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Negotiations and Industrial Conflict

Negotiations and Industrial Conflict. Four Subtypes of Bargaining. Distributive Classic Bargaining Integrative Health and Safety Intraorganizational Attitudinal Structuring Example – health care in auto industry Over life of contract. End-of-Contract Negotiations. Occur Periodically

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Negotiations and Industrial Conflict

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  1. Negotiations and Industrial Conflict

  2. Four Subtypes of Bargaining • Distributive • Classic Bargaining • Integrative • Health and Safety • Intraorganizational • Attitudinal Structuring • Example – health care in auto industry • Over life of contract

  3. End-of-Contract Negotiations • Occur Periodically • Traditional standard has been three years • Moving toward 4 years and more • Some interest on part of employers to lengthen this • Certainty • Auto industry and UAW, 4 years • UPS and Teamsters, 6 years

  4. Traditional Adversarial Bargaining • Information Gathering Stage • Within Each Side • About Other Side • Environment • Economic • Legal • Legal Bargaining Obligations • meet at reasonable times • reps with authority to agree • negotiate in “good faith” • no obligation to agree

  5. Immediately Prior to Contract Expiration • Possible Union Tactics • grievances • slowdowns • public strike authorization • Possible Company\Employer Tactics • stockpiling of goods • arrangements for outside contractors • Option of striker replacement • Option of lockout

  6. Fundamental Union Decision • Whether to Strike • Successful strike occurs when • Union obtains an acceptable contract • Strikers not replaced • Examples of Successful Strikes • Firestone-Bridgestone, 1996 • American Airlines Pilots (threat), 1997 • UPS, 1997 • Characteristics of Successful Strikes • skilled labor • integrated operation • Competitors for struck product

  7. Fundamental Union Decision • Whether to Strike • Unsuccessful Strikes (as of today) • Detroit Newspapers • Caterpillar • Characteristics of Unsuccessful Strikes • Workers may be replaced • lack of skill • possibility of subcontracting • high elasticity of sub between capital and labor • financial resources • Excess supply of labor

  8. If a Strike Occurs • Union • savings • picket duty • support from other unions • PR • Legal Expenses • Employer • If not replacing • redeploy mgt. and nonunit ees • subcontract • If Replacing • recruit\hire replacements • prepare for possible violence • consider UFLP liability • consider possibility of union offer to return to work • decertification?

  9. Employer Lockout • Puts pressure on union • Er suffering financial losses • Timing of dispute • Recent examples • NBA lockout shortened 98-99 season • 2002 West Coast longshore lockout • Hockey lockout for 04-05 season

  10. Union Strike Substitutes • Local or Rolling Strikes • Slowdowns • Excess Maintenance • Work to Rule

  11. Corporate Campaigns • Union tactics which attempt to pressure businesses and persons who have a relationship with the employer in the hopes influencing the employer to change its position • Ryder • Steelworkers • Wheeling Pitt • Bridgestone-Firestone • Legal, Secondary Activity

  12. Concession Bargaining • Employer asking Union to accept a decrease in wages and benefits • Financial reasons • Losing money • Performance below expectations • Competition • Bankruptcy • Triggers negotiations • Union often a party • Can company unilaterally abrogate collective agreement?

  13. Cooperative\Interest Based • Discussions over the life of contract • Interest-Based rather than positional • During Negotiations • Use of Subcommittees • Time Limits for Subcommittees • Compulsory Arbitration • Early Negotiations and Contract Settlements

  14. Mutual Gains Bargaining • Joint Identification of Interests Problems • Process • Define Problems and Interests - separate • Discussion of problems and interests - joint • brainstorming solutions - joint • recs for solutions based on brainstorming - separate • selection of solutions • Highly developed rules for “negotiations”

  15. Government Support • Local and state encouragement • Third parties • FMCS • Others

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