Merger Matters 

Making Safety a Priority

By: Debora Sepich

       Mergers and acquisitions continue to be a critical element of today’s business landscape. According to the Journal of World Business, (Spring 2001) “Because of deregulation, market liberalization, technological change and globalization, the number and value of deals transacted worldwide rose during the 1990s and maintained a steady pace through 2001.” Specifically, during the first quarter of 2002 in the Latin American market, Mexico came in second only to Brazil in volume of merger deals, recording 35 transactions that totaled more than $3.1 billion. And, the U.S. Federal Trade Commission notes that of the mergers reported to them, a full 25 percent involve parties or assets in two different countries.

       Yet, despite the level of global M&A activity, a recent study by the management and technology consulting firm Accenture, revealed that about half of corporate mergers fail or fall well short of the anticipated financial results. When analyzing the reasons for such a dismal record, The Journal of Management Development (January 1997) cited “the lack of post-merger success as increasingly being attributed to human factors. Mergers increase employee uncertainty, and with that increase there seems to be a rise in stress and a decrease in satisfaction.”

The human factor — a link between job insecurity and safety

       Certainly, most corporations understand the negative effects that employee job insecurity has on worker satisfaction, health and turnover. However, according to a study in the Journal of Occupational Health Psychology (2001, Vol. 6, No. 2, 139-159), “employers also need to consider the possibility that job insecurity can have potentially dangerous implications for employee safety attitudes and behaviors. Employees who feel that their jobs are insecure may choose to ignore

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