Establishing a framework for negotiating CEAs

Collective Employment Agreements (CEAs) are the single biggest determinant of costs in most departments or government agencies. It is therefore critical that the executive leadership team participates in the decision-making process around pay rates, terms and conditions.

In some cases a CEA can arrive at ELT for ratification after agreement has been reached between the negotiating parties as a fait accompli. Our client asked us to develop a process which ensured that ELT was involved at an early stage in setting the negotiating parameters for CEA negotiations, and that contracts would be settled on a financially sustainable basis and within Delegated Financial Authority requirements.

As a first step we confirmed what was happening across the public sector and what represented best practice. We talked with officials at SSC and with large employers such as MBIE and Education. We developed a process which was agreed internally and then submitted to the Board. The process has now been fully implemented.