Contract Negotiation
The negotiation of a labor agreement is of critical importance to both parties. The agreement will govern the relationship between them for a definite contractual period. For the employer, the contract will have cost impacts and constrain management decision making. For the union, it will spell out the rights of union members in their employment relationships.
Why does a contract emerge in the form that it does? How do the parties prepare for bargaining? What influences do the rank and file or the various functional areas within an organization have on the demands made in the negotiations? How does each group organize for bargaining? What constitutes success or failure in negotiations? What sequence of activities usually takes place during negotiations?
Examine the activities preceding the negotiations themselves, from both union and management perspectives. Then we examine the theory and tactics of the negotiating process. The steps necessary for agreement and ratification are covered. Finally, management’s assessment of bargaining is examined.
Consider the following questions:
1. How do both management and union prepare for negotiations?
2. How are negotiating teams constituted for bargaining?
3. What processes are usually involved in presenting and responding to demands in collective bargaining negotiations?
4. How are agreements reached, and what processes are necessary to obtain approval by the union rank and file for ratification?
Except for initial contracts and unusual financial conditions, the timing of bargaining activities is largely determined by the expiration of a previous contract and the law. Under the law, if either party desires to modify the agreement at its expiration, it must give the other at least 60 days’ notice. In all negotiations, initial or otherwise, the parties are required to meet at reasonable times to bargain.
