Human Resources Involvement in Mergers and Acquisitions

Understanding HR’s Role In Mergers and Acquisitions

Scroll down to read more!

Understanding HR’s Role In Mergers and Acquisitions

Scroll down to read more!
Human Resources Involvement in Mergers and Acquisitions

Table of Contents

Human Resources Involvement in Mergers and Acquisitions

I’ve participated in a number of merger and acquisition transactions throughout my career. Dealing with an M&A is one of the most challenging undertakings you will ever take on, and if you have ever been involved in one, you know I’m not exaggerating. The work you undertake in conducting due diligence for your employer might possibly make or break a profitable contract, regardless of whether you are a business owner or an HR professional assigned to a project team.

The Role of Employee and Labor Relations in M&A

Contrary to popular belief, labor relations is one area in M&A that typically receives less consideration than is appropriate. I’m not sure why this is the case, but I keep witnessing it, especially in situations where a collective bargaining agreement is already in place. People seem to assume that the current collective bargaining agreement covers all of that “union stuff.” Nothing could be further from the truth than such thinking. The existence of a labor agreement or the involvement of a labor union in the organizing process at a company you are considering should immediately raise caution flags. Here are a few justifications for why you should give labor relations concerns the correct amount of consideration.

Hidden Costs & Collective Bargaining Agreements

The salary, benefits, and other terms and conditions now in effect are explicitly outlined in an existing collective bargaining agreement for any prospective new employer. These can only be changed by an acquiring business after entering into and carrying out good faith negotiations. This may need the maintenance of separate wage and benefit plans for an extended period of time, among other administrative integration challenges for your acquisition. There are also many  hidden costs and continuing long term obligations that are easily overlooked, such as the requirement for future contract negotiations and joint multi-employer pension plan withdrawal liability issues.  Even things like the hiring of new or existing staff can become complex and costly if not done correctly.  The NLRB just ordered a California business to add fifty staff members and begin bargaining with a union, in what appears to be a case of lax due diligence by the new owner.

M&A Business Resources

Here are a couple of useful resources for HR professionals who may be involved in upcoming merger and acquisition activity.

 

Did you like this post? Share it!

2 Comments

  1. Excellent article, I need to truly enhance the content I have.

    I have attempted to blog on third part platforms, it did just

    not transpire the way I needed it to. But your website has
    providing me a desire to achieve this. I will
    be bookmarking your website
    and checking it out from time to time. Thank you!

Comments are closed.

A Word From Our Sponsors

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

Recommended Posts

Digital Recruiting: Shaping the Modern HR Landscape

Discover the transformation of digital recruiting, its impact on HR tech and how it's reshaping CEO perspectives on measuring human capital....

8 Smart Ways to Raise Cash Quickly

Not everyone has the luxury or discipline to set aside extra funds for unforeseen events. However, when you encounter unexpected situations and your bank...

Navigating GPHR Recertification: Your Global HR Pathway

Navigating GPHR Recertification: Your Global HR Pathway

Uncover the path to GPHR Recertification. Dive into requirements, credit earning methods, and comparisons with other HR certifications. ...
GPHR vs SPHR: Decoding HR Certifications for Professionals

GPHR vs SPHR: Decoding HR Certifications for Professionals

Discover key insights on GPHR vs SPHR certifications: eligibility, exam details, prep tips and career paths in our comprehensive HR professional guide....

Episode 410: Conflict Management, Conflict Resolution, and Forgiveness With John Baldino From Humareso

In this episode, we interview John Baldino, Founder and President of HR consulting firm Humareso, speaking about conflict in the workplace....

Resources for Session Attendees of Digitizing Talent

Resources for conference session attendees of Digitizing Talent: Creative Strategies for the Digital Recruiting Age....

Get These #BlackFriday & #CyberMonday Deals For #HR Certification

I wanted to consolidate our Black Friday and Cyber Monday deals in one spot so that you can quickly see what's available. Snag yours...
Comparing the PHR vs PHRi HR Certification Exams

Comparing the PHR vs PHRi HR Certification Exams

Uncover the nuances of PHR vs PHRi Certification Exam for HR professionals. Learn which boosts your career prospects best in our detailed guide!...

Checkout Our Products

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

More From Workology

Digital Recruiting: Shaping the Modern HR Landscape

Discover the transformation of digital recruiting, its impact on HR tech and how it's reshaping CEO perspectives on measuring human capital.

Job Jackpot: Navigating the Job Market in the Online Gambling Industry

Click on read more to open this post on our blog.
Comparing the PHR vs PHRi HR Certification Exams

Comparing the PHR vs PHRi HR Certification Exams

Uncover the nuances of PHR vs PHRi Certification Exam for HR professionals. Learn which boosts your career prospects best in our detailed guide!

Get These #BlackFriday & #CyberMonday Deals For #HR Certification

I wanted to consolidate our Black Friday and Cyber Monday deals in one spot so that you can quickly see what's available. Snag yours now!