The role of union representatives in the reorganisation of the municipality

In a large or small municipality, the employer will periodically need to make small or large changes to the municipality's organisation. Perhaps there is not a need for so many teachers in schools or there is a need to reorganize the home help service.

The employer's managerial prerogative

The employer has the authority (right) to organise, manage and distribute the work, but also to reorganise the work and the organisation. We call this authority the employer's management prerogative, a right that is derived from the fact that we employees sign employment contracts and make our labour available to the employer.

However, even though the employer has the right to reorganise in the municipality, this right is subject to restrictions. Before the employer decides to reorganise, this assessment must be informed about and discussed with the employee representatives in the enterprise. This duty to provide information and discussion is based on both the Working Environment Act and the main agreement in the municipalities.

Before the employer decides to reorganise, this assessment must be informed about and discussed with the employee representatives in the enterprise.

This duty to provide information and discussion is based on both the Working Environment Act and the Basic Agreement to the municipalities.

Trustees play a very important role

In these collective discussions, union representatives play a very important role in terms of breadth, and ensure that the basis for the reorganization is as good as possible, that all important consequences are thought through, before the decision to change the organization is made.

The employment contract sets the framework

A reorganisation can lead to major or minor changes in the individual employee's employment contract. As employees, we must accept small changes in work tasks or the employment relationship, as long as they are justified by the reorganisation. 

Outside the managerial prerogative

However, the employment contracts set limits on how large changes the employer can make to the individual's employment contract on the basis of the managerial prerogative.

A reorganisation that results in an employee with managerial responsibility losing his or her managerial responsibility is a significant change, and significant changes are outside the employer's managerial prerogative.

When the employer is outside its management prerogative, the employer must terminate the employee's agreement with managerial responsibility, and then offer the employee a new employment contract without managerial responsibility in the changed organisation. This is a so-called "change notice" as a result of the reorganization.

Such a redundancy notice must follow the procedures for dismissal and it must be factual, unless the employee accepts the changes. 

 
Whether the reorganisation leads to small changes that the employer can make by virtue of its management prerogative, or whether the changes are major and the employer is therefore outside its management prerogative, depends on a concrete and discretionary assessment of the employee's previous employment contract and employment relationship, seen in relation to the new employment contract and the employment relationship in the changed organisation.

If the changes cannot be said to be "significant", you as an employee must accept the changes. The lawyers at NITO can assist with this specific assessment.  

Change may be necessary

Reorganisations and change can be demanding, but if change is inevitable because the surroundings change, this is a golden opportunity for you as a union representative to help the employer so that the reorganisation process is as good and predictable as possible.