Chapter 9 Resolving Negotiation Disputes

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

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

MGMT 523 – Chapter 9 Use of Strikes 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

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

MGMT 523 – Chapter 9 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