, Inc.
2800 North Sheridan Road
Lake Bluff, Illinois 60691

Communication Plan for Proposed GLG layoffs

1. Corporate departments meeting

As soon as the decision for laying off is made, all department heads of the
corporation should be informed personally in a joint meeting, stating the reasons
for the layoffs, the impact of those layoffs in the operations in each department
and the common policy to be observed, while gathering information and
feedback from each manager. All involved should observe confidentiality until
public disclosure.

2. Press conference

As we are a listed company, we therefore must abide with the Regulation Fair
Disclosure Act from SEC. The information should be given to all stakeholders at
the same time, but I recommend that the length of such information should be
tailored to each group. So, as a first step for disclosing information, a press
conference or a press release should be drafted and presented to the public as
soon as possible by the corporate communications responsible and it should
focus on the following:

• The economic downturn experienced and did


it affect operations

• State that active measures were


implemented, but to no avail

• Last resort measures will be put into force,


by cutting some positions

• Document reasons for layoff and the


expected results and stress the temporary nature of the
layoffs.

3. Letter to shareholders

As soon as the press conference has been held, a personal letter from the
President of the corporation should be send to all shareholders, in which the
reasons for the layoffs, the benefits of such action, as well as the full financial
impact of such measures should be clearly identified. The letter should focus on
the following points:

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• The results from the financial report from last
quarter and present one, and how the situation is
developing.

• Give concrete numbers of the impact of the


layoffs in the company’s value and stock price.

• Project a bi-quarterly preview on future


developments in the financial status.

4. Letter to the layoff employees

A personal letter signed by the President of the corporation for the downsized
employees should be send at the same time as the letter to the shareholders
and should not arrive to them in hand more than 48 hours after the press
conference. The legal schedule for the termination of contract should also be
followed and this should be done in collaboration with the Human Resource
Department. The letter should stress out the following points:

• State the problems faced by the company


without much financial detail.

• Clearly assert that several other measures


were already taken, without success.

• Unambiguously explain that his position is


going to be terminated and the schedule for the end of
contract.

• Refer that measures will probably have a


temporary character, without promising anything
undeliverable at this time.

• Acknowledge the contribution of the


employee to the corporation and give support on all
related matters, such as unemployment and severance
payments.

5. Communicate with the workers union

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After the employees are informed, the corporation communications responsible
should contact the worker’s union and cooperatively try to find a solution for all
those affected. This communication should be done at least once in person, with
all subsequent communications held by phone or mail. The worker’s union should
also be informed on the evolution of the status of the terminated jobs and also if
any new development regarding rehiring of the workers has taken place.

This communication strategy should be implemented sequentially, in the order


proposed. The timing and methods are clearly stated above and it is my opinion
that we proceed accordingly, without any real personal involvement, apart from
the letter signing, from the President at this stage and current state of events.

Sincerely,

Luis M. Bimbo, Vice-President for Corporate Communications

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