THE FOUR SUBPROCESSES OF LABOR NEGOTIATIONS

1. THE FOUR SUBPROCESSES OF LABOR NEGOTIATIONS

2. DISTRIBUTIVE BARGAINING AND THE SETTLEMENT RANGE

3. DISTRIBUTIVE AND INTEGRATIVE BARGAINING

4. �THE INTEGRATIVE BARGAINING CIRCLE CHART

5. ATTITUDINAL STRUCTURING Is a negotiation subprocess for managing relationships. Creates a social contract rather than a written contract. The close personal interaction between labor and management negotiations that occurs during the bargaining process provides the opportunity for the parties to build trust and respect. And therefore move towards a more cooperative and less conflict-laden relationship.

6. INTRAORGANIZATIONAL BARGAINING Is the subprocess of the bargaining process that takes place within an organization�both within the union and within management. Example within management: Top management is particularly concerned with the bottom line financial impact. Human resources professionals worry about the principles that are affected or established. Supervisors are interested in how work gets done. Negotiators want an agreement.

7. IN GOOD FAITH OVER TERMS AND CONDITIONS OF EMPLOYMENT The NLRA specifies that it is an unfair labor practice both for employers and unions �to refuse to bargain collectively� where� �To bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any questions arising there under, and the execution of a written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession� [section 8(d), emphasis added].

8. FOUR MAJOR EXAMPLES OF BAD FAITH BARGAINING Unilateral change Direct dealing Refusing to provide information Surface bargaining

9. BARGAINING ITEMS Three classes of bargaining items (the Borg-Warner doctrine): Mandatory Permissive Illegal Also, effects bargaining

10. The Bargaining Environment: Examples from the Grocery Industry INSERT BOX 8.12

11. Bargaining Structures

12. The Bargaining Timeline

13. Contract Costing Example Contract Change: All workers with at least five years of seniority will receive an extra week of paid vacation annually. Costing this Change: 200 workers ? 5 days ? 8 hours ? $10.00 per hour ? 1.5 per hour = $120,000 per year (1) (2) (3) (4) (5) Number of workers affected. There are currently 200 employees with at least five years of seniority so assume 200. Each workers get five extra days of vacation per year with this contract change. Standard working day is eight hours. Need to replace each vacationing worker with another employee. Assume that the average hourly wage for all employees in the bargaining unit is $10 per hour. Overtime premium. When existing employees work extra to take the places of vacationing employees, they are working overtime and receive time and a half.

14. Cent/Hour Increase

15. One Percent Wage Increase Assume average straight-time hourly wage rate for 1,000 employees is $10/hour Cost of 1 percent wage increase =((.01 x $10) x 1000 employees x 2080 hours) = $208,000 Roll-up = 208,000 x .36= $74,880 Total Cost = 208,000 + 74,880 = $282,880

16. PUBLIC SECTOR BARGAINING The four subprocesses and other aspects of collective bargaining are similar in the public sector, but there are some special differences which include: Greater restrictions on the allowable bargaining subjects. Sunshine laws Multilateral bargaining End run