Harmonisation of employment conditions after merger.
Adjustment to market conditions
Commercial organisation with 550 people in the Netherlands.

  • Merging two entities with different terms of employment so they are also covered by a CLA
  • Current ‘defined benefits’ pension scheme is no longer financially feasible
  • Election of new works council
    • Sensitive matter because pension plans are becoming less attractive.
    • One of the companies is loss-making
    • The American parent company does not want a strike or work interruptions

    ANALYSIS

    • Current employment conditions 35% above the market.
      • Due to the CLA obligation, the employment conditions will need to be adjusted
        • Inexperienced works council does not know how to function
          • The competition has long ceased to have ‘defined benefits’ pension plans
            • Adapting the employment conditions to the market eliminates 90% of the current loss
              • Failure to act leads to fines for non-compliance with the CLA

                  APPROACH

                  • Prepare the transformation through detailed analysis of current and future employment terms
                    • Detailed road map for guiding the project
                      • Coaching plan for executives and human resources
                        • Guidance plan for less experienced works council members
                          • Project team with legal service, actuary, human resources, 2 directors, and an employee representative
                            • Targeted communication plan to keep the entire organisation informed of the project, including HQ
                              • Analysis of individual resistance and ‘consequence management’

                                RESULTS

                                • Profound change that affects everyone in the company was implemented relatively quickly and accurately
                                  • No work interruptions or strike
                                    • Project completed in less than four months
                                      • 90% of the loss eliminated
                                        • Clarity for all employees on the company situation
                                          • Clarity among all employees regarding the current competitive remuneration in relation to the market and competitors
                                            • A well-functioning works council where everyone contributes, regardless of which side of the table they sit on