INTEREST-BASED NEGOTIATION

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INTEREST-BASEDNEGOTIATION

• Federal Mediation and Conciliation Services
• Human Resources and Skills Development Canada

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Federal Mediation and Conciliation Service

• Dispute Resolution Services
• - Conciliation and Mediation
• - Grievance Mediation
• - Arbitration Appointments
• - Preventive Mediation Program
• - Labour-Management Partnerships Program (LMPP)
• Legislation, Research and Policy

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Preventive Mediation Program

• - Relationship-by-Objectives (RBO)
• - Committee Effectiveness (CET)
• - Negotiation Skills and Facilitation
• - Collaborative Problem-Solving
• - Mediation
• - Grievance Resolution Workshop

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Workshop Objective

• An Understanding of
• what IBN is
• IBN steps
• IBN techniques/skills
• behaviour elements

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• Beer Pricing Exercise

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Note Profits are rounded up to the nearest
-million.
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The IBN Approach
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What is IBN?

• collective bargaining
• an adaptable process
• a way of focusing on the process
• a negotiation style which encourages creativity,
  information sharing, and participation
• a useful tool for some people at some times

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What IBN is not ?

• a quick fix or the solution to all problems
• a way to get everything you want at the table
• a way to avoid conflict
• about being nice and polite and agreeing with
  everything
• the flavour of the month
• right for everyone

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Interest-Based Approach Principles

• process counts
• focusing on issues, not on the personalities
• focuses on interests, not the positions
• creating options to satisfy interests
• jointly discuss to evaluate the options
• postponing a commitment

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Negotiation Styles

• Traditional
• separate training
• send notice to bargain
• fixed mandate
• exchange demands
• push for position, argue, stall
• formal, face-to-face
• little discussion/many caucuses
• single spokesperson
• confrontation
• verbatim notes
• sign-off each item
• memorandum signed on completion

• Interest-Based
• joint training
• set joint ground rules
• flexible mandate
• jointly identify issues
• discuss interest, generate options
• informal, side-by-side
• much discussion/few caucuses
• everyone talks
• joint problem-solving
• flip-charts
• no sign-off
• memorandum signed on completion

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Interest-Based ApproachSteps

• opening statement
• agree on ground rules
• establish the issues

Preliminary

• identify and share interests
• generate options
• develop criteria
• evaluate options
• closure

Substance
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Step 1 Opening Statement

• Purpose
• - sets tone
• - expectations
• - constituents
• Contents
• - commitment
• - process
• - common goals

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Opening Statement

• The Union and the Company plan to make every
  effort to negotiate the collective agreement
  using the interest-based process. They will
  endeavour to share information openly and
  participate in discussions of a range options
  with the understanding that no final commitments
  will be made until the end.
• As the parties jointly face the challenge of the
  future, they share the following values
• client focus
• the overriding value of people as a resource
• union-management partnership
• quality and continuous improvement

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Step 2 Ground Rules

• establish process
• - expectations
• - ownership
• logistics
• rules
• responsibilities
• rights
• behaviour

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Step 3 List of Issues

• identify and explain topic or subject of
  negotiations - broad, open-ended
• establish common understanding of all issues to
  be discussed
• prioritizing issues for the negotiation

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Focusing on Interests
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Identifying InterestsFocusing on Interests

• reflects concern about an issue
• facilitates information sharing
• promotes discussion of options
• avoids starting the process with a disagreement
• adds legitimacy

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Step 4 Identifying Interests

• Position
• one partys solution to an issue
• make demands
• is the close-ended solution
• purpose to communicate the single acceptable
  outcome
• exaggerated statement
• gives little information
• contains you statements
• directive language

• Interest
• one partys concern, fear, need or worry on an
  issue
• forms the basis for a future solution but is
  non-negotiable
• purpose to promote
• discussion of various possible options
• no exaggerated statements
• gives much information
• contains I or westatements
• non-directive language

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Identifying InterestsTypes of interests

• mutual interests
• non-conflicting interests
• conflicting interests

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Example Identification of Interests

• Issue A car pool member who is frequently late.
• Statements
• a) When I am late, my boss is on my case all
  day.
• b) The next time you are even five minutes
  late, we are going to kick you out of the car
  pool.

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Identifying Interests

• Position Demand for higher overtime rate.
• Possible interests
• - increase members compensation
• - job creation
• - prevent abuse of overtime

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Generating Options
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Step 5 Generation of Options

• Options - are one of a number of possible
  solutions to resolve an issue.
• Purpose
• to increase flexibility in the search for
  solutions
• to develop a better solutions as a result of
  joint efforts
• to provide the participants with ownership of the
  process
• to increase commitment to the final outcome

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Generation of OptionsThe Process Brainstorming

• ensure full participation
• create without evaluating, no criticism
• work towards quantity not quality
• propose options without judicial prejudice
• guidelines
• - alternate the facilitator
• - lead with the next number
• - keep everything visible by posting
• the completed sheets

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Generation of OptionsBlocks to Creativity

• fear
• premature judgement
• assuming single solution
• assuming limitations
• negative attitudes
• perception

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Generating OptionsOvercoming Blocks

• informal setting
• challenge assumptions
• suspend judgement
• analyze the problem in parts
• recognize point of exhaustion

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Brainstorming Exercise
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Evaluating Options
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Step 6 Development of Criteria

• where possible, use objective standards
• agreement on choice of criteria and options is
  done by consensus decision-making
• jointly developed standards can provide a basis
  for deciding issues in a fair, acceptable and
  transparent manner
• Examples of Standards
• - industry practice
• - market rates
• - past performance

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Step 7 Evaluation of Options

• The Three-Cut Method
• Does the option satisfy interests?
• Are the resources available?
• Can the option be sold to others?

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Achieving Closure
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Step 8 Closure

• all issues discussed
• objective is still a collective agreement
• No is part of the process
• packaging of issues
• broad perspective
• consensus decision-making

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Closure
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Consensus Decision-Making
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ConsensusDecision-Making

• unanimous agreement on a single course of action
  reached through a cooperative, not a competitive
  process where each member can say
• I understand what is being proposed...
• I had the opportunity to express my views and I
  understand the views of the others...
• It was arrived at openly and fairly
• It is the best solution for us at this time
• I will support the implementation of the solution

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Consensus Decision-MakingGuidelines

• listen and be open to persuasion
• encourage participation
• share information
• treat differences as strengths
• avoid agreeing hastily, bargaining or voting

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Communication and Effective Listening
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Communication

• put yourself in their shoes
• discuss perceptions
• focus on issues, not personalities
• focus on future, not past
• legitimacy of emotions
• allow venting but avoid reacting

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Exercise on Perceptions
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Effective Listening

• 75 words ignored, misunderstood, forgotten
• brain 8-10 times faster than speech
• active listening - 17 seconds
• not trained in listening

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Effective ListeningBad Listening Habits

• attention fakers
• criticizers
• bored listeners
• difficult material blockers
• note takers
• mental rehearsers

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Summary What it takes to Succeed

• genuine desire for change
• commitment at all levels
• long, broad view and is part of overall approach
• flexible mandate and timeline
• empowered negotiators
• open sharing of information
• communication with constituents