Modernising social dialogue

Modernising social dialogue – from conflict to culture of dialogue-
production company, 1400 employees, France.

 

  • Constant conflicts between unions and employer
  • Inability to make changes
  • Constant social legal conflicts in court
  • Heavy loss-making organisation
  • Foreign headquarters wants profitability or closure
  • Very frustrated executives
  • Employees speak openly about the lack of vision
  • Employee satisfaction survey
    < 40%

ANALYSIS

  • Average productivity of full-time employee < 5 hours/day
  • Works councils and safety committees take a very long time without any contribution to improving the situation
  • Accidents 50% higher compared to other companies in the group due to non-compliance with guidelines
  • Managers not visible among the people
  • In the past only exchange of strictly necessary information
  • A large number of pending issues have remained unresolved for years
  • Poor reputation in labour court

 

APPROACH

  • Map out non-productive activities and ‘root cause’ analysis
  • Listening exercises at all levels and analysis of satisfaction surveys from recent years
  • Analysis of all court cases in recent years, in search of causes
  • Map out the necessary information for employees, works council, safety committee and managers
  • Draw up a structured formal communication plan
  • Establish informal communication
  • Leadership training for both front line and senior executives
  • Modernisation of the HR approach (with the same employees)

RESULTS

  • Accidents at the average level for the group
  • From conflict situations to consultation and exchange of information
  • Managers involved in the daily activities of the employees
  • Coaching of the senior management team on how to deal effectively with ‘difficult’ employee representatives
  • In one year from < 5 productive hours to > 6 with very positive consequences for the operating result already in the first year
  • 3-year pathway to profitability because the necessary changes can be made.

Regaining control from unions

Regaining control from unions, Chemical production company, Antwerp, workforce of 250.

  • Tense social climate and repeated social crises have totally ruined the working atmosphere
  • Employees are demotivated by recurring internal problems
  • Absenteeism is increasing month after month
  • Investment budgets are severely limited by the crisis
  • Still, the factory must be run more efficiently to stay competitive
  • The challenge: demonstrate to employees, but also to management that they can change/improve a lot themselves
  • Management needs to “take back” the factory to avoid downsizing

ANALYSIS

Listening sessions at all levels (individual) and in group for the teams to get to the bottom of a number of trouble spots from the recent SD Works survey (no duplication of effort)

Action points formulated around the following themes:

1.Sustainable trust of directors/management/employees

2.Increase future-oriented leadership N-1, N-2, N-3

3.Productive time management with efficiency improvements and coordination arrangements

4.Develop more efficient work organisation for 2 sub-activities

5.Develop stimulating communication, coordination and consultation throughout the company

6.Cascade inspiring and motivating strategy throughout the plant

7.Renewed dialogue with the social partner: move on from the past, make new agreements in consultation

APPROACH

  • Step-by-step plan over 3 years
  • Year 1: focus on strengthening trust by making better use of the N-3s
  • Organisational structure redesigned and responsibilities clearly defined.
  • Initiative to start with a fixed monthly communication
  • Monthly consultation of management and N-3s started, to keep a finger on the pulse and to be able to work with a more anticipatory approach
  • Tackling absenteeism with a clear policy Addressed recurring disruptions with a major budget impact to free up existing resources for investments

RESULTS

  • After six months, positive signs of “peace process” were already detectable in terms of industrial relations.
  • A whole series of problems have been addressed that were previously swept under the rug or concealed.
  • Many actions have led to “quick wins” in terms of cost savings and have made more room for investments that boost competitiveness.
  • A number of trouble spots in terms of inadequate management have been addressed and permanently resolved.
  • For the first time in 30 years, the 3-yearly shutdown was carried out on time and within budget
  • The factory has learnt that a lot of intrinsic added value can be tapped into to remain competitive.

Improving overall performance

Improving overall performance, Temp agency, Belgium, 600 employees.

  • In a declining market (economic crisis) staying profitable by making maximal use of the internal potential of the company.
  • Involving employees in this as a driver of creativity and added value.
  • Proving to the group that the Belgian subsidiary is able to evolve, even in a difficult market.
  • This will allow future investments to flow from the group to Belgium in order to strengthen the position of the company.

ANALYSIS

CEO came into contact with socio-economic (SEAM) approach at another company where he was an independent director.

Horizontal and vertical diagnostics provide the following analysis:

1.High potential for hidden economic performance

2.Structural trouble spots between Sales and Support services that are paralysing

3.HQ employees lack commitment

4.Management is not really managing the employees

5.Training courses are of good quality but are not being used

6.Available tools and software could be used much more efficiently

7.Much enthusiasm among employees to participate in changes if management evolves

APPROACH

  • Approach in steps
    Step 1: 2 business units + HQ
    Step 2: the 2 other business units
    Step 3: Agencies.
  • Calculation of the economic potential of energy optimisation
  • Action plans by and for employees to tackle energy loss step-by-step
  • SEAM tool used to activate the implementation of the strategy to all staff through priority action plans at all levels
  • Provided training on management tools to better manage employees
  • Training of internal “operators” to perpetuate the SEAM approach within the company

RESULTS

  • Year 1 after the approach: company grows 8% (profit) while the market performs -2%, higher sales thanks to better and closer collaboration between teams and employees
  • Hidden costs (energy loss) converted into economic added value: € 4.9 million
  • Approach has led to a new organisational structure to better manage BUs
  • Renewal in the management of the BUs has brought a breath of fresh air
  • Company now has a management approach for continuously adapting to market evolutions
  • Decision to further leverage SEAM to develop future potential

Improving plant performance

Improving plant performance, international production unit,
1500 people.

  • Increasing quality problems having a negative impact on productivity and delivery agreements.
  • Difficult to mobilise people to do something about it because the union is blocking everything: status quo is the only option for them.
  • Occupational accident rate is too high.
  • Factory was taken over a year earlier.
  • New management needs to bring in a breath of fresh air because the conversion costs are too high and there is too little flexibility.
  • If not, the future of the factory is at stake.

ANALYSIS

Listening sessions based on volunteers (union imposed). More than 250 people.

10 specific critical issues emerged from sessions.

1.Lack of credibility and trust of supervisors

2.Lack of willingness to listen to the staff on the part of the management

3.Fragmented responsibilities on the lines

4.Inadequate production planning

5.Holiday planning scheduled in a way that leads to production loss

6.Insufficient application of safety regulations

7.Poor communication across the production lines

8.Need for a new mode of consultation with the unions (paralysis)

9.Better “mobilisation” of employees on the machines to improve quality

10.Problem with some persons

APPROACH

  • Choice to present full report, unedited and in detail, to the entire plant (transparency) through group sessions.
  • Executive Team coached to implement the 3-year strategy and involving every level down to the operational staff
  • Action taken to not only tackle the problems top-down, but also bottom-up by involving and showing appreciation for the supervisors and employees.
  • Plan drawn up to gain the trust of trade unions step by step through a transparent policy and to make them aware of the importance of changes to ensure the future of the factory through a “didactic approach”..

RESULTS

  • Cascade for the implementation of the strategy has been introduced.
  • Communication of the content from the listening sessions has worked as a catharsis. Employees have finally been able to make their complaints public.
  • The approach of the unions was critically examined by employees who are open to improvements (future).
  • 10 areas have been addressed with concrete proposals and actions (3-year step-by-step plan)
  • Personal problems among Executive Team members have been fixed.
  • Quality has improved, will be continued.
  • Relationship with unions is less tense.

Greater transparency ensures a better climate in the factory. Employees are more involved in the change processes. Major trouble spots in the work organisation have finally been thoroughly addressed.

Harmonisation of employment conditions

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