Collective Agreements/Unions

Looking at valuing a company that has collective agreements and a union in place. Does anyone know how easy it is to get rid of a union??? I am assuming it is possible, it will just cost the company money in terms of layoffs/packages.

Is anyone familiar how these things go down if you buy the company?

Bobo

6 Comments
 

You're probably better off working with the union than trying to abolish them. Unionized companies can still be profitable LBO targets.

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CompBankerYou're probably better off working with the union than trying to abolish them. Unionized companies can still be profitable LBO targets.

What are the chances for unions to compromise? Also do you know if it is legal to get rid of a union before contracts expire?

 
bobo
CompBankerYou're probably better off working with the union than trying to abolish them. Unionized companies can still be profitable LBO targets.

What are the chances for unions to compromise? Also do you know if it is legal to get rid of a union before contracts expire?

Really depends on the individuals as well as the relationship that management has with the union. As for the legality of "getting rid of the contract before it expires," it really depends on the contract. Consider consulting labor counsel?
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