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Mgmt 583. Chapter 11: Contract Negotiations Fall 2008. Four Stages of Collective Bargaining. Preparation Initial Proposals Primary bargaining Eleventh-hour bargaining. Management Preparation. Three objectives of the preparation stage: Determines the bargaining objectives.

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mgmt 583

Mgmt 583

Chapter 11: Contract Negotiations

Fall 2008

four stages of collective bargaining
Four Stages of Collective Bargaining
  • Preparation
  • Initial Proposals
  • Primary bargaining
  • Eleventh-hour bargaining.
management preparation
Management Preparation
  • Three objectives of the preparation stage:
    • Determines the bargaining objectives.
    • Enables the bargaining team to substantiate and defend its proposals.
    • Enables the bargaining team to anticipate and war-game the union’s proposals.
stages in preparation
Stages in Preparation
  • Coordination stage
    • Individuals are assigned to draft proposals for specific parts of the CBA.
    • Timetables for negotiations are established.
  • Selecting the Bargaining Team
    • Chief negotiator
    • Cost specialist
    • Secretary-/note taker
    • Language draftsman
    • Operations specialist (determines the impact of concessions on production and processes.
stages in preparation5
Stages in Preparation
  • Review the previous negotiations
    • Id personalities
    • Id union’s critical issues
    • Id success and failures in last negotiations
    • Id union success and failures in last negotiations
    • Id union’s previous tactics
  • Review current CBA for necessary changes
    • Id problem provisions.
    • Look at grievance trends.
stages in preparation6
Stages in Preparation
  • Gather company and industry data
  • Gather economic data relevant to bargaining
  • Get inputs from supervisors and employees
  • Formulate proposals, priorities, and bottom-line proposals
  • Select the bargaining site
  • Prepare the bargaining book
union preparation
Union Preparation
  • Activities at the National
    • Researches firm’s ability to pay.
    • Researches locals ability to strike.
      • Willingness for strike vote.
      • Nationals financial ability to support a strike.
    • Consults with representatives from the local.
      • Locals present concerns and objectives.
      • Nation conveys “non-concession” objectives.
union preparation8
Union Preparation
  • Activities at the Local
    • Negotiation team is elected
    • Field representative from national explains the negotiation process to members.
    • Information regarding employer’s profitability, sales, etc. is gathered.
    • Members are informed of bargaining objectives.
    • Local officers gage members commitment throughout the process.
initial proposals
Initial Proposals
  • Chief negotiators from each side develop the bargaining agenda.
    • Meeting times
    • Order of bargaining demands
    • Ground rules
    • Opening statements
  • By convention, the union usually presents its initial demands.
primary bargaining
Primary Bargaining
  • Management offers counterproposals ti union’s initial demands.
  • Union will then counter with its own counterproposals.
primary bargaining11
Primary Bargaining
  • Behaviors to avoid
    • Abusive language
    • Ultimatums
    • Personal attacks
    • Extreme statements
      • “Management absolutely refuses to grant the union a checkoff.”
three rules of counterproposals
Three Rules of Counterproposals
  • Always carefully consider the future consequences of any proposal made by the union.
  • Never make concessions too quickly.
  • If you agree to the union’s proposal, always get something in exchange.
beware of roll up costs
Beware of Roll-Up Costs
  • Roll-up costs are those concessions that also effect the cost of other issues.
  • For example a wage increase will also increase:
    • Pension costs
    • Paid vacations
    • Paid holydays Paid sick leave
    • Social security (FICA & FICA-M)
    • Unemployment compensation.
eleventh hour bargaining
Eleventh-Hour Bargaining
  • The crisis stage as negotiations as the expiration of the CBA approaches.
  • Bargaining tempo increases.
    • Concessions are made at a faster rate.
    • Less important issues are dropped (this is why you prioritize).
    • Final offers are made.
    • Parties reduce demands for quid pro quo.
  • Impasses are of great concern at this stage.
walton mckersie s behavioral theory
Walton & McKersie’s Behavioral Theory
  • Labor negotiations are a mixture of conflict and collaborative behaviors. Parties engage in the defense of each ones self-interest while attempting joint problem solving.
walton mckersie s behavioral theory16
Walton & McKersie’s Behavioral Theory
  • Four bargaining sub-processes were defined
    • Distributive Bargaining
    • Integrative Bargaining
    • Attitudinal Structuring
    • Intraorganizational Bargaining
distributive competitive bargaining
Distributive (Competitive) Bargaining
  • Zero-sum bargaining situations.
  • Bargaining issues in which the goals of the two parties to the bargaining are in direct conflict.
  • One party’s gain is the other party’s loss (the central issue in collective bargaining as negotiators probe for the other’s real goals).
  • Encourages threats, bluffs, and secrecy).
integrative problem solving bargaining
Integrative (Problem Solving) Bargaining
  • Bargaining issues in which the parties share a common problem requiring resolution.
  • Employee training programs, substance abuse issues, safety concerns.
  • Encourages trust, understanding, and cooperation.
attitudinal structuring
Attitudinal Structuring
  • Activities aimed at changing the other party’s attitude during negotiations.
  • Assumes that a good relationship results in good concessions.
  • It may be positive or negative [US Steel story].
  • It can be used to accomplish distributive or integrative bargaining.
intraorganizational bargaining
Intraorganizational Bargaining
  • Achieving consensus within the respective organizations.
  • Bargaining teams (especially union teams) are not always united.
    • Political rivalries.
    • Diverse constituencies.
  • Resolving internal disputes before the negotiations begin is critical.