Utilisation of accounting information in local collective bargaining : a study

Abstract

Purpose: Collective bargaining features several sources of information, including accounting information. Hence, this research sets out to evaluate the accounting information-collective bargaining interplay in the local scenario. This is achieved by assessing the understanding, relevance, sources, and disclosure of accounting information with respect to such procedures; and whether the available information meets the parties’ needs. Design: A predominantly qualitative approach was adopted for this study whereby semistructured interviews were conducted with individuals who are directly involved in collective bargaining exercises. Furthermore, the interview schedules featured three Likert scales and the ranking of four statements, thus resulting in quantitative data. Findings: Despite the negotiators having a limited understanding of accounting information, such information is indeed relevant to negotiations. However, its role is limited since a collective agreement can be reached only when additional information features. Additionally, the accountant’s involvement in the negotiation process is rather limited, as it mostly comprises preparing and interpreting figures. Furthermore, none of the parties disclose any accounting information voluntarily, and any request for additional information disclosure is met with hardship. Nevertheless, the parties’ information needs are adequately met by the information which is available to them. Conclusions: The findings suggest that negotiators associate the role of accounting information, and/or of a professional accountant, as revolving around figures, which is deeply mistaken. Hence, increased awareness and education about what accounting information constitutes is necessary, as otherwise it can be misinterpreted or misused. Additionally, the preparation of a tailor-made report with information which is relevant to collective bargaining exercises could result in more cooperation between the negotiators, and potentially, an improved environment for collective bargaining. Value: There is a dearth of research examining the accounting information-collective bargaining relationship, especially in the local scenario. Additionally, this study has highlighted the need for more awareness about the broadness of accounting information, and the misconceptions surrounding it.