Negotiating a collective labor agreement

The negotiation of a collective labor agreement has a major impact on the financial shape of your company, next to many other, but not necessarily less important, intangible aspects.

Here are some key steps and considerations to help guide you through the negotiation process:

1.????? Negotiating a collective labor agreement is not an HR-only job. It requires involvement – and alignment – of every internal senior stakeholder.

2.????? Preparation: understand the labour laws and regulations that apply to your industry and jurisdiction as they impact the negotiation process.

3.????? Define objectives: clearly outline your organization's objectives for the negotiation. What specific changes or improvements are you seeking in the agreement? Rank your objectives from “essential” to “nice to have”. Also get insights into the objectives of your employees and their representatives (be aware that the trade union representative might have his/her own objectives)

4.????? Know your costs: understand the financial implications of the proposed changes. Consider how changes to wages, benefits, working conditions, or other terms will affect your company's bottom line.

5.????? Assemble a negotiating team: form a team of individuals who are knowledgeable about the company's operations, finances, and the specifics of the agreement. Legal counsel and human resources professionals must be part of this team. Make sure you have expert negotiation advice from the earliest stage.

6.????? Communication: respect the legal framework in most European countries how you can communicate with employees and their representatives but use informal talks and chats to pass on critical messages. Consider preconditioning early because it can help creating a positive and productive atmosphere for the negotiation. By setting expectations and establishing a positive tone before the actual negotiation takes place, the parties involved are more likely to approach the negotiation with a mindset of cooperation and compromise rather than confrontation.?Do not make the mistake to communicate with your employees the same way your CFO talks with Wall Street analysts.

7.????? Employ principled negotiation techniques, such as separating people from the problem.

8.????? Develop proposals : begin negotiations by presenting your proposals. Actively listen to the union’s proposals, carefully noting the content, context and mode of communication. Be attentive but non-committal. ?Consider that you may need to make concessions to ?reach an agreement but ensure your concessions are planned and ratified before you offer them.

9.????? Ratification: after both parties reach an agreement, it needs to be ratified by the affected employees. This typically involves a vote among the union members. Make sure you continue to make efforts to control the information flow and continue your communications towards the employees until final approval.

10.? Implementation: once the agreement is ratified, implement the changes as outlined in the collective labor agreement. Maintain an open line of communication with the labour union or representatives. Regular meetings can help address any issues or concerns that arise after the agreement is in place.

11.? Conflict Resolution: Have a process in place for resolving disputes that may arise during the term of the agreement. This can involve mediation, arbitration, or other mechanisms.

Negotiating a collective labor agreement can be a lengthy and challenging process, but by being well-prepared, maintaining good communication, and adhering to legal guidelines, you can work towards an agreement that benefits both your company and its employees.

?@impactnegotiationgroup