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Interest-Based Bargaining

United States Department of Agriculture, Animal and Plant Health Inspection Service, Plant Protection and Quarantine. Interest-Based Bargaining. Brought to you by: THE PPQ LABOR – MANAGEMENT FORUM TRAINING TEAM. Interest-Based Bargaining. PPQ LABOR-MANAGEMENT FORUM TRAINING TEAM:

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Interest-Based Bargaining

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  1. United States Department of Agriculture, Animal and Plant Health Inspection Service, Plant Protection and Quarantine Interest-Based Bargaining Brought to you by: THE PPQ LABOR – MANAGEMENT FORUM TRAINING TEAM

  2. Interest-Based Bargaining PPQ LABOR-MANAGEMENT FORUM TRAINING TEAM: • Mike Randall, NAAE • Stephanie “Jane” Droke, NAPPQOSE • Keith Miller, PPQ Management • Joanne Adams, LR Specialist

  3. Learning Objectives • Provide an overview of Interest Based Bargaining • Review the Goals of IBB • Review the Principles of IBB • Explain the IBB Process

  4. What is Interest-Based Bargaining? Interest-Based Bargaining is a different way to negotiate. In the right situation, it is an alternative, replacing traditional positional bargaining with a process of joint problem-solving.

  5. What is Interest-Based Bargaining? A Different Way to Negotiate Known by many names and practiced in many variations and settings: • Win-Win Bargaining • Mutual Gains • Principled or Interest-Based Negotiation • Interest-Based Problem Solving, • Best Practice or Integrative Bargaining

  6. What is Interest-Based Bargaining? • IBB enables the parties to be more flexible than traditional bargaining • IBB focuses on understanding the problem and identifying the interests that underlie each side’s issues and positions.

  7. What is Interest-Based Bargaining? • IBB is a process that enables traditional negotiators to become joint problem-solvers. • It assumes that mutual gain is possible and that solutions which satisfy mutual interests are more durable. • The parties should help each other achieve a positive result.

  8. What is Interest-Based Bargaining? • Interest-based bargaining is not -- nor should it be -- a universal replacement for positional or distributive negotiating. • In an appropriate setting it offers an alternative with certain advantages. Outside that setting, IBB will probably fail. • The parties will switch back to traditional bargaining, but with increased suspicion and distrust, and their relationship may suffer additional damage.

  9. Goals of Interest-Based Bargaining An IBB negotiation has 3 distinct goals: • to reach a desired and durable result • to reach agreement efficiently and fairly • to keep the relationship intact

  10. Principles of Interest-Based Bargaining Six Principles • Sharing relevant information is critical for effective solutions. • Focus on issues, not personalities. • Focus on the present and future, not the past.

  11. Principles of Interest-Based Bargaining • Focus on the interests underlying the issues. • Focus on mutual interests, and helping to satisfy the other party’s interests as well as your own. • Options developed to satisfy those interests should be evaluated by objective criteria, rather than power or leverage.

  12. What is Required to be Successful? • Evidence of labor-management cooperation during the past contract term. • Sufficient time remaining prior to contract expiration to complete the sequence of decision-making about IBB, training and application of the process. • Willingness of the parties to fully share relevant bargaining information.

  13. What is Required to be Successful? • Willingness to forgo power as the sole method of "winning.“ • Understanding and acceptance of the process by all participants and their constituents.

  14. Is Interest-Based Bargaining Right for You? IBB begins with formal training by a facilitator. If participants cannot accept the principles and assumptions that underlie the process, it is highly unlikely that they will be able to follow the steps and use the techniques during negotiations.

  15. Is Interest-Based Bargaining Right for You? When the parties and the facilitator determine that IBB is appropriate, training is the next step. The program should include exercises which test participants’ ability to work through the process to completion -- an indicator of how well the parties will handle the process in actual negotiations.

  16. Is Interest-Based Bargaining Right for You? With a decision to proceed, mediators facilitate a joint meeting of the participants to reach agreement on ground rules and protocols under which the bargaining will be conducted, an exchange of the issues to be negotiated, and steps for a transition to traditional bargaining if the IBB process breaks down.

  17. Interest Based Bargaining Process • Problem solving is about resolving underlying interests. • Interests are your needs, concerns, or desires behind a particular problem. • The “why” behind the problem. • Interests drive any negotiated outcome if a problem is to be really resolved.

  18. Interest Based Bargaining Process Position: one party’s proposed solution to an issue; the how. A position statement: • focuses on a particular solution, • makes a demand, and • sets up confrontation before the problem has been clearly defined.

  19. Interest Based Bargaining Process Converting positions to interests: If a demand, solution, proposal, or position appears on your interest list, convert it to an interest by asking what problem it is trying to solve or what concern it is intended to address.

  20. Interest Based Bargaining Process Issue Statement a. What is the problem? What is occurring? b. Tell the story

  21. Interest Based Bargaining Process Interests – the “why” • Needs, desires • Mutual/separate

  22. Interest Based Bargaining Process Options – identify any options for “how” to deal with the problem and that take into account the interests of the parties a. Brainstorming b. Consolidation

  23. Interest Based Bargaining Process Evaluation – FBA a. Feasible – legal, affordable, workable, understandable b. Beneficial – satisfy important interests, better then what you have today? c. Acceptable – fair and equitable, pass Agency head review

  24. Interest Based Bargaining Process Solutions a. Consensus – all members agree or are willing to accept the solution “A decision everyone can live with” b. Write up

  25. Interest Based Bargaining Process Building Consensus: • Listen actively • Encourage others to participate • Share information • Don’t change your mind to get along • Yield to reason not pressure • Listen to all ideas

  26. Interest Based Bargaining Process Building Consensus: • Don’t bargain • Work collaboratively • Combine ideas creatively • Don’t argue for an idea because it’s yours • Look for mutual gains approaches

  27. Interest Based Bargaining Process Dissenter obligations: • explain why; and • propose solution building on or modifying proposed solution

  28. Interest Based Bargaining Process Testing For Consensus: Has everyone been heard? A simple test at the conference table: “Is there anyone who can’t live with the proposed solution?”

  29. Interest-Based Bargaining • Focus on issues – not personalities or the past • Describe the problem, don’t accuse or assign motivation • Focus on interests – not positions • Understand interests – don’t judge them • Defer evaluation during the option-generating stage • Evaluate options with standards

  30. Interest-Based Bargaining • Share Information • Respect the role and responsibility of others – listen • Be open to reasoned argument • Be willing to change your mind • Sustain the relationship and process

  31. Interest-Based Bargaining

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