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Negotiation - Case Study Example
Pages 5 (1255 words)
The recent negotiations between USBU and the company's management drew to a successful conclusion with each side reaching a compromise and finding some middle ground on most issues. While there was general agreement on both sides, management missed many of its objectives, especially in the very important area of wages and bonuses…
On most other issues the management team was forced to give in to Union demands and meet their goals. On the issues where the management team had set a goal and an acceptable limit, the team did not encounter the problem of giving up too much or gaining too little.
As an example of a successful negotiated compromise was the agreement reached on superannuation. The management team had set a goal of 3%. The Union had demanded 15%. While this gap seems extremely wide and would appear to be irreconcilable, part of the reason was due to management's overly aggressive goal. Management wished to leave the superannuation at the existing level of 3%. This was probably unrealistically low when confronted by the Union's demand of a level 5 times that amount. However, management had had the foresight to set a more realistic acceptance level of 9%. This was the agreement that was eventually reached. Offering 4% and accepting no more than 8% may have better served management. The initial offer of 4% would have been viewed as an increase instead of the maintenance of the old rate, and the Union might have been more willing to negotiate towards that level rather than insisting on negotiating towards their 15%.
The issue of wages was another source of contention as the Union asked for an unreasonable 15% plus increases linked to th ...
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