18.7 Labour–management relations

Consultants, in whatever area of management consulting, must always bear in mind that their recommendations can have implications for the labour– management relations of the enterprise or industry with which they are concerned. For example, a consultant developing and recommending new remuneration schemes must be aware of possible collectively bargained obligations in the pay area that cannot be avoided without further negotiations with the trade union or other workers’ representatives (e.g. works councils provided for by statute and with powers in this sphere). Similarly, changes in work organization suggested by a production management consultant may have to be negotiated with the trade union because of collective agreements or, in a number of countries, under legislative requirements. In virtually every area of management, consultants must ascertain the implications for labour– management relations of various courses of action that they are considering for recommendation to their clients. Beyond that, a good case can be made, in certain circumstances, for using the existing processes and institutions of labour–management relations (e.g. consultation and negotiation), and perhaps even inciting the development of new processes and institutions, in mapping out strategies for change.

This being said, there are circumstances in which, and subjects on which, it would be inappropriate, given the labour–management relations system or traditions of the country, industry or enterprise concerned, to consult – much less negotiate – with trade unions or other workers’ representatives. There are still some issues that are considered exclusively the prerogative of management. These vary from country to country and even from situation to situation. They are issues in respect of which, for various reasons, workers’ representatives have no need to be involved; indeed, informing them prematurely could be deleterious to the effective functioning of the enterprise. A thoroughly