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MANAGING THE UNION RELATIONSHIP

MANAGING THE UNION RELATIONSHIP. B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800. INDUSTRIAL OBSERVATIONS OF THE ‘BROWNFIELD’ SECTORS. Centralised structure Pattern agreements Highly unionised Industry wage justice

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MANAGING THE UNION RELATIONSHIP

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  1. MANAGING THE UNION RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

  2. INDUSTRIAL OBSERVATIONS OF THE ‘BROWNFIELD’ SECTORS • 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

  3. ROLE OF UNIONS • 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.

  4. EMPLOYER-UNION-EMPLOYEECONFLICTING AGENDA(S)KEY ISSUES EMPLOYER • Leadership • Profit and Growth • Investment • Competitiveness • Culture • Continuous Change • Enterprise • Co-operation not Confrontation • Employee, not union focus UNION • Membership • Workplace control • Job security • Political/power • Survival/relevance • Benchmarking and flow on • Industry not enterprise • Confrontation EMPLOYEE • Job security • Wages • Living standards • Relativities • Personal benefit • Change Incentive • Recognition • Family/life balance • Job satisfaction • Enterprise

  5. CRITICAL ISSUES FOR UNIONS • 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

  6. HOW TO EFFECT:RELATIONSHIP CHANGES • Increase involvementof employees rather than Unions • Enhance trust • Share objectives • Respect the individual • Take a STRATEGIC approach

  7. STRATEGIC CONSIDERATIONS • 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

  8. POTENTIAL THREATS and WEAKNESSES 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

  9. INDUSTRIAL RELATIONS NEGOTIATION STRATEGY

  10. NON NEGOTIABLES • Commercial or Business decisions • Manning • Conditions exceeding industry group • Safety • Corporate policies • Discipline • Merit and selection prerogatives • Rosters

  11. NEGOTIATION PROTOCOLS • 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

  12. NEGOTIATION PROTOCOLS 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

  13. BEST PRACTICE NEGOTIATIONTECHNIQUES • 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

  14. FAIR WORK - BEST PRACTICE GUIDE • 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.

  15. FAIR WORK- BEST PRACTICE GUIDE • 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.

  16. CHECKLIST FOR BARGAINING BEST PRACTICE • 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

  17. NEGOTIATION LEVERAGE • 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

  18. DEALING WITH SITE EMPLOYEE REPRESENTATIVES • 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

  19. Managing Right of Entry 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

  20. Dealing with Conflict Successful Techniques • 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

  21. Dealing with Conflict Successful Techniques (2) • 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)

  22. OVERRIDING NEGOTIATING THEMES • Think win/win; • Sell your position; • Win results not arguments; • Everything is negotiable; and • Make it happen.

  23. CONSULTATIVE PROCESS MODEL DEFINE PURPOSE OF COMMITTEE IS IT - DECISION MAKING OR CONSULTATIVE? IDENTIFY AND APPOINT A BALANCE OF MEMBERS FROM MANAGEMENT AND EMPLOYEES IMPLEMENTATION AND REVIEW PROCEDURE FEEDBACK TO NON PARTICIPANTS ACCESS TO RESOURCES AND COMMUNICATION MEDIUM REVIEW PURPOSE IS THIS COMMITTEE WORKING ? DEFINE RULES OF CONDUCT ‘CHARTER’ REVIEW ENHANCE OR TERMINATE DECIDE WHAT MATTERS WILL BE SUBJECT TO THE SCOPE OF THE COMMITTEE DECIDE HOW TO MANAGE THE MATTERS SUBJECT TO DISCUSSION (I.E. CHAIR ACTIONS/ TIMING ETC IDENTIFY EARLY MANAGEMENT PREROGATIVES

  24. CONSULTATIVE COMMITTEES MANAGEMENT GUIDELINES DO’S DONT’S • Provide leadership • Involve a cross section of staff/ • employees • Focus on the business • Provide clear well thought out agendas • Reinforce positive contributions • Support team player and counsel • obstructors • Manage personalities outside the meeting • Use humour constructively • Listen • Deliver on agreed action items • Use time efficiently • Say ‘no’ when appropriate Avoid self interest/prejudice Don’t focus on negatives Don’t let the agenda fall to the lowest common denominator 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 Don’t use sarcasm Don’t allow difficult issues to pre-empt discussion on simpler matters or waste time Don’t manipulate Don’t take a short term fix

  25. COMMUNICATIONS • 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

  26. PRINCIPLES OF COMMUNICATION Peter Sandman • OPEN • 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.

  27. Effective Change Management

  28. What can we learn from High Performance Organisations?

  29. HIGH PERFORMANCE ORGANISATIONSAN OVERSEAS PERSPECTIVE • People • Organisation • Policies • Culture • Unions

  30. OVERSEAS PERSPECTIVEPeople 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

  31. OVERSEAS PERSPECTIVEOrganisation 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

  32. OVERSEAS PERSPECTIVEPolicies 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

  33. OVERSEAS PERSPECTIVECulture 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

  34. OVERSEAS PERSPECTIVEUnions 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

  35. GENERAL OBSERVATIONS • 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

  36. EVOLVING TREND OF EMPLOYER CONCERN • 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

  37. Some of the “Bear Traps” 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

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