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Cornell University School of Industrial and Labor Relations Online Labor Studies Program
Labor Relations in the Public Sector Winter Term January 6, 2014 – March 17, 2014 Instructor - John J. Moody
Lecture #8 – February 24, 2014 Distributive Bargaining and Integrative Bargaining Bargaining Techniques and Tactics Bargaining Traps Dealing with Breakdowns Dispute Resolution and Settlement Assignment
Distributive Bargaining Defined: Competitive, win-lose bargaining. The goals of the parties are in direct conflict Resources are fixed and limited and each party wants to maximize his share of the resources. Get the best in the deal. Single deal is the focus. Buying a House How do you decide on the initial offer to the seller? Resistance point Bargaining range Settlement Point Bargaining Mix You must find the resistance point and influence it down.
Integrative Bargaining Defined - Win Win bargaining. Problem Identification ( Health Care - Quality v Cost) • define in a mutually agreeable manner • keep the problem statement clean and simple • state problem as a goal with obstacle to obtaining the goal • depersonalize Observations and Interests • many types of interests at play in negotiations • parties differ on types of interest at play • interests are based frequently on deeply rooted human needs and values • interests can change • Generate solutions – no judgment • Evaluation and Selection of Solution
Two Major Negotiating Strategies Negotiations – Two Major Strategies
Distributive Bargaining – Issues • Current and Future relationship • Determining when appropriate Integrative Bargaining – Issues • Dilemma of Honesty – How much of the truth do you tell the other party? • Dilemma of Trust – How much do you believe what the other party tells you? • Control – Are you willing to surrender (share) control of the process? The Reality • Most negotiators use a mix of strategies. http://www.forbes.com/sites/keldjensen/2013/02/05/why-negotiators-still-arent-getting-to-yes/
Bargaining Techniques and Tactics • The “yes” habit • Assume Acceptance • Allowing to Save Face • 4. Don’t assume burden of proof unnecessarily • 5. Explain, discuss, persuade - don’t plead • 6 Cite the advantages of your proposal to other party • 7. Keep discussion problem oriented rather than personality oriented • 8. Questions, questions, questions
Bargaining Traps • Escalation of commitment • Myth of the fixed pie • Anchors • Attitudes • Poor use of information • Winner curse • Overconfidence • Rejecting person • Getting personal
Dealing with breakdowns • Reduce emotion • Improve communication • Control number of issues • Define common interests • Make proposal more attractive
Moving toward settlement? How do you know? • Pace quickens • What do you need? • Timing and the Final Offer • Drop Issues
Impasse Procedures* Mediation - Others help you do it You and the mediator – friend or foe? Fact finding – Hearing (Results May Be Made Public?) Arbitration – Advisory or Binding Final Offer or Not Back to the Table – More Mediation?? Strikes – So few, not a consideration in most instances *Determined by State and Local Statutes and Regulations
Assignment Case Study: Difficult Time in Happy Valley See following slide. http://www.unionist.com/big-labor/labor-video