Mergers and acquisitions

Our firm offers a systematic approach to labor relations issues associated with mergers and acquisition and is often part of the acquisition team.

We have found that labor concerns given inadequate consideration at the deal making stage frequently pose larger problems once the deal is consummated.

With respect to unionized companies, an acquisition provides a unique opportunity for major revision of the labor agreement, or, in appropriate cases, to lawfully establish a non-union operation. With respect to non-union companies, the risk of promoting a union-organizing drive because of job insecurity or insensitivity to employee concerns must not be underestimated. Human capital planning, therefore, is essential to a smooth transition.

In the case of both union and non-union companies, major personnel changes are commonplace, often creating a substantial risk of litigation. In those cases we recommend a comprehensive labor litigation audit.

Through such an audit, we not only provide purchasers with a realistic assessment of the potential liability and labor implications arising from pending employment litigation, but address dangers that have not yet been exposed.

For example, union contracts often contain limitations that may be used to block a sale pending the outcome of an arbitration. Moreover, it is critical to assess the liabilities arising from severance and retirement plans and other benefit programs.

The failure to properly calculate those implications of an acquisition can mean the difference between profit and loss.

Whether called upon to formulate labor objectives and strategy; negotiate labor contracts; litigate employment and benefits issues; audit practices for compliance with labor and employment laws; draft agreements, policies, procedures, handbooks and plan documents; or advise clients in advance of contemplated personnel actions, guaida y asociados is a professional organization dedicated to serving the needs of management.