The employees at your organization have formed a union, and the bargaining process now begins. Write a case study in which you analyze the situation. First, begin with background information about the negotiation, and make certain to address the areas below.
Identify the state where the organization is located. Is the state a right-to-work state? If yes, explain what this means. If no, explain what this means. Why are the employees deciding to unionize? What are the mandatory bargaining subjects? Other than wages and hours, what are five other terms and conditions of employment? What are permissive bargaining subjects that will be negotiated? List at least five.
Second, you need to select members of your bargaining team. You will select four supervisors who were identified in the Unit VI Lesson. Discuss why you selected each supervisor, and compare/contrast their conflict management styles. Each supervisor must have a different conflict style. Explain how each supervisor can contribute to conflict resolution strategies used during negotiation.
Third, explain the two collective bargaining strategies, and identify which one you will recommend your team to use. Explain and support your rationale.
Finally, what will you propose happens if a labor management agreement is not reached by your team and the employee representatives?

Negotiation Case Study

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Negotiation Case Study

Introduction

Collective bargaining and unionizing are essential and fundamental rights among employees to establish fair, sound, equitable, and exemplary labor relations and employment terms. These include providing fair working conditions, wages, benefits, and security, among others (Dessler, 2013). Below is a case study demonstrating the causes of employee unionizing, collective bargaining process (negotiation preparation, issues, and items of bargaining, negotiation), and the effectiveness of having sound labor relations in an organization.

 Case Study 

Tonawanda Engine, an engine plant and factory of General Motors Company in New York, is on the verge of a shutdown. Employee-management relations are overly tensed, which results in a need to unionize. Production in the plant is falling due to the economic retardations experienced, as the plant is not sure of developing new car machines and vehicle production. Throughout the period of uncertainty, employees may be paid salaries and wages scarcely half the UAW union’s set rate. Over 2,000 employees may be laid off, increasing pressures are seen, and the existing contract is about to expire. The set union rate (compensation benefits package) is an average of $43/Hr., which will become a liability if the contract is not re-negotiated. The uncertainties and expiring contracts put employees at wavering and equally uncertain periods concerning their job securities. NY is not a right-to-work state, meaning that state laws require union membership dues as a primary employment condition. The required union dues are mandatory whether the employees are active, passive, or non-participant in the unions. In this case, the collective bargaining process is not overly affected. The unions have increased power, influence, and capital to call for industrial action in case their working conditions and general labor relations are violated or an impasse reached.

The mandatory bargaining subjects among unionized employees, in this case, include better wages that match the working hours and union’s payment rates. In addition to employees or job security, meaning the employees should be involved in decision-making on the future of the plant’s production and improved employee-management relationship (Amanda Pyman, 2016). Moreover, the lack of communication and uncertainties presented show a need to negotiate on contract disciplinary action and future action in case of a breach, mostly for the employer, in this case, the plant. Permissive bargaining subjects to be discussed will include the continuation, terms, or re-negotiation of the employee’s contract. In addition, supervisory employment conditions and contract, ground rules of contract negotiations, the preferred bargaining team membership, and finally, the newly formed union matters, such as their by-laws, dues, and membership (Dessler, 2013).

Collective Bargaining Team 

The four selected supervisors, each with different conflict management styles, including conflict Competitive, Accommodation, Collaborative, and Compromising styles, will form the bargaining team. Through these diverse styles, the negotiation team will have all personalities among supervisors represented. Besides, a conclusive approach of liberalism, involving cooperation and consideration and realism involving passive competitiveness will be represented equally. A competitive supervisor will ensure all needs of the management, General Motors, and the plant are highly and effectively pursued to bring a competitive nature that will end in a win-win situation (Kochan, 2018). Collaborative and Accommodative supervisors will ensure that despite increased tension in the negotiation, the employee-management relationship is maintained and reserved. Finally, a compromising supervisor will ensure that the dedicated group’s interests are analyzed, mutually accepted, and a win-win situation created. Each supervisor’s ability will affect the successful completion of a collective bargaining process and a win-win contract achieved.

Collective Bargaining Process and Strategies 

Collective bargaining involves negotiations to resolve conflicts and issues presented between employees and employers, including maintained or improved good relationships. Effective negotiations should be of high-quality, efficiency, and harmony. The collective bargaining process includes three main steps: negotiation preparation, finding a team, identification of issues and items of bargaining, and finally, the actual negotiation, which entails its process and steps such as making ground rules and identifying the most appropriate bargaining strategy (Kochan, 2018). Strategies of collective bargaining include distributive and integrative negotiations. The distributive strategy involves a win-lose situation, where one party feels their goals are subordinated, and the main question is ‘who gets what?’ In hard distributive bargaining, each party gets what they want, while in soft distributive strategy, yielding or concessions are made to solve the conflict. The integrative strategy aims at ensuring a win-win contract and outcome, whereby less confrontation is exercised, providing a wide range of solutions. Through this strategy, tactics such as genuine collaboration, scrupulous avoidance, and compromise are worthwhile. The Tonawanda case study’s recommended strategy will be the integrative negotiation approach, as it outlines the win-win situation outcome required. Through the three tactics, employee/new union-management relationship is improved, preserved, and maintained.

Labor-Management Agreement

Bargaining and negotiations have two outcomes; failure and agreement. In case of agreement, the employee’s contract, labor terms, and conditions are explained, and the issues presented in the case study solved amicably and congruently. In case a labor agreement fails, despite the use of ‘good faith’ efforts, the last offer will be presented to the union, which, if they fail to accept while still bargaining in good faith, the negotiation leader will call for an impasse (Kochan, 2018). If the union members disapprove of this action or the impasse, third party strategies such as mediation and arbitration processes will be integrated.

References

Amanda Pyman, P. J. (2016). Employee Voice in Emerging Economies. Advances in Industrial and Labor Relations. Emerald Group Publishing Limited.

Dessler, G. (2013). Human Resources Management,13TH Edition. New York: Pearson Education Inc.

Kochan, T. A. (2018). Collective Bargaining and Labor Relations . Meeting Other HR Goals, pp: 420-455.