Managing Diversity: with or without unions?

This negotiation exercise consists of three groups: Senior Management; HR; Trade Unions

The aim of the exercise is for senior management to decide on a way forward for the company.

The HR and trade union groups are aiming to influence senior management in the direction of the
company, and gain influence.

TeliaSonera offers services that help people and companies communicate in an easy, efficient and
environmentally friendly way. We are the leading telecommunications company in the Nordic and
Baltic countries as well as a leader in mobile communication services in Eurasia.

More and more people want to be connected all the time, which creates a constantly increasing
demand for our services.

Our markets have different conditions and maturity levels and our operations are organized into
three business areas: Mobility Services, Broadband Services and Eurasia.

TeliaSonera has 31,000 employees in 20 countries. To maintain our position as a

telecommunications pioneer we are dependent on business-oriented, creative employees with a
strong driving force.

World-class Service Company

Our focus areas are:

To build a world-class service company

To secure high quality in our networks
To create a best-in-class cost efficiency

Workplace Profile:

Strategic Value
Low High

Quadrant 4: Quadrant 1:
Alliances/ Knowledge-based
partnerships employment
High External knowledge Provide knowledge base
Access to internal Internal development
knowledge Skills and competence
Needs trust and count most
Uniqueness sharing Commitment-based
Collaborative HRM HRM
Quadrant 3: Quadrant 2:
Contractual work Job-based employment
arrangements Important contribution,
Low Little strategic value but transferable
Low skills, low cost, Acquired externally
short training time Salary in return for job
Candidate for out- performance
sourcing Results-based HRM
Compliance-based
HRM

1
Office
25 highly skilled industry specific product designers (mixed: 15 UK male, 5 UK female 2 non
Eu females, 3 Finnish males)
3 marketing experts (2 males, I Finish female)
2 Accountants (male)
HR dept = sub group profile
Senior strategic management team (3 people 2 Finnish, I ?)
3 administrators (2 female, 1 male)

Warehouse
1 supervisor (male)
1 team leader (male)
30 warehouse staff (male 20 UK, 4 Eastern European, 6 Non EU)

Logistics
1 transport manager (male)
15 drivers (13 UK males, 2 UK females)

Production
3 core staff (UK females)

HR agenda - Brief:

Options and goals

Upgrade and professionalise HR to become strategic partner influence at CEO level

Employee engagement?
Work to keep trade unions out of the company?
Work with trade unions?

Established organizational culture:

Autocratic top down management culture
Personnel a minor function dedicated to ensuring legal compliance and strong management
control
4 recent tribunal cases for sexual and pay discrimination; unfair dismissal
Them and us attitudes
Many incidents of warehouse tensions between UK and non UK employees
Line Managers ineffective at all levels
Previous change efforts failed thus organization close to collapse
Employees at all levels have approached a trade union
Employees view personnel as a supporter of management and a waste of money.