Context

As companies increasingly embrace digitalization and automation, understanding your legal obligations under Collective Labor Agreement No. 39 (CLA 39) has never been more critical. Recent headlines about Lufthansa cutting 4,000 administrative jobs through digitalization serve as a stark reminder that technological transformation comes with significant employment law implications.

Whether you're implementing AI systems, automating processes, or undertaking digital transformation projects, CLA 39 may require you to inform and consult with employee representatives well in advance. Failure to comply can result in serious legal consequences, including protection periods for affected employees.

Understanding CLA 39: When Does it Apply?

The Dual Threshold Test. CLA 39 applies when an employer introduces technological changes that meet two cumulative conditions:

1) The company employs at least 50 workers

2) The technological change affects at least 50% of the workers in a specific professional category, with a minimum of 10 affected workers.

Practical Example. Consider a company with 120 employees, including 20 administrative staff. If the employer plans to implement invoice automation software that will fundamentally change how 12 of these administrative employees perform their work, CLA 39 applies because:

• The company has more than 50 employees overall
• 12 out of 20 administrative staff (60%) are affected, and this exceeds the minimum threshold of 10 workers.

Employer Obligations: Information and Consultation

When CLA 39 applies, employers must inform and consult the employee representatives at least three months before implementing the technological change.

The information provided must include:

• The nature and scope of the planned technological changes
• The economic, technical, or financial reasons justifying it
• The expected impact on working conditions, employment levels, and job content (e.g., dismissals, transfers, new qualifications)
• The implementation timeline
• Measures to prevent or mitigate negative consequences for workers

The consultation includes discussions with the employee representatives covering employment development and planned social measures, organization and working conditions, health and safety, and training needs.

Key principles: Transparency and early engagement are essential. The consultation must be genuine, allowing employee representatives meaningful input before final decisions are made.

Worker Protections

Employees affected by technological changes benefit from specific protection against dismissal during a defined period:

• This protection begins three months before the planned implementation of the technological change.
• It continues until three months after implementation.
• During this six-month window, dismissals of affected employees are subject to heightened scrutiny and may be challenged if linked to the technological change.

Critical caveat: This protection applies when employers have failed to comply with their information and consultation obligations. Non-compliance significantly strengthens employees' legal position in any dismissal dispute.

Essential Action Items for Employers

To ensure compliance and minimize legal risks, employers should:

• Anticipate: CLA 39 requires advance planning. As soon as a technological project is considered, assess whether the thresholds are met (number of affected workers and collective impact).
• Inform and consult: Act transparently with representative bodies. The clearer and earlier the information provided, the smoother the consultation process and the lower the resistance.
• Ensure legal security: Document all HR decisions thoroughly, particularly given the specific protection against dismissal that applies during the implementation period and when information and consultation procedures are not followed.
• Plan the timeline: Build the mandatory three-month consultation period into your project timeline from the outset.
• Seek expert advice: Employment law specialists can help you navigate the consultation process and ensure full compliance.

Why This Matters Now?

The pace of technological change is accelerating. From artificial intelligence to robotic process automation, businesses across all sectors are transforming how work gets done. As the Lufthansa example demonstrates, these changes often have significant workforce implications.

Proactive compliance with CLA 39 offers multiple benefits:

• Legal protection: Avoid costly disputes and potential challenges to restructuring decisions
• Smoother implementation: Early information and consultation often identify practical issues and solutions
• Better employee relations: Transparent communication builds trust during periods of change
• Reputational benefits: Demonstrating respect for employee consultation rights enhances your employer brand.

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Our Employment & Benefits team has extensive experience advising clients on CLA 39 compliance, from initial threshold assessments through to managing the full information and consultation process.

For expert guidance on navigating CLA 39 and ensuring compliant digital transformation, do not hesitate to contact us.