I have been thinking a lot about what I would do in the negotiations between the NSW Government and workers at Sydney Trains. The industrial action has dragged on for over a year and has impacted commuters and travellers all over Sydney (https://www.smh.com.au/national/nsw/perrottet-declares-war-on-rail-unions-in-high-stakes-ultimatum-20220831-p5beby.html)
Without being in the room, it’s hard to know what actions I would be taking, but I do know this … giving ultimatums, as Premier Dominic Perrottet did yesterday, is a very risky move.
Premier Perrottet said “This ends today. I will not have our city grind to a halt, our people inconvenienced any more by the actions of a union movement that belongs back in the 1970s.”
If the 13,000-strong workforce refuses to accept the government’s latest offer, Perrottet has indicated he will terminate the rail unions’ existing enterprise agreement and take off the table all previous offers to modify the overseas-made trains.
From time to time, negotiations call for ultimatums. When all other options have been canvassed, sometimes an ultimatum is the only option left. However, this is a huge call by Perrottet. If he doesn’t carry through on this, it’s an empty bluff and his negotiation power will be severely diminished in future.
When ultimatums are used, negotiators need to have a good BATNA (Best Alternative To a Negotiated Agreement). I’m not convinced Premier Perrottet has a strong BATNA; there is no workforce in the wings ready to be deployed and the Fair Work Commission is unlikely to terminate the existing agreement at this stage.
However it plays out, you can be sure that other unions are watching the government’s moves carefully.
And I, like many others, will also be watching closely in anticipation of getting a reliable train system back.