Members of the union in the Company in which I work were balloted regarding a pay cut. The result of the ballot was in favour of a pay cut of 10%. Not all the employees are union members so the non-union members did not have a vote. Is the Company obliged to ask those employees who did not have a vote if they can reduce their remuneration? Or can the employer reduce the pay of all employees as a result of the ballot carried out by the union? Or would the Company have to consult the non-union members individually or does the collective agreement automatically bind all employees within the work place were a collective agreement has been negotiated by the employer and the trade union?

Employees who are not members of the union are not bound by the collective agreement, unless it is a specific term and condition of all employees’ employment, that they be bound by union agreement in the workplace, or by virtue of custom and practice in the workplace, it has become a term and condition of the non-unionised employees’ employment (i.e. if they have always acted as though they are bound by union decisions/ballots). Assuming that this is not the case, then the result of the union ballot cannot be binding on non-union members. In such circumstances, in order to reduce the remuneration of non-unionised employees the Company must obtain employee consent in order to avoid a claim