FREEDOM OF ASSOCIATION AND REPRESENTATIVE BODIES
Freedom of association
Under the CNH Industrial Code of Conduct, CNH Industrial employees are free to join a trade union in compliance with local law and the regulations of the various trade union organizations.
CNH Industrial recognizes and respects the right of its employees to be represented by trade unions or other representatives established in accordance with applicable local legislation and practice.
In 2013 (figures as at 31 October 2013), a survey on unionization was carried out in 28 Countries where CNH Industrial companies operate, employing, at the time the data was collected, 84.2% of the total worldwide workforce. Freedom of association is regulated by country-specific legislation. In certain countries (such as Australia, France, Germany, and Switzerland) surveys cannot be conducted on the level of trade union representation because union membership is considered an employee’s personal and private choice and, as such, is not communicated to the employer; in others (such as Denmark, Sweden, Norway, and Finland) this information can only be obtained following a request, with grounds, from the employer.
The countries excluded by the survey due to privacy data protection employed, at the time the survey was conducted, 15.3% of CNH Industrial employees, whilst the remaining countries not included in the survey employed 0.5% of the total CNH Industrial global workforce.
|Union membership||non Union membership||mapping by Country|
(1) Figures for Italy updated as at 31 December 2013
It should be noted that those countries where none of the employees is a member of a union employed, at the time of the survey, 1.2% of the population mapped.
Representative bodies, normally elected by workers at the plant concerned, have the right to be informed and/or consulted and/or to enter into negotiation on issues that, as defined in law or by applicable collective agreements, may include health and safety in the workplace, wages and benefits, organizational issues (working hours, shifts, collective vacation, etc.), training, equal opportunities, company restructuring, collective redundancy, etc.
In the countries of the European Union, the establishment of employee representative bodies is envisaged for companies and/or sites where employee numbers exceed the minimum limits specified by national laws or procedures. In North America, these organizations are only present at sites where a trade union is already established.
A survey performed on 31 October 2013 in 38 countries, where 99.5% of CNH Industrial workers are employed, showed that in only 13 of these (comprising 0.8% of the sample surveyed) was no employee representative body present. It should be noted that in one of these countries, Romania (accounting for 0.3% of the headcount surveyed), internal elections are due to be held in February 2014. Worldwide, almost 78% of employees are covered by representative bodies.
In October 2013, a survey conducted on 97.7% of all Company employees located in 37 countries showed that more than 80.6% are represented by occupational health and safety joint committees (i.e., committees made up of company and worker representatives). Other joint committees with responsibility for equal opportunities, training and pay were found to represent, respectively, 15%, 8.3% and 8% of employees surveyed. Moreover, 49% of those surveyed are covered by joint committees that deal with other issues, such as: Peer Review Committees for Suspension and Termination, in place at several locations in the US and Canada. The Company provides the Review Panel procedure for timely resolution of eligible employees’ complaints about formal disciplinary actions, including suspensions and discharges. The Company may, at its sole discretion, exclude from panel review any formal disciplinary action that involves a violation of the Company’s discrimination, harassment, or workplace violence policies. A Review Panel consists of three employees and two supervisors, and is facilitated by a Plant Human Resources representative or other trained individual. The facilitator is not a voting member of the Panel, but is responsible for facilitating the Panel Review hearing to see that the process is administered in a fair, consistent, and orderly fashion joint committees for the interpretation of collective agreements, the management of apprenticeships, and social issues relating to single workers, housing, employee transportation, and cafeterias, mainly established in the EMEA Region joint committees on Production Systems and Organization at plant and/or production unit level, with the aim of facilitating the implementation of initiatives to achieve shared goals in fields such as optimizing work station ergonomics, as well as joint committees to review absenteeism, established in Italy according to the Collective Labor Agreement (CLA) joint committees on job changes, in place in Spain, with the aim of finding a solution/mediation in the event of claims arising as a result of job changes.
DISTRIBUTION OF JOINT COMMITTEES BY TYPE
GRIEVANCES AND LABOR PRACTICE
In 2013, four formal labor grievances leading to collective disputes were filed worldwide against the Company by either works councils, employee representative bodies, or unions. Three of these disputes were addressed and resolved by the relevant conciliation bodies. In two cases (both in Venezuela), the body was established according to a Company agreement; however, its resolutions were later validated by the Labor Office. The third dispute was settled before the Commission for Conciliation, Mediation and Arbitration (CCMA), established by law in South Africa. The fourth and last collective dispute was filed and addressed, but not resolved, by a conciliation body established by the industry/area-specific CLA in Belgium. The issue was later resolved internally, through a series of meetings and discussions between the works council and management.
The aforementioned extra-judicial mechanism is common practice at unionized sites/plants in the USA and Canada for individual complaints on various matters, provided that trade unions file their grievances against the Company according to the procedures and mechanisms set forth by the applicable CLA. Almost 50% of approximately 190 grievances filed in North America in 2013 were related to attendance, 14% to discipline, 12% to termination, and 8.5% to overtime, while very few grievances were related to job performance. Only one case of harassment was recorded during the year, and the remaining 14% was related to other issues associated with either CLA or Company policy violations. In total, 72% of the grievances were resolved, with the highest percentage of resolution recorded in relation to harassment (100%), attendance (84%), and overtime (81%). If a grievance cannot be resolved by the conciliation body, the employee can appeal to an arbitrator. However, there have been very few similar cases in North America, and just one ruling in labor matters against CNH Industrial companies in the past three years. A similar practice is in place at US non-unionized locations, where conciliation bodies, known as Peer Review Committees for Suspension and Termination (see page 74), are established according to Company policy. In 2013, these committees dealt with 52 complaints, and resolved 51 of them.
In 2013, CNH Industrial continued to work with trade unions and employee representatives to reach consensus-based solutions for managing diverse market conditions.
In 2013, market conditions were favorable for agricultural businesses in all Regions. Compared to previous years, construction equipment volumes in the EMEA Region continued to contract, unit demand showed some weakness in the NAFTA Region, whilst in Brazil, production volumes increased. In EMEA, overall market demand for trucks and commercial vehicles slightly increased mainly in Q4 2013, in LATAM production increased compared to 2012, with the exception of Venezuela, which registered a sharp drop in volumes.
FPT Industrial recorded business growth, especially in relation to engines, for both internal customers and third parties.
During the year, the Company was able to transform almost 2,400 contracts (10% of which with female employees) from fixed-term to no-term. In addition, intensive collective bargaining took place at various levels, resulting in agreements being reached with trade unions on, among other things, pay and employment conditions in the various countries where CNH Industrial companies operate.
SOCIAL DIALOGUE AND COLLECTIVE BARGAINING
CNH Industrial qualifies as a Community-scale group of undertakings, and is therefore subject to regulations designed to improve employees’ rights to information and consultation through the establishment of a European Works Council (EWC). As reported in the 2012 Fiat Industrial Sustainability Report, Fiom-CGIL filed a lawsuit against the Company asserting that its representative was unlawfully excluded from the EWC Special Negotiating Body, and that this action constituted anti-union behavior. The first hearing on this claim took place in February 2013. On 20 February 2013, the judge rejected the union’s claim and, early in August, FIOM appealed against this ruling. The next hearing has been set for 7 May 2014.
In Italy, dialogue continued with the social partners who signed the Collective Labor Agreement of 13 December 2011, in force from 1 January 2012; the section of this agreement dealing with financial aspects was renewed on 8 March 2013.
As widely reported, Fiom-Cgil, the only union that of its own free choice voted not to sign the CLA, filed sixteen lawsuits during 2012 against CNH Industrial companies across Italy, claiming anti-union behavior aimed at Fiom’s exclusion from employee representation. Specifically, in addition to their freedom to act, a right granted to all trade unions and employees, Fiom also claimed entitlement to those rights that art. 19 and subsequent articles of Italian Law no. 300/1970 (also known as the Workers’ Statute) only grants to unions that have signed the CLA applied in the Company.
Some of the judges called upon to rule on the matter raised the question of the constitutionality of art. 19, reputing it conflicts with articles 2, 3 and 39 of the Italian constitution. With judgment no. 231/2013, the Constitutional Court declared that art. 19 is unconstitutional because it does not recognize the specific union rights established by law no. 300/1970 as applying to those trade unions that, while not signatories to the collective labor contracts applicable to the Company, nonetheless participated in the negotiations on these contracts. However, the Constitutional Court stated that, until its judgment was given, art. 19 could not be interpreted in such a way as to allow these rights to also be applied to those unions only participating in the negotiations.
In consideration of this judgment, and with the sole intention of avoiding any possible exploitation of the situation, CNH Industrial decided to grant FIOM the union rights established by law as of 23 September 2013 (the date on which FIOM nominated its representatives), regardless of any judicial assessments about the participation of FIOM in the union negotiations on the specific CLA applied to each CNH Industrial company.
Collective bargaining agreements cover 96%of the Company’s workforce in EMEA. In Italy, all Company employees are covered by such agreements. A specific collective labor agreement signed on 23 December 2011 with the national union of managers (Federmanager), and valid for two years, applies to managers of both CNH Industrial and Fiat Group.
The Collective Labor Agreement of 13 December 2011, signed with Fim-Cisl, Uilm-Uil, UGL Metalmeccanici, Fismic and Associazione Quadri e Capi Fiat, applies to all other employees as of 1 January 2012. The aspects of the agreement renewed on 8 March 2013 encompass:
- Base pay increases. Effective 1 February, the CLA contractual minimum pay has been increased by €40 gross per month for entry-level employees in the third professional group, resulting in a minimum level of pay that is still higher than the corresponding minimum set by the National Collective Labor Agreement for the Metal Industry.
- The new productivity incentive bonus. A fixed amount has been set for each hour of effective presence during normal working hours. Particularly sensitive cases, such as hospitalization or serious illness, will not be penalized, being set against hours worked that count towards the bonus. Similarly, compulsory maternity leave, daily breaks granted to mothers (lactation) and fathers, as well as worker assemblies and leave for worker safety representatives will all be safeguarded.>
It is worth underlining that employees of CNH Industrial companies in Italy whose income does not exceed a cap fixed by law may benefit from a reduced tax rate on payments due in relation to specific items agreed in the CLA (e.g., productivity incentives, payment for night shifts and overtime).
Negotiations to renew the CLA started in November 2013 and, as at 31 January 2014, are still ongoing.
Worldwide, excluding EMEA, more than 50% of employees are covered by collective bargaining agreements.
This is an average figure based on local practices and regulations that vary from country to country.
In the USA, out of approximately 10,500 employees, collective bargaining agreements cover approximately 2,200 personnel (i.e., 21%), in sites and/or plants with trade union representation. However, formal policies relating to certain collective aspects of the employment relationship (e.g., working hours, internal policies and procedures, benefits, etc.) apply to almost all employees of CNH Industrial companies where there is no trade-union representation. Collective bargaining takes place at different levels and using procedures that vary according to local laws and practices. The collective bargaining agreements at each union-represented location contain equal opportunity language prohibiting discrimination against employees in a variety of protected classes.
Employees working in locations where there is no trade-union representation enjoy similar protection under a variety of federal and state laws. The collective bargaining agreements at each union-represented location call for the creation of joint health and/or safety committees, which generally comprise both management and hourly employee representatives. Base wage increases in union-represented locations are collectively bargained and delivered by means of a variety of methods, including annual base wage increases, lump sum payments, and/or cost-of-living adjustments. Union-represented employees at the Racine and Burlington plants (USA) are eligible to participate in the local Variable Pay Plan, which provides an opportunity to earn a quarterly lump sum bonus payment based on specifically defined plant performance metrics.
In Latin America, 96% of CNH Industrial employees are covered by collective bargaining agreements. In Brazil, a process of continuous negotiation with the unions has been established covering various operating issues, such as temporary contracts, overtime, flexible working, work shifts, health and safety at work and banked hours. Significant improvements have been made over the years to working conditions, partly thanks to the continuous dialogue between the Company and the unions on several aspects of the working environment.
Collective bargaining between the Company and worker representatives is also ongoing in Argentina and Venezuela.
About 96% of the employees surveyed1 are covered either by collective bargaining or unilateral policies relating to certain collective aspects of the employment relationship (e.g., working hours, internal procedures, benefits, etc.).
In 2013, CNH Industrial signed a total of 1962 agreements at either Company or plant level, 13 of which include agreed provisions on health and safety matters.
The main wage and regulatory agreements signed in 2013 at Company/plant level include:
- collective bargaining on wage and labor regulation, concluded at Iveco Spain in October. The four-year agreements for the plants in Madrid and Valladolid recognize a lump-sum payment in 2013, structural pay increases, and a variable payment for successive years. New flexible working time provisions have been introduced by the agreements including, for the Madrid plant, among others, overtime of up to forty Saturdays on the first shift, and six Saturdays on the second shift, and the possibility of a one-hour extension (from eight to nine hours) on Saturdays and of half an hour per day and per shift. Similar arrangements have been agreed for the Valladolid plant, although to a lesser extent, to best meet fluctuations in demand.
- the agreements reached through the annual negotiations in France, which resulted in salary increases varying from 0.8% up to a maximum of 2%, depending on business results. In some cases, lump sums were awarded.
- the agreement reached in February at CNH Industrial Poland on wage and flexibility rules, to come into force in 2013, and the agreement reached in December on the same issues, set for the year 2014. Both agreements stipulate annual increases higher than inflation, due to country specificities and positive business results.
- the agreement signed in March at Iveco Czech Republic, which provides for wage increases higher than inflation due to country specificities and positive business results in Brazil, collective bargaining for pay increases linked to growth in the domestic economy, and in line with salary increases within the Country’s Industrial sector, and further agreement on one-off bonuses.
For completeness, it is worth reporting that in Germany an agreement was reached for the renewal of the metalworkers’ contract, applied by most CNH Industrial companies in the country, setting salary increases at 3.4% from 1 July 2013 until 30 April 2014, and 2.2% from 1 May 2014 to 31 December 2014. At the end of October, the pay-related provisions of the CLA for Metal Automotive industries were also agreed in Austria, and applied to most of the employees of CNH Industrial, resulting in pay increases, effective from November 2013 and varying from 2.5% to 3.2%, depending on the employee’s local grade.
MAIN ISSUES COVERED UNDER THE AGREEMENTS
CNH INDUSTRIAL WORLDWIDE
MANAGEMENT OF PRODUCTION LEVELS
In 2013, several countries in EMEA were affected by plant stoppages, necessary to address fluctuations in production volumes. In Italy, compared to 2012, Powertrain and New Holland Construction Machinery carried out more temporary layoffs during the year, the other Agricultural and Construction Equipment plants made no use of this mechanism, while Trucks and Commercial Vehicles (excluding the stoppages due to the reorganization of the Suzzara plant) made slightly less use of temporary layoffs. On 23 July, at the Brescia plant, a contract was agreed with the signatory unions of the CLA that provides for a further 24 months’ extension (until 21 August 2015) of the collective agreement, allowing for a reduction in hours worked per week for all plant workers – in accordance with the Solidarity Contract legislation.
In France, production stoppages through temporary layoff benefit schemes decreased compared to 2012, mainly for FPT Industrial, while such stoppages increased in Germany at the Magirus plant in Ulm; this was due to the suspension of operations during reorganization to accommodate the transfer of firefighting production from other plants. Production stoppages also increased at the Berlin plant due to lower production volumes. In Spain, at the Valladolid plant, the utilization of temporary layoffs remained almost unchanged compared to the previous year, while temporary layoffs ceased altogether at the Madrid plant due to the transfer of production from Ulm.
Meanwhile, flexible work-time agreements were applied to meet fluctuations in production requirements at the Agricultural Equipment plants in Belgium and Poland.
In North America, the continued strength of the agricultural segment mitigated a slightly weaker performance in the Construction Equipment segment. The result was a moderately favorable impact on employment levels, and overtime continued at similar levels to the previous year.
In Brazil, the business environment improved, particularly for the agricultural segment, due to increased demand; this was partly due to FINAME (a subsidiary of the Brazilian Economic Development Bank) providing financing programs for the purchase of machinery and equipment. At the Curitiba and Sorocaba plants there was extensive use of temporary contracts, while, in other CNH Industrial plants, companies made use of overtime as a result of the increases in production volumes, in addition to increasing the headcount.
In Venezuela, production decreased due to adverse market conditions and, as a result, there was also a reduction in the workforce, mainly in the form of voluntary layoffs.
RESTRUCTURING AND REORGANIZATION
In Italy, a work group set up in 2011 at the Ministry of Economic Development held several meetings throughout the year to verify investment plans and identify potential investors for the reindustrialization of the Valle Ufita plant (also known as the Flumeri plant).
On 1 August 2012, at the Ministry of Economic Development in the presence of Company representatives, national and local trade unions, the workers’ council, the Councilor for Labor of the Campania Region, and representatives of the Ministry of Labor, the Vice Minister of Economic Development announced the joint commitment of the Government and of the Campania Region to drafting a Program Agreement; this was to be submitted for discussion no later than September, and was to focus on the sustainability of the site’s redevelopment plan and on the identification of measures to safeguard jobs. It was also confirmed that the Government would continue to search for reliable potential investors with significant entrepreneurial skills.
The Company confirmed its intention to cooperate with the Government in 2014 to obtain extraordinary temporary layoff benefits (which are funded and recognized by the Government in the absence of other specific financial support to employees), and the Company confirmed that it would not veto any investors operating in the bus manufacturing sector, in line with the preference of employees.
On 7 October 2013, given the lack of any intervention in this regard and the imminent expiration (on 31 December 2013) of the extraordinary temporary layoff period then underway, the Company started the collective dismissal procedure to guarantee the continuity of monetary support to employees through mobilità (a government benefit scheme with a duration up to 4 years for employees affected by collective redundancies in Southern Italy, where the Valle Ufita Plant is located), in favor of the 421 workers still employed at that time.
On 14 October, the Ministry of Economic Development summoned a meeting to present a report on the ongoing talks with leading national and international companies operating in the business of commercial vehicles for urban and extra-urban transportation, potentially interested in the reindustrialization of the Valle Ufita site. As a consequence, the Government exceptionally agreed to grant additional extraordinary temporary layoff benefits, covering the employees for a maximum period of six months as of 1 January 2014.
On 23 October, as per Government authorization, the Company and social partners convened at the offices of the Campania Region to sign a collective agreement enabling the Company to request the extraordinary temporary layoff benefits from 1 January to 30 June 2014. This agreement also fulfilled the information and consultation requirements deriving from the collective dismissal procedure initiated by the Company on 7 October 2013. Therefore, between 1 January and 30 May 2014, those employees, out of the 306 still employed as at 1 January 2014 (there were 658 employees when the plant closed in January 2012), who opt for dismissal with a severance payment will be entitled to benefit from the Government’s benefit scheme (mobilità) for up to four years.
On 2 December, a fur ther meeting was held at the Ministry of Economic Development focusing on ongoing contacts with companies interested in developing productive and commercial activities in the field of public bus transpor tation. Specifically, it was confirmed that the involvement of Italian companies already operating in the bus production sector and close to leading international players could enable the development of a new industrial project, suppor ted by specific Government measures, in favor of the Valle Ufita plant.
In 2013, for the second year running, Valle Ufita plant workers resorted to extraordinary temporary layoff benefits due to the crisis deriving from business closure. During 2013, 184 employees were dismissed, most of whom will become eligible for retirement during the period covered by mobilità.
With regards to the Imola plant (Italy), 30 April 2013 marked the end of the two years of extraordinary temporary layoff benefits granted after the business closure on 1 May 2011. During the year, several meetings were held at the offices of the Emilia Romagna Region to evaluate possible initiatives to establish new businesses at the plant (subject to the commitment of new investors to incorporate the redundant workers), yet to no avail. In February 2013, when the Company started the collective dismissal procedure, 63 employees were still employed; all of these were offered the possibility of transferring to other Company sites/plants as an alternative to dismissal. The 46 workers still employed at Imola at the end of April were notified that the Company would proceed with the mandatory dismissal of those who elected not to transfer, effective 1 May 2013, to the Modena plant which is, among all CNH Industrial plants in Italy the one closest to Imola (about 90 Km of distance). One employee accepted the transfer, while the rest applied for severance payment, benefitting from Government mobilità for up to three years.
FPT Industrial initiated collective layoff procedures at both its Foggia and Torino Driveline plants (Italy), in April and July respectively, affecting 23 employees at the first, and 17 salaried employees at the second. An agreement with local unions FIM, UILM, FISMIC, UGL, and AQCF and with the plant’s union representatives (RSA) was signed during each procedure, providing for the unilateral termination of employees reaching the retirement requirements within the time frame of the mobilità benefit period (four years in Foggia, and three years in Torino), and for the termination of other employees, granted their non-opposition to dismissal, by 31 December 2013.
The Calhoun plant, in Georgia (USA), produces excavators and dozers for the Construction Equipment segment. The plant was part of a joint venture with Kobelco throughout the end of 2012. Under a new, nonexclusive licensing and supply agreement, which took effect on 1 January 2013, the joint ownership with Kobelco Construction Machinery was unwound, as were the equity interests in all of the companies formed in connection with their previous alliance, along with any geographical exclusivity rights associated with their agreements were eliminated. A subsequent softening in demand for the products manufactured at the Calhoun plant resulted in the plant’s workforce restructuring, impacting approximately sixty employees in two different restructuring events over the course of the year. An additional 25 employees will be impacted as part of a recently announced third restructuring in early 2014. The plant complied with all federal and state notification laws, and provided severance payments, benefit continuation, and other assistance consistent with Company policies applicable to non-union represented employees.
On 12 July 2013, a labor agreement was reached to request special temporary layoff benefits at the Suzzara plant (Italy), from 5 August 2013 to 4 August 2014, due to the need for reorganization. On that same day, a consultation procedure with employee representatives and unions was completed at the offices of the Lombardia Region. During the temporary layoff period, an investment plan worth more than €50 million will be developed to provide for the renewal of the plant’s technical installations, production and assembly equipment, and for the definition of new logistics flows. The aforementioned investment, in addition to the €20 million previously spent for the same purpose, will be in preparation for the launch of the new Daily, the light vehicle manufactured by Iveco Brand.
During 2013, around eight hundred blue-collar workers were insourced at the Sete Lagoas plant in Brazil, within the framework of the Logistic Insourcing Program that ended in October, which aimed at improving the plant’s efficiency and competitiveness.
No significant restructuring or reorganization initiatives were implemented in other countries during the year.
In 2013, labor unrest in Italy was low: hours of work lost were about 38%, and 6% of that recorded in 2012 and 2011, respectively. As in past years, national strikes had an impact on CNH Industrial plants; specifically, industrial action took place in France and Belgium, in protest against government reforms, although with a much lower level of participation of CNH Industrial workers versus previous years. Only a few strikes took place in 2013 on local issues. Over the year, therefore, overall levels of labor unrest in CNH Industrial worldwide were negligible.
MINIMUM NOTICE PERIOD FOR OPERATIONAL CHANGES
In the European Union (EU), the Council Directive 01/23/EC stipulates that in the event of transfer of businesses, plants, or parts of businesses or plants, following a contractual sale or merger, an information and consultation procedure must be conducted with employee representatives. The procedure must be initiated a reasonable period of time prior to the transfer. Moreover, the Council Directive 98/59/EC on the approximation of the laws of the Member States relating to collective redundancies requires consultations with workers’ representatives whenever an employer is contemplating collective redundancies. These “shall begin in good time with a view to reaching an agreement, and should, as a minimum requirement, cover ways and means of avoiding collective redundancies or reducing the number of workers affected, and of mitigating the consequences by recourse to accompanying social measures aimed, inter alia, at aid for redeploying or retraining workers made redundant.” Accordingly, CNH Industrial companies comply with the regulatory provisions resulting from the adoption of the above directives in each individual EU Member State. Outside the European Union, local laws and practices apply.
In the USA, the federal Worker Adjustment and Retraining Notification Act (WARN), which applies to both unionized and non-unionized sites, requires an employer to give a minimum 60-day notice for any action that will cause at least fifty employees or 33% of the workforce to lose their jobs. At unionized sites and/or plants, the level of union involvement, if any, is normally defined by the collective bargaining agreement applicable at site level signed between the Company and the union, which usually also sets forth the information and consultation procedures to be activated in such circumstances. The collective bargaining agreements between CNH America LLC and International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America, which cover the plants located in Racine (Wisconsin) and Burlington (Iowa), contain a letter of understanding stating that the Company will refrain from permanently shutting down either plant during the stated term of the agreement, which expires on 30 April 2016. A separate letter of understanding under the same collective bargaining agreement requires the Company to provide six (6) months’ advance notice to the local union in the event of a full plant closure. Should this six (6) months’ notice impair the Company’s need for speed, flexibility and confidentiality, the Company may provide such notice no less than sixty (60) days prior to a full plant closure.
In Canada the collective bargaining agreement between CNH Canada LTD and United Steelworkers Local Union No. 5917, which covers the par ts depot located in Regina, Saskatchewan (Canada), provides that the Company will provide written notice to the union no later than ninety (90) days prior to the scheduled depot closing date. At non-unionized sites and unionized locations with no specific requirements in the collective bargaining agreement, it is common practice to make a company-wide announcement to all employees of organizational changes related to outsourcing, with appropriate notice prior to the operation.
In Brazil, bargaining is not mandatory in the event of transfer of businesses, plants, or parts of businesses or plants, following a contractual sale or merger, but it is customary for CNH Industrial companies to implement a direct and formal communication process with both its employees and unions. Talks generally occur to the extent of minimizing social impacts, if any. Operational changes within the Region, such as the deployment of new technologies to increase work efficiency, quality, competitiveness, or the employees’ health and safety, are preceded by formal negotiations with labor unions, according to the specific terms and conditions provided for under the collective bargaining agreement. The procedure must be initiated a reasonable period of time prior to the process. When necessary, changes are made gradually in order to prepare employees for the new scenarios.
In China, according to the Chinese Labor Union, all operational changes such as reorganizations, restructurings, collective agreements, or actions causing twenty or more employees, or 10% of company employees, to lose their jobs must be notified to the Labor Union. Such operational changes must be filed and approved by the Labor Bureau thir ty days prior to any fur ther notifications or actions, or the changes are deemed illegal.
In India, a company-wide announcement is made to employees in the event of any major change pertaining to operations, business, the company, etc. Companies are also required to comply with regulatory provisions defined by Indian law according to the changes to be put in place.
According to Uzbekistan’s labor legislation, operational changes must be notified at least two months in advance.