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