{"id":743,"date":"2023-02-14T12:24:39","date_gmt":"2023-02-14T11:24:39","guid":{"rendered":"https:\/\/www.whyte.be\/?p=743"},"modified":"2023-02-14T12:33:03","modified_gmt":"2023-02-14T11:33:03","slug":"in-favor-or-against-the-revision-of-the-renault-law","status":"publish","type":"post","link":"https:\/\/whyte.be\/en\/in-favor-or-against-the-revision-of-the-renault-law\/","title":{"rendered":"In favor or against the revision of the \u201cRenault Law\u201d?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Each time several companies announce&nbsp;collective redundancies,&nbsp;as was the case&nbsp;in early&nbsp;2021, the debate flares up again&nbsp;:&nbsp;trade unions and politicians alike question&nbsp;whether, after 20 years,&nbsp;the time has to come to finally review&nbsp;the&nbsp;infamous \u201cProc\u00e9dure&nbsp;Renault\u201d&nbsp;or Renault Act?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Act&nbsp;of&nbsp;13&nbsp;February 1998&nbsp;was adopted in response to the&nbsp;closure of the Renault&nbsp;assembly&nbsp;plant in&nbsp;Vilvoorde. In&nbsp;February&nbsp;1997, the&nbsp;French car maker&nbsp;was forced to hastily&nbsp;call a press conference to announce&nbsp;the&nbsp;closure of&nbsp;its Belgium&nbsp;plant&nbsp;under pressure from&nbsp;the&nbsp;Flemish Minister-President. This situation&nbsp;created&nbsp;two major&nbsp;stumbling blocks: the decision was&nbsp;deemed&nbsp;irrevocable&nbsp;and was not open to&nbsp;discussion with union representatives&nbsp;and the workers&nbsp;found out&nbsp;about the&nbsp;plant&nbsp;closure&nbsp;through the&nbsp;media.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To avoid&nbsp;similar situations in the future, a&nbsp;labor&nbsp;law was passed the following year requiring employers&nbsp;who are contemplating a collective redundancy&nbsp;to&nbsp;inform&nbsp;the workers\u2019 representatives in advance and consult with them; in other words,&nbsp;employer must communicate the intention, rather than the decision to lay off workers&nbsp;and&nbsp;must first inform workers or their representatives of this intention.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although the law&nbsp;establishes&nbsp;the&nbsp;framework for the procedure, with its information, consultation and negotiation phases, it also has many shortcomings, both in terms of communication and&nbsp;in&nbsp;the way it is&nbsp;organized.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The&nbsp;<\/strong><strong>provision about<\/strong>&nbsp;<strong>the duty to inform workers first<\/strong><strong>&nbsp;is often misunderstood<\/strong>:&nbsp;while&nbsp;the concept&nbsp;informing workers first is commendable,&nbsp;it&nbsp;does not&nbsp;de facto&nbsp;give&nbsp;the&nbsp;company&nbsp;an opportunity&nbsp;to warn&nbsp;a&nbsp;number of political, trade-union or economic decision-makers&nbsp;in advance. As a result, they&nbsp;complain, wrongly,&nbsp;about&nbsp;being taken by surprise and not being informed beforehand.&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li><strong>Announcing the<\/strong>&nbsp;<strong>intention<\/strong><strong>&nbsp;to proceed&nbsp;<\/strong><strong>with a&nbsp;<\/strong><strong>collective dismissal<\/strong><strong>&nbsp;is perceived as artificial<\/strong>: because the procedure requires&nbsp;that&nbsp;a consultation&nbsp;must take place&nbsp;with&nbsp;worker\u2019s&nbsp;representatives, all written and verbal communication must be conditional. The result&nbsp;is vague, complicated and even artificial communication.&nbsp;Letters&nbsp;to&nbsp;workers&nbsp;and press releases have been known to include such&nbsp;complex phrases as \u201c<em>assuming that<\/em>&nbsp;<em>this intention&nbsp;<\/em><em>should be confirmed<\/em><em>, the project could&nbsp;<\/em><em>impact the employment of<\/em>&nbsp;<em>XX people<\/em>\u201c. For their part, the&nbsp;trade&nbsp;unions consider this approach hypocritical: an intention is&nbsp;merely&nbsp;a decision&nbsp;by another&nbsp;name.&nbsp;<\/li>\n\n\n\n<li><strong>The number of people<\/strong>&nbsp;<strong>who are&nbsp;<\/strong><strong>potentially<\/strong><strong>&nbsp;affected by the announcement is sometimes&nbsp;<\/strong><strong>exaggerated<\/strong>: the law stipulates that the company must announce a maximum number of people&nbsp;whose employment is&nbsp;potentially&nbsp;impacted, without taking into account&nbsp;any&nbsp;agreements resulting from the consultation and negotiation&nbsp;with the&nbsp;trade&nbsp;unions. These&nbsp;sometimes&nbsp;significantly&nbsp;reduce the number of&nbsp;compulsory&nbsp;redundancies: retention of certain&nbsp;roles,&nbsp;separation bonuses for workers who quit voluntarily, early retirement, redeployment or transfer to another company.&nbsp;Take the example of a&nbsp;company&nbsp;that originally announced that&nbsp;400 people&nbsp;could be&nbsp;potentially affected. At the end of the procedure,&nbsp;\u201conly\u201d 80&nbsp;workers were laid off.&nbsp;People, however, only remember the initial figure.&nbsp;<\/li>\n\n\n\n<li><strong>The consultation<\/strong><strong>&nbsp;phase with the<\/strong><strong>&nbsp;trade<\/strong><strong>&nbsp;unions<\/strong><strong>&nbsp;is not limited in time<\/strong>: this is an ongoing point of&nbsp;conflict&nbsp;between&nbsp;employers&nbsp;and the&nbsp;trade&nbsp;unions&nbsp;when the topic of a&nbsp;revision of the Renault&nbsp;Act is raised. The law provides that the consultation phase (rationale behind the plan and impact on employment) is unlimited in time, while the&nbsp;next&nbsp;phase, the negotiation (terms for departure or severance&nbsp;within the framework of the social plan) is limited in time. Unlimited consultation&nbsp;may cause the trade union to drag out the process, by slowing down the&nbsp;meeting rhythm&nbsp;and submitting multiple&nbsp;questions or&nbsp;counterproposals. Sometimes the consultation&nbsp;tends to be more focused on&nbsp;defending&nbsp;sectoral interests&nbsp;or an ideological debate&nbsp;rather than on&nbsp;the reorganization itself. Moreover, the absence of a time&nbsp;frame&nbsp;is not an incentive for&nbsp;the&nbsp;trade&nbsp;unions to move on to the negotiation phase, which is limited in time. As a result, the two phases&nbsp;soon end up running&nbsp;parallel&nbsp;in time, with the&nbsp;trade&nbsp;union delegations only&nbsp;accepting&nbsp;to sign off on the end of the consultation&nbsp;phase&nbsp;when they feel that&nbsp;good progress&nbsp;is being made or that the negotiations are&nbsp;successful.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">While the \u201cRenault&nbsp;Act\u201d&nbsp;continues to be&nbsp;a solid procedure,&nbsp;it&nbsp;can, however,&nbsp;be improved in many&nbsp;ways&nbsp;to facilitate communication, while&nbsp;also&nbsp;leaving room for social consultation. Ultimately,&nbsp;what matters is that&nbsp;the&nbsp;workers who are&nbsp;impacted&nbsp;by the plan&nbsp;are&nbsp;well informed&nbsp;and know as soon as possible whether they will be able to stay&nbsp;on&nbsp;or&nbsp;must&nbsp;leave&nbsp;the company, and under&nbsp;which&nbsp;(financial)&nbsp;conditions.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[32],"tags":[],"class_list":["post-743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-public-affairs-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>In favor or against the revision of the \u201cRenault Law\u201d? - Whyte<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/whyte.be\/en\/in-favor-or-against-the-revision-of-the-renault-law\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In favor or against the revision of the \u201cRenault Law\u201d? 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