Chapter 8_9 - Chapter 8 & 9: Bargaining, Strikes and...

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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
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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
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Chapter 8_9 - Chapter 8 & 9: Bargaining, Strikes and...

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