T his paper investigates consultative management-union relations in organisations that are characterised by human resource management practices. It presents the findings of a preliminary analysis of the data. Two large organisations are examined, one the subsidiary of a multinational, and the other a public hospital. The findings demonstrate that there are two criteria for the possibility of mutual gain. These consist of, first, an appreciation by management of the collective loyalties of workers and, second, the achievement of real gains for employees arising from their constraint in the use of collectively bargained procedures and industrial action.