managing the union relationship relationship b. warren stooke stooke consulting group level 8, 416...
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MANAGING THE UNIONMANAGING THE UNION
RELATIONSHIPRELATIONSHIP
B. WARREN STOOKEB. WARREN STOOKE
STOOKE CONSULTING GROUPSTOOKE CONSULTING GROUP
LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 LEVEL 8, 416 COLLINS STREET MELBOURNE 3000
Tel: 03 96700800Tel: 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 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
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 LEGAL CULTURAL COMMUNICATION
Party affiliation
Socialist Agenda
Class system
Government access
Your Rights
Globalisation
Wealth distribution
NGO’s
ILO
Membership
Bargaining
Grievance procedure
Advocacy
FWA
Right of Entry
Network
Organisational structure
Divisiveness
Representation Rights
Legislation
Fair Work Act
FWA
Award
EBA
Occupational Health & Safety
EEO
Worker’s Comp
Rules
Representation
Class History
Proclaimed Defender of Rights
Condonation by management
Male dominance and assertiveness
Mateship
Ethnicity
Community
Leadership
Advocacy/Direct Action
Delegates and Members
Intimidation
Information and Misinformation
Exploiting Ignorance
Propaganda and fear
Meeting and messing
Socialisation
Imbedding with members
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
NegotiationObjectives
Identification of
Key Issues
SWOTAnalysis
DraftAgreement
ManagementConsensus
andMandate
ConsultManagementStakeholders
DevelopStandards
DevelopOptions
DevelopStrategy
PresentManagementInitiatives to
Union/Employees
Provideopportunity for
Union to canvasstheir Initiatives
Negotiate BroadAgenda
Agreed Matters
Negotiate AgreedMatters
Agreement
Employee Vote
CommunicateOptions toEmployees
Win/Win
FWAConciliation)
Pursue LegalRemedies
ProtectedAction
ImplementAgreement
No
Yes
No
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.
•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
DO’SDO’S DONT’SDONT’S
MANAGEMENT GUIDELINESMANAGEMENT GUIDELINES
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
OPENRegular updates that are fair and clear.Telling the truth.TRANSPARENTTelling more than the truth.No surprises for employees e.g. details of future changes being considered.ACCESSIBLELook 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.COLLABORATIVEWorking together, although not necessarily with every group.RESPONSIVEShowing that views have been heard and listened to.RESPECTFULPeople need to be respected, trusted.APOLOGETICDemonstrating 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.
Peter Sandman
Clear Vision + + + =
Pressure For
Change
CapacityFor
Change
ActionableFirstSteps
SuccessfulChange
Clear Vision + + + =
CapacityFor
Change
ActionableFirstSteps
Bottom ofthe in-tray
Clear Vision + + + =
Pressure For
Change
ActionableFirstSteps
Clear Vision + + + =
Pressure For
Change
CapacityFor
Change
+ + + =Pressure
ForChange
CapacityFor
Change
ActionableFirstSteps
Fast startthat fizzles
Anxiety andfrustration
Haphazardefforts/false
starts
What can we What can we learn from learn from
High Performance High Performance Organisations?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