You're normally free to decide what pay increases you'll give your staff as long as you comply with the legislation controlling minimum wage levels and minimum wage increases.
But if you have a recognised trade union in your workplace, you can't afford to overlook these four stages of wage negotiations. They are:
Let's take a closer look at each one of them.
Revealed: The four main stages in wage negotiations
STAGE 1: Preparation
Don't skip this stage!
It's the vital foundation on which your success in the entire negotiation process is based. During preparation you'll follow four steps:
Step 1: Arm yourself with crucial information and decide on what you want out of the negotiations.
Step 2: Analyse the information.
Step 3: Plan your own strategy to achieve your goal.
Step 4: Ensure the resources you'll need to achieve your goal are available.
STAGE 2: Introduction and positioning
The Labour Law for Managers Loose Leaf Service says you must open the first meeting by:
STAGE 3: Bargaining
Once the union has responded to your presentation, adjourn to the caucus room to consider their response.
Your counter-response must be based on:
STAGE 4: Finalising the settlement
Here, it's your job to finalise an agreement. You can do this by:
After concluding wage negotiations you must put all the agreements into a written contract as quickly as possible. Then, get the union official and chief shop steward must sign it.
Make sure your report to the workers makes it clear a deal has been reached and clarifies the content of the agreement.
Knowing what the four main stages in wage negotiations are will help ensure your negotiations are a success.
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