Changing Collective Bargaining Agreement: Harmonizing Employment Statuses Within a Group
To successfully transfer a business, often newly acquired, from one branch collective bargaining agreement to another, a real change in the main activity must be instigated. This process, outlined in Articles L. 2221-1 and following of the French Labour Code, allows you to reform your employees’ social status to better harmonize it within the group.
The Principle: The Collective Bargaining Agreement Based on the Main Activity
The application of a collective bargaining agreement within your company is not left to free choice; rather, it depends on the main activity conducted there. This activity, defined by an APE code (French Business Classification Code), objectively determines the applicable branch agreement. For instance, in the context of an acquisition, the original agreement of the target company remains in place as long as the main activity remains consistent with its previous framework.
It is important to note that a unilateral decision by management to change the agreement will never be sufficient to enforce this change. You must establish a course of action based on tangible elements.
The Mechanism: Organizing the Change of Main Activity
To modify the applicable collective bargaining agreement, it is essential to organize and document a tangible and verifiable change in the company’s main activity. For example, a company specialized in consulting engineering that brings together field teams could evolve its activity toward project execution, resulting in a change of agreement.
This challenge to the original agreement necessitates the creation of a solid evidence file, including elements such as:
- A description of activities before and after the change
- A clear list of teams and positions transferred
- Organizational charts before and after the reorganization
- The portion of revenue and margin that evolved with the new scale of activity
- Contracts and projects awarded to the participating entity.
CSE Consultation: Transparency and Documentation
The change of activity and the regrouping of teams must also go through a process of informing and consulting the CSE (Comité Social et Économique) of the targeted entity. This consultation framework serves essential objectives:
- To inform the CSE transparently about ongoing transformations and their consequences, particularly regarding the change of the applicable agreement.
- To gather a set of supporting documents that can legitimize the change before a judge in case of a dispute.
When the operation fits within a broader strategy of your group, it is advisable to consider consulting the central CSE.
Effects of the Challenge: Transition Period
The challenge operation does not immediately alter the framework of the original agreement. The provisions require a 3-month notice period, followed by a 12-month survival period. Thus, until 15 months after the challenge, the rules of the original agreement remain applicable to employees present on that date. During this same period, the new agreement becomes the reference agreement for your company.
It is during these 15 months that you will need to negotiate a substitution agreement that will organize the transition to the new contractual framework.
Coordination with Existing Company Agreements
It is important to note that challenging the branch agreement does not automatically invalidate existing company agreements. These continue to be valid until a denunciation occurs. In the interest of harmonization, it is crucial to consider and schedule the denunciation of these agreements.
The denunciation must also take into account a 3-month notice period followed by a 12-month survival period, which largely aligns with the challenge of the branch agreement. By combining the challenge of the collective agreement and the denunciation of internal agreements, you create a favorable framework for renegotiating a coherent and unified social status within your group.
Frequently Asked Questions
What are the timelines for changing collective bargaining agreements?
The process for change includes a 3-month notice period followed by a 12-month survival period. This gives you 15 months to negotiate the new terms.
What documents are necessary to prove a change of activity?
Robust documentation must include descriptions of activities, organizational charts, and the distribution of revenues and teams.
Do I need to consult the CSE even if the activity changes?
Yes, the CSE must be informed and consulted to ensure transparency and to establish a reliable evidence file.
What agreement applies after the challenge?
After the challenge, the new agreement becomes the reference agreement even though the old rules still apply during the survival period.
What about ongoing company agreements?
Company agreements remain applicable until their denunciation, which can be organized in parallel with the challenge of the branch agreement.
The key lies in planning, informing, and documenting effectively to ensure the harmonization of social statuses and compliance with legal requirements.
📌 This article is part of the comprehensive file Social Engineering: Structuring and Securing Your Operations.