Budgeting for wage increases
June 8, 2011
Are you currently considering whether or not to bargain for a new Enterprise Agreement? It can sometimes be difficult to find the right balance between implementing wage increases that are fair and reasonable and those which are excessive.
Livingstones has found that employers can sometimes be too hasty in agreeing to demands from employees and their representatives in an effort to complete the bargaining process as quickly as possible. Unfortunately, this approach can quite often lead to employers being required to pay excessive and unreasonable wage increases each year, for up to four years, whilst the Agreement is in operation.
While higher wage increases may be beneficial to your employees, it is important that all terms of the Enterprise Agreement are also beneficial to you as the employer.
Livingstones recommends that prior to discussing any wage increases as part of the bargaining process, employers should take into consideration all factors that may affect their business in the long term (or the term that the proposed Enterprise Agreement will run).
Factors such as:
- Industry wage trends
- Wage and Consumer Price Indexes;
- Interest rates
to name a few, can all play a significant role in the operation of a business, over the period while an Enterprise Agreement is in operation. Furthermore, the Global Financial Crisis of 2008/2009 highlighted just how quickly things can change. Thus, it is important that employers ensure they are also getting a “fair” deal with any wage increases.
Thankfully, Livingstones has done all the legwork for you!
Livingstones has recently developed an Economic Outlook Report which provides a summary of the state of the economy as it relates to enterprise bargaining.
The Livingstones’ Economic Outlook Report addresses a wide range of issues including those mentioned above and much more. This report can also be specifically tailored to the needs of any business, regardless of their Industry, Sector, State etc. This report is set out in a simple to read format and arms employers with the required knowledge to prepare them for anything that is thrown their way by employees and their representatives during the bargaining process.
The Livingstones’ Economic Outlook Report is a powerful tool that can help employers address the issue of finding the right balance between Enterprise Agreement wage increases that are both fair and not excessive.
If you are considering commencing bargaining or you’re currently in the process of bargaining, and would like more information on how Livingstones can tailor this report to address your business specific needs, please do not hesitate to contact either Matthew McDonald, Eloise Bonel or your Livingstones Consultant.
