1. 1 Negotiations and Industrial Conflict

2. 2 Four Subtypes of Bargaining Distributive –Classic Bargaining Integrative –Health and Safety Intraorganizational Attitudinal Structuring –Example – health care in auto industry –Over life of contract

3. 3 End-of-Contract Negotiations Occur Periodically Traditional standard has been three years –Moving toward 4 years and more Some interest on part of employers to lengthen this –Certainty Auto industry and UAW, 4 years UPS and Teamsters, 6 years

4. 4 Traditional Adversarial Bargaining Information Gathering Stage –Within Each Side –About Other Side –Environment Economic Legal Legal Bargaining Obligations –meet at reasonable times –reps with authority to agree –negotiate in “good faith” –no obligation to agree

5. 5 Immediately Prior to Contract Expiration Possible Union Tactics –grievances –slowdowns –public strike authorization Possible Company\Employer Tactics –stockpiling of goods –arrangements for outside contractors –Option of striker replacement –Option of lockout

6. 6 Fundamental Union Decision Whether to Strike –Successful strike occurs when Union obtains an acceptable contract Strikers not replaced Examples of Successful Strikes –Firestone-Bridgestone, 1996 –American Airlines Pilots (threat), 1997 –UPS, 1997 Characteristics of Successful Strikes –skilled labor –integrated operation –Competitors for struck product

7. 7 Fundamental Union Decision Whether to Strike –Unsuccessful Strikes (as of today) Detroit Newspapers Caterpillar –Characteristics of Unsuccessful Strikes Workers may be replaced –lack of skill –possibility of subcontracting –high elasticity of sub between capital and labor –financial resources –Excess supply of labor

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11. 11 If a Strike Occurs Union –savings –picket duty –support from other unions –PR –Legal Expenses Employer –If not replacing redeploy mgt. and nonunit ees subcontract –If Replacing recruit\hire replacements prepare for possible violence consider UFLP liability consider possibility of union offer to return to work decertification?

12. 12 Employer Lockout Puts pressure on union –Er suffering financial losses –Timing of dispute –Recent examples NBA lockout shortened 98-99 season 2002 West Coast longshore lockout Hockey lockout for 04-05 season

13. 13 Union Strike Substitutes Local or Rolling Strikes Slowdowns Excess Maintenance Work to Rule

14. 14 Corporate Campaigns Union tactics which attempt to pressure businesses and persons who have a relationship with the employer in the hopes influencing the employer to change its position –Ryder –Steelworkers –Wheeling Pitt – Bridgestone-Firestone Legal, Secondary Activity

15. 15 Concession Bargaining Employer asking Union to accept a decrease in wages and benefits –Financial reasons Losing money Performance below expectations Competition –Bankruptcy Triggers negotiations Union often a party Can company unilaterally abrogate collective agreement?

16. 16 Cooperative\Interest Based Discussions over the life of contract Interest-Based rather than positional During Negotiations –Use of Subcommittees –Time Limits for Subcommittees Compulsory Arbitration Early Negotiations and Contract Settlements

17. 17 Mutual Gains Bargaining Joint Identification of Interests Problems Process –Define Problems and Interests - separate –Discussion of problems and interests - joint –brainstorming solutions - joint –recs for solutions based on brainstorming - separate –selection of solutions Highly developed rules for “negotiations”

18. 18 Government Support Local and state encouragement Third parties –FMCS –Others