Fair Work Commission

Interest-based bargaining (IBB) is a collaborative approach to enterprise bargaining.

Traditionally, enterprise bargaining is adversarial. Parties approach the process with pre-determined positions or a log of claims.

IBB is different: it is consensus-seeking and cooperative. It focuses on the interests that underly positions or claims.

IBB aims to ensure that each party is satisfied that their interests have been addressed. IBB is also sometimes called mutual gains bargaining or principled negotiation.

Interest-based bargaining can:

• lead to better agreements – parties share more information so their decisions are better informed
• create stronger ongoing relationships – the parties have worked together with some common purpose and shared understanding during bargaining
• increase trust and respect between the negotiating parties – the parties have openly declared their common and conflicting interests. There should be no hidden agendas.
• improve acceptance of the final agreement – people are more likely to accept decisions that they have been involved in creating and when they understand the rationale behind the decision.

During interest-based bargaining, parties aim to:

• communicate their interests clearly
• genuinely try to understand the interests of others
• collaborate when problem-solving
• share as much relevant information as possible
• be objective and rational when evaluating options against criteria they have decided on together
• be respectful and avoid coercive methods.  

Is interest-based bargaining right for our workplace?

IBB suits employers and employees with good working relationships and those who want to improve difficult relationships.

All parties must consent to the process and be genuinely willing to work together. It won’t work when only one party is willing to commit.

IBB involves a high level of information-sharing and genuine communication, so trust and respect between the parties is important.

Importantly, IBB is not an ‘all or nothing’ process. Parties can use it just for negotiating particular issues or only at particular stages of the bargaining process. Parties can come back to traditional methods whenever they want.

How to get started

Our guide to interest-based bargaining has information on how to start IBB, as well as a suggested bargaining model, some useful tips and basic ground rules. You can also read more about how interest-based approaches make for better workplaces.

We also have some videos to help you learn more about how IBB works:   

• Interest-based bargaining video
• Preparing for enterprise bargaining video
• Conducting enterprise bargaining video

Once you’ve decided to take an interest-based approach to bargaining, you can use our:

• Training facilitator guide (Word)
• Training session slides (PPT)
• Interest-based bargaining plan template (Word)

We also offer support through our Cooperative Workplaces program. The program is for workplaces that want to try interest-based approaches. A Commission Member will work with you to deliver training and help you facilitate the process. They will also offer guidance and advice as you make the change to using an interest-based approach. The program is free.