The Information and Consultation Directive

The Information and Consultation Directive Facilitating Change Through Employee Voice Deirdre Morgan & Tony Dundon Dept. of Management, NUI,Galway

Outline • Key reference points for the research • Research evidence – survey & case studies • Research evidence – case studies • The perceived barriers • Key issues for moving forward Department of Management

Reference points for the research (A) • The theory: - Change is the only constant - ‘Hard’ and ‘soft’ approaches - The problem of definition - The business case for I&C - The workplace democracy case Department of Management

Reference points for the research (B) • The Directive: - Establishment or undertaking? - Definitions - Framework (Timing, scope, method etc.) - Representatives - “exchange of views and establishment of dialogue ” Department of Management

The Reality of the 20/50 Threshold • 20  68% of workers and 3.4% of companies covered • 50  47% of workers and 2.3% of companies covered(EU Report, 1997, courtesy of P. Flynn) Department of Management

Definitions • ‘Information’ is the transmission, by the employer to the employees’ representatives, of data in order to enable them to acquaint themselves with the subject- matter and to examine it. • ‘Consultation’ means the exchange of views and establishment of dialogue between the employees’ representatives and the employer. Department of Management

Framework and Scope Framework or model? Scope • Recent & probable developments in activities & economics • Situation, structure & probable development of employment • Substantial changes to work organisation or contractual relations Department of Management

Existing Irish Provisions • Transnational Information & Consultation Act (EWC) 1996 • Worker Participation Acts 1977/88 • Other pieces of employments law eg. Safety, Health & Welfare Act, 1989, Protection of Employment Act, 1977 etc. Department of Management

Employee Voice: Some descriptive indicators Department of Management

Range of pillars Breadth of pillars Balance of pillars Purpose of pillars voice Messages from case studies:Building the support structure Department of Management

A Case of ‘Good’ Practice In this organisation commitment to informing and consulting employees comes from the top. They employ multiple mechanisms for both purposes. Material is presented in good time and is broad and deep in scope. Both direct and representative mechanisms are used. Decisions can and do change as a result. Department of Management

Large MNC, financial services Voice ‘champion’ at the top Biannual strategy roll-out Partnership forum Active EWC Focus groups (improvement) Team meetings: published action plans Suggestions schemes (rewarded) voice The Context Department of Management

I believe you can never have too much communication. It’s the key to effective change management. Communications Manager We don’t think in terms of ‘blocking’ anymore. The focus is much more constructive. It’s now about questioning or correcting. Union Representative Department of Management

I think they do value staff and in that sense they know that if there isn’t a certain amount of satisfaction among staff you’re not going to get the return and at the end of the day everyone contributes towards achieving the objectives. Employee Department of Management

A Case of ‘Poor’ Practice There is no ‘real’ commitment to informing and consulting employees. The organisation pays ‘lip service’ by having mechanisms in place that are not active. Employee representatives are marginalised. The preference is for direct mechanisms to be used for informing (at short notice). Decisions should not and do not change. Department of Management

Large MNC, distribution 95% union density Weekly team meeting (scripted)? Annual review (scripted) ? Performance appraisal ? Employee survey Electronic notice-board ? Union-management meetings ? voice The Context Department of Management

For the meetings we conduct there is a document that is the brief that has to be read out in full. Manager Outside of the employee survey, we don’t have an input. Management will do whatever they want regardless of what we say. Employee I’m twelve years here and I’ve had one appraisal and others are much the same. There is a system but it is not being implemented. Union Representative Department of Management

Promoting voice as a business issue Interpreting the ‘employment’ agenda The importance of context (size, structure and informality) ‘Appropriateness’ of voice to employees and general managers Supporting line managers in implementing change through I&C Working with unions to develop voice Consultation is not communication! Summary of key findings from the case study research Department of Management

Issues for moving forward • Opportunity V’s threat • Representatives • Coverage (50/20) • Framework / Model - direction • Trigger • Facilitation and Training (NCPP, LRC) • Redress Department of Management

The Information and Consultation Directive