Bargaining Power Model Essay

1048 Words Feb 21st, 2010 5 Pages
Bargaining Power Model- The Laws of Human Resources Application of the Bargaining Power Model to Evaluate the Outcome of the New York City Transit Employees Strike of 2005

Background: On December 20, 2005 the Transport Workers Union (TWU) called a strike in the city of New York after initial talks to resolve issues on a new contract with the Metropolitan Transport Authority (MTA) failed. The strike was, “Over wage rises, health-care and pension costs and the retirement age of employees.” (BBC News, December 20, 2005) The strike went on for three days and was called off on December 22, 2005. The strike was illegal in the state of New York according to the 1967 Taylor Law that prevents municipal employees from going on strikes. The
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When the service is critical and non replaceable, the bargaining positions are decided on the relative costs of agreement and disagreement by the parties involved. The relative costs can be defined in economic, political and social terms. 4. Do the parties involved perceive these relative costs? The parties involved should be able to perceive the relative costs associated with agreement or disagreement before deciding on what decisions to stand for. Perceiving the relative costs with proper accuracy helps all the parties in taking a stand that is in their best interest. 5. Are the parties willing to take action based on the perceptions? If one of the parties is not willing to take the necessary action based on their perceptions, the bargaining process would fail. Moreover, that party would not be able to gain out of the bargaining process due to lack of strategies.
Evaluation of the Bargaining Process between TWA and MTA:
1. Criticality of Operations The New York Transit was the city’s heart line and was extremely critical to the MTA. Millions of New Yorkers depended on the subway and bus lines for daily commute and therefore the TWA was in a better bargain situation.
2. Was Service Replaceable? The services provided by the transit system in New York were not replaceable. Although the MTA put in certain contingency plans to help the people, the service was not fully replaceable. MTA and city authorities worked in order to

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