IND 300 - W12_ M8

IND 300 - W12_ M8 - IND 300 Introduction to Management...

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1 IND 300 INTRODUCTION TO MANAGEMENT IND 300 Introduction to Management Winter 2012 Ch M8
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2 IND 300 INTRODUCTION TO MANAGEMENT The Collective Bargaining Process This section will address: – How negotiations work. – Stages of negotiations. – Negotiation stages and negotiation sub-processes. – The role of bargaining power in union-management negotiations. – Two alternative models of union-management negotiations. Source: Wiley (2007)
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How Negotiations Work At the first joint bargaining meeting, the teams exchange written proposals and demands, and decide when the next joint meeting will be. – Each negotiating team then holds its own private meetings to formulate a response. – At the second and subsequent joint meetings, each team makes counter-proposals and uses a variety of strategies and tactics to uncover the other team’s goals and priorities. – These meetings continue until an agreement is reached or an impasse is declared. When an agreement is reached, each team must go to its constituency or stakeholders and obtain their approval. 3 IND 300 INTRODUCTION TO MANAGEMENT Source: Wiley (2007)
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How Negotiations Work (continued) If an impasse is declared the parties may: – Take a short break. – Ask for third-party intervention. – Undertake a strike or lockout. Each of these actions is intended to make the parties return to the bargaining table so an agreement can be concluded. 4 IND 300 INTRODUCTION TO MANAGEMENT Source: Wiley (2007)
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Stages of Negotiations The key stages of negotiation are: – Pre-negotiation stage. – Establishing the negotiating range. – Narrowing the bargaining range. – The crisis stage. – Ratification. Pre-negotiation Stage: – Each side determines its priorities, goals and ultimate proposals for the upcoming negotiations; some proposals are considered essential, while others may be traded or “dropped off the table” once negotiations have begun. – It is common for the two sides to meet jointly during this stage to sound each other out informally on negotiating protocol and procedures. 5 IND 300 INTRODUCTION TO MANAGEMENT Source: Wiley (2007)
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Establishing the Negotiation Range Establishing the Negotiation Range: – This stage typically begins at the first formal bargaining session when both sides are present. – The parties introduce their bargaining team and present and explain their proposals. – Usually, it is the chief negotiator who orally presents the rationale for each proposal. – The oral presentations serve a number of purposes: establish the bargaining range, demonstrate each side’s commitment to issues, attempt to influence the other side’s perceptions and expectations through explaining the proposals’ rationale.
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IND 300 - W12_ M8 - IND 300 Introduction to Management...

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