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Chapter 9

Chapter 9. Resolving Negotiation Disputes. Contract Ratification. Contract Negotiations. Tentative Agreement. Ratification Election. Rejection of Proposed Contract. Acceptance of Proposed Contract. Final Agreement. Why Union Members Vote For Ratification.

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Chapter 9

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  1. Chapter 9 Resolving Negotiation Disputes

  2. Contract Ratification Contract Negotiations Tentative Agreement Ratification Election Rejection of Proposed Contract Acceptance of Proposed Contract Final Agreement MGMT 523 – Chapter 9

  3. Why Union Members Vote For Ratification • Perception of limited employment opportunities • Satisfaction with the terms of the tentative agreement • A perception that the union represented their interests effectively • Avoidance of the potential for lost income MGMT 523 – Chapter 9

  4. Why Union Members Vote Against Ratification • Dissatisfaction with items in the agreement • Perception that the contract doesn’t compare favorably with contract in the area or industry • Internal union politics creates dissenting voters • Poor communications between the union’s leadership and its members. • As a tactic in the union’s bargaining strategy MGMT 523 – Chapter 9

  5. Third-Party Neutrals • Impasse • The point in negotiations when no voluntary settlement appears likely. • Mediation • Fact-Finding • Semi-judicial process • Gather facts to issue a public report containing conclusions and recommended terms • Interest Arbitration MGMT 523 – Chapter 9

  6. Criteria Used by Arbitrators • Whether a bargaining proposal involves a new bargaining subject • The potential effect on the relationship between the parties • The general welfare and interest of the public • Comparability of terms • Current economic conditions • The financial ability of the employer to pay for the costs of any proposed settlement terms MGMT 523 – Chapter 9

  7. Arbitration Options • Conventional Interest Arbitration • Final-offer Total Package (FOTP) • Arbitrator must choose one package to be implemented in its entirety • Final-offer Issue Issue-by-Issue (FOIBI) • Mediation-Arbitration (Med-Arb) • A mediator who is also empowered to act as an arbitrator to settle the dispute MGMT 523 – Chapter 9

  8. Economic Pressures • Union • Strikes • Illegal Strikes • Work Slowdowns • Boycotts • Primary Employer • Lockout • Strike Responses MGMT 523 – Chapter 9

  9. More likely Preceding contract length is longer Negotiations serve as a pattern setter Larger bargaining units There is a large variance in the firm’s financial performance. High risk of injury or fatalities Less likely Fewer issues are being negotiated A large proportion of women are employed Firms and industries pay a higher wage rates Use of Strikes MGMT 523 – Chapter 9

  10. Strategic Purposes of a Strike • To resolve the union’s internal problems • Remove tensions and release frustrations • Unify diverse factions within the union • Prepare members for a realistic bargaining outcome • Rally members over a bargaining issue • To show management the union’s strength MGMT 523 – Chapter 9

  11. Potential Employer Strike or Lockout Costs • Lost sales revenue • Loss of customers/market share • Negative publicity • Damage to bargaining relationship • Non-bargaining unit employee payroll costs • Replacement workers costs • Shutdown and start-up costs • Legal fees MGMT 523 – Chapter 9

  12. Potential Union/Employee Strike or Lockout Costs • Loss of union members • Loss of wage income or employee benefits coverage • Loss of union dues revenue • Cost of strike benefits provided • Costs of operating a strike MGMT 523 – Chapter 9

  13. Reinstatement Rights of Strikers • Unfair Labor Practice Strikers • Can be temporarily but not permanently replaced • Are not eligible for back pay lost due to the strike unless their lost wages were directly due to the ULP • Economic Strikers • Can be temporarily or permanently replaced • Can return to work during the strike after making an unconditional request for reinstatement MGMT 523 – Chapter 9

  14. Unlawful Strike Misconduct • Acts of violence directed at managers, co-workers, customers, suppliers, or the general public • Intentional destruction of private property • Verbal threats intended to intimidate or coerce an individual in the exercise of his or her lawful rights MGMT 523 – Chapter 9

  15. Labor Peace Free Flow of Commerce Public Interests First AmendmentFree Speech Rights of Picketing Strikers Employer Property Rights Balancing the Rights of Picketing Strikers MGMT 523 – Chapter 9

  16. National Emergency Dispute Resolution Procedures • National Emergency Strikes • Strikes that threaten to have an adverse effect on the national interest • Federal Methods for Responding to National Emergency Strikes • Presidential seizure or other intervention • Procedures outlined under the Railway Act • Procedures outlined in the LMRA MGMT 523 – Chapter 9

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