Chapter 8 - The negotiations process & strikes. The main contents of the chapter consist of the following: The four subprocesses of negotiations, management's wage objectives in negotiations, the dynamics of management's decisionmaking process, union and worker involvement in negotiations, the cycle of traditional negotiations, strikes, strike activity, the role of strategy in negotiations and strikes. | Chapter The Negotiations Process & Strikes 8 McGraw-Hill/Irwin An Introduction to Collective Bargaining & Industrial Relations, 4e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. The Four Subprocesses of Negotiations Walton and McKersie argued that there are four subprocesses of bargaining within the negotiation of any collective bargaining agreement: Distributive bargaining Integrative bargaining Intraorganizational bargaining Attitudinal structuring 8 - Distributive Bargaining Distributive bargaining involves negotiations in which one side’s gain is the other’s loss It is a win-lose or zero-sum bargaining Wages are an example: If management grants a wage increase, workers gain financially at the expense of shareholders This type of bargaining leads to conflict Unions try to make management agree by threatening a strike, while management may threaten layoffs 8 - Integrative Bargaining Provides gains to both unions and management A “win-win” negotiation Labor and management both gain when they resolve problems that impede productivity and organizational performance The introduction of new technology can provide an avenue for integrative gains, since it works best with appropriate changes in work practices 8 - Why Integrative Bargaining Can Be So Difficult Integrative issues contain the promise of joint gains But the parties are simultaneously confronted with how to divide any joint gain Thus, integrative bargaining prompts the occurrence of distributive bargaining Integrative solutions are sometimes blocked by labor and management’s disagreement over how to divide the productivity gains 8 - Integrative and Distributive Bargaining Involve Different Tactics Integrative bargaining is difficult because parties send confused signals to each other They both require very different tactics In distributive bargaining, demands are overstated, information withheld, and a tough image projected In integrative bargaining, an open exchange | Chapter The Negotiations Process & Strikes 8 McGraw-Hill/Irwin An Introduction to Collective Bargaining & Industrial Relations, 4e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. The Four Subprocesses of Negotiations Walton and McKersie argued that there are four subprocesses of bargaining within the negotiation of any collective bargaining agreement: Distributive bargaining Integrative bargaining Intraorganizational bargaining Attitudinal structuring 8 - Distributive Bargaining Distributive bargaining involves negotiations in which one side’s gain is the other’s loss It is a win-lose or zero-sum bargaining Wages are an example: If management grants a wage increase, workers gain financially at the expense of shareholders This type of bargaining leads to conflict Unions try to make management agree by threatening a strike, while management may threaten layoffs 8 - Integrative Bargaining Provides gains to both unions and management A “win-win” negotiation
