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U.S.A. LABOR- MANAGEMENT NEGOTIATIONS

By: Ines Bloch and David Weisselberger

Remember the advice in 'Bargaining for Advantage'

Conclusion

Before starting the negotiationremember the “ability to see the world from the others point of view”

  • "If, as in my department store example, the other party is represented by a bargaining agent, this introduces another layer of perception with which to cope. There may be a genuine split between the agent’s perception of the situation and his or her client’s. In labor-management negotiations, for example, professional union negotiators often have more of a Balanced Concern view of the situation than do their rank-and-file members. The professional labor negotiators deal repeatedly with their management counterparts and have a stake in maintaining serviceable, working relationships across the table. Individual union members, by contrast, have little personal contact with management bosses and do not sit at the bargaining table. From the more distant perspective of a factory floor, workers may take a cynical view of the relationship between the union and the company and see wage negotiations as a Quadrant III Transaction. To bridge this perception gap, union negotiators sometimes need to engage in hardball bargaining theatrics to satisfy their members that they have pushed the company to its limit. Wise company negotiators understand the need for these displays and do not take them personally. "
  • Be prepared for the negotiation to last a while ( many issues+ political nature of union representatives)

  • Be prepared for the settlement to happen shortly before the existing contract is due to expire:

  • If labor leaders agree to terms too early, unit personnel may suspect they have become too comfortable with management and vote against contract ratification.

  • If, on the other hand, management negotiators allow the union agents to take credit for the gains achieved through their last-minute efforts, the affected employees are likely to be satisfied with the final results.

If collective bargaining appears so attractive to workers, why is there a decline in membership?

HOW DOES COLLECTIVE BARGAINING WORK?

Why?

  • In 2013:14,5M Unionized members/In 1983:17,7 Unionized members.

How do we deal with these specificities?

REGULATIONS

During the negotiation- It can be helpful to be a low avoidance negotiator:

  • A number of successful unionized firms have taken courses together on interest-based bargaining compiled to teach labor and management representatives how to look for ways to satisfy the underlying needs of both sides simultaneously. They discussed the need for participants to prioritize their underlying interests and seek ways to maximize the returns achieved by both sides.
  • Low avoidance scores are helpful in such professions as labor-management relations, litigation, and mergers and acquisitions work. But beware: People with low scores in avoidance sometimes lack tact (diplomacy), and are often viewed as overly confrontational. In bureaucratic settings, low avoiders may be seen as troublemakers who refuse to leave well enough alone.

Pre-negotiation stage:

  • When complicated issues are brought forth, parties may use separate committees to explore different options that might be employed to handle these matters. These groups can meet away from public bargaining sessions and look for pioneering alternatives that might not have been used previously. Without the glower of public scrutiny, they can explore options that might not be ultimately adopted without the fear of embarrassment.

What is so specific about these negotiations?

  • Both labor and management negotiators should sit down with the people on their respective sides before they ever meet with their opponents to decide which items need to be addressed and to ascertain their priorities.
  • Many different statutes come into play during the negotiation process:

- The Railway Labour Act of 1926 (RLA) applies to railroad and airline personnel.

- The National Labuor Relations Act of 1935 (NLRA) regulates private sector bargaining encounters for most workers.

- The Labour Management Relations Act of 1947 (LMRA), the "Taft-Hartley" Act, is a federal stattue which restricts the activities and powers of labor unions.

- The Labour Management Reporting and Disclosure Act of 1959, the "Landrum-Griffin" Act, is a federal statute that regulates labor unions' internal affairs and their officials'relationships with employers.

- The Civil Service Reform Act of 1978 (CSRA) is a federal statute that covers federal workers , while state and local government personnel are under state public sector bargaining laws.

Collective bargaining involves on going relationships:

COLLECTIVE BARGAINING

  • Collective bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. As already mentioned, the collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.

  • The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Employees have the right to organize and to select exclusive bargaining agents

  • ASK: “Which terms are vital; which are important; and which are desirable?” Why? This allows to decide which lower value issues they are prepared to trade for preferred terms.
  • After collective discussions are completed, the parties must continue to deal with each other: Union and management negotiators must continue to meet to resolve disagreements that may occur with respect to the application of bargaining agreement provisions, and employees and managers must work together to produce profitable goods or services if the firm is to be successful.

  • Also, usually agreements get renewed every few years.

How are the representatives chosen?

  • Labour unions are chosen by a majority of workers in an appropriate bargaining unit, which may consist of homogeneous skilled workers or heterogeneous industrial workers, become the particular bargaining agent for all of the individuals within that unit.

  • Rights: NLRA specifically indicates that the duty to bargain does not require either party to agree to specific proposals or to make concessions. They are merely obliged to meet at regular times and to discuss the pertinent issues in good faith.

  • The term "Collective Bargaining" was first used in 1891 by Beatrice Webb, a founder of the field of industrial relations in Britain.
  • It involves a process of negotiation between employers and a group of employees ("unions") aimed at reaching agreements to regulate the working environment and working conditions, for example:

- Wages; working hours and conditions; training; health and safety; overtime; grievance mechanisms; and rights to participate in workplace or company affairs.

• Most negotiators favor starting their interactions with less significant subjects hoping to reach tentative agreements on these topics before they move on to more important issues. This allows them to focus initially on areas subject to joint gains, while they start to create a psychological commitment to final accords. As they get to the more controversial topics, those terms don't seem as difficult as they would have had the parties begun their talks with these subjects. In addition, neither side wants to see their prior tentative agreements disappear through a work stoppage and they both become more accommodating with respect to the controversial terms.

****Unions have to be authorized by the government!****

  • The United States labor-management relations system is structured by the National Labor Relations Act (Wagner Act) / NLRA of 1935.

  • Use: it guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining for better terms and conditions at work, and take collective action including strike if necessary.

  • Where is this general principle? Section 7 (29 U.S.C. § 157) sets out the general principle that employees have the right to join a trade union and engage in collective bargaining.

Many issues have to be addressed:

SO... What are Unions?

They are organized labor groups or representatives of workers in many industries. Their activities center around the collective bargaining over wages, benefits and working conditions

  • The expansive number of issues requires drawn-out negotiations that may go on for weeks or months, as the parties try to resolve the different topics because many issues expand the overall pie to be divided.

  • On the other hand, many of the bargaining subjects allow the parties to trade issues in ways that allow them to expand the overall pie to be divided and maximize the mutual return that is involved.

  • The act also created the National Labor Relations Board, which conducts elections that can require employers to engage in collective bargaining with labor unions (also known as trade unions).

  • Since its passage, the NLRA has been amended most notably by the Labor Management Relations Act (Taft-Hartley Act) of1947.

  • [NOTE]: THIS FEDERAL REGULATION DOES NOT APPLY TO ALL WORKERS

During the negotiation:

Collective Bargaining negotiations between labor unions and corporate employers constitute a specialized area in the field of general negotiations mostly because of:

1) The underlying legal framework; and

2) The relationship aspects which make them distinct.

  • Management should share bad news with labor representatives privately: take them outside the bargaining room or contact them on the telephone. Union officials are are elected leaders who generally hope to be re-elected. Political persons who are embarrassed before their constituents will almost always attempt to punish those who put them in this position. The union leaders understand managerial constraints, and appreciate being given this information away from the eyes of unit members. They may then put on a show for their constituents at the bargaining table, but will ultimately yield to firm demands they believe to be necessary. Corporate agents should allow them continue this role during the public sessions, recognizing that it will make it easier for them to give in later.

  • Unlike a general business negotiation or a law suit negotiation, which are not regulated by statutory provisions, a collective bargaining negotiation is mandated and governed by external (federal or statutory) laws.

 Why? Labor Agreements: Economic dependence of an individual worker on an employer (= explains unions)

  • When the topic is so important that neither side will surrender their position, instead of concluding with deadlock, an arbitration can be agreed upon to resolve the issue. (Remember: collective bargaining involve ongoing relationships!).

  • The appointment of an arbitrator can also be useful when there is a dispute over a term that was not essential to the parties. Why? If the term is not essential, they can resort to constructive ambiguity. They may include language pertaining to this topic that actually says nothing intelligible. Both sides are then able to claim that they did not submit. If the issue subsequently arises they can try to resolve it themselves under less difficult circumstances. If they are unable to obtain a mutually acceptable outcome, they can invoke the contractual grievance-arbitration procedures and ask an outside neutral to decide the matter. The losing party then has someone to blame - that pointed-headed arbitrator - and the labor and management representatives can continue with their relationship without unnecessary acrimony.
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