The companies that I've been a part of that employed this non-negotiation strategy ended up only shifting the negotiations from compensation to title. The same negotiators still come out on top, since they'll request higher titles in order to meet their comp expectations (since they can't negotiate for comp directly). As a result, the eng org can end up topheavy in leveling.

This is a tough problem, but these non-negotiation policies aren't the solution. They make the inequity even worse since it becomes harder to negotiate (for title) than for incremental comp increases.