NEW YORK— With news of plant closings and layoffs appearing almost daily in the news media, this isn't the happiest of holiday seasons for many companies. Even if they're not suffering job cuts or otherwise struggling, their customers or vendors might be. And so company owners need to be sensitive to employees' feelings during what may be a more uncertain than cheerful holiday.

Human resources consultants say it's critical for owners to be up front with employees anytime there are problems in the business, whether it's during the holidays or any other time of the year.

Fran Galante, executive director of Managed Care Concepts, a Boca Raton, Fla.-based employee assistance program provider, says dealing with an unhappy holiday season falls into the category of change management. Change management means helping your employees cope with the pain or uncertainty of difficult times. It also means keeping the lines of communication open, meeting with staffers and answering their questions.

Galante noted that this year the holiday season may be particularly hard for companies affected directly or indirectly by this year's hurricanes. The total impact from Katrina, Rita and Wilma on these businesses may not yet be known.

She said she tells her clients to meet with staffers and "have open communication to the point where they (employees) are comfortable." However, Galante said, that doesn't mean you need to reveal every last bit of information about your company's situation.

She also advises talking to employees in an orderly fashion — don't tell a few staffers, and not tell others. The grapevine will kick in, and "your message will not only get lost but be convoluted," Galante said. And you'll probably end up creating rather than alleviating anxiety.

A question each business owner also must deal with is whether to celebrate the holidays when times are bad. If you spend money on a party, even a modest one, some employees might resent what they see as a frivolous expense. If you don't have a celebration, others may feel that they're being penalized.

Arlene Vernon, president of HRx Inc., an Eden Prairie, Minn.-based human resources consultancy, says it's a good idea to celebrate the company's successes — which means, after all, the employees' successes — and so a holiday observance can be entirely appropriate.

Even in a company where there have been layoffs, owners "have to still honor the people that are there," Vernon said. "Those people still want to feel like they have a home, like they're appreciated."

To allay concerns about cost, she suggests telling employees, "we don't know what's coming next, but we do have something that we can celebrate."

Downscaling festivities might not hurt. Having a potluck party, with staffers bringing homemade dishes, can help strengthen bonds among employees as they enjoy the fruits of each other's culinary skills. But if you're already financially committed to a more expensive affair, explain that to your employees.