SITUATION/PROBLEM DESCRIPTION: 
Years 2002-2004 saw PKN Orlen retail market share decrease of  7 %. An indispensable element of the repair plan was reorganising regional structures which produced high costs and low effectiveness of the system management.

PROJECT DESCRIPTION/SOLUTION:
The restructuring process primarily emphasised social aspects of the change. It was decided that optimal business solutions would be applied with all consideration of the rights of employees and their full involvement in the process. Conform to the Restructuring Agreement, the consultations of the restructuring process was initiated with broad representation of the labour unions. The representation received detailed information on the restructuring project and its effects on employment. Members of the Board communicated directly to the employees of Regional Organisation Units the principles of special benefits for them, listening attentively to their opinions and comments about the program. Thanks to that, the Board modified its initial proposals i.e. regarding the location of new structures.
An intensive campaign was run in the company’s media (additional issue of the company newsletter, special sites in the Intranet, increased media time).

Communication was carried out on two levels. There were talks with labour unions and also individual meeting of the board with the interested employees during which the board answered all the questions and elucidated doubts. Such an approach helped to avoid a lot of misunderstandings and instigations which could come from labour unions. Employees had direct access to the board and felt they were treated as serious partners.

The effect of the dialogue was the introduction of a number of changes and improvements to the initial restructuring project. Some of them concerned:

• Limiting negative effects of the restructuring process;
• Changes of the location of new structures taking in consideration social aspects;
• Program of  Voluntary Leaves and changes in the organisational structure.

The final effect of the dialogue was signing on 21 July 2005 ”Agreement to End the Collective Litigation and Benefits of Employees and Labour Unions with the Implementation of the Restructuring Program  for Regional Structures of PKN Orlen".

BENEFITS:

• Program helped to avoid the necessity of laying off employees who did not find employment in the new structure;
• The process of dialogue created a very strong relationship between the board and employees based on the partners' dialogue;
• A difficult process of changes did not undermine the internal stability of the company nor its good atmosphere;
• Thanks to the dialogue with the employees and labour unions and due to the reliable and candid communication in the media a lot of bad press or conflicts were avoided. 

CHALLENGES:

• Despite the Board’s declaration to conduct reorganisation in the spirit of a social dialogue, offering attractive and respectable financial compensations and enabling maintaining some of the benefits of the labour unions, the latter opposed the program and blocked any substantial discussion. Nevertheless, a consistent realisation of the schedule of legal actions, introduction of incentive offer for the employees and the board’s determination in continuing the dialogue brought positive results.

WORTH REMEMBERING:

• An open dialogue is necessary, even if it is difficult so that each party feels treated as an equal partner;
• Direct involvement of the board is indispensable for the success of the process of important changes.