Trade unions are an important area of people management in Poland. They represent employees’ needs and look after the best possible working conditions. Although they are often a thorn in management’s side, in the end their goals and the goals of a wise and humane approach to management are the same. We must not forget what unites the two sides. Talks, however, can be full of tension and emotion. This article recalls how this area is regulated by law. It will help you see the challenges facing talks with trade unions today. Anticipating needs is key to preparing well for talks. You will also learn which strategies management teams most often adopt to go through the process of negotiating with trade unions constructively.
Regulations, acts, paragraphs….. Dura lex sed lex
The basic document regulating the activities of trade unions in Poland is the Trade Unions Act of 1991. Under this act, trade unions have the right to act in the interests of employees, including collective bargaining with employers on pay, working conditions, social benefits and other matters relevant to employment.
Key provisions include:
The obligation to negotiate in collective disputes – Trade unions can raise claims against the employer, which starts the negotiation process. If no agreement is reached, employees have the right to organise a strike after mediation and a strike ballot.
The right to consultation – Trade unions have the right to be consulted on important decisions affecting employees, such as redundancies or changes to working conditions or pay. The employer is obliged to negotiate and to inform the unions of planned changes.
A strike as the last resort – When negotiations bring no results, the law gives union members the option of calling a strike. A strike can cover all employees or be limited to selected groups, which further complicates management’s actions.
These provisions form the basis of negotiations, but real processes are often more complicated and depend on the specific situation, the industry and the economic and political context.
What challenges do management teams face in 2024/2025 in negotiations with trade unions?
Union negotiations in 2024/2025 take place against rapidly changing economic, social and political realities. The COVID-19 pandemic, whose effects we still feel, the energy crisis, geopolitical tensions, inflation and employees’ rising expectations about working conditions pose exceptional challenges for company management. Management teams have to cope not only with pressure from the needs and expectations of trade unions but also with the financial and organisational difficulties resulting from the current economic situation. Below are just some of the challenges:
1. The effects of inflation and pressure for pay rises
Inflation in Poland remains high, which translates into a rising cost of living. In 2024, employees represented by trade unions are pressing even harder for pay rises, citing rising everyday expenses and higher energy and living costs. Company management faces the difficult task of balancing a limited budget, rising operating costs and pressure to raise wages. In addition, companies have to cope with rising energy and raw-material costs, which makes it harder to meet pay demands.
High inflation, exceeding 10%, which drives employees’ pay demands.
Employees expect pay rises of 15–20%, which for many companies may be difficult to deliver without affecting profitability.
An additional challenge is growing competition on the labour market, which forces companies to offer more attractive terms of employment to retain and attract talent.
2. Changes in legal regulations and the growing importance of ESG (Environmental, Social, Governance)
In 2024/2025, Polish companies increasingly have to adapt to new regulations on broadly understood social responsibility and environmental protection (ESG). Trade unions increasingly include in negotiations issues of working conditions consistent with sustainable development, promoting not only pay rises but also better working conditions, including the implementation of environmental and workplace-equality standards.
A growing number of national and EU regulations on corporate social responsibility, covering not only pay but also working conditions and compliance with environmental principles.
Trade unions include in their demands changes to improve working conditions, such as more flexible forms of employment, better health and safety conditions and greater investment in employee development.
Growing employee interest in so-called “green jobs”, i.e. positions consistent with the principles of sustainable development.
3. A shortage of skilled labour and the war for talent
In 2024/2025 the labour market still faces a shortage of skilled labour, especially in sectors related to new technologies, automation and services. Trade unions in these sectors can exert particularly strong pressure for pay rises and better working conditions, knowing that employers have limited options for replacing employees. Company management, especially in technology industries, must therefore not only negotiate terms of employment but also compete for the best talent.
In sectors such as IT, engineering, robotics and automation, trade unions take advantage of the fact that companies have difficulty recruiting new employees, which gives them a strong negotiating position.
Growing international competition for talent means management must offer not only attractive pay but also other benefits, such as flexible working hours, career development or better social conditions.
In many sectors, employees are ready for more decisive action, such as strikes, to win better conditions. A lack of response from management leads to the gradual departure of the best employees.
4. Technological changes in the workplace and the need to adapt to new realities
Digital technologies, automation and artificial intelligence keep changing the work environment, and trade unions often raise demands about the need to train employees to adapt to new technologies. Management must face the challenge of transforming work processes while ensuring that employees have access to training and development, which often becomes a negotiating point in talks with trade unions.
Trade unions increasingly call for negotiations to include issues related to developing employees’ digital skills, adapting to automation and the changing nature of work.
Management must invest in employee training and development, which may generate additional costs.
Employees who fear automation and job losses may put pressure on the company to guarantee job security and support in developing new competencies.
5. Pressure resulting from companies’ limited financial resources
The COVID-19 pandemic, the energy crisis and rising operating costs mean that many companies in Poland are still struggling financially. Management has to cope with growing pressure to improve terms of employment while having limited financial means. They often have to make cost-cutting decisions that may be unpopular with employees and trade unions.
Many companies, especially SMEs, are still feeling the effects of the pandemic and the energy crisis, which limits their ability to meet trade unions’ demands.
Trade unions, aware of companies’ difficult financial situation, may be more inclined to compromise, but they expect transparency and openness from management.
Employers often have to look for alternative solutions, such as flexible forms of pay – e.g. bonuses linked to company results – instead of permanent pay rises.
6. Employees’ growing expectations of work-life balance
In 2024/2025, employees increasingly value the balance between work and private life, which is also becoming part of trade unions’ demands. Greater flexibility in working hours, the option of remote work and better leave conditions are the main issues raised in negotiations.
The growing importance of remote and hybrid work and flexible working hours. Trade unions demand that these forms of work become the standard, not just a temporary solution.
Management must adapt company policies to employees’ rising expectations while maintaining efficiency and profitability.
Trade unions often call for better leave conditions and additional days off, which can be hard to reconcile with the company’s operational needs.
These challenges show how complex and multidimensional union negotiations are in 2024. Management must be flexible, open to dialogue and well prepared to cope with economic, legal and social pressure in order to reach an agreement that benefits both sides. Modern negotiations require not only knowledge of the law but also the ability to adapt to rapidly changing market and social conditions.
How do the best handle negotiations?
Negotiations with trade unions, especially amid growing economic and social pressure, require a well-thought-out strategy based on flexibility, communication and the ability to manage conflict. In situations of strong demands or deadlock, management must be particularly careful to protect the company’s interests on the one hand without escalating the conflict on the other. Below we list just six recommended approaches; we have deliberately left out the unconstructive, forceful and manipulative ones. They lead to nothing good.
1. Communicate transparently and openly.
One of the most important elements of effective negotiations is ensuring transparency at every stage of the talks. A lack of openness or hiding information can escalate the conflict and build an atmosphere of distrust. Management teams that openly communicate the company’s financial condition, strategic plans and challenges have a better chance of building trust, which in the long term contributes to more effective cooperation with employees and trade unions. If things are bad, don’t hide it. If things are tolerable but financial resources are earmarked for investment? Talk about those investments and the benefits for employees.
So what should we do?
Meet regularly – Organise regular briefings with trade union representatives on the company’s situation, planned actions and economic challenges.
Be honest about constraints – When financial resources are limited, openly presenting the company’s balance sheet can help unions understand why certain demands cannot be met.
And what if we reach a deadlock or conflict?
In a conflict, management should engage in dialogue immediately rather than avoid the subject. Example: if the unions demand a 20% pay rise and the company cannot afford it, it is worth presenting full financial data to justify your position. Take the time and give representatives a chance to understand the data and documents (not all of them are finance experts).
2. Bring in mediators and facilitators
In the case of strong union demands that could escalate the conflict, one of the most effective solutions is to bring in mediators. Mediation – a process in which a neutral third party helps the parties reach agreement – helps ease tensions and facilitates communication between the sides. The mediator’s role is to find common ground and to engage both sides in looking for compromises.
So what should we do?
Make sure the mediator is neutral and well-disposed towards all parties – Professional mediators can help both sides reassess their positions, presenting possible solutions and calming the emotions connected with the conflict.
Invest time in facilitating dialogue – A mediator can also act as a facilitator, helping the union side and management hold constructive talks and making dialogue on key demands easier.
And what if we reach a deadlock or conflict?
If negotiations drag on without progress, a mediator can help find alternative solutions. Example: the company might offer bonuses linked to its results, which partly meets the unions’ demands given limited resources.
3. Engage employees and build a partnership dialogue with them
One of the key elements of effective negotiations is involving employees at an early stage of decision-making. The more employees know about management’s actions, the lower the chances of conflict escalating. Involving employees and their union representatives in decision-making through consultation and discussion can lead to more balanced solutions.
So what should we do?
Start consultations early – Set up working groups with trade union participation to discuss the company’s future plans and challenges. When employees influence decisions, they may be more open to compromise.
Build and invest in long-term relationships – Create permanent communication channels between management and employees that allow minor problems to be solved on the spot before they turn into a bigger conflict.
And what if we reach a deadlock or conflict?
If trade unions are strong and demanding, it is worth involving them in strategic decision-making. Example: in the case of planned collective redundancies, unions can help find alternative solutions, such as introducing rotational work instead of mass layoffs.
4. Negotiate compromises flexibly and skilfully
One of the foundations of effective negotiations is a readiness to negotiate compromises. Management must understand that union negotiations do not always mean a “win-lose” situation, and that finding a compromise can benefit both sides. It is important for management to prepare various compromise scenarios that take employees’ interests into account while protecting the company’s interests.
So what should we do?
Make alternative proposals – If a direct pay rise is not possible, it is worth proposing other forms of remuneration, such as annual bonuses linked to the company’s financial results, additional social benefits or flexible working hours.
Negotiate based on facts – Prepare detailed financial analyses to serve as the basis for negotiations and build an objective picture of the company’s situation.
And what if we reach a deadlock or conflict?
In a deadlock, management can propose so-called “staged solutions”, i.e. gradual implementation of union demands. Example: if the unions demand immediate pay rises, management can propose spreading the rises over several stages, linked to financial results.
5. Plan long term and avoid short-term moves
Union negotiations are often conducted under time pressure and amid emotions, which can lead to short-term decisions. However, to avoid future conflicts, management should focus on building long-term relationships with trade unions. In practice, this means developing mechanisms for solving problems systematically and avoiding conflict escalation in the future.
So what should we do?
Aim for long-term collective agreements – Instead of negotiating each issue separately, it is worth working out long-term collective agreements with trade unions covering an overall plan of action for several years, which helps avoid constant conflicts.
Review working conditions regularly – Systematic meetings with employees and their representatives to monitor working conditions and pay on an ongoing basis minimise the risk of sudden conflicts.
And what if we reach a deadlock or conflict?
In a deadlock, it is worth reminding both sides of the company’s long-term goals. Example: if the unions threaten a strike, management can emphasise that a strike will negatively affect long-term job security and the company’s financial results.
6. Manage conflict and emotions during negotiations
In every conflict situation, emotions play a big role on both the employees’ and management’s side. Managing emotions and the ability to de-escalate conflicts are key negotiating skills. Management should be prepared for difficult conversations and know techniques for handling tension so as not to inflame the situation.
So what should we do?
Use de-escalation techniques – In tense situations, management can use de-escalation techniques such as acknowledging the employees’ position and expressing empathy, while remaining firm on the company’s interests.
Manage expectations – It is important for management to state clearly from the very start what can and cannot be achieved, which helps avoid later disappointment and frustration.
And what if we reach a deadlock or conflict?
When emotions escalate, management can propose a break in negotiations or arrange an additional meeting in the presence of a mediator. Example: if negotiations have reached a dead end, management can propose continuing the talks after a few days to give both sides time to cool down.
Effective negotiations between management and strong trade unions in situations of conflict and deadlock require a balanced approach that takes into account the interests of both the company and its employees. Transparency, flexibility, readiness to compromise and the ability to manage emotions and conflict are key to reaching an agreement that brings long-term benefits to both sides.
