Mgt315 Final_2. Negotiation & Union

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Goals of American Federation of Labor

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1. Union Security
2. Improved wages
3. Hours
4. Working conditions
5. Benefits

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Founder of AFL

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Samuel Gompers (1886)

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Initial Focus of AFL

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- consisted of skilled workers
- focused on political, bread-and-butter gains for its members

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AFL today

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Merged with CIO, became AFL-CIO.
AFL-CIO is a voluntary federation of about 100 national and international labor unions in the U.S.

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5 Types of Union Security

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1. Closed Shop
2. Union Shop
3. Agency Shop
4. Open Shop
5. Maintanance of membership arrangement

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A form of union security in which the company can hire only union members (outlawed)

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Closed Shop

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A form of union security in which the company can hire non-union people but they must join the union after a prescribed period of time and pay dues.

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Union Shop

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A form of union security in which employees who do not belong to the union must still pay dues on the assumption that union efforts benefits all workers.

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Agency Shop

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The least attractive type of union security from the union's point of view. The workers decide whether or not to join the union; and those who join must pay dues

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Open Shop

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Employees do not have to belong to the union. However,union members employed by the firm must maintain membership in the union for the contract period.

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Maintenance of membership arrangement

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Can union membership be used as a condition of employment, under currenct law?

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1. Right-to-work rule: A term used to describe state statutory or constitutional provisions banning the requirement of union membership as a condition of employment.
2. Taft-Hartley Act permitted states to forbid the negotiation of compulsory union membership provisions and to outlaw any of the union security.

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The law marked the banning of the era of strong encouragement of union and guaranteed to each employee the right to bargain collectively "free from interference, restraint, or coercion."

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Norris-LaGurrdia Act

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The law banned certain types of unfair practices and prohibited for secret-ballot elections and majority rule for determining whether or not a firm's employees want to unionize.

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National Labor Relations Act (Wagner Act)

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NLRB

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National Labor Relation Board, formed to investigate unfair labor act through National Labor Relations Acts.

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Taft Hartley Act

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The law marked the period of modifying union actions.
1. prohibited unfair union practices.
2. rights of employees.
3. rights of employers
4. allowed the president of the U.S. to temporarily bar national emergency strikes

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Laws for union

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1. Norris-LaGurrdia Act
2. National Labor Relations Act
3. Taft-Hartley Act

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HR activities given to labor union through contract

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1. recruiting
2. selecting
3. compensating
4. promoting
5. training
6. discharging employees

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A union organizing tactic by which workers who are in fact employed full-time by a union as undercover organizers are hired by unwitting employers

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Union Salting

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The process before the union petition the NLRB for an election

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1. Initial Contact
2. Obtaining Authorization Cards
3. Hold a hearing
4. The campaign
5. The election

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Authorization Cards

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in order to petition for a union election, the union must show that at least 30% of employees may be interested in being unionized. Employees indicate this interest by signing authorization cards.

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Collective Bargaining situation that occurs when the parties are not able to move further toward settlement, usually because one party is demanding more than the other will offer.

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Impasse

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Intervention in which a neutral third party tries to assist the principals in reaching agreement

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Mediation

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Strikes

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A withdraw of labor

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The process through which representatives of management and the union meet to negotiate a labor agreement

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Collective Bargaining

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Key Elements in Negotiation Process

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1. two or more parties
2. conflict of interests
3. voluntary relationship
4. expectations of give and take

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Intangibles at stake in a negotiation

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- Winning
- Maximizing outcome
- beating other person
- preserving my reputation
- standing my principles
- maintaining prec edent
- saving face, looking good to constituency
- being fair

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Interaction that occurs when two or more parties attempt to agree on a mutually acceptable outcomes, in a situation where their preferences for outcomes are negatively related.

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Negotiation

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Negotiation Def.

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information and power to affect the other party's behavior within a web of tention

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Feature of goals attained through Distributive Negotiation

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Short-term
Tangible
Incompatible

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Features of goals attained through Integrative Negotation

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Long-term
Intangible
Compatible

Front 31

Tangibles at stake in a nagotiation

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Rate, Price, Terms, working of agreement, specific settlements, or specific solutions

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Typical distributive bargaining

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- Bluff
- Lowball
- Delay
- Chicken
- Chicken
- Snowjob
- Temper Tantrum
- Nibble
- Final Offer
- Limited Authority
- Good guy/bad guy
- make demands public

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Source of power in distributive negotiation

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1. Organizational Pressure
2. Time
3. Legitimacy
4. B.A.T.N.A (Best Alternative to Negotiated Agreement)
5. Information

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Process of identifying a solution that maximizes joint gain

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Integrative Bargaining

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Resistances for Integrative Bargaining

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- past histories or relationship between two parties
- bias toward viewing issues in distributive ways
- distributive and integrative issues are often mixed together
- win/lose drives out win/win

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Key Elements of integrative bargaining processes

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1. Commonalities rather than differences
2. needs and interests rather than positions
3. achieving needs of both, not only one
4. exchange information and ideas
5. invent options for mutual gain
6. objective criteria

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Methods in Integrative Bargaining

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1. Problem Identification
2. Generate Alternative solutions
3. Evaluate and Select Alternatives

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Recommended Behaviors in integrative bargaining

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1. check perceptions constantly
2. defend needs on basis of principle
3. ask questions
4. rationale before proposal

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Distributive Negotiation's objectives and tactics

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1. Learn other's walkaway points and target - research, spy and question or bluff
2. Hide own walkaway point and target - not talk, highball, misrepresent
3. move other's move-away point - manipulate perceived costs of leaving and benefits of staying in negotiation
4. lower/raise own walkaway point - develop B.A.T.N.A. and minimize the pressure for settlement