Changing Collective Bargaining Agreements: Harmonizing Employment Status Within a Group
To successfully move a company — often a newly acquired one — from one branch-level collective bargaining agreement (convention collective de branche) to another, you must bring about a genuine change in the principal activity being carried out. This process enables you to reshape your employees’ employment status in order to harmonize it more effectively across the group.
The Principle: The Collective Agreement Follows the Principal Activity
The collective agreement that applies within your company is not a matter of free choice; it depends on the principal activity carried out there. For example, in the context of an acquisition, the target company’s original agreement remains in place for as long as its principal activity continues to match its former framework.
You must establish a course of action grounded in real, factual elements.
The Mechanism: Organizing the Change in Principal Activity
To change the applicable collective agreement, it is essential to organize and document a tangible, verifiable change in the company’s principal activity. For example, an engineering-consulting firm that brings together field teams could evolve its activity toward the performance of construction or works contracts, resulting in a change of agreement.
A mise en cause (the statutory challenge of the original agreement) can be triggered by a change of activity. As a practical matter, it is advisable to build a solid evidence file, which may include items such as:
- A description of the activities before and after the change
- A clear list of the teams and functions transferred
- Organizational charts before and after the reorganization
- The share of revenue and margin that has shifted with the new scope of activity
- The contracts and projects awarded to the entity involved.
Consulting the CSE: Transparency and Documentation
The change in activity and the regrouping of teams must also go through a process of informing and consulting the CSE (Comité Social et Économique, the elected employee representative body) of the targeted entity. This consultation framework serves essential objectives:
- To inform the CSE fairly of the transformations underway and their consequences, in particular the change in the applicable agreement.
- To assemble a body of supporting documents that can legitimize the change before a court in the event of a dispute.
Where the operation forms part of a broader group strategy, it is advisable to consider consulting the central CSE (CSE central).
The Effects of the Mise en Cause: A Transition Period
Triggering the lapse does not immediately alter the framework of the original agreement. The mechanism requires a 3-month notice period, followed by a 12-month survival period (période de survie). As a result, for up to 15 months after the mise en cause, the rules of the original agreement continue to apply to the employees present on that date.
It is during these 15 months that you must conduct the negotiation of a substitution agreement (accord de substitution) to organize the transition to the new collective framework.
Coordinating With Existing Company-Level Agreements
The mise en cause of a branch agreement (L2261-14) and the dénonciation of an agreement (L2261-9 et seq.) are two distinct mechanisms. In the interest of harmonization, it is crucial to plan and schedule the termination of company-level agreements where appropriate.
The termination must likewise observe a 3-month notice period followed by a 12-month survival period, which largely aligns with the timeline of the branch agreement’s mise en cause. By combining the mise en cause of the collective agreement with the termination of internal agreements, you create a framework conducive to renegotiating a coherent, unified employment status across your group.
Frequently Asked Questions
What are the timeframes for changing a collective agreement?
The change process involves a 3-month notice period followed by a 12-month survival period. This provides 15 months to negotiate the new terms.
What documents are needed to prove a change in activity?
A robust documentation file should include a description of the activities, the organizational charts, and the breakdown of revenue and teams.
Must I consult the CSE even if the activity changes?
Yes, the CSE must be informed and consulted to ensure transparency and to build a reliable evidence file.
Which agreement applies after the mise en cause?
During the survival period, the former rules continue to apply while the transition to the new framework is negotiated.
What happens to ongoing company-level agreements?
Company-level agreements continue to apply until they are terminated, which can be organized in parallel with the mise en cause of the branch agreement.
The key lies in planning, communication, and documentation, thereby ensuring the harmonization of employment status and compliance with legal requirements.
📌 This article is part of the complete guide Social Engineering: Structuring and Securing Your Operations.