Enterprise Bargaining Agreements (EBAs) are one of the most strategic and high-stakes processes HR professionals manage. Get it right, and you can lock in stable pay and conditions with minimal disruption. Get it wrong—or overlook a key risk—and you can quickly find yourself dealing with protected industrial action, budget blowouts, or drawn-out disputes.
In this article, we share practical negotiation tips for HR professionals—focusing not just on bargaining tactics, but on identifying and mitigating the risks upfront.
Because what derails EBA negotiations isn’t usually the bargaining table—it’s what you didn’t plan for.
Tip #1: Be Clear from Day One – No Back Pay
One of the most effective and underused strategies in enterprise bargaining is to be upfront with bargaining representatives that there will be no back pay.
Many experienced union negotiators will allow an agreement to expire, then threaten or initiate protected industrial action (PIA) in the expectation that back pay will eventually be offered as a deal sweetener. This sets a dangerous precedent and can distort timelines and leverage.
We’ve seen this tactic used again and again—and the best way to neutralise it is clarity.
Case Study:
In multiple negotiations across manufacturing and logistics, we’ve advised clients to open bargaining meetings by stating clearly:
“There will be no back pay. We expect good faith bargaining to conclude before the expiry date and will not be rewarding delay.”
This statement immediately shifts the power dynamic. Bargaining reps know where they stand. It becomes a key deal marker that improves discipline in negotiations and removes the incentive to stall.
Tip #2: Conduct a Pre-Bargaining Risk Assessment
Before issuing the Notice of Employee Representational Rights (NERR), HR should assess:
- Which claims are likely to be made by unions or reps?
- What are the pressure points in your business (e.g., rostering, labour cost sensitivity, casual conversion)?
- What’s your contingency plan for PIA or stalled talks?
- Are any managers or delegates likely to escalate tension?
A simple internal EBA Risk Register can help you prepare messaging, cost models, and fallback positions in advance.
Tip #3: Do Not Offer New Pay Rates Until the Agreement Is Finalised
This one may seem obvious—but it happens more than you think.
Case Study:
We were recently brought in to assist a client mid-way through bargaining. The HR team, under pressure to retain staff, had already started paying the proposed new wage rates—even though the agreement hadn’t been voted on or submitted to the Fair Work Commission.
Not only did this remove their main bargaining chip, but it also created a legal and procedural compliance risk. Worse, the union now expected further concessions.
We worked with them to re-establish discipline in the process and finalise the deal—but at a much higher cost than if they’d held the line from the start.
Tip #4: Set Boundaries and Stick to Them
Many HR leaders make the mistake of trying to appear “flexible” or “open-minded” throughout bargaining. While goodwill is important, so is clarity of position. If your executive team has set boundaries (e.g. no back pay, no extra sick leave days), make sure they’re communicated early and consistently.
Tip #5: Don’t Assume Allowances Increase Automatically
One of the most commonly overlooked risks in enterprise bargaining is the assumption that allowances increase in line with pay rises. Unless this is written into the existing agreement, allowances are a separate, negotiable item—and should be treated as such.
Many HR teams inadvertently lock themselves into compounding increases across dozens of allowances—often with no business case or operational benefit. This can create a long-term structural cost problem that is hard to unwind in future agreements.
Case Study:
In a national logistics business, we were engaged to support EBA negotiations after their finance team raised concerns about rising labour costs. Upon review, we discovered that in previous rounds, the employer had agreed—without scrutiny—to increase all site-based allowances by the same percentage as the base wage increase.
This compounded year-on-year, across multiple terminals, creating a $480,000 cost increase (across the life of the agreement) that could not be justified operationally.
We advised the client to decouple allowances from wage increases in their new log of claims. Each allowance was reviewed and renegotiated on its own merits.
The outcome: the business contained costs and saved significantly, while we recovered our full consulting fee many, many times over just from that issue alone.
Final Thoughts
Enterprise bargaining isn’t just a policy process—it’s a financial, cultural, and reputational balancing act. The best-prepared HR professionals approach it not just with a claims strategy, but a risk lens that helps them avoid the traps that lead to delays, disputes, or budget overruns.
Being clear about no back pay, separating allowances, and not offering increases prematurely are just some of the ways to maintain control, credibility, and clarity in the process.
Need Expert Support With Your EBA?
At ER Focus, we support HR teams with:
- Strategic EBA preparation and planning
- Representing employers during negotiations
- Managing PIA risks and Fair Work compliance
- Creating sustainable pay and conditions models
Contact us today for confidential support or to schedule a planning session. Call or text David Haydon 0409400118
Disclaimer
This article provides general information only and should not be considered legal advice. For matters involving legal proceedings or formal dispute resolution, you should seek advice from a qualified employment lawyer or industrial relations professional.