Negotiating Eba Agreements

Clint Indrele 4:45 So let`s go to our second round of advice around trading sessions. This is the case when the parties are ready to negotiate and the planning phase is complete. We therefore believe that organizations and businesses should be on the front lines of these negotiations, rather than waiting for the union to contact the company for the negotiation of an EBA. Look, sometimes it can be a good strategy depending on the situation. But in most cases where you expect or there are high expectations that there will be another enterprise agreement to follow the current enterprise agreement, it is often the best process to reach the parties involved to start negotiations. That`s why planning is important because that`s what you want to do before you go to those parties. Of course, we have to think about the union`s claims protocol, provided that the unions are involved in this matter. Give yourself at least one to two weeks to respond, do not feel obliged to respond immediately to a claims protocol. It is very important that you take the time necessary to take into account things like calculations related to different claims. Keep in mind that the negotiations are not just about increasing securities. And often, the way unions will present their claims is an increase in the main salary, plus a number of other conditions that end up generating costs.

So, you know, accept a 3% increase or a 2% increase, or whatever it is the increase you approve of. Ultimately, the actual costs depend on the cost of the other claims. Thus, the cost of other claims could be quite significant could add an additional 1 to 2% to the overall increase in your payroll calculation. So be very clear about the calculations. Keep in mind that negotiations are not limited to increasing securities. And as we have already said, an error in an enterprise agreement, as has already been mentioned, in the previous series of advice, errors or complacency with considerable costs can result in hundreds of thousands of dollars. Be very clear about the relevant economic and business environment. And sometimes I have problems with customers about it, because they don`t want to share information with unions, they don`t want to share information with employees about these particular situations. I think that is not the right approach. Because I think there is nothing better for a negotiation, then to tell the story or the economic and commercial environment.

Especially if it`s a difficult situation, if the environments are difficult, if your business doesn`t work with loss or profit, I should say, or if your company knows them, in a breakeven situation, or you`re in a scenario where there are massive challenges as a result, you know, COVID-19, and that sort of thing, share this information with employees and unions so they understand the negotiating context in which this agreement must be Discussed.