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MANAGING THE UNION
RELATIONSHIP
B. WARREN STOOKE
STOOKE CONSULTING GROUP
LEVEL 8, 416 COLLINS STREET MELBOURNE 3000
Tel: 03 96700800
Centralised structure
Pattern agreements
Highly unionised
Industry wage justice
Competition stress
Poor attempts at
differentiation
“Begging reform”
Common standards
Threat of ‘leap
frogging’
Male dominance
Change Resistance
Skills drift to other
sectors
Political pressure
Should support not control
Can be a force to keep us focussed
Can Assist employees to articulate their views
Should only Balance the ‘Power’ relationship not control
Need to be reconciled by management as a reality
Can be a catalyst for change and a conduit to sell our
message
NOTE
(1) The presence of unions does not mean that a business will be less efficient
or less profitable.
(2) We have them whether we like it or not by legal status and legitimacy.
EMPLOYER
UNION
EMPLOYEE
Leadership
Membership
Job security
Profit and Growth
Workplace control
Wages
Investment
Job security
Living standards
Competitiveness
Political/power
Relativities
Culture
Survival/relevance
Personal benefit
Continuous
Change
Benchmarking and
flow on
Change Incentive
Enterprise
Recognition
Co-operation not
Confrontation
Family/life balance
Job satisfaction
Enterprise
Employee, not
union focus
Industry not
enterprise
Confrontation
Membership
Maintaining the Pattern Agreement
Control within the Industry Sector
Flexibility
Union policy and principles
Political influence
Terms and conditions of employment
Occupational Health and Safety
UNION CONTROL MECHANISMS
POLITICAL
INDUSTRIAL
Party affiliation
Membership
Socialist Agenda
Bargaining
LEGAL
Representation
Rights
CULTURAL
COMMUNICATION
Representation
Leadership
Class History
Advocacy/Direct Action
Proclaimed
Defender of
Rights
Delegates and Members
Condonation by
management
Information and
Misinformation
Male dominance
and assertiveness
Exploiting Ignorance
Legislation
Class system
Grievance procedure
Fair Work Act
Government
access
Advocacy
Intimidation
FWA
FWA
Your Rights
Award
Right of Entry
Globalisation
EBA
Network
Wealth
distribution
Organisational
structure
NGO’s
Occupational
Health & Safety
Mateship
Propaganda and fear
EEO
Ethnicity
Worker’s Comp
Community
Meeting and messing
Divisiveness
ILO
Socialisation
Imbedding with members
Rules
STOOKE CONSULTING GROUP
Increase involvement of
employees rather than Unions
Enhance trust
Share objectives
Respect the individual
Take a STRATEGIC approach
Management to set the agenda/time table
Identify the negotiation impediments
Agree up front the rules of engagement
Identify the negotiating parameters for both
parties and key objectives
Conduct a SWOT analysis prior to commencing
negotiations
Optimise your negotiating strengths
Maintain the continuity of your negotiating team
and representation
THREATS
Union reaction in survival
mode
Lack of line IR capability
Absence of senior
management support
Stop/start process
Political intervention
Resistance to change
Protected action
WEAKNESSES
Union dominated culture
Award system and pattern
EBAs
Limited line management
resources and
Experience in a conflict
environment
Industry precedents
Negotiation
Objectives
Present
Management
Initiatives to
Union/Employees
Communicate
Options to
Employees
Provide
opportunity for
Union to canvass
their Initiatives
Develop
Standards
Win/Win
Identification
of
Key Issues
Negotiate Broad
Agenda
Develop
Options
SWOT
Analysis
Agreed Matters
No
FWA
Conciliation)
Develop
Strategy
Negotiate Agreed
Matters
Draft
Agreement
Consult
Management
Stakeholders
Management
Consensus
and
Mandate
Pursue Legal
Remedies
No
Agreement
Protected
Action
Employee Vote
Implement
Agreement
Yes
Commercial or Business decisions
Manning
Conditions exceeding industry group
Safety
Corporate policies
Discipline
Merit and selection prerogatives
Rosters
Timetable to be agreed for the conduct of negotiations
Meetings to be Chaired by Management
Joint communiqué to be issued after each meeting
Negotiation teams to be consistent
No substitutes once process commences
Designated leaders – management and union
Agenda to be prepared by management before each meeting
Come prepared and meet commitments
Time frame to be set for each meeting
Behaviours required of participants to be committed by both parties
Behaviours expected of the parties
Openness
Compliance with the agenda
Genuine participation
No ‘hidden agendas’
Respect for all contributors
Focus upon the issues not the personalities
Punctuality
Use adjournments when necessary
Plan carefully
Gain management support
Communicate effectively
Foster team cooperation
Apply good business judgment, and
Engage Good negotiators who can:
Sell their bargaining position by speaking in an articulate, confident, and
businesslike manner
Disagree with others in a cordial and non-argumentative manner
Listen effectively
Tolerate conflict while searching for agreement
Project honesty
The parties are not required:
to make an agreement, or
to make concessions they do not wish to make.
The parties can agree to disagree and
If the parties are unable to make an agreement they
may wish to leave the existing agreement in place, or
May ask Fair Work Australia (FWA) to help them reach
an agreement, or
May exercise their rights to take protected industrial
action.
Good faith bargaining requirements include:
attending and participating in meetings at reasonable times
disclosing relevant information (other than confidential or
commercially sensitive information) in a timely manner
responding to proposals made by other bargaining
representatives in a timely manner
giving genuine consideration to the proposals made by
other bargaining representatives, and reasons for any
response to those proposals
not behaving in a capricious or unfair way that undermines
freedom of association or collective bargaining, and
recognising and bargaining with the other bargaining
representatives for the agreement.
Employers and employees engaged in best practice
enterprise bargaining will:
understand their obligations to bargain in good faith
and apply those principles
have an understanding of what may, must and cannot
be included in an enterprise agreement
ensure that all employees understand the terms of any
proposed agreement with a focus on equity and access
to information. (Make translations where appropriate)
use good faith bargaining to achieve optimal
organisational productivity and flexibility, and
negotiate for outcomes that focus on fairness,
cooperation and mutual benefit
Public interest
External political pressure to deliver
Disparate work groups
Corporate independence
Industry Associations to advocate key concerns
Conciliation with the FWA
Application to FWA re ‘non protected action’
Use of the ‘cooling off period’
Application for suspension of the bargaining period
– public safety/welfare, not bargaining good faith
An FWA arbitration following suspension
Prepare, prepare,
prepare
Pay attention to
timing
Leave behind your
ego
Ramp up your
listening skills
If you don't ask, you
don't get
Expect compromise
/fairness
Offer and expect
commitment
Don't absorb their
problems
Stick to your
principles
Close with written
confirmation
Insist upon 24 hours written notice and view the official’s permit
Confine union meetings with employee representatives and
employees to within meal breaks and non working time
Control movement on site or within the office area (including
escorting officials to the meeting place)
Advise the official(s) of the site safety requirements and seek
compliance
Make sure you do not hinder or obstruct the official in carrying
out legitimate duties
Formally write to the union secretary where an official breaches
site protocols and seek a commitment to comply
Continued breaches should lead to a challenge to the official’s
permit status through FWA
Prepare, prepare, prepare
Follow the formal disputes procedure (reinforce compliance
requirements with employee representatives)
Maintain the initiative and Be fair and open
Open the dialogue to your strength
Remember the Importance of language
Use Tool-box and consultative meetings to your advantage
Empower constructive representatives
Never negotiate with ‘the mob’
Keep comprehensive diary notes (events/actions/resolutions)
Follow-up quickly and appropriately
Confirm agreed position in writing and communicate the outcome
Select appropriate
venue
Research the other
side
Find variables you
can exchange
Find fair criteria
Guide decisions
Maintain discipline
Use effective leaders
Handle opposition
Isolate the issues
Prioritise the issues
Develop your
withdrawal position
Deploy your
withdrawal strategy
Don’t reward
negative behaviour
(otherwise you get
more of it)
Think win/win;
Sell your position;
Win results not arguments;
Everything is negotiable; and
Make it happen.
DEFINE PURPOSE
OF COMMITTEE
IDENTIFY AND
APPOINT A BALANCE
OF MEMBERS FROM
MANAGEMENT AND
EMPLOYEES
IMPLEMENTATION
AND REVIEW
PROCEDURE
DEFINE RULES
OF CONDUCT
‘CHARTER’
ACCESS TO
RESOURCES AND
COMMUNICATION
MEDIUM
DECIDE HOW TO
MANAGE THE
MATTERS SUBJECT
TO DISCUSSION
(I.E. CHAIR ACTIONS/
TIMING ETC
DECIDE WHAT
MATTERS WILL BE
SUBJECT TO THE
SCOPE OF THE
COMMITTEE
IS IT - DECISION
MAKING OR
CONSULTATIVE?
FEEDBACK TO
NON PARTICIPANTS
REVIEW PURPOSE
IS THIS COMMITTEE
WORKING ?
IDENTIFY EARLY
MANAGEMENT
PREROGATIVES
REVIEW
ENHANCE OR
TERMINATE
MANAGEMENT GUIDELINES
DO’S
DONT’S
•Provide leadership
Avoid self interest/prejudice
•Involve a cross section of staff/
Don’t focus on negatives
•employees
Don’t let the agenda fall to the lowest common
•Focus on the business
denominator
•Provide clear well thought out agendas
•Reinforce positive contributions
•Support team player and counsel
•obstructors
Don’t allow consultation to usurp management
decisions
Don’t give an answer to a subject you are
unsure about - revert in your time
Don’t foster false expectations
•Manage personalities outside the meeting Don’t use sarcasm
•Use humour constructively
Don’t allow difficult issues to pre-empt
discussion on simpler matters or waste time
•Listen
•Deliver on agreed action items
•Use time efficiently
•Say ‘no’ when appropriate
Don’t manipulate
Don’t take a short term fix
Maintain consistency of the message
Communicate to the masses not just Working Party
Clearly enunciate negotiable items
Ensure adherence to a disciplined process of:
Opening negotiations
Clarifying negotiating agenda
Developing position acceptable to the employer
Agreement (documented)
Close out process through compliance with FWA voting
requirements (lodgment of Agreement)
Confirm agreed position and seek implementation
compliance
OPEN
Peter Sandman
Regular updates that are fair and clear.
Telling the truth.
TRANSPARENT
Telling more than the truth.
No surprises for employees e.g. details of future changes being considered.
ACCESSIBLE
Look for vehicles for employees to be able to express complaints
e.g. focus groups, surveys. Be visibly safe i.e. not only via first line manager.
COLLABORATIVE
Working together, although not necessarily with every group.
RESPONSIVE
Showing that views have been heard and listened to.
RESPECTFUL
People need to be respected, trusted.
APOLOGETIC
Demonstrating that company takes responsibility for its actions. If management
makes a mistake – you needs to say sorry before moving to the next stage of
improving things.
What can we
learn from
High Performance
Organisations?
People
Organisation
Policies
Culture
Unions
Small employee units (especially where unionised)
High level of consultation with employees
Carefully selected front line supervisors
Management seek Employee feedback
Effective team leaders and communications
Minimum of differentiation within organisation
Effective senior management
Core business focus and avoid occupational unions
Line managers responsible for Employee relations
Open style of management
Less structured relationships and committees
Teamwork
Removal of supervisors and empowerment of teams
Devolved responsibilities within the workgroup
Total remuneration packaging
Job security focus
Bench marking to improve performance
Job evaluation at all levels
Benefits linked to goals and targets
Competencies not qualifications
Competitive labour rates
Productivity recognition - one off payments as
opposed to enshrined performance pay
Driven by Continuous improvement
High technology utilisation
Local business focus
Family support ethos
Management code of practice
Customer orientation
Economic business literacy
Multi-skilled employees
Low level of union allegiance
Local negotiations not industry
Unions managed as a business
Avoidance of critical issues during bargaining
period
Recognition that management make the difference
not unions
Non occupational union(s) key relationship
Healthy attitude to unions as a positive management
capability and support role to be played
Support unions that support local negotiation
Difficult unions can be managed by good managers
Empower the employees not the unions
Avoid centralised negotiations or pattern bargaining
– develop your own agenda
Avoid major change strategies during EBA renewals
EBAs are the wall-paper and are largely irrelevant to
the core issues
Most issues for employers are not EBA but rather
management issues
An increase in militant behaviour by some unions
The increasing incidence of pattern bargaining without
due regard to productivity offsets
Excessive wage increase expectations
The rise of demarcations based upon union alliances
Increase access to ‘protected action’
Restricted work practices and push back on ‘flexibilities’
Reduced managerial prerogative and increased FWA
intervention (directions and orders)
Good-faith bargaining compliance
Unknown evolution under a more constraining industrial
environment
Good-faith bargaining and compliance
Adverse action and the onus on employers
Right of entry and union competition
Multiple Bargaining representatives and
conflicting agendas
Pattern bargaining
Transfer of business (changed rules)
FWA Workplace determinations
Solution: Get sound legal advice