Opinion ID: 795097
Heading Depth: 3
Heading Rank: 3

Heading: Implementation of the Workforce Reduction Plan

Text: 8 Grafton made recommendations regarding eliminations and transfers within his region. He received assistance from Pat Wright, Vice President, Director, Stores Human Resources. Proietto and Hecht's Senior Vice President of Human Resources, Bruce Kelso, made the final recommendations for the entire Hecht's division. Gentilozzi made the final decision on all terminations and transfers across The May Stores. 9 When discussing the workforce reduction, there are four distinct levels of organization to which the parties refer: The May Stores as a whole; the Hecht's division; Grafton's region; and the Nashville-area Hecht's stores. 10 The May Stores as a Whole: The May Stores implemented its workforce reduction plan in June 2003. 1,450 employees lost their jobs. 11 The Hecht's Division: In total, 143 executives were terminated within the Hecht's division. Thirty five DSM positions were eliminated (thirteen of the affected DSMs were transferred or demoted, and twenty two were terminated). Of the thirteen who were transferred or demoted, six were under the age of 40. Of the twenty two who were terminated, thirteen were under the age of 40. The average age of those DSMs impacted by the reduction was 40.8 years, slightly less than the overall age of the DSMs before the reduction (41.1 years). 12 Grafton's Region of Hecht's Stores: Within Grafton's region, one GM was terminated. From the region's group of DSMs (before the reduction), three were selected to takeover GM positions: Regina Dyer (51) and Terri Gunn-Thomas (41) became GMs outside Grafton's region, and Allen Wesson (30) became a GM within Grafton's region. 13 At the next step of the reduction, eight DSM positions were eliminated within Grafton's region. Five of those DSMs were terminated or demoted, while three were laterally transferred. Of the thirteen DSMs who were ultimately retained or demoted, six were under the age of 40. 14 Nashville-Area Hecht's Stores: Of the six DSM positions in the Nashville-area stores, four were eliminated. Both Bender's and Rafferty's stores fell far below the $26m-sales threshold. Brenda Woosley's (47) store also fell below the threshold. They were the only DSMs at their respective stores, so their positions were eliminated. Terry Patton's (39) store had two DSMs, but under the new workforce reduction criteria, it qualified for only one. Brian Jones (29) was the other DSM at the store. Because Jones had recently received an Effective appraisal, while Patton received a Marginal one, Patton's position was eliminated. The remaining DSM position—Wesson's position before he was promoted to GM—was not slated for elimination because the sales at the store exceeded $26m.