TQ Restructuring

By Susanne Arndt

Trusting collaboration between company manage­ment, employee repre­sen­tatives and trade unions is a key factor in measures being accepted – especially in times of crisis. The crisis becomes a test of the resilience of decades-old relation­ships between employer and employee repre­sen­tatives. Very often, constructive collaboration turns into conflict. Positions are fought over and both sides resort to rather robust tactics.

The “classic” model of assign­ment of roles looks like this: When re­struc­turing is imminent, company manage­ment, works council, and trade union fight their respective corners. Talks and negotiations are ruled by traditional patterns of behaviour. Both parties flex their muscles to achieve their own goals and do not hesitate to choose what­ever methods best serve their own needs, both in the course of and beyond the negotiating rounds. If agree­ment is eventually reached during their talks, both sides present the result as a success of “their” making, often in parallel and strictly segregated communi­cations strands. In terms of content and arguments used, this practice clearly reflects the old “battle lines”. However, acceptance of the need to break with the past and the motivation to commit to a necessary new beginning often fall by the wayside.

New process and consultation model – negotiating as equals

However, the stronger the pressure to act from internal and external stake­holders is, the greater the opportunity to establish a new form of collaboration. Instead of “battling” each other in negotiations and wasting their energy, instead of pointing the finger at each other via internal and external media, an executive management team and employees in crisis mode instead need to reach an under­standing about what they have in common. In essence both sides want the same thing – to ensure the company’s survival and thus future-proof jobs. This can only be achieved if every­one is aware of their responsibility in making the re­struc­turing process succeed.

From our many years of experience in advising companies that are undergoing re­struc­turing, we can derive several general rules for collaborating with co-determination bodies. The negotiating strategy is important. Instead of pushing through the urgently needed trans­formation of the company or, on the other side, blocking any tough cutbacks at the expense of employees, a constructive, joint search from the outset for practical solutions that are acceptable to every­one very often leads to reaching the goal faster and more lastingly. Here, it is crucial to take into account the perspective of the other side. What do you need to be able to carry the measures required in the re­struc­turing process and to sell them as your own achieve­ment? What do I need to ensure the future long-term viability of the company? This approach makes it possible for all parties to negotiate as equals and increases the chances of finding solutions that are acceptable to both sides. The new collaboration must be based on trust, openness and transparency.

Including different communi­cations perspectives from the start

As well as economic and social aspects, the different communi­cations perspectives should also be already taken into account during negotiations. Ideally, each side will anticipate the content and messages that will be important to the other side in their communi­cations with the relevant stake­holders. For instance, if it is important for the employee side to make it clear that drastic job cuts will not only affect employees but also have a significant impact on executive manage­ment, the employer side will be able to actively pick up this perspective. The benefits of early agree­ment can then benefit both parties in the way the outcome is later communicated. By making cuts at the management level and emphasising this in their communi­cations, the company sends the signal that “We have under­stood – and want the burden to be shared fairly.” The employee representatives can then make it clear to fellow staff that “We managed to drive home a central point of our agenda in the negotiations.” In this way, both sides strengthen their reputation and credibility.

Coordinate communications content and process

If joint solutions are found in negotiations among equals, the right conditions are created for reaping the rewards in communi­cations later on. To be able to achieve this, the communi­cations approach as well as the content and measures should be coordinated – without either side relinquishing their respective autonomy in this regard. Both sides tailor their communi­cations to serve their specific channels. But neither party seeks to claim unilateral sovereignty over communi­cations or gain a jump on the other as first mover. This eliminates the need for any leakage strategies.

In practice this means that executive manage­ment, works council and trade union all work together to decide the choreography and communi­cations schedule for the launch day. This determines who will address the stake­holders with what messages when, using which media and via which channels. And it includes the content to be conveyed in each case. As well as alignment over the choreography and content, joint publications or combined in-person or virtual appearances by manage­ment, works council and trade union can send out particularly strong signals. A coordinated communi­cations approach during and in particular also after the negotiation phase highlights in an emblematic way how a solution was found consensually. And it has benefits in terms of the relevant stake­holders’ perception that a target-led approach was taken. This is a win-win situation for both the company and the employee representatives.

Photo: iStock.com/mbbirdy