Preparing for bargaining

Good preparation for collective bargaining helps the process go more smoothly and efficiently, and promotes better outcomes. Preparation should begin well in advance of collective bargaining, for example, organisations should factor bargaining into business planning and budgeting cycles.

Where employees are already covered by an agreement but that agreement is due to expire, bargaining can be started (by a union or an employer) at any time during the last 60 days of the agreement, so preparation should start before then.

Preparation for collective agreement bargaining involves following some important steps in law as well as equipping the bargaining team with the knowledge to fully participate in the process.

Preparation includes:

• understanding the issues and the people involved in the bargaining
• making sure communication channels are open
• putting in place a bargaining process arrangement that sets out the parties’ expectations of each other at different stages in the bargaining
• drafting potential collective agreement terms and conditions.

Ratification process

At the start of the bargaining, a union must state what membership ratification process it will follow before it signs any resulting collective agreement.

Setting up the bargaining process agreement

One of the challenges in collective bargaining is managing the different expectations parties have about what conduct is appropriate. 

A bargaining process agreement (or arrangement) sets out the parties’ expectations of each other at different stages of the bargaining and the process for conducting the bargaining in an effective and efficient manner. This helps prevent problems coming up that unnecessarily distract or disrupt the negotiations.

The agreement should include:

• advice about who will be the representatives
• the size and make-up of the bargaining teams
• the proposed frequency of meetings
• the venue and who will pay costs
• communications between the parties and with other parties (such as the people they represent, and media)
• the provision of information and associated costs
• managing disagreements.

The parties have to try their best to agree on the bargaining process arrangement as soon as possible after bargaining has been initiated. The Code of Good Faith in Collective Bargaining has a section on the bargaining process arrangement to help you reach agreement on the bargaining process.

Once the bargaining process agreement is done, it’s time to start considering the claims made by the other party and the interests of your own team.

Information agreements

You don’t have to have an information agreement, but it can be useful. If employers and unions can agree on information to be provided on a regular basis, they don’t have to argue relevance on a case-by-case basis. An information agreement may need to be reviewed from time-to-time.

The following things can be included:

• the stages in the bargaining process when information is likely to be required
• the information likely to be ‘reasonably necessary’ for bargaining
• a list of items that could be provided and a timeframe for disclosure
• costs associated with providing information and who will pay them
• what information may be ‘reasonably considered’ confidential
• restrictions on the use of information (for example, confidentiality agreements)
• costs associated with an independent reviewer, should the need arise
• procedures for resolving information disputes.

The parties can agree that they will keep their progress confidential at times. Reaching an agreement on what will be reported publicly and what will remain confidential sometimes helps things along, particularly if a range of options are being discussed.

Making best use of meetings

All steps in collective bargaining have meetings, for example, with the people you represent, the bargaining team during negotiations, and report-back meetings afterwards.

Managing meetings well shows respect for participants and the value of their time. Good meetings help make well-considered decisions and progress in the bargaining.

Each party should take notes in negotiation meetings and they should also record progress in meetings outside of negotiations.

Checklist for meetings outside the negotiation

• Have an agenda — a good tool for keeping the meeting on track.
• Cover what needs to be discussed, what needs to be done about it (and who will be doing it, if appropriate).
• Provide information so they can make the necessary decisions.
• Manage the meeting through a Chairperson.
• Find ways to let everyone have a say.
• Keep a record — simple formats work best.
• Always recap and clarify decisions before the end of the meeting.

Clarify roles

The following points are suggestions for what the chairperson and note-taker roles do.

Chairperson role:

• creates an agenda, including items from participants
• sets ground rules and ensures they are upheld
• sets timeframe for discussion and stick to it if possible
• agrees on a decision-making process (consensus/majority vote)
• ensures you stick to the processes agreed.

Note-taker role:

• decides a format for notes. For example, creates headings: issue/discussion/agreement/timeframe/person responsible
• puts a name, date and time on each notes page
• works with the Chairperson to ensure accurate recording
• checks back with participants for clarity as you go
• sends out minutes (if appropriate).