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Understanding the determinants of well-being and organizational attitudes during a plant closure: A Swedish case study

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Economic and Industrial Democracy: An International Journal

Published online on

Abstract

The present study investigated to what extent perception of closure management (informational justice, severance package satisfaction) as well as individual resources and barriers (employability, tenure) were associated with well-being and organizational attitudes during plant closure. This was studied in a sample of 129 Swedish workers in a plant undergoing closure. The results showed that those who felt communication to be fair reported higher well-being and more positive attitudes. Those who were satisfied with the severance package reported lower intention to leave but also felt fewer obligations towards the organization. Those with higher employability reported higher subjective health. The results also indicated that tenure moderated the relation between informational justice and felt obligations, and employability moderated the relation between severance package satisfaction and organizational attitudes. It can be concluded that closure management together with employees’ different resources and barriers are vital for organizational attitudes and well-being during the closedown process.