GRI 402 Labour/management relations

Organizations are expected to provide reasonable notice of significant operational changes to employees and their representatives, as well as to appropriate government authorities. Minimum notice periods are a measure of an organization’s ability to maintain employee satisfaction and motivation while implementing significant changes to operations. Minimum notice periods can be found in corporate policies and standard employment contracts. Different policy statements can exist at a regional level.

This disclosure provides insight into an organization’s practice of ensuring timely discussion of significant operational changes and engaging with its employees and their representatives to negotiate and implement these changes, which can have positive or negative implications for workers.

This disclosure also allows an assessment of an organization’s consultation practices in relation to expectations expressed in relevant international norms.

The essence of consultation is that management takes the views of workers into account when making specific decisions. Therefore, it is important that consultation takes place before a decision is made. Meaningful consultation includes the timely provision of all information needed to make an informed decision to workers or their representatives. Genuine consultation involves dialogue; opinion surveys and questionnaires are not considered consultation.

Timely and meaningful consultation allows the affected parties to understand the impacts of the changes, such as possible loss of employment. It also gives an opportunity for them to work collectively to avoid or mitigate negative impacts as much as possible (see references 11 and 12 in the References section). Consultative practices that result in good industrial relations help to provide positive working environments, reduce turnover, and minimize operational disruptions