Key Highlights Class #5 (10/14/06)

Skills in Dealing with Ambiguity

During the Glazer Case (Local 55) I played the role of the company, and dealing with the Union during wage negotiations and related issues. Although, we wrote out a plan ahead of time, we spent most of the first hour defining the issues and the various viewpoints. There were trust issues and highly emotional issues such as wages (or lack thereof). It was hard to find common areas of interest at first because the company is very concerned with keeping an untarnished image whereas the workers only cared about making more money. The case did not describe how workers felt with regard to felt about their work situation and level of supervision. We were able to reach an agreement because we had a lot of time discuss the issues on the table. The Company was willing to give the workers a raise in return for a no-strike pledge and also changed the pay structure so that it was tied to productivity. This was acceptable for the company because it meant the increased productivity would offset much of the productivity costs. The skills that were developed in dealing with ambiguity were to ask a lot of questions and prepare a plan so that it would be easy to feel satisfied with an agreement without giving in. It was also important to talk about the long-term goals of the company (i.e., whether to build a new plant in or outside of Medina and share the productivity cost increase issues).

Successful Group Negotiation Techniques
In planning for the actual negotiation, there were three members of management (Tory, Christine, myself) and we each specialized in an area of the agreement (Worker Autonomy, Escalator Clause, Group Incentive System, Location of the New Plant). This worked well because we could learn from one another. Teamwork was critical and we actually had group meetings to show autonomy along the way as each part of the agreement was negotiated and decided upon. This strategy gave everyone an opportunity to run part of the meeting. Finally, when we did come to an impasse in discussing the issues with the irate Union members, we collectively agreed to table the issue temporarily and move onto the next point of contention in order to ensure good progress.
Using Interesting Tactics to Gain Leverage

The Union Team threatened illuminating “bad press” towards the company, to persuade the Company to give in to the Union Demands. This leverage came into play during round #2 while we were renegotiating regarding wages. We had to start over only two years into the seven year contract, because the industry dramatically changed and the Union workers were irate. We were unable to reach an agreement. The Local Union dug in their heels as did the management mostly because we knew they did not have any leverage and we would be able to dig negotiate. The reason we could not agree is because the workers had no leverage because market workers were willing to step in and do the same job when they were not represented.