CHAPTER 10 - CHAPTER 10 Contract Negotiations The...

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CHAPTER 10 Contract Negotiations The negotiation of a labor agreement is of critical importance to both parties. The agreement will govern the relationship between them for a definite contractual period. For the employer, the contract will have cost impacts and constrain management decision making. For the union, it will spell out the rights of union members in their employment relationships. Why does a contract emerge in the form that it does? How do the parties prepare for bargaining? What influences do the rank and file or the various functional areas within an organization have on the demands made in the negotiations? How does each group organize for bargaining? What constitutes success or failure in negotiations? What sequence of activities usually takes place during negotiations? In this chapter, we first examine the activities preceding the negotiations themselves, from both union and management perspectives. Then we examine the theory and tactics of the negotiating process. The steps necessary for agreement and ratification are covered. Finally, management's assessment of bargaining is examined. In reading this chapter, consider the following questions: 1. How do both management and union prepare for negotiations? 2. How are negotiating teams constituted for bargaining? 3. What processes are usually involved in presenting and responding to demands in collective bargaining negotiations? 4. How are agreements reached, and what processes are necessary to obtain approval by the union rank and file for ratification? Except for initial contracts and unusual financial conditions, the timing of bargaining activities is largely determined by the expiration of a previous contract and the law. Under the law, if either party desires to modify the agreement at its expiration, it must give the other at least 60 days' notice. In all negotiations, initial or otherwise, the parties are required to meet at reasonable times to bargain. Different strategies may be used across bargaining situations. Both parties have some idea how they would like a new contract to be shaped. They either have taken positions during an organizing campaign or have some experience with an existing agreement. MANAGEMENT PREPARATION Because labor is a very large share of the total costs of operating most organizations, management must be well aware of the cost implications of various contract proposals. The more heavily organized the firm, the more attention paid to contract terms. Ironically, less-organized firms should also be aware of contract implications, because benefits won at the bargaining table are frequently passed on to non-organized employees. Collective bargaining practices have been examined by the Conference Board, a group of collaborating organizations supporting business research projects. The results of the board's research will be followed in examining management preparation. Department Involvement
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This note was uploaded on 02/26/2012 for the course MGMT 3680 taught by Professor Harrywater during the Winter '12 term at CSU East Bay.

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CHAPTER 10 - CHAPTER 10 Contract Negotiations The...

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