Chapter 7 Flashcards
Union-management negotiations usually proceed
through specific stages:
- Pre-negotiation
- Establishing the negotiating range
- Narrowing the negotiating range
- Crisis
- Ratification
How do Negotiations work?
At the first joint bargaining meeting, the teams exchange written proposals and demands, and decide when the next joint meeting will occur
–>Each negotiating team then holds its own private meetings to formulate a response
–>At the second and subsequent joint meetings, each team makes counter-proposals and uses a variety of strategies and tactics to uncover the other team’s goals and priorities
–>These meetings continue until an agreement is reached or an impasse is declared
Impasse
the parties do not believe they can settle on a mutually acceptable agreement
How do Negotiations Work? (2)
When an agreement is reached, each team must obtain the approval of those it represents
–>If an impasse is declared one party may:
- Take a short break
- Ask for third-party intervention
- Undertake a strike or lockout
Each of these actions is intended to make the other return to the bargaining table so an agreement can be concluded
Pre-negotiation Stage
Each side determines its priorities, goals and proposals for the upcoming negotiations
–>It is common for the parties to mutually discuss negotiating protocol and process at this stage
Establishing the Negotiation Range
In this stage, formal bargaining sessions begin
–>The teams start by introducing their members
–>The chief negotiator orally presents the rationale
for each proposal
The oral presentations:
- establish the bargaining range
- demonstrate each side’s commitment to issues
- attempt to influence the other side’s perceptions and expectations through explaining the proposals’ rationales
Narrowing the Bargaining Range
Each team enters negotiations with an initial offer and a bottom line position for each proposed item
–>A zone of agreement must exist for there
to be the possibility of an agreement
–>During this stage, both sides start to change their original positions in an attempt to find a point where
a mutually satisfactory resolution can be reached
Zone of agreement
dictates each side’s decision s in narrowing the bargaining range & ultimately, whether the parties reach an agreement
Bottom line
is the absolute minimum or maximum that the team would be willing to accept as a settlement for that item
Concession
“Concede”
deciding to agree to the other side’s proposal or the change one’s own position
The Crisis Stage
During this stage, one or both sides must decide whether to settle OR to use economic pressure such as a strike or lockout
–>Disputes may occur over a single issue or over
a “package” deal involving several interrelated items
–>This stage can be long or short, depending on
the parties’ strength and their resources
Ratification
Ratification is necessary once terms are agreed
upon by both bargaining teams
–>Both parties’ constituents must accept the terms
of the agreement
–>If one side rejects the proposed agreement,
the parties must return to the table
–>Once the agreement is ratified, the parties
sign the document
Four Negotiation Subprocesses
Intra-organizational bargaining: negotiators seek
to achieve consensus within the bargaining team
and the organization
Attitudinal structuring: each side forms attitudes
toward the other side and toward the relationship between the teams
Integrative bargaining: identifying issues with
common interests to get to “win-win” solutions
Distributive bargaining: both sides compete
over limited resources, producing “win-lose” solutions
Different subprocesses become apparent during different stages of negotiations:
The intra-organizational and attitudinal structuring subprocesses are most obvious during establishing and narrowing the bargaining range
The integrative and distributive subprocesses
are more obvious during narrowing of the bargaining range
The distributive bargaining subprocess becomes
more apparent during crisis
