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Often enterprise bargaining ends with a deal brokered in
circumstances of crisis. Perhaps industrial action and a union
media campaign are now viewed as too distracting or expensive.
Perhaps management discontent with long negotiations has brought
frustration to the fore, and an instruction to negotiators to
"end it, get a deal, any deal".
In these circumstances an employer might have no choice but to
"take" the price of whatever deal is being offered
– the financial price, the price of new conditions of
employment, additional restrictions on operating the business, etc.
The cost of continuing the bargaining process is viewed as
outweighing the cost of the deal.
Contrast this with an employer who has thoroughly prepared for
enterprise bargaining negotiations. This employer knows where their
leverage and that of unions and others lies. Their contingency
planning is comprehensive. Their communications are insightful and
explain their case for change, and the communication channels are
well defined and effective. They know their legal options and have
been working towards an end goal before enterprise bargaining even
started. They have thought through the gains they want to achieve
and the pain they are willing to go through to achieve them.
This employer might be under pressure – but they are not
in crisis. They will agree to a new enterprise bargain if, and only
if, the deal meets their minimum requirements. This employer is a
"price maker" – they choose whether to do the deal
and the price they pay for the deal because they are not desperate
for any deal. And the price paid reflects the value of the deal to
the business, wages are based on appropriate indices such as skill
level and market forces, productivity gains and the like.
How does an employer become an enterprise bargaining price
maker?
The key to success is simple but not easy. It means preparation,
investment in planning, and disciplined execution. It means
understanding early the cost of the process versus the cost of the
deal and recognising the long-term nature of the latter.
We have worked with many clients that have achieved excellent
enterprise bargaining outcomes that were previously thought too
ambitious. The key was the front end planning that created a path
to success and instilled confidence in the approach to achieve
it.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Our client, we'll call them Company X, provides installation, connection, upgrades and repairs for one of the country's largest providers of residential and commercial television, telephone
Summer's not over yet! On August 28, 2018, the U.S. Department of Labor issued four new letters in response to requests for opinions under the Fair Labor Standards Act.
Last month, the Sixth Circuit (which has jurisdiction over Michigan, Ohio, Tennessee and Kentucky) revived an employee's claim that the termination of her employment, due to her inability to return to her full-time job because of her post-partum depression and separation anxiety arising from leaving her baby at home, was a violation of the Americans with Disabilities Act (ADA).
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