When bargaining, information about a company’s turnover, profits and directors’ pay can help trade unions negotiate wages. Directors are employees in the same way as any other employee. So the remuneration approach should not differ. Negotiators can prepare for bargaining by following some steps for using company-related information.
Negotiating with companies | A five-step guide
Step 1: Look at what directors earn
Do you know what directors earn and can you compare their pay with previous years? You need to collect and analyse information on directors’ remuneration.
Step 2: Don’t be swayed by claims of reduced profits – look at company revenues and profits
Companies may want to distract negotiators by claiming lower profits as a bargaining strategy. To better understand the company’s affordability, collect and interpret its financials.
Step 3: Gather information on workers’ pay
Know the conditions at work for all workers in the company. Conditions at work include salaries and allowance benefits.
Step 4: Build your bargaining case – compare percentage increases in wages
Comparing percentage increases will strengthen the union’s bargaining case.
Step 5: Build your bargaining case – reveal the wage gap
Use the information gathered in steps 1-3 to influence outcomes. Demand for accountability from the company.
Bonus step: Stay ahead of the company’s expansion strategies and organise across the business operation.