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

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

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

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

Examples

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

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

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

Ethical Dilemmas In Labor Relations Deception Springs from self-interest and happens when its difficult to verify information Misrepresentation 2. Concealing ones settlement preference Bluffing 3. False representations embodied in threats and promises 4. Falsification 4. Exchanging false information

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

Issues Information Power Timing People involved General context of the negotiations

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

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

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

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

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

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

Types of Framing Reframing Focus Frame Contrast Frame Negative Frame

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

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.

Distributive vs Integrative Bargaining Techniques

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

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

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

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

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.

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

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.

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

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