Question

Determine and list the steps you would take to conduct a successful union contract negotiation. (Look at the issues from either side)

How would you approach the difference between your point of view and that of the other side?

How would you deal with demands made by the other side that you think are unreasonable?

Answer 1

Solution –

For the most effective negotiation with the perspective of both the parties we would take the following steps –

From the Management Side

• To understand what is the decision making structure of the union
• Have a strong business case to put up my point
• Keep in mind the option of collective bargaining and also ensure the legality concepts
• Try to reach an optimized agreement – closing the agreement is more important than winning like a contest
• Also talk about the non – members of the union

From the Union Side

• Present a strong case related to market standards
• Present the power of union through standard demands which are validated by the majority of employees
• Keep in mind the budgets of the management
• Identify the key parameters of discussion and negotiate with the decision makers
• Reach an agreement only when the conditions are acceptable. Compromise is okay but a decision in haste can prove detrimental.

In case of a difference in the point of view we can approach the situation in the following way –

• Identify the trigger for the difference in point of view from both your and the other side
• Search for the options available to resolve the deadlock
• Have a collective meeting with the other party.
• Present a case acceptable with certain compromises. Highlight the compromises made from your side so that acceptance is easier to be realized from the other party

In case of demands made by the other side are unreasonable then we can take the following steps –

• Highlight the objectives of the negotiation and bring out the bigger picture
• Provide the case where no negotiation is reached and what would be the loss of the other party
• Stay firm with your decision and give some time for the other party to react. Too much haste from your side will show desperation and the other party will like to leverage this.
• Be ready to provide options so that the other party has some consideration points
• Try to close the deal