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INTEREST-BASED NEGOTIATION Federal Mediation and Conciliation Services Human Resources and Skills Development Canada.

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Presentation on theme: "INTEREST-BASED NEGOTIATION Federal Mediation and Conciliation Services Human Resources and Skills Development Canada."— Presentation transcript:

1 INTEREST-BASED NEGOTIATION Federal Mediation and Conciliation Services Human Resources and Skills Development Canada

2 Federal Mediation and Conciliation Service: Dispute Resolution Services: -Conciliation and Mediation -Grievance Mediation -Arbitration Appointments - Preventive Mediation Program - Labour-Management Partnerships Program (LMPP) Legislation, Research and Policy

3 Preventive Mediation Program - Relationship-by-Objectives (RBO) - Committee Effectiveness (CET) -Negotiation Skills and Facilitation -Collaborative Problem-Solving -Mediation - Grievance Resolution Workshop

4 Workshop Objective: An Understanding of: what IBN is IBN steps IBN techniques/skills behaviour elements

5 Beer Pricing Exercise

6 Note: Profits are rounded up to the nearest $-million.

7 The IBN ApproachThe IBN Approach

8 What is IBN? collective bargaining an adaptable process a way of focusing on the process a negotiation style which encourages creativity, information sharing, and participation a useful tool for some people at some times

9 What IBN is not ? a quick fix or the solution to all problems a way to get everything you want at the table a way to avoid conflict about being nice and polite and agreeing with everything the flavour of the month right for everyone

10 Interest-Based Approach Principles process counts focusing on issues, not on the personalities focuses on interests, not the positions creating options to satisfy interests jointly discuss to evaluate the options postponing a commitment

11 Negotiation Styles: Traditional separate training send notice to bargain fixed mandate exchange demands push for position, argue, stall formal, face-to-face little discussion/many caucuses single spokesperson confrontation verbatim notes sign-off each item memorandum signed on completion Interest-Based joint training set joint ground rules flexible mandate jointly identify issues discuss interest, generate options informal, side-by-side much discussion/few caucuses everyone talks joint problem-solving flip-charts no sign-off memorandum signed on completion

12 identify and share interests generate options develop criteria evaluate options closure Interest-Based Approach Steps: opening statement agree on ground rules establish the issues Preliminary Substance

13 Step 1: Opening Statement: Purpose: -sets tone -expectations -constituents Contents: -commitment -process -common goals

14 Opening Statement: The Union and the Company plan to make every effort to negotiate the collective agreement using the interest-based process. They will endeavour to share information openly and participate in discussions of a range options with the understanding that no final commitments will be made until the end. As the parties jointly face the challenge of the future, they share the following values: –client focus –the overriding value of people as a resource –union-management partnership –quality and continuous improvement

15 Step 2: Ground Rules: establish process: -expectations -ownership logistics rules responsibilities rights behaviour

16 Step 3: List of Issues: identify and explain topic or subject of negotiations - broad, open-ended establish common understanding of all issues to be discussed prioritizing issues for the negotiation

17 Focusing on InterestsFocusing on Interests

18 Identifying Interests Focusing on Interests: reflects concern about an issue facilitates information sharing promotes discussion of options avoids starting the process with a disagreement adds legitimacy

19 Step 4: Identifying Interests: Position one party’s solution to an issue make demands is the close-ended solution purpose: to communicate the single acceptable outcome exaggerated statement gives little information contains “you” statements directive language Interest one party’s concern, fear, need or worry on an issue forms the basis for a future solution but is non-negotiable purpose: to promote discussion of various possible options no exaggerated statements gives much information contains “I” or “we”statements non-directive language

20 Identifying Interests Types of interests: mutual interests non-conflicting interests conflicting interests

21 Example Identification of Interests: Issue: A car pool member who is frequently late. Statements: a)“When I am late, my boss is on my case all day.” b)“ The next time you are even five minutes late, we are going to kick you out of the car pool.”

22 Identifying Interests: Position: Demand for higher overtime rate. Possible interests: -increase members’ compensation -job creation -prevent abuse of overtime

23 Generating OptionsGenerating Options

24 Step 5: Generation of Options: Options - are one of a number of possible solutions to resolve an issue. Purpose: to increase flexibility in the search for solutions to develop a better solutions as a result of joint efforts to provide the participants with ownership of the process to increase commitment to the final outcome

25 Generation of Options The Process: Brainstorming ensure full participation create without evaluating, no criticism work towards quantity not quality propose options without judicial prejudice guidelines: -alternate the facilitator -lead with the next number -keep everything visible by posting the completed sheets

26 Generation of Options Blocks to Creativity: fear premature judgement assuming single solution assuming limitations negative attitudes perception

27 Generating Options Overcoming Blocks: informal setting challenge assumptions suspend judgement analyze the problem in parts recognize point of exhaustion

28 Brainstorming ExerciseBrainstorming Exercise

29 Evaluating OptionsEvaluating Options

30 Step 6: Development of Criteria: where possible, use objective standards agreement on choice of criteria and options is done by consensus decision-making jointly developed standards can provide a basis for deciding issues in a fair, acceptable and transparent manner Examples of Standards: -industry practice -market rates -past performance

31 Step 7: Evaluation of Options: The Three-Cut Method: Does the option satisfy interests? Are the resources available? Can the option be sold to others?

32 Achieving ClosureAchieving Closure

33 Step 8: Closure: all issues discussed objective is still a collective agreement “No” is part of the process packaging of issues broad perspective consensus decision- making

34 Closure:

35 Consensus Decision-MakingConsensus Decision-Making

36 Consensus Decision-Making: unanimous agreement on a single course of action reached through a cooperative, not a competitive process where each member can say: I understand what is being proposed... I had the opportunity to express my views and I understand the views of the others... It was arrived at openly and fairly… It is the best solution for us at this time I will support the implementation of the solution

37 Consensus Decision-Making Guidelines: listen and be open to persuasion encourage participation share information treat differences as strengths avoid agreeing hastily, bargaining or voting

38 Communication and Effective ListeningCommunication and Effective Listening

39 Communication: put yourself in their shoes discuss perceptions focus on issues, not personalities focus on future, not past legitimacy of emotions allow venting but avoid reacting

40 Exercise on PerceptionsExercise on Perceptions

41 Effective Listening: 75% words ignored, misunderstood, forgotten brain 8-10 times faster than speech active listening - 17 seconds not trained in listening

42 Effective Listening Bad Listening Habits: attention fakers criticizers bored listeners difficult material blockers note takers mental rehearsers

43 Summary: What it takes to Succeed: genuine desire for change commitment at all levels long, broad view and is part of overall approach flexible mandate and timeline empowered negotiators open sharing of information communication with constituents

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