Disclosure of accounting information to trade unions in collective bargaining exercises

Abstract

Purpose: The main objective of this dissertation was to evaluate the accounting information disclosed to trade unions in collective bargaining exercises. Amongst other things the study included what aspects from the accounting information available to trade unions, will they look at and what elements from such statements they rank as most important. Design: The objective stated was achieved by conducting interviews with Trade Unions' representatives, mainly the presidents and general secretaries. Findings: The study revealed that the most common type of accounting information that unions require in collective bargaining are audited financial statements because they are easily to obtain since some companies are required by law to hand in their financial statements to the MFSA. The trade unions also require investment information however, this is sometimes difficult to obtain since it can contain commercially sensitive information. Moreover, profits more specifically the trend of profits during a number of years, are considered to be the most important figure. Cash flows figures are also deemed to be an important element. Value: On the whole trade unions were satisfied with the amount of accounting information disclosed to them, however, some management are still reluctant to disclose such information since they are afraid that some information can be passed to competitors. In addition, the need for legal requirements on such accounting disclosure has been identified to improve and enhance such disclosure.