2. Main Topics
Negotiating Sessions: “At the table” Critical Elements in a Negotiation Information Ethics negotiation Bargaining Strategies Distributive Bargaining Integrative Bargaining Interest Based Bargaining Reaching Agreement

3. Negotiating Sessions: “At the Table”
The Opening Statement
The First Negotiation Session: Presenting the Proposals
Negotiate Minor Issues First
Negotiate “Key Issues”
Responding to Proposals
The Closing Stage

4. Ground rules Set at the beginning of the collective bargaining process
Decide the”5W’s”
Who speaks for the parties
Where the parties will meet
When and how long they will meet
How Will formal proposals and responses be made
What form of agreement will be acceptable

5. Recognizing Common Bargaining Tactics
Conflict
Concealment
Packaging
Throwaway Items
Caucusing
Flexibility
Compromise
Saving Face

6. Examples

7. Negotiation tips
For Union
For management
Ask for information on the financial standing of a company if they claim they are unable to meet your wage demands
If negotiation reaches impasse due to no fault of the employer they can implement their last offer & bypass the bargaining unit
Make sure any issue brought up is resolved or reserved for future negotiations
Don’t claim a financial inability to meet union wage demands
Be clear on the authority you have to reach an agreement on behalf of the employer
Be careful what you label the “last/best” offer because if impasse is reached your last offer will be implemented

8. Critical elements in a negotiation
Information
BATNA
WATNA
Time
Pareto’s Law
Power
“The ability to walk away”

9. Ethics Aristotle Kant Mills. Ethics of Purpose Ethics of Principle
Ethics of Consequence

10. Ethical Dilemmas In Labor Relations
Deception
Springs from self-interest and happens when its difficult to verify information
Misrepresentation Concealing ones settlement preference
Bluffing
False representations embodied in threats and promises
4. Falsification
Exchanging false information

11. Bargaining Strategies
Distributive (win-lose) or Interest Based (win-win) A negotiator should first review the issues

12. Issues Information Power Timing People involved
General context of the negotiations

13. Choosing The Correct Strategy
Distributive bargaining
If only one issue is likely to dominate the negotiation, and/or if they had an adversarial relationship in the past.
Interest-Based bargaining
If there are multiple issues and a positive bargaining history

14. Distributing Bargaining
A negotiation method described as a “win-lose’ situation, in which resources are viewed as fixed and limited, and each side wants to maximize

15. Key Elements
Target Point: the point at which the negotiator would accept an offer. Resistance Point: a maximum or minimum beyond which the negotiator will not accept a proposal. Initial offer: The first offer the negotiator presents as a written formal proposal Settlement range: The different between the resistance points of labor and management is the range in which actual bargaining occurs. Settlement point: The heart of negotiations is the process of reaching agreement on one point within the settlement range

16. Opening Offers
Anchor: An opening offer, often a number, and not necessarily a realistic number, that can influence the parties’ Also known as the zone of possible agreements Three Types: Facts, Extreme offer, and Precedent

17. Negotiation norms
Relational: Desires to maintain a positive long-term relationship. Fairness: Equality, Equity, Need, and Status Quo Reciprocity: Responds to a counteroffer or action with one of equal value Good-Faith Bargaining: (1) honor and not retract an offer, (2) meet and discuss issues, (3) make sincere proposals, (4) provide copies of any data or information used during negotiations and share sources of information

18. Framing Positions
Framing: Presenting an issues to the other side in a negotiation in a way that is convincing and causes the other side to “see” the proposal in a different light

19. Types of Framing
Reframing
Focus Frame
Contrast Frame
Negative Frame

20. Reframe Question
Ask why Ask why not Ask what if Ask for advice

22. Integrative Bargaining
Integrative Bargaining: a negotiation method in which both sides seeks ways to integrate the interests of both sides into mutually agreeable options.
Integrator Negotiator strives for two goals:
Create value for both sides;
Claim value for their interests.

23. Distributive vs Integrative Bargaining Techniques

25. NEW SLIDE

26. Principled Negotiations
Positions versus Interests
Separate People from issues
Focus on objective criteria
Develop Mutual gains options
New Slide

27. Table 5.4 - The Positions versus Interests of Union and Management
REVISED

28. The Categorization Method
Active Listening
Open-ended questions
Reflective Statements
Trade off
Assert your own needs
Refrain form making personal attacks
NEW SLIDE

29. Five Steps of Integrative Bargaining
Exchange Information
Develop a common list of all issues
Reaching agreement on compatible issues.
Exchanging issues of equal value.
Resolution of any remaining issue(s).
Step 1: Exchange information and identify all of the issues to be negotiated. Each side explains its interests and concerns on the issues. Step 2: Develop a common list of all issues that were discussed by either side during the first step, and seek to classify each issue as (1) compatible— similar interests; (2) exchange—approximately equal value, which may be traded; or (3) distributive—not compatible, cannot be traded, and therefore whose value must be distributed. Step 3: Reach final agreement on each of the compatible issues and remove them from further negotiation. Step 4: Trade or exchange issues of approximately equal value—in some cases including several issues in a single exchange. Step 5: Resolve any remaining issues—often accomplished through distributive bargaining on each separate issue

30. Interest Based Negotiation (Integrative Bargaining)
Focuses of developing mutually beneficial agreements.
Interests include the needs, desires, concerns and fears.
Interests are the underlying reasons conflict arises.
Interests are distinguished from positions.

31. Figure 5.6 - Steps in the Interest-Based Bargaining Negotiating Process
REVISED

33. Reaching Agreement
Points of Crisis better known are the CRUNCH PERIOD – point of no return.
If no agreement, job actions could lead to a strike or lockout.

34. The Closing Stage Last Minute concessions are requested such as:
Silence – say nothing
The Walkaway – best time to suggest you can and will.
Reciprocate – inducing the other party to change a position

35. Any questions