Chapter 8 - Negotiation of the CBA - Concepts Flashcards
What is meant by “bargaining structure” and how can it affect negotiation?
Refers to the number of unions, employers, and establishments involved in negotiations.
It will affect who bargains with whom.
Why is most collective bargaining negotiation in Canada decentralized?
More centralized bargaining can affect the relationship between the management and the union and alienate employees. Some employee groups may perceive that their interests have not been adequately met in negotiations and they may be frustrated. This in turn may affect their relationship with the employer.
What is the meaning and significance of each of the following: intra-organizational bargaining, distributive bargaining, integrative bargaining and attitudinal structuring?
- Some members of a bargaining unit may be more concerned with job security, while others give priority to a wage increase. Some employees may be more willing than others to strike to obtain a favourable agreement. Intra-organizational bargaining refers to activities within the employer or union organizations to build an internal consensus key issues.
- refers to activities and behaviours that in many cultures are commonly associated with negotiations. It is used where resources are limited and there is a resulting conflict between the parties.
- Integrative bargaining refers to a form of negotiation or activity in which the parties’ objectives are not in fundamental conflict and there is a possibility of a win-win situation. For example, both the union and the employer would like to see workplace accidents reduced. Unions see improved safety records as a demonstration of their advocacy work with management. In addition to being concerned with employee safety, employers have a financial interest in reducing workers’ compensation costs.
- Attitudinal structuring refers to the relationship the parties have and what they do to change their relationship. The relationship between the parties may be a concern for a number of reasons. The relationship could affect the likelihood of reaching an agreement. Where the parties are hostile in terms of language and behaviour during contract talks, they may miss opportunities for settlement on key issues.
What are the factors affecting the union–management relationship?
The relationship between the union and the employer will vary according to each party’s views regarding the legitimacy of the other’s claims, the level of trust between the parties and the personalities of key management and union leaders.
Outline the possible composition of a bargaining team representing the employer and the union.
Employer team > Department Manager > HR assistant > Director, Labor Relations > HR Manager > Senior Financial Analyst
Union Team > Union Steward > Chief Steward > Union Business Agent > Union Local President > Union Local Secretary
** What are the possible stages of negotiation, and why are they important?
Stage One: Establishing the Negotiation Range
In this stage, each side explains its concerns and positions on the issues. The union will typically proceed first with the presentation of written demands and an explanation of the demands. Each chief spokesperson will attempt to forcefully present his or her side’s position Each side proceeds with a “reveal and conceal” strategy, revealing their initial demand statement but concealing how far they are prepared to move away from that position in order to achieve a mutually agreed-upon settlement on the particular issue.
Stage Two: Search Phase
After Stage 1, both parties enter the longest phase represented by Stage 2 and continue through the “reveal and conceal” process. Stage 2 will involve bluffing and other tactics, as discussed below. It is typical for each party to advance rather straightforward and low priority issues at the beginning of Stage 2. Early agreement on lower-priority issues allows a sense of momentum to build in negotiations.
Stage Three: Crisis Phase
In Stage 3, a strike or lockout is a clear possibility. The parties are forced to make decisions and final concessions if they are going to avoid this crisis and reach an agreement. This phase is shorter and might be marked by a series of last-minute proposals, counter-proposals, and agreements.
** What is Negotiating in bad faith? Briefly describe two employer and two union actions that would be a breach of the duty to bargain in good faith.
It means that both the union and the employer must make reasonable efforts to reach an agreement. ie. make a serious effort to find common ground
Employer actions:
> Insist upon changes in the bargaining unit. cannot be used as an issue for an impasse to strike or lockout.
> The bargaining structure and coverage of the CBA cannot be pressed
Union Actions
> Insistence upon a single set of negotiations and one collective agreement for several bargaining units
> insistence upon an illegal condition in the agreement. such as a discriminatory wage practice.
Actions for both
> refusal to meet
> refusal to recognize the union
> not giving the negotiating team power to bargain
> deception
> concealing important information
> deliberate provocation during bargaining
> refusal to justify a bargaining position
> refusing to make every reasonable effort to enter into a collective agreement.
Explain the significance of the pattern of concession-making in negotiations.
The size and pattern of concessions that are made can send a significant message. If concessions are made in successively smaller increments, whether they relate to one issue or cover a package of issues, a message is sent to the other party. If an employer makes an initial offer of a 1 percent wage increase, and subsequently follows this with three successive increases, each of which is 1 percent more, the employer’s offer has been increased to 4 percent. However, the union may think that if it delays, it can obtain a further increase. However, if the employer made three successive increases, to 3 percent, then to 3.75 percent, and then to 4 percent, the offer still ends up as 4 percent, but a subliminal message has been conveyed that there is no further room for concessions.
Describe two hardball tactics that a party could use in negotiations.
The “highball or lowball” approach. This involves making an opening offer that is deliberately high or low. It is used to try to convince the other side that they need to re-evaluate their position.
A “nibble” approach. Here the party asks for a small concession on an item that has not previously been discussed in order to finalize the agreement.
“Playing chicken.” This refers to one side threatening the other side to force them to agree on terms that are favorable to the party making the threat. A
Identify the four principles for successful interest-based bargaining.
Separate the People from the Problem
Focus on Interests, Not Positions
Interests Can Include Needs, Desires, Concerns and Fears
Invent Options for Mutual Gain
Insist on Using Objective Criteria
** What is bargaining Power? What factors effect the bargaining power of employers and unions?
The bargaining power of the union and the employer are important factors that influence the outcome of distributive bargaining. A party with more bargaining power should be able to obtain a more favourable agreement.
ISTPAF
ISTPAF INVENTORY SUPPORT OF BARGAINING UNIT TIME OF NEGOTIATIONS PUBLIC OPINION ABILITY TO CONTINUE OPERATIONS SIZE OF THE STRIKE FUND
Employer:
> Inventory levels—An employer able to build up sufficient inventory of materials or products for sale at a later date is in a stronger bargaining position because it will be able to withstand a strike.
> Interdependence of bargaining unit—If the output of the bargaining unit is required by other business units of the employer, a strike will have a greater impact and the employer is in a weaker bargaining position.
> Competitive position of employer—The competitive position of the employer refers to the possible loss of customers during a strike and their subsequent recovery. If customers lost during a strike will likely return after the strike ends, the employer is in a stronger bargaining position.
> Time of negotiations—The time of bargaining in a seasonal business can affect the employer’s bargaining power. A construction employer would be in a weaker bargaining position in the peak season.
> Ability to continue operations—The ability of the employer to use replacement workers during a strike is a critical factor affecting the employer’s bargaining power. This will be determined by the size of the employer’s operations, the technology used and legislation. In some cases, the bargaining unit is so large that it is not practical for the employer to use replacement workers.
> Public opinion—Public opinion might affect the bargaining power of the employer. If the public supports employees on strike and does not deal with the employer, the employer may be forced to reconsider its position.
> Support of bargaining unit members—The key factor determining the bargaining power of the union is whether bargaining unit members are sufficiently committed to go on strike if negotiations on key issues are not achieved.
> Size of strike fund—The larger the union strike fund, the more bargaining power the union has.
> Timing of a strike—If the timing of the strike will cause harm to the employer, the union is in a stronger bargaining position.
