Interest-Based Bargaining A New Form of Partnership? u Explore business case for labor- management “Partnerships” u Provide conflict management context for interest-based problem solving uReview Interest-Based Problem Solving (IBPS): preparation, process, and results u Offer multiple Case examples of IBPS use

Labor-Management Partnerships u Partnership is a strategic alliance between the parties – adopted when the business case for doing so is uncovered by both u Partnership requires a change in mindset, practices, and results – a cultural shift u Interest-Based Problem Solving – is a “best practice” when you are resolving issues first from a partnership perspective

The Business Case for Partnerships u Are there external forces of change that have financial, operational, and/or political implications in the way you conduct labor relations? u Is there competition for certain classifications of workers…where it would be worthwhile to increase attractiveness to such workers by being seen as the “best” to work for? u Have the direct and indirect costs of the way in which labor relations is conducted been estimated ?

Consequences of Unresolved Conflicts

PAST PRACTICES Create opportunities for extensive worker participation Expand jobs to be multi-skilled, meaningful and challenging Involve and consult with the union as important stakeholder Share economic gains with the workforce – pay for group and departmental improvements Control the work of employees Limit jobs to simple tasks Reward employees as individuals Manage around the contract PARTNERSHIP PRACTICES Roles of Managers in Partnerships

Greater control over daily decisions Participate on important committees Involvement in business & economic Issues Interest-based problem solving & bargaining Focus on an active workforce Increase training opportunities for the workforce Job Classification Grievance Handling Collective Bargaining Contract Administration “Service Focus” Roles of Union Reps in Partnerships PAST PRACTICESPARTNERSHIP PRACTICES

Results of Well Managed Conflict Trust built Performance enhanced Resistance lessened Creative solutions found Drama, development, and growth stimulated

Resolution and Results Prevent Negotiate Facilitate Factfind Advise Impose Involuntary Issue Voluntary $$$$$ Days Years Educate Talk it Out Mediate Investigate Test case Arbitrate

Conflict Management Assessment * Disputes ¢ Types ¢ Number ¢ Nature Resolution Methods ¢ Procedures ¢ Who Uses ¢ How Chosen Results ¢ Time ¢ Cost ¢ Durability & Satisfaction * 1996, Costantino and Merchant

Auditing Dispute Resolution Costs Direct Costs: Outside counsel and internal staff salaries Preparation, presentation, time away from job Travel and administrative expenses Cost of 3rd party and of settlement Indirect Costs: Dissatisfaction, morale & productivity Settlement impact on workforce © 1998, Christina S. Merchant

Rights Interests * © Ury, Brett, and Goldberg, 1988 Power Stressed System*

Power Rights Interests Effective System * * © Ury, Brett, and Goldberg, 1988

Preventive Negotiated FacilitatedFactfinding Advisory Imposed Voluntary Issue/Dispute Involuntary Problem Solving Spectrum

Choosing the Best “Fit” between Problem and Process Rights-basedInterest-based

Rights-based Interest-based Balanced Problem Solving

 Scope of the issue?  Type of decision needed?  What data required to begin?  Orientation  Facilitation  Logistics  Timeframe  How will we measure success?  Where does issue go if we fail? IBPS Preparation

1. Test assumptions and inferences 2. Share all relevant information 3. Use specific examples and agree on what important words mean 4. Discuss undiscussable issues 5. Focus on interests, not positions - Roger Schwarz, The Skilled Facilitator, 1994 Ground Rules: Effective Problem Solving

Steps in Interest-Based Problem Solving (IBPS) Clarify Issue Identify Interests/Reframe issue Brainstorm Options Evaluate Options with Criteria Review and Discuss Consensus Solution

“Talk Story” Those who have a story about the problem to be solved share those stories briefly Rest of the group listens actively to understand the dimensions of the problem and the concerns of those who have experienced the problem Aim for no more than a total of 15 minutes for the stories to be told

The WHAT to be addressed, including its component parts State the problem as a question and in a positive fashion Define the problem so each member clearly understands it Step One: Clarify the Issue

... A problem well stated is a problem half-solved.” Source Unknown

Step Two: Identify the Interests Interests are reasons WHY the issue is a problem, so “peel the onion” with “why?” Identify all interests (e.g., needs, fears, concerns, desires, hopes) Recognize the legitimacy of all interests Remember to look back at the issue and reframe to capture all of the interests

Interests Positions The Challenge of Identifying Interests! “Why?”

In order to understand the issue better: How often does it happen and to what degree? Which units or classifications are affected? Should you actually see the area or process? In order to brainstorm meaningful options: How have other institutions, groups, or units handled the problem? Data Do you need more information before proceeding?

How the problem can be addressed Use brainstorming to be creative and prolific without pre-judgment Capture all ideas and keep in front of problem solving group (chart) Be open to possibilities - think “outside the box” Step Three: Brainstorm Options

Effective Problem Solving Focus Decide Narrow Discuss (Why & How?) (What?)

Criteria state the “qualities or facets of a good solution” Use A-B-C criteria at first and define Step Four: Evaluate Options A – Achievable (Workable) B – Believable (Acceptable) C – Cost Effective (Affordable)

Step Four: Evaluate Options, Cont’d Use matrix, symbols (  & ?’s) and nonverbal thumb signals ( ) to expedite Group member polls others: reads option & members put thumb up (  ) or sideways (?) Matrix points out early agreements and problem areas

Collect parts of solution agreed to, then go to options with 1 or 2 ?’s Questioners present concern or need for information…others either clarify, give information, or suggest amendments Work through the matrix together, building agreement and solving concerns Step Five: Review and Discuss Results

In order to understand how an option would work: Check with constituents? Research the practice? Create a period of experimentation? Perform a live “test”? Observe its use in another site? Data Do you need more information before proceeding?

 Look back at problem and ensure solution is comprehensive  Draft solution & re-check consensus  Develop implementation plan with timeline and responsibilities  Communicate with constituents  Measure and evaluate effectiveness of solution Step Six: Reach Consensus Solution

Consensus “The collective opinion formed by a group of people working together where each person feels he/she has had a fair chance to influence the decision, understands the decision, and is prepared to support it.”

Consensus Scale ¤ Wholehearted Support ¤ OK, but...- minor heart palpitation ¤ Concerns - more heart-to-heart talk needed ¤ Heartburn - MUST Talk (group not ready to make decision) ¤ Over My Dead Body!!! - Coronary Block

Prepare to be successful Use an experimental mindset Let go of the past temporarily Adjust the process as needed Use a facilitator Be truly open to possibilities Make “joint-ness” an imperative Remember, No Surprises!! Some Keys to IBPS Success

Diffusion of IBPS Use: Examples RN Bargaining Units at each of 13 Hospitals – handling strike type language issues  System wide and local for certain issues  Ongoing effort using IBPS System-Wide: Bleed over of practices of IBPS in most recent city-wide bargaining  QWL issues being handled with IBPS

Hospital-Specific:  Used in Departmental LMC problem solving  Partial use in layoff and financial crises Nursing Home-Specific:  Used for “culture change” initiatives  Statewide (New Jersey- for profit) Company specific Diffusion of IBPS Use: Examples

Capacity Building  Extensive training of facilitators from various institutions in how to support IBPS use  Development of best practice model by the Labor Management Project to work out the “kinks” in the process and share lessons learned  Training and discussion at most conferences Diffusion of IBPS Use: Examples