Case Study: Strategic Planning for EBA Negotiations in a Manufacturing Company

Enterprise Bargaining Agreements for the manufacturing industry.

In the manufacturing sector, a company faced significant cost pressures due to soaring utility costs, including electricity and gas. To address these challenges and effectively manage their Enterprise Bargaining Agreement (EBA), the company undertook a comprehensive strategic planning exercise. The primary objective was to avoid industrial action while keeping costs under control.

Challenges Faced

  • Severe Cost Pressures: The company struggled with high input costs, which threatened their financial stability.
  • Risk of Industrial Action: There was a looming threat of industrial action or work slowdowns by employees, which could disrupt operations.
  • Balancing Pay Increases: The company needed to navigate the complex landscape of wage negotiations, aiming to avoid excessive pay increases while ensuring labour peace.

Strategic Approach to EBA Negotiations

  • Early Negotiations Planning: The company initiated negotiations 18 months prior to the EBA’s expiry, allowing ample time to proactively address potential issues and mitigate risks.
  • No Back Pay Clause: A key negotiation principle was established, where no back pay would be demanded under any circumstances. This approach ensured transparent and fair negotiations.
  • Proactive Stock Management: To safeguard against potential disruptions, the company developed strategies to build off-site stock in advance. This approach was designed to prevent stock shortages and maintain production continuity in case of industrial action.

Outcome

By employing these strategic measures, the company successfully navigated their EBA negotiations without encountering industrial action. The advance stock builds provided executive management with the assurance needed to confidently proceed with the plan. This proactive approach not only prevented operational disruptions but also effectively managed costs, maintaining overall business stability.

By implementing these strategic measures, the company successfully navigated the EBA negotiations without facing industrial action. The off-site stock builds provided executive management with confidence in the plan, avoiding disruptions and maintaining operational stability while managing costs effectively.

Further reading