Therefore, merged companies must inform the necessary unions and renegotiate all existing collective agreements, which would then be concluded between the unions and the new entity. pass the notification of the merger on to any registered union representing a significant number of its employees; workers or representatives of the workers concerned, if there are no such registered unions. As a result, an employer must be fully prepared for the implementation of a merger, in order to ensure that this is done in such a way as to avoid unnecessary demands from unions and workers. These risks can be avoided by proper advance planning and procedures. A seller is bound by the common law when he separates an employee whose letter of offer, for example, indicates only a salary and an obligation to the company`s policy; But what is considered appropriate under the common law will change over time and jurisdiction, and «in recent times, with age and age, it has become a more relevant factor,» she adds. «Someone in the 1950s may not be as fit to work as they were in their 30s. The courts are starting to focus more on that. As has already been said, one possible consequence of a merger is that employees of merged companies may have mixed feelings about their future, which may be uncertain among the new merged entity. How a company handles these mixed feelings before, during and after a merger will influence its success. A number of challenges in this regard are: mergers must renegotiate all previous collective agreements, as unions registered under Nigerian law can demand unions and enter into negotiations with employers. If the merging companies do not renegotiate the previous collective agreements, the unions concerned can exercise their legal powers by organizing a peaceful strike or strike action that often disrupts the activity of the newly created entity. This is probably why the Nigerian Securities and Exchange Commission and FCCPA rules require merging companies to pass on notification of the merger to employees. In a rapidly changing economy, separate companies, often competitors, will choose to merge and form a larger business.
A merger can take different forms and the form can affect an employer`s legal obligations as well as the participation of a union and its members. Mergers are a way for companies to increase their turnover and grow their business.