Smooth Transition

The Situation: Following eight successful years of operation as an IVEMSA shelter client, Coto Technology, world leader in custom and standard relays, decided to create a unique Mexican business entity and become fully independent.

The Challenge: In addition to all of the legal compliance and customs transitions, human resources was challenged to transfer, without incident, the over 550 Coto personnel under IVEMSA’s payroll to the new legal entity formed by Coto Technology. The challenge additionally was to convince employees that their current salaries, perks, benefits, seniority, and more wouldn’t be affected, and to complete the transition without the loss of any personnel.

The Action: In coordination with Coto Technology’s upper management, IVEMSA developed a strategic communications plan, including the coordination of informative sessions with workers to explain the situation and reasons for the change, while assuring them (through Coto’s letters and other documents) that their rights and benefits, including seniority, would remain intact.

The Result: Coto Technology successfully accomplished their incorporation plans on time and 100% of the workforce joined the new entity, signing resignation letters for the shelter and then accepting employment by Coto. Even though there were many concerns and employees were worried about losing their jobs and benefits, through communications they were assured of the transparency, accountability and professionalism of the entire process. No labor problems or compliance issues occurred during the transition.