Case Study
OmniLogistics Restructure
About
About The Client
OmniLogistics is a nationwide transport and supply chain provider with over 12,000 unionized employees. Facing a shift in the market due to automation, they needed to restructure their workforce to remain solvent while maintaining operational continuity.
Problem
The Challenge
The proposed restructuring involved changes to pension schemes and shift patterns, which triggered a threat of a nationwide strike from the labor union. A strike would have paralyzed the client’s supply chain during the peak holiday season, causing irreparable financial and reputational damage.
Goal
Strategic Objectives
To successfully renegotiate the collective bargaining agreement (CBA) in a way that allowed for necessary modernization and cost-saving, while preventing a work stoppage and ensuring fair terms for the employees to maintain morale.
Solution
Legal Strategy
Jurria Law acted as the lead negotiator. We moved the discussion from confrontation to cooperation by proposing a "phased transition" plan. We drafted legal frameworks that guaranteed job security for existing employees in exchange for flexibility on new hires. We also ensured strict compliance with the National Labor Relations Act throughout the process.
The restructuring process was sensitive and required a diplomatic, three-step legal approach.
Phase 1
Audit of existing labor contracts and financial liabilities.
Phase 2
Closed-door mediation sessions with union leaders.
Phase 3
Drafting and ratification of the new Collective Bargaining Agreement.
Result
The Outcome
The strike was averted just 48 hours before the deadline. The new agreement reduced the client's operational costs by 22% over five years while protecting the pensions of senior staff. The restructuring was implemented smoothly, and OmniLogistics reported record efficiency in the following quarter.
