Negotiating Change

1. Negotiating Change Clive Thompson, CoSolve & Tanya Venter, Tokiso

2. Change in the workplace • Focus of this workshop: change at the level of the organisation • Given: change is a ubiquitous, constant and vital feature of economic and organisational life. It is accelerated and pressured by the forces of globalisation and, in South Africa more the most countries, the dynamics of politics • That being the case, how is change best managed in the workplace?

3. Negotiating change? In the 1990s John Kotter famously declared in his work Leading Change eight principles for galvanising organisational change (establish a sense of urgency, create a coalition, develop a clear vision, share the vision, empower people, clear obstacles, secure short-term wins, consolidate and keep moving, anchor the change). Not amongst them was negotiation. The proclaimed recipe on how to achieve change turns on notions of leadership and communication skills: we know the answers, the problem is getting other to understand the message. The notion that change might actually need to be negotiated is often rejected or neglected. It suggests that the leadership team does not in fact hold the golden keys or that, worse still, the vision could be compromised in parleys with contrary stakeholders.

4. Negotiating insight? In South Africa, the negotiation skills honed in the workplace in the eighties supported the breakthroughs in the political negotiations of the early nineties. Have we since lost our appetite and capacity for innovative negotiating in the workplace? Is there still an shared appreciation that change in the workplace should be negotiated at all? What are the obstacles to the successful negotiation of change, and is there a recipe for successful negotiation?

5. Channels for change Subject matter/Issue Differing modes of information-sharing and communication A. Unilateral action B. Consensus-seeking engagement Negotiation Consultation Under the radar Power it through Problem- solving Intensive Hard bargaining Superficial The productive zone acceptance, agreement Potential outcomes: disagreement or Dispute resolution

6. Approaches to change: 1 Problem? Solution! << Communicate >> Implement … … Damage control

7. Approaches to change: 2 Challenge arises: C O N S U L T N E G O T I A T E … Jointly define problem … Jointly generate options … Jointly develop solution/s … Trial solutions Implement, evaluate, adjust

8. Managing change Whenever there are multiple stakeholders in the workplace who exercise effective power, then any proposals for change will require either consultation on negotiation. Because employees also exercise covert power (from expending minimal effort through sabotage to resignation), change should be negotiated even in un-unionised settings, where the employer seemingly carries all the trump cards. Consultation can be superficial or intensive. Negotiations can be traditional or interest-based. Our focus is on problem-solving consultation and negotiation. We offer two case studies, one from Australia, the other from South Africa.

9. The Australian Red Cross Blood Service & the Australian Nurses Federation National organisation Division of Australian Red Cross Provides the Australian community with high quality blood and blood products Contracted by the National Blood Authority (NBA) for the collection and distribution of blood and blood products Funded by Federal and State Governments Over 3000 scientific, medical and support staff and over 2,000 volunteer workers 520,000 voluntary, non-remunerated donors Over 100 collection points Case Study 1:

10. The Problem: Demand for blood products growing 4 times faster than the number of nurses entering the workforce (2011 – 2015) Registered nurses perform a number of key functions at blood donor centres: interviewing prospective donors, drawing blood (“needle in”), removing the needle (“needle out”), counselling, general admin, etc.

11. Possible responses to the problem Determine the solution and attempt to impose it Negotiate the solution in an inclusive way • A problem-solving approach • Consider the stakeholders • Engage the stakeholders • Present the problem • Follow a joint problem-solving pathway • Bring in the resource of independent facilitation

12. Problem-solving 1 Identify the issue/s 2 Identify stakeholders 3 Identify the interests 4 Get the data (ongoing) 5 Generate options more mutual gain more mutual gain more mutual gain Conventional negotiation 6 Set criteria for options Problem-solving negotiation 7 Evaluate options 8 Decide 12 12

13. Engagement Architecture C O M M U N I C A T I O N T O M E M B E R S C O M M U N I C A T I O N T O S T A F F ARCBS Governance Executive Leadership Team (ELT – consisting of CEO & her direct reports) ANF Governance Federal Executive ARCBS Management Area and functional managers ANF Member Meetings Ratification Oversight Group All relevant ARCBS executives / All ANF officials Input into Input into reports to Joint Working Group ARCBS and ANF representatives input into Staff Focus Groups

14. Demand for plasma growing in excess of 14% per year Donor centre workforce needs to grow on average by 8% year on year Increasing collection capacity through 50 new or larger relocated donor collection facilities by 2013 Demand for nurses continues to grow across the health sector as the population ages, more people require clinical care and large numbers of the nursing workforce retire or seek employment in other industries Agreed situational analysis

15. Surfacing interests All parties agree on the problem statement, but they each also have their own key concerns Management: Ensure the public knows safety for donors and quality of the blood are the number one priorities Freedom to explore all potential avenues to increase the volume of blood stocks, eg. import, involve non-nurses Make the most of each tax-payers dollar Keep the nursing workforce happy Nurses: Do not threaten nurses jobs Don’t deskill nurses The safety of blood donors and recipients is paramount, and soonlynurses should be able to take blood from donors Make sure the members are happy with what the union does for them

16. Options Enormous input from ARCBS staff consultations and ANF membership survey Brainstorming process identified 96 options grouped into 11 categories How the parties put it: Based on your feedback and suggestions the Joint Working Group has developed a list of 96 ideas to help meet future workforce challenges. These suggestions have come via your team discussions, feedback forms or from your ANF representatives. Some of the options to be considered include: Doing more to market ARCBS to potential candidates. For example, using the Year of the Blood Donor in 2009 to increase the profile of ARCBS to potential candidates. Including the blood service as part of the workplace rotation in heath related courses and consider hiring student nurses. Better matching nurses’ skills to the work they perform and re-assigning non-critical tasks to others. Offering more professional development for our nursing team. 30 July 2008

17. Key criteria/principles Any solution must meet the following criteria/ principles: Ensure self sufficiency in meeting increased demand for blood components and products from Australian volunteer donors Safety of employees, donors and recipients maintained Enable our nurses to use their clinical skills to their best advantage Increase our collection workforce

18. Selection of options Both parties tabled preferred package A process of evaluation with shades of negotiation required to bring the package together Final package entitled “package of solutions to address the workforce challenge facing the ARCBS” reached in October contained 21 initiatives The initiatives are focussed on these areas: More effective marketing of the Australian Red Cross Blood Service to potential employees Providing incentives to our current employees to continue working at the Blood Service Investigating the viability of a new role in Donor Centres that undertakes a broad range of tasks and does not require nursing qualifications Developing a career path for nurses Training, education and career development New process agreed to take selected proposals forward for trial Subcommittee of JWG with some new representation Reporting regularly to JWG Continuing constant communication to staff and members 18 December 2008

19. Joint communication Joint communication throughout Aimed at seeking feedback and suggestions Balance struck between: Keeping staff and members connected into the process Communicating progress Agreeing when issues still needed to be debated ‘in camera’ of the Joint Working Group Strong process for sign off on joint communication: Time built into the process to make this happen (on average 5 working days to iteratively developed final copy) At key points, significant investment in face-to-face engagement of teams: June/July 08 to generate ideas and solutions January 09 to test proposed package of solutions 9 July 2008

20. Trial, evaluation and implementation Memorandum of Understanding Workforce and membership consultation Presentation at EVERY Donor Centre – many joint ANF and ARCBS session Separate Union Member meetings across the country Trial subject to JWG and Sub-committee oversight Evaluation Memorandum of Understanding to implement Safety net Industrial issues

21. Tentative lessons Co-operative engagement track proved worthwhile Relationships Outcomes Superior to unilateral solution-seeking Clear mutual gains Collateral benefits in general IR Independent facilitation plays important role Caution: Problem-solving approach hard work and not without pitfalls and setbacks Keeping leadership group in touch with constituency vital

22. Case Study 2: South Africa Manufacturing company in South Africa Based on East Rand Provides components primarily to the car manufacturing industry (70% of their market) 400 employees Highly unionised with two unions – one union primarily organising artisans and skilled workers, other union organising less skilled workers

23. The challenges • The company was faced with increased competition from foreign providers who were cheaper due to strong rand, and promised less faulty products • In response to this, the company implemented new technology and retrenched 30 employees and introduced new shift system • The unions referred an unfair retrenchment dispute to the Labour Court • The Employer had dismissed some employees for refusing to comply with the new shift system. These were referred to the CCMA. • The company wanted to introduce more new technology. The unions threatened rolling strike action.

24. The Approach • The company had taken an initial approach to impose change on the workplace. It had caused major conflict in the workplace and impacted on productivity • The company decided to engage with the unions on how to move forward (what initiated this idea was a new senior manager that joined the company) • Unions were initially distrustful of the new approach • Unions were asked to choose the facilitator from Tokiso’s list. • Two facilitators were agreed upon between the parties.

25. The interests • Employer party interests: • Prevent international competition • Increase productivity • Increase quality • Export opportunities realised • Union interests: • Members not to lose jobs • Increase skills and opportunities for members • Increase of representivity • Transport • Leadership security

26. The Agreed Process Union A (The clients) Company Union B Report back & feedback structures Negotiation Forum (decision making) Technical experts Working Group A (consulting & recommending) Working Group B (consulting & recommending) Deadlock breaking mechanisms

27. The Options • The parties agreed a ‘negotiation protocol’ upfront that would govern the negotiations • Parties identified, through facilitated separate sessions, what the issues were • This was shared in plenary and common issues were placed in ‘buckets’ • Through brainstorming, ‘unfiltered’ options were generated • Options that were agreed following a process of consideration – • Staggering of implementation of new technology to provide for up skilling of employees to meet new job requirements; • Criteria for assessing whether employees meet skills requirements was agreed • Provision of transport for employees and housing options in the area which will allow employees to work more flexi-hours to meet unforeseen demands from clients • Agreement on new shift structure (which was different to the one initially implemented by management) • Agreement was reached around employees retrenched and dismissed

28. The Agreement Structures • Process Agreement was signed • Two agreements were signed on the substantive agreements over a four month period • Agreement to review the progress quarterly • The negotiation forum was retained for this purpose and for purposes of future negotiations • The agreement was made available to all. Summaries were placed in public areas

29. Some lessons • The process of negotiation can start at any point as long as parties know that there are consequences to the change that had taken place so far (therefore start sooner rather than later) • Independent facilitation important • Independent administrative support services important for recording of discussions and sharing of information • Determine process before issues and interests • The process requires decision makers to be present • Continuous communication was critical to the credibility of the process • Deadlock breaking mechanisms were useful

30. Alternative approaches to issues resolution Determined by power, rights Position Traditional Issue Contest Outcome, settlement Position Problem-solving Arrived at by problem-solving consultation Criteria Interests Problem Ideas/Options Solution Interests Adapted from Schneider RAI