 Negotiations and collective bargaining

 Negotiations
 Bargaining process wherein two parties try to get a mutually acceptable agreement
 Collective Bargaining
 Negotiations between managers and employee representatives (usually union representatives)
 Not an industrial action, but failure here could cause more problems (Compromise is necessary on both sides)
 Employees are usually represented by labor unions
 Organization of worker members
 Increases bargaining power of employees
 Makes it easy for employer to communicate to a collective
 Provides legal and financial support
 Goal is better employee conditions, legislation, pay, etc.
 Three levels of negotiations:
 Management negotiations (regarding internal business functions)
 Commercial negotiations (w/ different organizations)
 International negotiations
 Six stages of negotiations:
 Preparation, proposal, debate, bargaining, closing, review
 Different views/approaches on negotiations:
 Avoidance – avoid problems, might mean issues aren’t solved
 Level playing ground – parties must be equal to have negotiations
 Winner takes all – one wins, one loses
 Success of negotiation depends on:
 Experience, power of union, state of economy, demand for labor, media opinion, government involvement and
degree of substitution (ability to replace labor with capital intensive production)
 Methods by employees to achieve objectives
 Goal is to reduce a business’ productivity to increase union’s bargaining power
 Negotiations/collective bargaining (as seen above)
 Go-slow/slowdowns
 Work at the minimum required amount by contract & Effective when in high seasonal demand
 Work-to-rule
 Work at the minimum required amount by rules & All rules and regulations are strictly followed
 Overtime ban
 Strike action
 Refusal to work & Illegal without prior notice & May coincide with a walk-out
 Methods by employers to achieve objectives
 Objectives include reducing costs, increasing productivity, and staff morale
 Negotiations/collective bargaining (as seen above)
 Public relations
 Deals with media to make the business look good & Build goodwill
 Lockout
 Employer version of strike action & Divides unions by pitting workers who want to work vs. those who
don’t
 Threat of redundancy
 Still considers employment rights
 Change of contract
 Conflict
 Hinders productivity, reduces morale, causes internal politics, etc. etc.
 May be good since it helps address problems as it’s not bad (depends on how managed)
 Sources:
 Needs and wants – when they are not met
 Perceptions – when communication is inadequate
 Incompatible values, abuses of power, feelings
  Approach depends on concern for personal outcomes and other’s outcomes
 High concern for personal outcome causes win-lose
 High concern for others causes surrender
 Low concern for either causes avoidance
 High concern for both    causes collaboration
 Moderate concern for both causes compromise
 Conflict resolution - Resolving conflicts successfully (if everyone is satisfied)
 Approaches:
 Conciliation
 Use an independent arbitrator
 “Caucusing” – separate meetings with arbitrator
 Conciliators encourage compromise and make legally binding agreements
 Arbitration
 Like above, except arbitrator makes the decision, like a judge
 Industrial democracy/employee participation
 Involve employees in decision making
 Uses motivation theories
 Makes for cooperative employees less likely to strike (win-win)
 No strike agreements
 Single-union agreements
 Employer agrees to only bargain with one union & More convenient
 Consultation (w/ employees)
 Litigation (lawsuits)
 Likely to cause win-lose
 Realistic expectations
 Avoidance
 Likely to cause lose-lose
 Change management
 Processes and techniques used to plan, implement, and evaluate change
 Change includes new products, restructuring, new policies, mergers, etc.
 Factors/sources of change:
 Customers – changing tastes, expectations, demand for better products
 Competition – need to stay competitive and evolve
 Management – stay on top of market trends, employee motivation, etc.
 External Factors – change in fashion, state of economy, etc.
 Technology & Government
 Resistance to change
 According to John Kotter, there are 4 main reasons:
 Self-interest > Corporate Objectives
 Misunderstandings (uncertainties and “if it isn’t broke…”)
 Different assessments of situation
 Low tolerance for change
 Reducing impact of change
 Change Approaches Model by Kotter - Deals with resistance to change
 Six approaches:
 Education and communication
 Participation and involvement
 Facilitation and support
 Negotiation and agreement
 Manipulation and co-option

 Explicit and implicit coercion