Chapter 8_9 - Chapter 8 9 Bargaining Strikes and Dispute...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Four sub-process of Labor Negotiations Distributive bargaining: Win-lose issues, e.g. wages o One’s side’s gain is the other side’s loss o Win-lose or zero-sum bargaining o What labor gains management gives up Wage rates and fringe benefits Labor gains more income from a higher wage Workers lose when a fringe benefit (paid vaca time) is reduced o Leads to conflict across bargaining o Union threatens to strike to convince management to agree to demands o Management threatens union with the loss of income o Components of bargaining power, strike leverage, and elasticity of demand for labor are critical determinants of how distributive conflicts are resolved Integrative bargaining: Win-win issues, e.g., competitiveness o Solution provides gains to both management and labor win-win bargaining o If productivity of firm increases, the ees can benefit in form of high compensation/shorter work hours o Labor and management can improve firm performance by addresses poor practices and changing job classifications or seniority rules o Introduction of new technology leads to integrative gains o Entails the negotiations surrounding how and to what extent these productivity enhancing work rule changes are made as new tech is introduced o Why integrative bargaining can be so difficult Parties faced with question of how to divide up any joint gain Prompts occurrence of distributive bargaining (pg 194 for example) integrative solutions are sometimes blocked by labor and management’s disagreement over how they would divide up the gains o IB can be hard b/c the parties send confused signals and mixed messages to each other Problems that impede productivity are not always obvious to the two parties, even when parties agree IB and DB have very different tactics of negotiation Intra-organizational bargaining o Within each side, e.g, amongst members of a union o Different goals or preferences within either side
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
When members of the union have different preferences what the union should strive for during negotiations o Senior union members may prefer a focus on attainment of better pensions, younger members may prefer up-front wages o Craft union members concerned with restricting use of outside contractors, production workers concerned with having safer conditions on line o Corporate may favor strict adherence to the seniority policies used in other plants of the company/local plant management focus of seniority procedure that has never been tried elsewhere o Surface bargaining: bargaining opposite a representative who lacks the authority necessary to make commitments that will stick within his/her organization Inadequate decision making authority increases probability of an impasse or a strike Attitudinal structuring o Building the relationship, e.g., foster trust o Degree of trust the respective sides feel or develop towards each
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/06/2011 for the course ILRCB 2050 at Cornell.

Page1 / 8

Chapter 8_9 - Chapter 8 9 Bargaining Strikes and Dispute...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online