1. Negotiations Chapter 7 ©2012 Nelson Education Ltd.

2. Copyright © 2012 Nelson Education Ltd. 7-2 Learning Objectives  At the end of this chapter, you will be able to discuss:  the differences between negotiations between individuals and collective bargaining  the four sub-processes of collective bargaining  examples of distributive and integrative bargaining issues  a collective bargaining model  the pressures on all of the parties to collective bargaining

3. 7-3 Learning Objectives  At the end of this chapter, you will be able to discuss:  bargaining step by step  the dos and don’ts of bargaining  the principles of adversarial negotiations  the principles of integrative, or win-win, negotiations  the elements of interest-based negotiations  obstacles to achieving the best bargaining outcome for management and labour  when to use adversarial and win-win negotiations  the Magna deal Copyright © 2012 Nelson Education Ltd.

4.  Two party versus multilateral  Issues may be:  inherently adversarial  mutual gain  or both  One-time transaction versus ongoing relationship 7-4 Collective Bargaining vs Individual Negotiations Copyright © 2012 Nelson Education Ltd. 7-4

5. 1. Distributive bargaining 2. Integrative bargaining 3. Intra-team / intra-organizational bargaining 4. Building trust or attitudinal structuring 7-5 Subprocesses of Collective Bargaining Copyright © 2012 Nelson Education Ltd. 7-5

6.  Two parties compete over distribution of fixed resource  economic reward  control over work process / work rules  Zero sum game  Some degree of conflict, haggling  Distributive tactics  develop a bottom line minimum position necessary to avoid strike / lockout 7-6 Distributive Bargaining Copyright © 2012 Nelson Education Ltd. 7-6

7.  Potential for a solution that produces a mutual gain  win-win bargaining  principled negotiations  interest-based bargaining  Integrative bargaining tactics  Focus on real cases  Share information  Many voices  Array of solutions 7-7 Integrative Bargaining Copyright © 2012 Nelson Education Ltd. 7-7

8.  Bargaining within teams during the collective bargaining process  Individual team members represent particular interests  women  pensioners  shift workers  Intra-team tactics  team caucus 7-8 Intra-Team (Intra-Organizational) Bargaining Copyright © 2012 Nelson Education Ltd. 7-8

9.  Difficult process  Building mutual respect and trust  Necessary for an enduring and positive bargaining relationship  Building trust tactics  Away-from-the-table meetings Attitudinal Structuring Copyright © 2012 Nelson Education Ltd. 7-9

10. 7-10 Collective Bargaining Model Copyright © 2012 Nelson Education Ltd.  Economic explanation of collective bargaining outcomes  Contract Zone  Bottom lines overlap  95% of cases settle 7-10

11. 7-11 Same Expectations Copyright © 2012 Nelson Education Ltd. 7-11

12. Divergent Expectations 7-12 Copyright © 2012 Nelson Education Ltd. 7-12

13.  Point where negotiation positions intersect  To avoid a strike or lockout  management will offer more  union will accept less 7-13 Copyright © 2012 Nelson Education Ltd. Contract Zone 7-13

14.  Deadline may be necessary to pressure the parties into a settlement 7-14 Triangle of Pressures Copyright © 2012 Nelson Education Ltd. 7-14

15.  Union-Employer Pressures  Pressures on the firm  Pressures on the union  Pressures on union members  Employer-Union Member/Employee Pressures  Union-Union Member Pressures 7-15 Triangle of Pressures Copyright © 2012 Nelson Education Ltd. 7-15

16. 1. Management and union prepare for bargaining 2. Union or management serves notice to bargain 3. Parties meet 4. Each party communicates its priorities Continued… 7-16 Bargaining Step by Step Copyright © 2012 Nelson Education Ltd. 7-16

17. 5. Momentum builds for a settlement 6. Contract zone is reached 7. Settlement or impasse? 8. Ratification 7-17 Bargaining Step by Step Copyright © 2012 Nelson Education Ltd. 7-17

18.  Cooperative  Focus on interests not positions  3 Steps  Identify the problem  Search for alternative solutions  Systematically compare alternatives 7-18 Interest-Based Bargaining (IBB) Copyright © 2012 Nelson Education Ltd. 7-18

19. IBB Challenges  Involves mixed-issue bargaining  Negative bargaining history may impact  Requires complete certainty other side will cooperate  Over time its effect can diminish Continued… 7-19 Copyright © 2012 Nelson Education Ltd. 7-19

20. Does IBB Work?  Can work  in a crisis  in exceptionally bad relationship  in absence of monetary conflicts of interest 7-20 Copyright © 2012 Nelson Education Ltd. 7-20

21. Magna Deal  Departs from Wagner Act model  Gives up right to strike  Non adversarial organizing  Cooperative conflict resolution at work  All contract disputes to final offer arbitration 7-21 Copyright © 2012 Nelson Education Ltd. 7-21

22. Summary  Key differences  Distributive vs integrative bargaining  Intra-team bargaining  diversity of interests on each team  Building trust is most difficult process  Both sides face pressures in relationships 7-22 Copyright © 2012 Nelson Education Ltd. 7-22