Transcript No Slide Title

MANAGING THE UNION
RELATIONSHIP
B. WARREN STOOKE
STOOKE CONSULTING GROUP
LEVEL 8, 416 COLLINS STREET MELBOURNE 3000
Tel: 03 96700800
 Centralised structure
Pattern agreements
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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
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Should support not control
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Can be a force to keep us focussed
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Can Assist employees to articulate their views
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Should only Balance the ‘Power’ relationship not control
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Need to be reconciled by management as a reality
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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
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Leadership
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Membership

Job security
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Profit and Growth
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Workplace control
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Wages
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Investment
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Job security

Living standards
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Competitiveness

Political/power
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Relativities
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Culture

Survival/relevance

Personal benefit

Continuous
Change
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Benchmarking and
flow on
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Change Incentive
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Enterprise
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Recognition
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Co-operation not
Confrontation
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Family/life balance
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Job satisfaction
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Enterprise
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Employee, not
union focus
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Industry not
enterprise
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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
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Increase involvement of
employees rather than Unions
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Enhance trust
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Share objectives
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Respect the individual
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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
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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
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Plan carefully
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Gain management support
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Communicate effectively
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Foster team cooperation
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Apply good business judgment, and
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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
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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
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Prepare, prepare, prepare
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Follow the formal disputes procedure (reinforce compliance
requirements with employee representatives)
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Maintain the initiative and Be fair and open
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Open the dialogue to your strength
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Remember the Importance of language
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Use Tool-box and consultative meetings to your advantage
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Empower constructive representatives
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Never negotiate with ‘the mob’
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Keep comprehensive diary notes (events/actions/resolutions)
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Follow-up quickly and appropriately
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Confirm agreed position in writing and communicate the outcome
 Select appropriate
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venue
Research the other
side
Find variables you
can exchange
Find fair criteria
Guide decisions
Maintain discipline
Use effective leaders
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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
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Maintain consistency of the message
Communicate to the masses not just Working Party
Clearly enunciate negotiable items
Ensure adherence to a disciplined process of:
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Opening negotiations
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Clarifying negotiating agenda
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Developing position acceptable to the employer
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Agreement (documented)
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Close out process through compliance with FWA voting
requirements (lodgment of Agreement)
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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
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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
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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
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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