Q & A Table of Contents
Preparing for Labor Negotiations
From: Human Resources Manager, Penang, Malaysia
Question: I am a human resources manager
involved in collective bargaining with the Union.
1) What is my role as a negotiator for the company?
2) What preparations should I make to prepare for the negotiations?
Response: Your role as a negotiator for your company really depends on a variety of factors: are you the chief negotiator relating to all human resources issues? Is your responsibility limited to labor unions? to one particular union? To whom are you responsible: the CEO? the chief of Human Resources? In other words, the first basic issue you must address is what are your responsibilities and what is the extent of your authority?
You should discuss these questions with your superiors and colleagues to learn the extent and limitations of your responsibility and authority. In addition, you must learn as much as possible about the objectives of the company in its dealing with the union. How flexible can you be regarding wages, hours, working conditions and benefits (vacation, medical leave, holidays, flexible hours, child care, etc.)? The more flexibility you have, the greater the likelihood you'll be able to negotiate a good deal with the union. With flexibility and creativity, you can explore the interests of both sides and look for proposal elements that add value to the total deal. If both management and union feel they have been treated fairly and with respect, there is a far greater likelihood that the 'deal' will be viewed favorably by the parties and that it will be durable, rather than the precursor to difficulties later on.
So your two questions are really wrapped around one set of issues: your preparation should focus on your responsibility and authority; an investigation of the history of the labor/management relationship within your company, your industry, and the labor market; and the extent to which your understanding the interests of the parties can yield building blocks for an agreement which is a win/win rather than a win/lose zero sum game.
Good luck and good negotiating, Steve.
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