Posts Tagged ‘employee relations’

According to a recent survey, one third (1/3) of all businesses plan to freeze payroll in 2009.  With the current economic condition and the drop in cost of living in many parts of the country over the last six month, freezing pay makes sense.  Be careful.  Many businesses have both union and non-union workers.  If you have a union contract that requires an annual pay increase, you better figure out how to give the same percentage increase to the non-union part of the company or you won’t have anything but union workers in 2010.

The fact that many companies with union workforces are laying off people so they can afford to give the increases required by a union contract won’t ever be talked about.  What will be talked about is how the unions got their members increases while the targeted non-union companies kept wages frozen, where they were at last year!

The best way to handle this situation is to decide what is best for your company, long term, based on your individual circumstances.  Once you’ve figured this out, tell all your employees.  Over communicate what you are doing and why.  Your employees are smart adults who get it.  They will understand and support your actions if your tell them what you are doing and why. OVER-COMMUNICATE !!

All that being said, if you are required to give union workers increases at the end of this year, you better think twice about how other non-union workers are treated otherwise you will have a real battle on your hands next year.