The document provides 10 tips for conducting effective pay negotiations, including preparing by gathering market data, understanding the negotiating partner and framework, being ready to share information, supporting the negotiating team, understanding negotiation skills, having a clear remit, taking employee mandates into account, communicating directly with employees, and knowing when to involve external organizations like ACAS.

1. TOPS TIPS ON CONDUCTING PAY NEGOTIATIONS
These tips are aimed at unionised environments but the principles apply equally to
non-unionised situations.
1. Preparation and planning is vital
Invest time in getting to know both external and internal pay pressures before
negotiations commence. This includes gathering market intelligence, developing
accurate benchmarking data and making use of business federations and other
networks. Ensure you have a clear understanding of your organisation’s priorities in
the months ahead and develop a robust business case to support the opening of
negotiations.
2. Know your trade union negotiating partner
Research your trade union’s strengths and weaknesses. Find out who your local and
national union officials are, and get to know how the union hierarchy and division of
power work. Identify the external influences on union pay settlements: for example,
check what deals they have already done elsewhere in your sector. Establish
whether the union is seeking to achieve broader sector objectives, such as a move
towards national negotiations, for example. Find out what the union membership
profile is within the bargaining unit and whether the union is well supported. Check
whether there is industrial unrest or strike action currently affecting your sector.
3. Understand the negotiating framework
It is surprising how many employers enter negotiations without knowing whether
pay procedures already exist in their collective agreements. They may include an
agreed process for negotiations and specify who is authorised to negotiate within
the trade union and on behalf of the employer, and when negotiations are
considered to have started and finished. Knowing what the agreement provides for
in the event of the escalation of a dispute is clearly important as it can dictate both
the pace of, and future steps for, resolving differences.
4. Prepare to share information
Trade unions are increasingly aware of their rights to request specific information for
collective bargaining purposes. There is a statutory duty on employers who recognise
a trade union to disclose such information and a failure to comply can lead to
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2. proceedings before the Central Arbitration Committee (CAC) and, ultimately, the
CAC has the power to award improved terms and conditions.
Employers preparing for negotiations should familiarise themselves with the ACAS
code of practice (Disclosure of information to trade unions for collective bargaining
purposes) and know what information to share with their union and in what detail.
5. Supporting the negotiating team
It is important to identify at an early stage who will lead the negotiating team for the
organisation and to ensure that the lead negotiator and the rest of the team are kept
supplied with key information before and during the negotiations. Ensure that
people with the relevant authority are involved prior to reaching agreements or
making concessions.
6. Check the teams’ skills
The negotiating team should be skilled negotiators. Training in negotiation skills
should include; effective questioning, understanding body language, the importance
of active listening, making and inviting proposals, using informal channels, making
the best use of adjournments in proceedings and documenting agreements.
7. Know your remit
The employer should draw up a list of essential expectations from the negotiations,
and should determine from the outset areas of flexibility, for example, costing
conditional offers and making concessions linked to increased productivity or
changes to working practice.
8. Take mandates and votes into account
Trade unions are increasingly reluctant to confirm any agreement reached with the
employer’s negotiating team without first obtaining a mandate from their members.
As a result, an employer needs to understand how trade union ballots work in
practice. In most situations, only trade union members vote, ballots are often
informal, and trade unions either recommend a deal is accepted or rejected or
remain neutral.
9. Communicate directly with employees
As a general rule, members follow the lead of their union officials in pay negotiations.
It is, therefore, important that employers engage directly with employees to explain
their position at all times, including the reasons for the pay offer and any conditions
attached to it, and to persuade employees to support the organisation’s position.
JCS Human Resources Consulting, 2 Firth Street, Shepley, Huddersfield, West Yorkshire, HD8 8DD
t: 01484 602708 m: 07905 899593 email: info@jcs-hr.co.uk website: www.jcs-hr.co.uk
©JCS(HR)Ltd 2011

3. 10. Make use of external organisations
Employers should be aware of when it is appropriate to involve external
organisations, such as ACAS, and should understand the difference between
conciliation, mediation and arbitration before embarking on any of these dispute
resolution methods.
People Management 10 May 2011
JCS Human Resources Consulting, 2 Firth Street, Shepley, Huddersfield, West Yorkshire, HD8 8DD
t: 01484 602708 m: 07905 899593 email: info@jcs-hr.co.uk website: www.jcs-hr.co.uk
©JCS(HR)Ltd 2011