Issues in the Mock Negotiation Problem Essay

Issues in the Mock Negotiation Problem Essay.

Being a member of the Local 5000 in this whole project I could point out numerous things that make the employees at Auto Products Corporation want things better. There seems to be issues at the Indianapolis plant concerning overtime, premium pay, and even subcontracting instead of using their own employees to do the work. What I have also gotten from this mock negotiation is that in the past, the union and management have been satisfactory.

Different viewpoints:

I have not had a very good experience with my teammates on this project.

I agree that this should’ve been a fun project but it has been very stressful to me. As far as different viewpoints I feel again as though I’ve done this whole project by myself because everything I posted the only response I received most of the time is “sounds good”, “I agree”, “good idea”. I could go on and on about how my views differed from my teammates or how I feel like I had no help in the negotiation.

I also feel as though I played the role of secretary and chairperson in this project but overall I am satisfied with the final results on our issues raised to management.

Research Provided:

Research was provided for my team by me concerning the current seniority clause, required overtime, and the issues concerning the company’s right to subcontract. The union wanted to stick to the current seniority clause, which management agreed, because it isn’t fair that junior employees can come in before a senior at the company to take the place of a job when a senior employee is qualified to fill the position. I provided the following research to my team from the textbook: In many contracts, seniority governs promotions when a senior employee is “qualified” to fill the position in question. Under others, seniority becomes the determining factor in promotions when the senior has the ability for the job in question equal to that of all other employees who may desire the better job.(Text page359) Sticking with the current seniority clause will ensure that positions are filled properly.

Also, in the Mock Negotiation it states that the company has the right to require overtime in the existing contract but there was an issue raised by the employees that the supervisor isn’t fair and that they have been giving their friends the opportunity to earn the extra money and discriminating against the other employees. For this issue I provided the following research from the textbook: The Fair Labor Standards Act of 1938 places no restriction on employees to work more than 40 hours in a workweek, other than the employees who work more than 40 hours must be paid at least one and one-half times their regular rate of pay for all hours in excess of 40 hours. The textbook also states that when a supervisor makes an error in the regard of offering his/her friends to work overtime and discriminating others; the employer may be faced with a grievance filed by the employee and ask for the amount of money he/she would have earned if he/she would’ve worked.

Also, the situation of paying for the same work twice at overtime rates.(text pages288-290) This could be a major disaster if the company doesn’t fix this and if it isn’t then many possible grievances can still be filed. On the issues concerning the company’s right to subcontract, in the negotiation it stated that for many years each skilled tradesperson has worked only within his or her trade and five months ago the company required a mechanic to do a job normally performed by a plumber. A grievance was filed and the arbitrator sustained the position of the union on the basis of the “past practice” principle. I provided the following research from the textbook for my team: The union should ask the the company add a subcontracting section in the labor agreement.

The textbook gives an example of a subcontracting section in a labor agreement that states whenever the company contemplates contracting out any type of work normally performed by a maintenance employees, it shall inform the President, Chairman, and Grievance Committee and the affected Shop Steward of its intentions prior to making a decision to award the contract.(text page389)This would be great considering for many years the company had each skilled tradeperson working only within his or her trade.

When the company required a mechanic for a job that normally was performed by a plumber the employee and union filed a grievance. The company should stick with “past practice” and continue to keep their tradepeople working only within his or her trade. If not then workrightspress.com states that stewards can do the following: Past practices grievances are well suited for group action. Unions can: • Encourage numbers of workers to file grievances on the matter

• Distribute leaflets about the dispute
• Circulate petitions
• Hold meetings during breaks
• Picket before or after work or during breaks (being sure not to interfere with employees, suppliers, or shippers) Also in the textbook, the example also states that the union retains the right to examine any existing or new subcontracting agreement for the purposes of checking wage scales and the specific work contracted.(text page389) These are great things we could put in the subcontracting section of the labor agreement. Also in the subcontracting section in the labor agreement, I think the union should also ask that limitations be put in place such as: 1. Requiring the employer to have an agreement that subcontractors will be used only on special occasions ( where specialized equipment that isn’t on company premises is required or where special skills are needed )

2. No-layoff guarantees to current employees (as in “no employee of any craft, which craft is being utilized by an outside contractor, shall be laid off as long as the outside contractor is in the plant doing work that employees in such craft are able to do.” 3. Provisions giving the union veto power over any or all subcontracting 4. Requirements that the management prove to the union that time, expense, or facility considerations prevent it from allowing current employees to perform the work. (text page388)

The Local 5000 Union Demands:

After reading the Mock Negotiation the union decided on the following demands mainly on the issues raised in the negotiation. The union has developed the following demands concerning the Mock Negotiation at Auto Products Corporation for the Indianapolis plant: 1. The union will not permit any change in the medical insurance program. The union wants to fight for better benefit packages, which would include a 401K and also better medical insurances. In the current contract, the medical insurance program does not cover employees that are laid off for more than 30 consecutive days and 80% of the employees laid off, have been laid off for longer than 30 consecutive days.

We would like to ask that management remove this and also; still cover the employee’s on layoff, visits to physician offices, hospitals, and emergency rooms up to 60 days. 2. The union would also like to ask the company add a 401k, the union would ask that the company match dollar for dollar what the employees decide to put into their 401k.This will help employees’ retirement. We would also like to administer an Employee Stock Ownership Program which entitles employees’ 5 shares of company stock yearly. 3. The union would also like to stick with the current seniority clause that provides for promotions based on length of service and ability. If the company says that promotions are bid for on a departmental basis then the department that has the position open should be available to the candidate within the company that has seniority based on length of service and ability before a junior employee. 4. The union would also like to discuss the current contract about required overtime.

The union insists on paying employees time-and-a-half while working these days and insisting that the company use a volunteer method when selecting the employees to work on these days. 5. I think that the union should also place a restriction on the company’s right to subcontract. No subcontracting can occur when skilled trades are available to do the work. When the company contemplates contracting out any type of work normally performed by a company employee, it shall inform the President, Chairman, and Grievance Committee and the affected Shop Steward of its intentions prior to making a decision to honor the contract; allowing the company to subcontract only if, all of their own personal resources have been exhausted. 6. As part of the union, I would also like recommend placing demands on management to allow for a supplementary unemployment benefit program to help dislocated workers.

The first is supplementing the unemployment benefits of various state unemployment insurance systems. Second is allowing further income to still unemployed workers after state payments have been exhausted. Without sub pay, laid off workers will start looking for new employment and will most likely be unavailable to return to their original position when an opening occurs. We would also like to remind you that a sub pay clause can catch the attention of the most talented people looking for jobs, people like to work for companies that take care of their employees. Also asking management to supplement the union employee’s unemployment benefits (while laid off through no fault of their own) and allow for up to 90% of their original pay for a maximum of 52 weeks’. 7. I would like to recommend the union demand the removal of the no-strike clause because grievance procedures in some cases seem to not work like they should. I believe a strike or slowdown might help convince management that something needs to change.

8. The union would also like an annual wage increase for all workers along with adjusting the escalator clause in the current contract. The current contract provides for a $.03 increase in wages for each .4-point increase in the Consumer Price Index (CPI). We as the union ask that the company provides a $0.10 increase in wages for each 0.5-point increase in the CPI. I feel these demands were adequate for negotiations because these demands will benefit our employees and fix the problems that are going on at the plant. Although not all were agreed on the only demand that didn’t even get a second look would be adding a supplemental unemployment benefits for dislocated workers. Which I understand this is due to APC’s current costs due to the current loan the company has just borrowed.

The Bargaining Zone:

Going into this negotiation the union, in all, knew that APC would try and change the medical benefits for their employees. Our demand states that we weren’t going to accept any change to the medical benefits but our plan was to ask for this and negotiate in permitting the company to only pay 80% of medical costs throughout the new contract. Management and the union chairperson, Ziaria, agreed that the company pay for 65% of medical costs throughout the course of the new contract. Our final result was close to what we were original to in the first place so I’d say we accomplished what we wanted in the bargaining zone for this demand. Another demand in which we knew that management would counter on would be the current No-Strike Clause in the current contract. The union requested that this clause be removed and management wouldn’t accept this claiming “Auto Product Corporation is a production company.

Feasibly, we are not able to produce the volumes of quality parts for our vendors when the company is being disrupted with strikes and work slowdowns. Our Local unions file grievances for their members and they go through the process. The contract contains a standard grievance procedure and provide for arbitration for all disputes arising under the contract. The company, with the help of its 3800 employees wants to remain vital to the community, vendors and families of our employees; we can only be effective, if we are producing quality parts.” But, the entire time, the union knew this wasn’t going to work and Paul had mentioned a No-Sue section to be added which management had no problem with. Our bargaining limits on this were accomplished with ease considering management said they had no problem adding this as long as the union was not directly involved or instigating a strike or slowdown.

The Negotiation Process:

Overall I would have to say that the negotiation process was somewhat difficult in the beginning because management was unsatisfied with our demands refusing pretty much all of them. I feel like the union was more willing to negotiate but that could be because our goal was the employees and the managements goal was reducing costs. For example, the union and management went back and forth on decreasing the amount of stewards to job families, trying to reduce stewards from having 60 to 20 and decreasing the amount of time they have to do grievance work daily. The union and management also went back and forth on non-productive time. Management wanted employees to clock out for lunch and then only have a 5 minute paid wash up at the end of their shift. The union agreed on clocking out for lunch but wanted to keep the 10 minute wash up and management wouldn’t accept this until the very end of negotiations. Besides these two matters, the negotiation process went rather smoothly.

My personal thoughts:

There are things that I wish would have went differently. For example, my teammates should’ve contributed more to discussions. I feel as though I was constantly waiting on a response from them and more than half the time I would only hear from Paul and as I discussed earlier he would respond mainly with “I agree” which gives me no other viewpoints or if I should have done things differently. Or, the would respond after deadlines to where I couldn’t change anything. Then, Ziaria, not being in hardly any of our discussions goes in the boardroom and conducts negotiations without even consulting with me or Paul. I understand though that you can’t always choose your teammates.

Conclusion:

Before conducting these negotiations I went into this thinking I wanted to be on a management team because I have always had this view of unions being dramatic. Instead, my views now are more pro-union because this negotiation has taught me that unions are there for your rights as an employee. When management tries to change the contract, you as an employee, should want the union there to try and get the best possible outcomes for all employees because management is just going to try and cut costs any way they can. Overall I found this project to be interesting and informative on the things that actual companies negotiate on.

References:
“The Mock Negotiation Problem.” Sloane, Arthur A., Witney, Fred. Labor Relations. Prentice Hall- Pearson Education, 2012. 435-440. Work Rights Press. How to Win Past Practice Grievances. n.d. 16 November 2012 <http://www.workrightspress.com/pastprach1.html>.

Issues in the Mock Negotiation Problem Essay

The Importance of Negotiation Skills Essay

The Importance of Negotiation Skills Essay.

The labor relations process includes three phases, and one of those phases is the negotiation of the labor agreement. The negotiation process involves two different parties; the union, representing the employees, and the management/employer. The outcome of those negotiations has a drastic impact on the work lives of the employees, such as working hours, working conditions, hourly wages, benefits, and other policies. The negotiations also affect the business interests of the employers, such as labor costs, operation costs, and management control.

Therefore, it is of the utmost importance for both parties to ensure that the negotiating team representing their interests has the necessary skills and abilities to secure what is best for them (Holley, Jennings, & Wolters, 2009).

There are several strategies, tactics, and techniques involved in the negotiation process. That is why I think it is important for both, management and unions to understand the process of negotiation in depth, and understand how critical it is for achieving their goals.

In this essay, I will attempt to answer some of the important question regarding the negotiation process. Questions such as: are negotiation skills intuitive, or can they be acquired? What should management or unions look for when forming their negotiation teams? What are the approaches of negotiation, and why are negotiation skills important? How are labor-management negotiations different from other types of negotiations?

Intuitive or Acquired?

While it is possible for a people to improve their skills as negotiators through experience, practice, and common sense, research has proven that there are techniques in both mediation and negotiation that are counter-intuitive. What this means is that even if a person has years of experience negotiating, and has the ability to apply logic and common sense to all situations, he or she will not learn those techniques without proper training (Lawson, 2009). “Because they are counter-intuitive, training is required. Then that training must be internalized. Once internalized, the concepts must be practiced and honed into skills. Trained attorney mediators utilize the skills common to both mediation and negotiation. If they use their training, they are very effective.”(para. 5)

Forming Negotiation Teams

If negotiation skills were a natural talent that cannot be taught, then there would not be a lot that management or unions can do to improve those skills. However, since it is in fact a skill that can be acquired through training, I think both negotiating parties would benefit from investing in training some or all members of their negotiation teams.

Looking at both employers and unions, we can confidently assume that unions will almost always have skilled labor relations negotiators on their teams, because negotiation is essentially their job. Employers on the other hand will most likely lack experienced and skilled negotiators on their team; they may have members of management who are experienced in labor relations, but not necessarily good negotiators. And this is why I believe employers, especially those in industries that are susceptible to union organization, should look into investing in training the people who are expected to be involved in any negotiation agreement processes, such as HR directors and line managers.

Negotiation Approaches and Relation to Skills

There are two negotiation approaches that can be used in a bargaining situation: disruptive bargaining and mutual gain bargaining. The disruptive bargaining approach views the two parties’ interests as being in conflict, and that the negotiation process is a win-lose scenario where one party’s gain must come at the expense of the other. Mutual gain bargaining, or interest-based bargaining, on the other hand focuses on mutual problem solving through open and honest communication about each party’s interests (Holley et al., 2009).

So why are good negotiation skills important? They are important because negotiation is not about winning, it is about compromise, and skilled negotiators know that; they know how to separate emotions and personal opinions from facts, and how to avoid conflict in order to achieve successful agreements.

The difference between successful and unsuccessful negotiations is that in successful negotiations, everybody comes out of it feeling like a winner. If either one of the two parties feels like a loser, then negotiations cannot really be considered successful. That is because the party that ends up feeling like a loser at the end of the negotiations will not buy into the follow-up action resulting from the agreement, and will probably never trust the other party again (Raman, 2010).

I think that the phrase “everybody comes out of it (the agreement) feeling like a winner” does not necessarily mean that both parties need to compromise some of their interests in order to reach a win-win situation. We all negotiate with other people around us in almost daily basis, when buying services or products for example, and I am positive that in many of the occasions in which we were happy with the outcome of the deal we negotiated, we were in fact led to believe, by better negotiators, that we came out of the agreement as winners.

If we look at this fact in the light of a labor relations’ negotiation agreement process, having skilled negotiators on the team provides a huge advantage for one party over another. In such a large scale negotiation agreement, this advantage could translate into enormous amounts of benefits/savings depending on which side of labor agreement has the advantage.

Labor-Management Negotiations Are Different

Labor-management negotiations are different from many other types of bargaining. In most other types of bargaining, the relationship between the two parties ends at the conclusion of the agreement. Labor-management bargaining on the other hand, involves an on-going relationship between both parties, and once the agreement is finalized, both parties must continue to deal with each other to resolve any arising disagreements. The relationship is not just a factor to consider in one’s strategy, it is the reason for the negotiation (Shea, 2002).

Conclusion:

Negotiation is both an art and a science, and I think it is only logical for both unions and management to try to maximize the benefits that can be derived from having negotiation skills and techniques at their disposal. Especially when the stakes are high and fostering a long-term relationship is an important goal. I see having the appropriate negotiation skills and techniques as an advantage for one negotiating party over another, and even if both parties are equal in terms of negotiation knowledge and experience, it is still a win-win situation where both parties can negotiate reasonably and logically without emotions and pride getting in the way and leading to unnecessary impasses.

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The Importance of Negotiation Skills Essay

Bakra Beverages Negotiation Case Essay – Analysis

Bakra Beverages Negotiation Case Essay – Analysis.

Bakra Beverages Negotiation Case Essay – Analysis. The negotiation was fast. BebsiCo gave me a price for a yearly contract of $4 M and I agreed. We agreed to negotiate again next year after seeing the percentage of the target market we have reached. The deal was fair, and created value for me (reputation and possibility to obtain financing). I also noticed them about the availability to distribute in the largest chain-restaurant in the country (low cost for us, high value for them).

This was an example of a claiming value negotiation, where both parties tried to achieve an individual gain (the best price) and only the price being discussed.

Bakra Beverages Negotiation Case Essay – Analysis

However, it has integrative issues as well, because it is important to build a long-term relationship to keep distributing in the future. My BATNA was bankruptcy, and my reservation point very low, so any deal for me would be good. It was important to try to get a lot of information from the other party before you negotiate the price, because you may find out something.

The opening party discussing the price shows a lot. So I tried to give her all the information I had (about my experience, my contacts) and ask her about things such as “why don´t you want to work with Kabir” or “why are you interested in working with us”. Based on our answers, it was clear that we both had the same interest: succeed together.

I learned from this negotiation that in claiming value negotiation, there are ways to include creating value issues. We could have negotiated including “if you do this, then you get that”. I also learned that it is important to know the reference points before you negotiate to get a fair deal. Parties may have assymetric information, but sharing information helps achieving your interest.

APA Format

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Bakra Beverages Negotiation Case Essay – Analysis