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

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

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

Page 2: MANAGING THE UNION RELATIONSHIP 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

Page 3: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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.

Page 4: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 5: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 6: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 7: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

Increase involvement of

employees rather than Unions

Enhance trust

Share objectives

Respect the individual

Take a STRATEGIC approach

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

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

Page 9: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 10: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 11: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

Commercial or Business decisions Manning Conditions exceeding industry group Safety Corporate policies Discipline Merit and selection prerogatives Rosters

Page 12: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 13: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 14: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 15: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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.

Page 16: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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.

Page 17: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 18: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 19: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 20: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 21: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 22: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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)

Page 23: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

Think win/win;

Sell your position;

Win results not arguments;

Everything is negotiable; and

Make it happen.

Page 24: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800
Page 25: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

•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

Page 26: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 27: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 28: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 29: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

What can we What can we learn from learn from

High Performance High Performance Organisations?Organisations?

Page 30: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

People

Organisation

Policies

Culture

Unions

Page 31: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 32: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 33: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 34: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 35: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 36: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 37: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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

Page 38: MANAGING THE UNION RELATIONSHIP RELATIONSHIP B. WARREN STOOKE STOOKE CONSULTING GROUP LEVEL 8, 416 COLLINS STREET MELBOURNE 3000 Tel: 03 96700800

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