THE FOUR SUBPROCESSES OF LABOR NEGOTIATIONS

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THE FOUR SUBPROCESSES OF LABOR NEGOTIATIONS
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DISTRIBUTIVE BARGAINING AND THE SETTLEMENT RANGE
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DISTRIBUTIVE AND INTEGRATIVE BARGAINING
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 THE INTEGRATIVE BARGAINING CIRCLE CHART
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ATTITUDINAL STRUCTURING

• Is a negotiation subprocess for managing
  relationships.
• Creates a social contract rather than a written
  contract.
• The close personal interaction between labor and
  management negotiations that occurs during the
  bargaining process provides the opportunity for
  the parties to build trust and respect.
• And therefore move towards a more cooperative and
  less conflict-laden relationship.

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INTRAORGANIZATIONAL BARGAINING

• Is the subprocess of the bargaining process that
  takes place within an organizationboth within
  the union and within management.
• Example within management
• Top management is particularly concerned with the
  bottom line financial impact.
• Human resources professionals worry about the
  principles that are affected or established.
• Supervisors are interested in how work gets done.
  
• Negotiators want an agreement.

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IN GOOD FAITH OVER TERMS AND CONDITIONS OF
EMPLOYMENT

• The NLRA specifies that it is an unfair labor
  practice both for employers and unions to refuse
  to bargain collectively where
• To bargain collectively is the performance of
  the mutual obligation of the employer and the
  representative of the employees to meet at
  reasonable times and confer in good faith with
  respect to wages, hours, and other terms and
  conditions of employment, or the negotiation of
  an agreement, or any questions arising there
  under, and the execution of a written contract
  incorporating any agreement reached if requested
  by either party, but such obligation does not
  compel either party to agree to a proposal or
  require the making of a concession section
  8(d), emphasis added.

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FOUR MAJOR EXAMPLES OF BAD FAITH BARGAINING

• Unilateral change
• Direct dealing
• Refusing to provide information
• Surface bargaining

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BARGAINING ITEMS

• Three classes of bargaining items (the
  Borg-Warner doctrine)
• Mandatory
• Permissive
• Illegal
• Also, effects bargaining

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The Bargaining Environment Examples from the
Grocery Industry

• INSERT BOX 8.12

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Bargaining Structures
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The Bargaining Timeline
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Contract Costing Example

• Contract Change All workers with at least five
  years of seniority will receive an extra week of
  paid vacation annually.
• Costing this Change
• 200 workers ? 5 days ? 8 hours ? 10.00 per
  hour ? 1.5 per hour 120,000 per year
• (1) (2) (3)
  (4) (5)
• Number of workers affected. There are currently
  200 employees with at least five years of
  seniority so assume 200.
• Each workers get five extra days of vacation per
  year with this contract change.
• Standard working day is eight hours.
• Need to replace each vacationing worker with
  another employee. Assume that the average hourly
  wage for all employees in the bargaining unit is
  10 per hour.
• Overtime premium. When existing employees work
  extra to take the places of vacationing
  employees, they are working overtime and receive
  time and a half.

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Cent/Hour Increase
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One Percent Wage Increase

• Assume average straight-time hourly wage rate for
  1,000 employees is 10/hour
• Cost of 1 percent wage increase ((.01 x 10) x
  1000 employees x 2080 hours) 208,000
• Roll-up 208,000 x .36 74,880
• Total Cost 208,000 74,880 282,880

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PUBLIC SECTOR BARGAINING

• The four subprocesses and other aspects of
  collective bargaining are similar in the public
  sector, but there are some special differences
  which include
• Greater restrictions on the allowable bargaining
  subjects.
• Sunshine laws
• Multilateral bargaining
• End run