Reorganization and the Works Council

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Involving your OR in a reorganization is an added value, not a “must.

Involving your OR in a reorganization is an added value, not a “must.

Reorganization is not something you do for fun. They are often stressful periods when management is under pressure and much more work is on the MT’s plates. And then you also have to deal with the works council (OR). An aspect that many organizations see as an inconvenient ‘must’. A pity, because it is precisely in this phase that the OR can play a crucial role. Not just because it is required by law, but because it is they who can help turn a difficult change into a careful process with a result that is supported. How? We have some tips for that after dozens of reorganizations!

The law is the law

Before you think getting your OR involved is optional, it’s not. The Works Councils Act (WOR) provides that the Works Council has the right to advise on important decisions made by the director. These include reorganizations, mergers, acquisitions and downsizing (Article 25 WOR).

That advisory right means three things:

  1. The Works Council must be informed of the plans in a timely manner.
  1. The director must formally ask the Works Council for its opinion before any decision is made.
  1. Only after the advice should the final decision be made, and if the director wants to deviate from it, it must be well justified.

The role of HR

In a reorganization, HR often finds itself exactly in the middle: between the strategic line of the director and the interests of employees, represented by the Works Council. This is not an easy position, but it is an important one!

As a bridge builder, you make sure both sides understand each other. On the board’s side, HR helps translate policy into daily reality and the impact on people and processes. On the OR side, HR provides transparency, context and honest dialogue. Stand beside the OR, take them seriously and make sure the board does the same.

Three tips

  1. Give the OR a fair chance

We often see it with clients: the management thinks that the Works Council “doesn’t get it anyway,” and decides not to tell them everything or only inform them via e-mail. In doing so, you do the OR a disservice. And yourself as well. A well-informed OR can ask valuable questions and help think of better solutions.

Stand next to the OR, not across from them. Take the time to answer questions and really listen to their concerns or feedback. This creates trust and prevents the conversation from becoming bogged down in distrust.

  1. Invest in a strong and representative OR

In some organizations it is difficult to find people for the Works Council. The spots remain empty or are filled by employees who mainly represent the “no voice.” A well-functioning OR requires engaged people who represent the entire organization, not just those opposed to change.

HR can actively support this: help with recruitment, make elections attractive, and offer guidance and training. A trained OR that knows what its role is becomes a discussion partner rather than an adversary.

  1. Take concerns seriously, both ways.

HR may expect the OR to look into the organizational interest, but may also name when they fall short in knowledge or capacity. Openness works both ways. By having those conversations, professionalism grows on both sides.

Encourage a culture in which management and OR take each other seriously, even when things chafe. A strong Works Council is not difficult; it is a sign of a healthy organization.

Want to learn more about reorganizations and how Bunchmark can support you in the process? Check out this page.