Cross-border mergers and employee participation

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Ende der Mitbestimmung durch Ende der Mitbestimmung durch Fusionen in Europa?Fusionen in Europa?

14 November 2006, Hannover14 November 2006, Hannover

Xabier IrastorzaXabier Irastorza

Research OfficerResearch Officer

European Foundation for the Improvement ofEuropean Foundation for the Improvement of

Living and Working ConditionsLiving and Working Conditions

Cross-border mergers and employee participation.Cross-border mergers and employee participation.Evidence from the European Foundation Evidence from the European Foundation

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ContentContent

1. European Foundation and EMCC

2. Mergers: overview from ERM

3. Employee participation in cross-border mergers

4. Conclusions

313/04/23

http://www.eurofound.eu.int

The European Foundation for the Improvement of Living and Working

Conditions

LivingConditions

Working Conditions

Industrial Relations

European MonitoringCentre onChange

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Management of

Change

Understandingof

Change

Anticipation of

Change

The European Monitoring Centre on Changeis designed to support the understanding, anticipation and management of change

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Monitoring Restructuring (ERM)

Company Exchange EventsSector Research

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Completed

Analysis of sectors in a three step approach:

Mapping of developments in the past 10 years. Future Scenarios. Company and cluster case examples.

SECTOR RESEARCHSECTOR RESEARCH

Fishing industry Graphics and media Automotive

KIBS Food and beverages

Commerce Biomedical healthcare

Presently conducted

Programmed 2006

Textiles and leather ConstructionTelecommunications

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Stakeholder Enquiry Service (SES)Stakeholder Enquiry Service (SES)

Established in 2005 in order to improve EMCC’s service and customer orientation by providing our stakeholders with tailor-made information on a demand basis

SECTOR RESEARCHSECTOR RESEARCH

Employment, industrial relations and working conditions in the European rail transport sector

Managing cyclical changes in the shipbuilding and ship repairing sector

Innovative recruitment systems in the fisheries sector

DG TREN Completed in September 2005

Sectoral Social Dialogue Committee of the Shipbuilding Industry

Completed end of March 2006

Sectoral Social Dialogue Committee of the Fishing Industry

On going

Gender equality innovative measures in the transport industry

European Transport Workers’ Federation

On going

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Cross sectoral debate forums for the exchange of knowledge on real life restructuring practices

COMPANY EXCHANGE EVENTSCOMPANY EXCHANGE EVENTS

Organised with partners across EU 25

One and a half days

One Expert

Four company case studies

Question and answer session

Working Groups

Common conclusions

Publication of reports and cases

Company Network SeminarsCompany Network Seminars

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Topics covered in 2006Topics covered in 2006

Economic development agencies: Fostering business champions

21-22 March, New Lanark, Scotland, UK

How to succeed as an SME in the internal market: Innovation strategies for cross-border business

28-29 June, Berlin, Germany

The role of competence and qualification development in fostering workforce mobility

9-10 November, Thessaloniki, Greece

COMPANY EXCHANGE EVENTSCOMPANY EXCHANGE EVENTS

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Network of correspondents (EU 25+3) Monitoring restructuring announcements in newspapers and

other sources

EUROPEAN RESTRUCTURING MONITOR (ERM)EUROPEAN RESTRUCTURING MONITOR (ERM)

Fact sheets on restructuringFact sheets on restructuring

Quarterly and annual reportsQuarterly and annual reports Quarterly topics:

Offshoring from EU-10 to Accession Countries and Asia

Increase in temporary agency work in Germany Annual: Restructuring and employment in the EU: Concepts,

measurement and evidence.

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OUTPUT 1: On-Screen OUTPUT 1: On-Screen StatisticsStatistics


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OUTPUT 2: Restructuring OUTPUT 2: Restructuring casescases


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ContentContent




4. Conclusions

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Employment effects by type of restructuring Employment effects by type of restructuring Jan 2002-Oct 2006Jan 2002-Oct 2006

2.2. Mergers: Overview from ERM-1Mergers: Overview from ERM-1

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Employment effects by type of restructuring Employment effects by type of restructuring Jan 2006-Oct 2006Jan 2006-Oct 2006


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Employment effects of mergers/acquisitions by country Employment effects of mergers/acquisitions by country Jan 2006-Oct 2006Jan 2006-Oct 2006


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Employment effects of mergers/acquisitions by sector Employment effects of mergers/acquisitions by sector Jan 2006-Oct 2006Jan 2006-Oct 2006


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ContentContent




4. Conclusions

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3.3. Employee participation in Employee participation in cross-border mergers-1cross-border mergers-1

1994 EWC Directive: first transnational industrial relations structures in multinational companies in the EU.

Purpose: improve right to information and consultation of employees in Community-scale undertakings.

Evidence: variation but few have influenced transnational restructuring. Agreements:

Regular info/consultation on general topics: 80%.

Info/consultation on specific restructuring-related topics: 60%.

Extraordinary info/consultation between regular meetings: 80%.

Consultation: only 10% in-depth form.

European Works Councils and transnational European Works Councils and transnational restructuring restructuring

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Most EWC deal with transnational corporate restructuring. Information and consultation: general info at annual regular meetings

and frequent extraordinary meetings. Differing roles:

Majority: communication managers to employee representatives.

Minority: try to influence course of restructuring.

Recourse to courts/Europe-wide protest when conflict.

Widespread dissatisfaction among EWC representatives.

Evidence-1Evidence-1

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No known cases where EWC have influenced strategic business decisions leading to restructuring.

But involvement in how to implement restructuring:

References in a wider accord on CSR: EADS, PSA Peugeot

Citroen, Renault, Suez.

Guidelines to apply when restructuring occurs: Axa, Danone,

Deutsche Bank, Dexia, Diageo, Total.

Negotiated responses to specific Europe-wide restructuring:

Danone, Ford, GM, Unilever. The latter two most resemble collective agreements in national

sense: concrete pay, conditions and employment issues.

Evidence-2Evidence-2

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Type of restructuring: negative ones (job losses, closures).

Content of agreement establishing the EWC.

Timing: possibility of input vs. fait accompli.

Facility for extraordinary meetings/ongoing communication.

Perception of management about EWC and its role.

Organisation level among employees outside EWC framework.

Activity sector: automotive, food/drink and finance.

Debate over ‘transnationality’. Restructuring at several locations at the same time.

Factors influencing EWC involvement in transnational restructuring

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ContentContent




4. Conclusions

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4.4. ConclusionsConclusions

Active involvement in transnational restructuring seems to be a very minority practice in EWCs.

More active role in the future? Legislative change, dissemination of ‘best practice’. Still early stage.

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Thank you for your attention!

www.emcc.eurofound.eu.int

Documents

Cross-border mergers and employee participation