The HR expert was engaged in this interim mandate for a site closure. The client was a globally operating media group with a turnover of €7 billion and around 30,000 employees. The reorganization was implemented in subsidiaries in Bavaria and Saxony, which generated their revenues with the production of specialist literature for industry and end customers.
The sales of the affected branch in the "print" sector had been continuously declining and could not be nearly compensated by measures to increase sales in the e-commerce sector. As a result, there was no model in sight that could bring the location into the region of a significant profit margin in the long term, given the already tight return on sales. Being part of a group that demanded profitability from all profit centers made the closure of the site unavoidable.
The majority of the 60 or so employees had been with the company for a very long time and were well organized in trade unions. There was also a well-organized general works council and group works council. The closure was not only sensitive because the long-term employees were affected. The company was located in a structurally weak area with few employment alternatives. It was also a traditional site with roots dating back to the late Middle Ages. This meant that credible and empathetic communication and a process that was perceived as fair were very important.
Procedural model for complex negotiations
The works councils played a special role in this context. On the one hand, the local works councils were directly affected by the closure. On the other hand, the interaction and delegation declarations of the various committees created a high level of complexity. Based on a previous divestment, the HR interim manager developed a process model that provided for a more active design of the process at many points than in the past. The operating mode was to be involved in the process at a very early stage - initiated by the management - and obtain information cleanly from a central source. Communication with lawyers and consultants was handled by the HR Interim Manager in his role as HR Director.
First, a suitable project team was put together to cover the topics of communication, legal and operations. The various works council committees were provided with a central point of contact, who also managed the entire project. Cost models were created that provided the most realistic forecast possible and a worst-case scenario for Finance. Scenarios were run through for three expected communication channels: to the employees, to the Group and to the works councils. A negotiation strategy was outlined for the conciliation committee and the process for setting up the conciliation committee was initiated.
The site was closed on time and on budget
The branch was closed on schedule and within the expected budget. A redundancy plan was negotiated that was considered balanced, appropriate and fair. The high level of acceptance of the redundancy plan among the workforce and works council meant that there were no individual lawsuits as a result.
The company had not only achieved its formal objective with its successful conduct of negotiations and empathetic and effective communication. It also earned the respect of communicating clearly and reliably in exceptional situations and acting humanely. The difficult process strengthened the relationship of trust between management and employee representatives.
