In 2011, the North American platform undertook a reorganization to reinforce its role as an operator of a large installed capacity. The newly formed structure in 4Q11 provided a solution for an operations company with 3.4 GW of capacity. A key component of the restructuring was the formation of three operational regions led by new regional executive vice-presidents with clear responsibilities: project management (development and construction), regulatory risk management, and origination (PPA and M&A), leading to overall P&L responsibility.
The reorganization resulted in a 15% reduction in headcount. Employees departing the company were provided with a separation package which included the provision of services with an outplacement agency to assist in finding a new position, and the extension of company-paid medical, dental and vision benefits for a specific period of time.
As an employer in the United States, EDPR also complied with the Worker Adjustment and Retraining Notification (WARN) Act Guide to Advance Notice of Closings and Layoffs. Employees who have worked more than six months and 20 hours a week are required to receive 60 days notice in the event of closings and layoffs.
From EDPR’s 796 employees, 29% were covered by collective bargaining agreements.
Generally, collective bargaining agreements apply to all employees working under an employment relationship with and for the account of the respective companies, regardless of the type of contract, the professional group into which they are classified, their occupation or job. However, matters relating to the corporate organization itself, the laws of each country or even usage and custom in each country result in certain groups being expressly excluded from the scope of collective bargaining agreements.
Per country case law, EDPR may have a minimum period which the Company must comply with for giving formal notice of organizational changes at the companies in the Group with an impact on employees. However, it is customary to communicate significant events to the affected groups in advance.