Mergers, integration, restructuring, sometimes resulting from takeover bids or from the privatisation process, are all taking place with increasing frequency throughout the world. New communication technologies, financial deregulation, and the opening up of markets have played their part in these phenomena, which clearly impact on the operation of the business concerned and their employees but also affect economic and social life. The pace has accelerated markedly in recent years, particularly in Europe, where there was a more than fivefold increase between 1990 and 1999 (company buyouts rising from EUR 100 billion to EUR 580 billion).

But at the same time it has not been possible to create a European Law for enterprises since the directive has been blocked for several decades by those governments, which have refused to recognise employees' rights of representation. Professional and managerial staff (P&MS) are directly involved in mergers, acquisitions and privatisations: they both manage these processes and suffer the consequences.

EUROCADRES believes thus that P&MS have the right to be informed and consulted about company decisions regarding restructuring as well as about the social and societal consequences for the organisation in the short and medium term. Indeed, companies bear responsibility for more than simply the economic issues. The staff (in the first place), consumers, the community and other 'stakeholders' are all affected by the consequences of company restructuring. Responsibility here means that companies take into account the effects of their decisions on the various stakeholders, including the professional and managerial staff. The requirement for the debate is that the parties adopt a clear stance. These positions may differ. It is likely that the shareholders, the P&MS, and society will have different expectations regarding changes within the company. These expectations should be clearly stated so that discussions on the company's strategic options can take place in a completely open manner, thus making the whole process democratic.

With respect to restructuring, EUROCADRES identifies three important trade union points of action that can be formulated:

• First of all, there is the question of information gathering. Trade unions must be informed as soon as possible. They should be aware of the upcoming restructuring long before the news is announced in the EWC. As the trade unions represent all employees, they should also collect strategic information about the company from these employees. One specific point of interest concerned the approach taken by professional and managerial staff. As these employees in crucial positions of ten know more about upcoming changes, trade unions should be in close contact with them. Sometimes, company restructurings are prepared by external consultants. When external company consultants are preparing a possible new company structure, the trade unions must try to be actively involved in the analyses;
• Trade unions must exploit their strengths, in buying time, in setting up partnerships with the local management, in setting up local networks, in organizing trans-national actions, and in going to court when restructurings are announced in an illegal way;
• Finally, trade unions must use and enforce their 'entrepreneurial competences'. As unions have information about the decision-making processes in every company, they hold a unique position. This potential entrepreneurial competence has recently been strengthened, as an increasing number of Professional and Managerial Staff are joining trade unions. As a consequence, more and more people in the trade unions have strategic knowledge (soft skills, interpretation of balance cards, Information about the functioning of the EWC, legislation"). It is obvious that internal training programmes should be developed to share this knowledge.

EUROCADRES discussed these issues related to Mergers & Corporate restructuring during a two-day conference held in Brussels in November 2003. A report entitled "Innovative Change" was then created and is available in German or English language at the bottom of this page. The report is the result of a documentary study of the various aspects of restructuring and innovative actions as well as of a two-day seminar organised for P&MS (November 2003) with the financial support of the European Communities.

Report on the "Conference on Innovative measures in case of restructuring", 03-04/11/2003: