Preparation for Bargaining

1. Preparation for Bargaining The process of preparation for bargaining is influenced by factors such as the characteristics of the bargaining unit, the organizational structure of the union and employer, and the nature of the labor-management relationship.

2. Preparation for Bargaining Bargaining unit composition affects the size and composition of bargaining teams, the method of formulating bargaining demands, and their content.

3. Preparation for Bargaining In cooperative relationships it is not unusual for preparations to be characterized by a joint search for objective information sources. Where conflict exists, each side may seek to use information as a weapon to bolster partisan arguments and coerce concessions.

4. Preparation for Bargaining Where conflict exists, each side may seek to use information as a weapon to bolster partisan arguments and coerce concessions.

5. Preparation for Bargaining In any case, the character of the bargaining process, its outcomes, and its failures or successes can all be influenced by the quality of the preparation process.

6. Bargaining TeamsManagement The “bargaining structure” directly effects the composition of the bargaining team. In the case of multiemployer bargaining, the team may include representatives appointed by the various employers within the bargaining unit.

7. Bargaining TeamsManagement In the case of the single-employer, multilocation bargaining, the team may be composed of only head office staff, or it may include some local representatives. .

8. Bargaining TeamsManagement In the case of multilocation employers who bargain separately for each location, the team may be confined to local management, or it may include a representative from the firm’s head office.

9. Bargaining TeamsManagement In single-employer, single-location bargaining the team may consist of the top management of the company. Some firms are engaged in dual bargaining - they negotiate a separate master contract and a local contact.

10. Bargaining TeamsManagement The composition, size, and selection of the management team is terms of expertise, personality, and level of militancy is influenced by the complexity of the contract being negotiated and the nature of the opposition.

11. Bargaining TeamsManagement The effectiveness of a bargaining team is not determined by its size but by its ability, knowledge, and experience.

12. Bargaining TeamsManagement The bargaining process, the behavior and conduct of negotiators at the bargaining table, and the teams agreed upon all have an impact on the structure of the institutional relationship that evolves between the parties.

13. Bargaining TeamsManagement The most important member of the bargaining team is its spokesperson. Such an individual is responsible for the major representation of positions, communicating priorities, timing concessions, making threats and commitments, and deciding on the appropriate role of each team member.

14. Bargaining TeamsUnions Union bargaining teams, like management teams, come in various sizes. It could be anything from a lone business agent to a full bargaining committee of as many as one hundred people.

15. Bargaining TeamsUnions Union teams also require the assistance of experts in various fields……Economists, benefit specialists, actuaries, and attorneys.

16. Bargaining TeamsUnions In local bargaining, the negotiating committee is relatively small. If the bargaining committee is elected by the local, it typically includes union officers, a business agent, and some shop stewards. In some instances, a representative of a national union may assist the local union.

17. Bargaining TeamsUnions It is usually the responsibility of the national representative to prevent local concessions from falling below the minimum industry norm established by the national union. With the increased complexity of contract terms, the trend has been for national unions to assume a larger role in local negotiations.

18. Bargaining TeamsUnions Unlike management, the union is a democratic organization and it has to consider the political implications of size and composition.

19. Bargaining TeamsUnions Bargaining units are composed of heterogeneous groups of employees and in order to obtain contract ratification, it is important that these divergent interests be represented at the bargaining table.

20. Preparation of Bargaining Data Before bargaining starts both the union and management should attempt to find out everything they can about each other.

21. What Management Needs to Know About the Union • Its financial strength • Its organizational structure • Any internal problems • The formal and informal power structure. • The bargaining experience of other employers. • The type of settlements arrived at elsewhere.

22. What the Unions Needs to Know About the Management • The financial strength of the company • The financial strength of the industry • The bargaining style of the company negotiators. • Information on sale, production, new products, pricing policies, and investment plans. • Grievance and arbitration awards • Patterns of relevant bargaining settlements.

23. Preparation of Bargaining Data Before sitting down across the table, both sides should have a fairly accurate picture of the cost of the existing bargaining package. Each attaches importance to the prevailing wage rates and benefits outside the bargaining unit. When formal wage surveys are employed by management to obtain this information they may be compelled to share the results of such surveys with their union.

24. Value of Economic Data The most important function that the collection of data serves is that the parties are able to place the economic terms of the contract into a comparative framework. Parties have a tendency to present biased statistical data and to leave out material that could contribute to a balanced picture.

25. Value of Economic Data Negotiators should not rely on one-sided data or on weak and questionable statistics. Such an approach would be counterproductive, and lead to a loss of credibility……an important ingredient at the bargaining table. Being caught in an error means losing the initiative.

26. Bargaining Books Labor agreements have grown in complexity, size, and the number of clauses. To cope with the vast quantity of data, many negotiators keep a separate folder for each clause or section of the contract. This folder is sometimes compiled into a comprehensive set of materials referred to as theBargaining Book.

27. Bargaining BookContents • The wording and history of each clause…. • Evaluation of similarities and differences of the clauses with other contracts…. • Internal inputs regarding the clauses such as special problems, interpretations, correspondence, grievances, and their disposition. • Legal status of the clauses (NLRB/ Courts) • Suggested changes.

28. Bargaining BookContents • Outline of past union demands and arguments relevant to the clause and management’s response. • Statistical evidence and cost estimates, where applicable, and any other material upholding a particular bargaining position. • Status of negotiations regarding each clause and enclosure of any drafts and arguments presented at the table.

29. Bargaining BookObservations • The book encourages concentration on one item at a time. • The book permits negotiators to review at any time the overall status of negotiations and any progress made toward an agreement. • The book can lower the workload of the team. • The book can make it easier and faster to draft the final version of the contract. • The book can provide valuable assistance in contract administration.

30. Bargaining BookObservations • The B Book is a useful source of information and it should be prepared by both sides and continually updated. • It should be kept away from the bargaining table and kept out of sight of the opposition. • The negotiators should bring to the bargaining table only data necessary for the day’s discussion.

31. Other Data Used in Bargaining Preparation There are a number of useful sources of information available on the strengths and weaknesses of the existing contract. These include: Analysis of Grievances and Arbitration's Content of other contracts Input from supervisors, and stewards.

32. Formulation of ProposalsManagement In the majority of firms preparations start three to nine months before the start of negotiations. The average preparation period for large multiplant companies is none months. Smaller firms employing professionals will spend three to four months in preparation.

33. Formulation of ProposalsManagement There is usually a legal presence in both the preparation and bargaining phases of negotiation. Additionally, the Industrial Relations manager will have a voice in the formulation of proposals and the development of bargaining strategies.

34. Formulation of ProposalsManagement Within the corporate structure, the authority for the final decision usually rests with corporate officers, most particularly the president.

35. Formulation of ProposalsUnion Unions turn to many sources in formulating their demands: Economic conditions Success with others Other Successes Grievance, Complaints, Arbitration's Question members, stewards, and workforce surveys.

36. Formulation of ProposalsUnion The formulation of demands differ among single-and-multilocation and multiemployer bargaining units.

37. Formulation of ProposalsUnion Some use committees, others go directly to their membership for approval, and others empower their leadership to manage the whole process.

38. Formulation of ProposalsUnion The trend over the years has been to move the process of demand formulation from the local to the national. The more sophisticated unions engage in long-term planning in the formulation and presentation of innovative demands.

39. Strategic Preparation for BargainingManagement Inventory buildup Transfer of production Mutual assistance agreements Buildup of financial resources

40. Strategic Preparation for BargainingUnions Accumulate a strike fund Mutual assistance pact Increase workers solidarity Obtain a strike vote Encourage savings Secure other sources of income Buildup grievances