Running head MANAGEMENT NEGOTIATION 1 Management Negotiation HRM323 MANAGEMENT NEGOTIATION 2 Management Negotiation A labor union is an organization of wage earners or salary workers established for the purpose of protecting their collective interest when dealing with employers New World Encyclopedia 2012 p 172 Management is a person or group of people who control and direct the interest of an organization The relationship between these two groups is important The relationship is also a process Holley Jennings and Wolters 2009 state the labor relations process involves managers represent the interest of the organization and a labor union represent the interest of the employees engaging in the joint determination and administration of work rules Schappe 1997 states cooperation between the union and management has become an accepted way for these two groups to deal with important inter organizational issues in the workplace Even though a cooperative union management relationship is preferred there have been many instances in which the two groups did not agree In this paper a proposal for over time how much to pay and what days it will be paid on by the union and management will be discussed Proposal Effect and Influence on Company Management Proposal The company s current contract states that employees will be paid overtime time and a half for the time that the employees work The union proposes that the employees be paid a minimum of two hours overtime for just being scheduled to work not work completed This proposal can have a negative effect on the company If this proposal is accepted the company could lose money For instance management schedules 10 employees to work overtime An unforeseen equipment issue occurs not enough equipment or equipment malfunction so overtime is no longer needed The 10 employees scheduled to work overtime according to the MANAGEMENT NEGOTIATION 3 union proposal will be paid a minimum of two hours at time and a half for work they did not do Another example of a negative effect on the company is management may fail to schedule enough workers overtime to complete an important task the fear of paying for work not done This could cause a loss in profits for the company too poor customer service Management Position Keeping in mind the goal of labor management cooperation management should recognize that the possibility to satisfy all parties completely may not be possible However management must still enter negotiations with a range of acceptable and prioritized positions on the issue of overtime pay Management must use the mutual gain bargaining strategy to achieve a compromise Management must take the position of mutual resolution of the problem This approach definitely would reveal management s concern about the employees desire for more respected personal time This approach also relies on providing as many possible solutions as can be found that the employees wants be met In a mutual gain bargaining condition an attempt is made to breach the gap between the interests of the two Parties by developing a possible package of negotiating elements in which each side gives something to the other side and vice versa Gupta n d This can be accomplished by connecting to issues in other areas and rolling them into the negotiation Both sides must be prepared to come up with probable alternatives for constructing a package to offer to the other party Alternatives to Counter Proposal Management strongly believes that the employees personal time and home life are just as important as their professional lives Management wants the employees to be content in all areas of their lives Management also believes that it is very important for management and the MANAGEMENT NEGOTIATION 4 union to maintain a peaceful working relationship This type of relationship helps to create a successful work environment for all involved To ensure that this happens management agrees to offer some alternatives to the union s proposal overtime will be paid at time and a half for a minimum of two hours whenever it is assigned One alternative is if an employee is scheduled to work overtime but does not because of a problem with management s scheduling that employee will be paid one hour of overtime at time and a half Another alternative is management will ask for volunteers to work with the understanding that if overtime is not needed he or she will not be paid before scheduling overtime Another alternative is if an employee is scheduled to work overtime but does not company s fault he or she will be paid two hours at regular salary Union Proposal Union Proposal and Employee Concerns The union proposal helps the union members persuade its members that they are being attentive to the employees concerns by staying focused on the issues and working to keep negotiations civil The union will engage in a collective bargaining process to work on issues brought forward by management and union members A mediator may be involved to keep talks between management positive and focused on the members concerns The union s attentiveness to the members need for respect to personal time and home life is a must and should be made an important speaking point The union proposal needs to show that productivity improvement and cost reductions can be met by union members by utilizing pattern bargaining that shows how the same union in another state agreed upon the same issues The union proposal will show the members how the same union could negotiate the overtime proposal acceptance along with maintaining personal time and home life Communication and positive negotiations with MANAGEMENT NEGOTIATION 5 management is a priority along with the union soliciting members input on agreements made The union needs the members to have realistic bargaining expectations Effect Rejection of Proposal has on Union If the proposal has been rejected there is a possibility of the union members going on strike The strike would cause a negative impact on the members and the company The company would have lost production time and the members would lose their pay and possible benefits for the period they are on strike The strike could last for hours days weeks or months The negative impact on members could cause for a breakdown in solidarity and cause friction among the members and the union Union Arguments to Management for Proposal The arguments the union can present to management regarding the need for their proposals are that members are