Employment Conditions Harmonisation after Merger

A restructuring plan aligned differing employment terms post-merger, cutting losses by 90% in four months. Key actions included leadership coaching, strategic communication, and collaboration with works councils, ensuring no work stoppages and clear, competitive employee compensation.

Challenge

Two entities with different employment conditions merge, and now fall under one agreement.
Current defined benefit pension scheme is no longer financially sustainable.
Election of a new works council.

Sensitive issue because pension plans are becoming less attractive.
One of the companies is loss-making.
The American parent company wants no strikes or work stoppages.

Analysis

Current employment conditions are 35% higher than the market.
Due to collective labor agreement (CAO) obligations, adjustments to employment conditions are necessary.
Inexperienced works council members are uncertain about their role.
Competitors no longer have defined benefit pension plans.
Adjusting employment conditions to market standards could eliminate 90% of the current losses.
Inaction leads to fines due to non-compliance with the CAO.

Approach

Prepare for transformation through a detailed analysis of current and future employment conditions.
Detailed roadmap (Square Circle©) for project guidance.
Coaching plan for managers and HR.
Guidance plan for less experienced works council members.
Project team including legal, actuaries, HR, two directors, and an employee representative.
Targeted communication plan to keep the entire organization, including HQ, informed.
Analyze individual resistance and its impact on management.

Results

Major change implemented smoothly and quickly affecting everyone in the company.
No strikes or work stoppages.
Project completed in less than four months.
90% of the loss eliminated.
Clarity provided to all employees regarding the company’s situation.
Clarity for employees regarding competitive compensation compared to market and competitors.
A well-functioning works council where everyone contributes and has a role.

Wow, looks good!
Let’s connect!

Get in touch!

We would love to hear from you! Feel free to reach out. Our team is always here to assist you. Contact us today and let’s get things moving!

Minderbroedersstraat 36
3300 Tienen
Belgium

+32 479 308 163 info@people-exponential.com