Change Negotiations

Situations that require change negotiations are:

1) Reduction of workforce

• Termination, lay-off, shifting to part-time work and one-sided change of an essential term of employment contract on financial or production-related grounds

2) Essential changes to the position of employees due to changes in company operations

• Essential changes in work tasks, work methods, organization of work, organization of work space or organization of regular working time

• If the changes planned by the employer are estimated to cause termination of an employment contract/employment contracts, lay-off or shifting to part-time work of an employee or employees, reduction negotiations according to Section 3, 16 §, subsection 1 of the Co-determination Act must be undertaken [Co-operation Negotiation Obligation in in Reducing Workforce].

The employer must undertake change negotiations before it makes decisions on the aforementioned matters. The negotiation obligation does not restrict the employer´s right to make decisions on the matters in question but before the making of the decision, the matters must be negotiated with employees.

If the planned change only affects the employment of a single employee or a few employees, the negotiations are undertaken with each employee personally, unless otherwise agreed. However, the employee has the right to insist that a matter that concerns them is also negotiated with their representative. If the planned change generally concerns employees that are part of a personnel group or several personnel groups, the negotiations must be undertaken with the representatives of the personnel groups that the change concerns.

At a change to business operations, the employer must present a proposal for negotiations as soon as possible and it must provide the employees and their representative the necessary information to undertake the negotiations. The employer must also inform the starting date and place of the negotiations.

The grounds, effects and alternatives of the planned change to business operations must be discussed in the negotiations.

If the subject of the change negotiations is something other then reduction of workforce, there is not any set deadlines for undertaking negotiations. The employer has fulfilled its negotiation obligation when a matter has been dealt with in the way described above and matters have been handled in the spirit of co-operation, striving to reach a consensus. However, there is no need to reach any kind of agreement with the employees, and after the negotiations, the employer will unilaterally make the decisions concerning impacts on personnel.

Upon request, the employer must take care that minutes are kept on the negotiations. It is endorsed that minutes are kept even without a specific request. All representatives of the employer and the employees that attended shall inspect and sign the minutes, unless otherwise agreed.

After the negotiations, the employer must inform the employee representatives and employees it concerns of the decision it has made.