What happens if he replies that "We've been recruiting for 6 months for this position and we couldn't find anyone decent enough even at his current salary"?
Haha! This is exactly the argument I use when trying to negotiate! I say "you won't be able to find anyone for what you are paying me now". Management shrugs. I tell management in no uncertain terms "i need to make more money", strongly hinting that i will begin looking elsewhere.
If management truly wanted to "negotiate" then they would begin putting conditions on a raise or something.