I often hear of trade unions collectively bargain over redundancy packages but I don’t know how that works. How can a redundant employee bargain with an employer when they have nothing to bargain with if their job is already gone or in the process of being made redundant?
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It’s negotiated ahead of time, before layoffs, at the same time as the rest of the collective bargaining agreement like salaries, workers comp and pension plan employer participation.
Once the employer and the union signs on the dotted line, they are contractually obligated to follow this contract, ideally negotiated in good faith. Once the employee is laid off, it doesn’t matter that he/she has no infividual leverage because the employer signed a contract with this obligation.
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