The Information and Consultation Directive

Facilitating Change Through Employee Voice

Deirdre Morgan & Tony DundonDept. of Management, NUI,Galway

March 2003 Department of Management

Outline

Key reference points for the research Research evidence – survey & case

studies Research evidence – case studies The perceived barriers Key issues for moving forward

March 2003 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

March 2003 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 ”

March 2003 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)

March 2003 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.

March 2003 Department of Management

Framework and ScopeFramework or model?Scope Recent & probable developments in

activities & economics Situation, structure & probable

development of employment Substantial changes to work

organisation or contractual relations

March 2003 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.

March 2003 Department of Management

Employee Voice: Some descriptive indicators

Trade Union Recognition

NUI,G2002

UCD1996/7

C/UL1995

39% 51% 80%

N 224 N 388 N 205

March 2003 Department of Management

Employee Voice: Some descriptive indicators

Employee Voice Mechanisms: % usedNUI,G2002

UCD1996/ 7

C/ UL1995

Team Briefings 88 n/a 77Team Working 64 71 n/aJCC/WC 39 13 25Attitude Surveys 36 n/a 40S/ Schemes 34 n/a 49EWC 24 n/a n/aQuality Circles 13 15 28

N = 195-224 450 146-199

March 2003 Department of Management

Employee Voice: Some descriptive indicators

Range of activities considered by JCC/ WC:% and (rank order)

NUI,G: 2002

Health & Safety 78 (1)Training 58 (2)Quality 54 (3)Financial/Budgetary Info 45 (4)Flexibility 44 (5)Redundnacy/Manpower 38 (6)Salary/Pay 28 (7)Equal Opportunities 24 (8)

March 2003 Department of Management

Employee Voice: Some descriptive indicators

Utility of voice mechanism for the management of change (% according to usage)

90%82%

71%67%

59%58%

48%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NUI, G, 2002

Teambriefings

Direct to Individual Employee

Attitude Surveys

Suggestion Schemes

Quality Circles

Collective bargaining/ Unionrecognition

JCC/WC

EWC

March 2003 Department of Management

Messages from case studies:Building the support structure

Range of pillars

Breadth of pillars

Balance of pillars

Purpose of pillars

voice

March 2003 Department of Management

A Case of ‘Good’ PracticeIn 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.

March 2003 Department of Management

The Context 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

March 2003 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

March 2003 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

March 2003 Department of Management

A Case of ‘Poor’ PracticeThere 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.

March 2003 Department of Management

The Context

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

voice

March 2003 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

March 2003 Department of Management

Summary of key findings from the case study research

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!

March 2003 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