Multi-factory Restructuring and Improvement of Social Dialogue

Strategy development and implementation of reorganization of production units of a multinational organization with 12000 employees and 15 countries.

Challenge

  • Multiple factories show less than 50% utilization and suffer from high fixed costs.
  • Conflict-oriented social relations in multiple countries. Very little dialogue.
  • Social discussions suffer from frequent judicial interventions
  • Factories are losing money year over year.
  • Mother company wants either profitable factories or will close down factories.
  • Crucial changes do not get implemented.

12000

employees

15

countries

Analysis

  • Listening sessions reveal a lack of alignment regarding the strategy to follow.
  • No integrated European plan of approach, only a few ad hoc country plans.
  • European Works Council raises questions about the transnational implications.
  • Works Councils in different countries lack clarity.
  • In a few countries, legal actions have been initiated for clarification of the situation.
  • Too many changes in a short period with little resources and follow-up.
  • No proactive approach to social partners in the framework of changes.
  • Management's credibility at certain locations is a problem.
  • First-line supervisors have no answers to questions from their team members.

 

Approach

  • Vision and mission workshop with the executive team to align everyone.
  • Project charter and project team established to develop an operational plan for this project.
  • Prioritization and planning of all changes within the organization.
  • Approach to involve not only top-down management but also bottom-up, including team leaders, employees, and middle management, to involve and empower them.
  • A step-by-step plan developed to transparently communicate with trade unions and demonstrate the importance of their involvement in the changes.
  • Formal and informal communication structure set up with social partners.
  • Concrete agreements on how to engage with each other in a more constructive manner.

 

Results

  • Implementation of strategy implementation cascade.
  • Communication of the results of the listening sessions worked as a catharsis.
  • Employees were finally able to express their frustrations openly.
  • The approach from the trade unions is critically viewed by those employees open to improvements (future).
  • Focus set on strategy and practical implementation with concrete proposals and actions (18-month action plan).
  • Teams work better together and understand how they depend on each other for results.
  • The relationship with trade unions is less tense and less driven by court intervention.
  • Employee engagement has increased due to clear communication and less stressful discussions with unions.

Get in touch!

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Minderbroedersstraat 36
3300 Tienen
Belgium
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© 2024 People Exponential.
 All rights reserved.
Minderbroedersstraat 36
3300 Tienen
Belgium
© 2024 People Exponential.
 All rights reserved.

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