[Solved] HRM 6304 Unit III PP

Assignment Prompt & Instructions

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**files (3)**

– ## LaborRelationsandCollectiveBargainingHRM6304UnitIIIPowerPointPresentation.docx

– ## UnitIIStudyGuide.pdf

– ## UnitIIIStudyGuide.pdf

**## LaborRelationsandCollectiveBargainingHRM6304UnitIIIPowerPointPresentation.docx**

2

Labor Relations and Collective Bargaining HRM 6304 Unit III PowerPoint Presentation

Create a PowerPoint presentation that outlines the advantages and disadvantages of union representation, mandatory benefits in a bargaining package, how market factors may drive the bargaining process, and how these factors increase or decrease employee motivation or morale.

· Within your PowerPoint presentation, address how collective bargaining plays a role with employees.

· Identify mandatory benefits that should be included in a bargaining package.

· Discuss some possible market factors that impact the negotiation process.

· You must use the "Notes" feature in PowerPoint to add comments explaining each slide. Each speaker note should be at least one paragraph containing 5-10 sentences.

· Make certain to include 12–14 slides, not counting the title slide and references slide.

You must use two resources (one must come from the CSU Online Library, and blogs are not acceptable). Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used.

**## UnitIIStudyGuide.pdf**

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit II

Upon completion of this unit, students should be able to:

4. Discuss union avoidance strategies.
4.1 Define the goals and strategies of unions.
4.2 Discuss reasons and methods businesses use to avoid unionization.

8. Interpret the laws that affect unions.

8.1 Explain the various labor relations acts and laws that influence labor management and unions.

Required Unit Resources

Chapter 3: Legal Influences, pp. 91–121

Chapter 4: Unions and Management: Key Participants in the Labor Relations Process, pp. 135–187

Unit Lesson

Welcome to Unit II. As you will recall from Unit I, we are comparing a collective bargaining agreement to the
divorce process. As such, we have decided to change our current relationship because our contract has run
out (marriage has ended). At the same time, though, we want to remain on good terms. We have started the
pre-bargaining stage of the collective bargaining process by selecting our teams (i.e., those who will represent
our best interests). We have begun to collect data to present our case in an informed and professional
manner.

Just as partners in the marriage give notice of their intent to divorce by serving each other a written
notification, management and the union must also notify each other that they intend to negotiate a new
contract. Each must notify the other—as well as the Federal Mediation and Conciliation Service—in a
minimum of 60 days prior to the end of the contract that they intend to negotiate a new agreement/contract.
This notification is typically in writing as a matter of record.

When we are collecting data to present our best option(s), it is best to review all earlier documents such as
the former contract or, in the case of a divorce, any signed prenuptials. We want to review what is no longer
working for us and why we want to make changes. Like most business decisions, if we want to strengthen our
case, we also want to offer solutions. We want to gather the information we need that will support our

proposed solutions. In the divorce
analogy, let’s say that I am the ex-
wife. I have been raising our children
and will continue to do so. I will want
financial support from my ex-
husband, but I must make a case for
the amount I need and document it
with data. I would love to get $10,000
a month, but is that realistic? To get
what I want, I need to show it is
realistic and in line with similar cases.
Back to collective bargaining, if the
union wants a wage increase of

UNIT II STUDY GUIDE
The Law and Key Players in
the Negotiating Process

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE
Title

$2.00 an hour, the union must show that the company can realistically afford the $2.00 per hour increase and
that such an increase is in line with industry standards.

In the Harper Container Company (HCC) case in Appendix A, there are tools to make calculations and
predictions that will support the position of each party. For example, the decisions worksheet contains
information such as base wages for all employees; facilities upgrade options and associated costs; and the
accounting effects of altering annual leave of inventories, receivables, payables, and short- and long-term
debt into future years. It gives the management team a clear picture of the company’s current financial
position and the ability to see the effects on the bottom line when making adjustments for proposed changes
to the various areas. This allows the team to test options and see the effects financially.

For example, if the union wants a $2.00 an hour raise, the management team could plug in the increase and
see the financial impact over the next 3 to 5 years. The management team could also determine what the
production numbers would have to look like in order to make a profit. This tool is necessary if management
wants to make the best possible decision for the company. It takes considerable time to set up the worksheet
and coordinate with the financial and human resource experts—particularly in a large organization that
employs hundreds of union employees or more than one union—but it is well worth the time and effort. The
management team would start this worksheet by inserting figures and any associated conditions from the
current contract. Associated conditions might include subcontracts, seasonal variations, and legal
requirements. In the HCC case, for example, the law requires that the company make some federally
mandated environmental equipment upgrades.

In the case of a divorce, let’s go back
to the example of me as the ex-wife. I
have an attorney who also has similar
tools to determine the cost of living for
future years as I continue to raise our
children. After some thoughtful
calculations and review of income
statements, perhaps $10,000 a month
is not realistic, and perhaps $7,000 a
month is a better figure.

Now that we have gathered the data, it
is time to determine our main areas of
concern, and from there, we can
decide on our objectives and set
priorities. We want to determine what it
is we must get, what we would like to
get, and what would be nice to get
from the other party. Our must gets are
those things we will want to fight the

hardest for, so it is very important that those areas have current and accurate data to support our position.
The like to gets are those things that we would like to obtain as a result of the bargaining process, but they
are not necessary for us to move forward. The nice to gets are those things that we are interested in but
would concede if it moved us closer to getting our must gets.

Going back to the divorce example, assuming that I will have custody of our children, I must get financial
support and a guarantee that the financial support will be available until our children reach 21 years of age
(unless they are in college). This is a reasonable concern because I have been raising our three children for
10 years and have been out of the workforce. Even if I could return to work, it will take some time to become
trained. Regardless, it is doubtful I will reach the financial level needed to support our three children on my
own in the lifestyle to which they were accustomed. My like to get is a house with no mortgage, and my nice
to get would be continued gym membership and use of our time-share vacation membership.

In the HCC case, each side must determine must gets, like to gets, and nice to gets. It is reasonable that
management must get the facility upgrades in order to be federally compliant. Failure to do so could result in

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE
Title

costly legal fees and government fines, which will affect the company’s bottom line significantly as well as its
reputation with customer stakeholders.

It is also reasonable to determine that the union members must get a wage increase. As the case indicates,
the HCC managers have received an annual raise of 5% plus annual bonuses for the past 3 years, whereas
union members have received less and are earning less than their industry counterparts. Also, the union
members are losing money by being forced to take a vacation during maintenance downtime that includes
two holidays.

Must gets are issues that either party are willing to fight for. In the case study, the United Chemical and
Plastic Workers (UCPW) group is willing to go out on strike if they do not negotiate a wage increase in this
contract. Management has the lockout option at their disposal.

Both teams must support their must gets to the members and the stakeholders to the point that they are
willing to stop negotiations and go on strike or initiate a lockout if necessary. Production potentially stops or
becomes expensive to maintain in the case of replacement workers. Both teams need to have the data ready
to support their positions on must gets. The more prepared each team is, the easier it will be to negotiate a
settlement that both parties can live with. The old saying, “It is not fair!” is not good enough in collective
bargaining. Supporting data is critical to success.

Reference

Rawpixelimages. (n.d.). Negotiation cooperation discussion collaboration contract concept (ID 67826554)

[Illustration]. Dreamstime. https://www.dreamstime.com/stock-photo-negotiation-cooperation-
discussion-collaboration-contract-concep-concept-image67826554

Suggested Unit Resources

In order to access the following resource, click the link below.

The resource below provides a deeper look at contract negotiations. You will learn what it is and how labor
unions and employers use it to reach agreement about wages, benefits, and more.

Gregg Learning. (2017, October 13). Union contract negotiation [Video]. YouTube.

https://www.youtube.com/watch?v=d4G6GO7CzvQ

A transcript and closed captioning are available once you access the video.

**## UnitIIIStudyGuide.pdf**

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit III

Upon completion of this unit, students should be able to:

3. Critique the concept of collective bargaining.
3.1 Identify mandatory benefits included in a bargaining package.
3.2 Discuss possible market factors that impact the negotiation process.

Required Unit Resources

Chapter 5: Why and How Unions Are Organized, pp. 198–242

Unit Lesson

As you may have noticed, our objective for this unit’s lesson is to critique the concept of collective bargaining.
If we continue our line of thought, comparing collective bargaining to the divorce process, you will have a
better understanding of the process and, therefore, will be better prepared to make such a critique. We have
all heard horror stories related to negotiations (e.g., violence, vandalism, fraud) and bitter divorce battles.
Aggressive and bad behavior does happen in negotiations, but there are also consequences for such
behavior. We will discuss the process and possible consequences in this unit.

Let’s review. We have decided it is time to negotiate our relationship because it has changed in the past 3
years and is no longer working for us. Consequently, things are a little tense between us, so it is time to take
the next step. We want to maintain a good relationship, but, at the same time, we each have certain issues
that must be resolved to our satisfaction if we want to maintain any sort of relationship in the future. We have
researched our current position and have given each other notice.

As I mentioned, we want
to maintain a good
relationship, and, as you
know, that requires good
communication between
both parties as we work
through the negotiation
process. As part of this
good communication, it
is wise to establish rules
of engagement early on
so that both parties
clearly understand what
acceptable behavior is
and what unacceptable
behavior is. For
example, we both want
to be clear that honest
information is essential
to successful
negotiations. Lying or
falsifying documents is
not acceptable behavior.
Hiding assets is also not

UNIT III STUDY GUIDE
Organization of Unions

Communication word cloud
(Ibreakstock, n.d.)

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE
Title

acceptable behavior. In some divorce processes, a spouse will hide assets in order to reduce the final asset
valuation. If I hide the fact that I own an apartment in New York, I reduce my total assets, thereby reducing
the amount of alimony and child support I will have to pay. I create a picture misrepresenting my true value
and potential to pay. Some organizations also try to underplay their ability to pay in order to justify not
increasing wages or not providing increased benefits. However, if an organization states that they cannot pay
an increase in wages, they must turn over their financial reports to the union for review. We want to be clear
that threats or intimidation of any kind is not acceptable. In a divorce case, you will often see one spouse
insisting that the other will never see the children again if they do not get what they want. This is an
unacceptable practice in our negotiation process.

While we are establishing our rules, we also want to establish subjects of bargaining. For example, in the
collective bargaining process, there are mandatory, illegal, and permissive subjects of bargaining. Some
subjects, such as wages, hours, and conditions of work, are mandatory subjects for bargaining. Illegal
subjects would be things that are considered illegal, such as discrimination or pay below minimum wage.
Permissive subjects are everything else that is not mandatory or illegal. In the divorce process, our mandatory
subjects of bargaining would be subjects such as child custody and visitation, child support, and alimony. Of
course, if we have a prenuptial agreement, that would also be a mandatory subject to discuss. We could
establish illegal subjects for the divorce process as former sexual encounters or arrest records, and
permissive subjects are everything else. For example, a permissive subject might be the distribution of the
family heirlooms or family pets.

Other areas we will want to establish are acceptable timelines and consequences for not meeting those
timelines as well as consequences for not reaching an agreement. Collectively, we need to decide on a
reasonable estimation for resolving our negotiation. Is it reasonable to reach an agreement in 4 weeks, 6
weeks, or even 8 weeks? Is it unreasonable to drag the process out for 6 to 8 months? What are our options if
one party violates our rules? What is the next step if we cannot reach an agreement? Are we willing to
consider mediation and arbitration?

The collective bargaining process and the National Labor Relations Board (NLRB) guidelines easily answer
some of these questions. For example, all parties are expected to bargain in good faith, which means
honestly—no bullying, no falsification of documents, and no hiding of assets when it comes time to discuss
ability to pay. It also means working toward a successful resolution and not stalling or dragging out the
process. Depending upon the former contact and the estimates changes, contract negotiations might take 2
weeks, or they may take 5 weeks. Depending upon how well we communicate and work together,
negotiations may take longer, but at some point, negotiations have to end in an agreement. Just as in a
divorce case, negotiation is costly for both parties. Swift resolution is in the best interest of both parties.
Management is losing time from other duties by attending the negotiation meetings, and union
representatives are taken from their other duties to participate in the negotiation process. Lengthy
negotiations can lead to increased tension and potential conflict.

Additionally, as a part of the collective bargaining process, if one party violates our agreed-upon rules, we
have the option to file an unfair labor practice complaint against that party. If an unfair labor practice is filed,
then the NLRB will review our negotiations; then, the NLRB has the option to modify and finalize the collective
bargaining agreement. Both parties will have to live with the modifications for the duration of the contract (3 to
5 years). Both management and the union can commit an unfair labor practice, so both parties are equally
able to violate the rules. Just as in a divorce process, both parties have the opportunity to play dirty. Making
accusations and tarnishing reputations are common among disputing divorce parties and would be
considered an unfair labor practice in the collective bargaining process.

As I mentioned previously, we need to agree that if we cannot come to a collective agreement and/or if we
reach an impasse, we will try mediation prior to going to arbitration and prior to staying at a state of impasse.
An impasse is when two parties cannot reach a mutually satisfying agreement. As you may recall from your
readings, mediation is a third party working toward resolution, but the resolution is not binding. A mediator
tries to find common ground between the two parties, and from that common ground, the mediator can work
toward an agreement that both parties can live with. Arbitration, on the other hand, is binding. An arbitrator
works with both parties and ultimately makes the final decision as to what the agreement will consist of. In our
divorce analysis, the arbitrator may be the judge who decides what the final divorce decree entails. If
collective bargaining goes to mediation or arbitration, both union and management agree who will preside
over the meetings, and both share in the costs. Today, many people go through mediation while working on

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE
Title

the final divorce settlement because it is significantly cheaper than working though divorce attorneys, and, in
some states, mediation is required prior to the final divorce decree—especially if children are involved. Unions
and management can save money as well by going through mediation if it comes to that point.

The collective bargaining process takes time. Each party wants to present their best case and negotiate the
best solution; therefore, effective communication is essential between the two parties and all those involved in
the process. There will be offers and counteroffers and more offers and more counteroffers until terms are
reached that both parties can live with for the next 3 to 5 years. Each party needs to be patient and ready to
counter the offers with counteroffers. The more prepared each party is, the less time the negotiations will
take. Less time means less money for both parties. The process will run more smoothly when both parties
establish rules of engagement, conditions of the process, and next steps when an agreement cannot be
reached.

In the next unit, we will look at some tactics used during negotiations (both effective and not-so-effective
tactics) and different ways to build trust.

Reference

Ibreakstock. (n.d.). Communication plan word cloud concept. (ID 178709706) [Illustration]. Dreamstime.

https://www.dreamstime.com/communication-plan-word-cloud-concept-white-background-
communication-plan-word-cloud-concept-image178709706

**## UnitIIIStudyGuide.pdf**

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit III

Upon completion of this unit, students should be able to:

3. Critique the concept of collective bargaining.
3.1 Identify mandatory benefits included in a bargaining package.
3.2 Discuss possible market factors that impact the negotiation process.

Required Unit Resources

Chapter 5: Why and How Unions Are Organized, pp. 198–242

Unit Lesson

As you may have noticed, our objective for this unit’s lesson is to critique the concept of collective bargaining.
If we continue our line of thought, comparing collective bargaining to the divorce process, you will have a
better understanding of the process and, therefore, will be better prepared to make such a critique. We have
all heard horror stories related to negotiations (e.g., violence, vandalism, fraud) and bitter divorce battles.
Aggressive and bad behavior does happen in negotiations, but there are also consequences for such
behavior. We will discuss the process and possible consequences in this unit.

Let’s review. We have decided it is time to negotiate our relationship because it has changed in the past 3
years and is no longer working for us. Consequently, things are a little tense between us, so it is time to take
the next step. We want to maintain a good relationship, but, at the same time, we each have certain issues
that must be resolved to our satisfaction if we want to maintain any sort of relationship in the future. We have
researched our current position and have given each other notice.

As I mentioned, we want
to maintain a good
relationship, and, as you
know, that requires good
communication between
both parties as we work
through the negotiation
process. As part of this
good communication, it
is wise to establish rules
of engagement early on
so that both parties
clearly understand what
acceptable behavior is
and what unacceptable
behavior is. For
example, we both want
to be clear that honest
information is essential
to successful
negotiations. Lying or
falsifying documents is
not acceptable behavior.
Hiding assets is also not

UNIT III STUDY GUIDE
Organization of Unions

Communication word cloud
(Ibreakstock, n.d.)

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE
Title

acceptable behavior. In some divorce processes, a spouse will hide assets in order to reduce the final asset
valuation. If I hide the fact that I own an apartment in New York, I reduce my total assets, thereby reducing
the amount of alimony and child support I will have to pay. I create a picture misrepresenting my true value
and potential to pay. Some organizations also try to underplay their ability to pay in order to justify not
increasing wages or not providing increased benefits. However, if an organization states that they cannot pay
an increase in wages, they must turn over their financial reports to the union for review. We want to be clear
that threats or intimidation of any kind is not acceptable. In a divorce case, you will often see one spouse
insisting that the other will never see the children again if they do not get what they want. This is an
unacceptable practice in our negotiation process.

While we are establishing our rules, we also want to establish subjects of bargaining. For example, in the
collective bargaining process, there are mandatory, illegal, and permissive subjects of bargaining. Some
subjects, such as wages, hours, and conditions of work, are mandatory subjects for bargaining. Illegal
subjects would be things that are considered illegal, such as discrimination or pay below minimum wage.
Permissive subjects are everything else that is not mandatory or illegal. In the divorce process, our mandatory
subjects of bargaining would be subjects such as child custody and visitation, child support, and alimony. Of
course, if we have a prenuptial agreement, that would also be a mandatory subject to discuss. We could
establish illegal subjects for the divorce process as former sexual encounters or arrest records, and
permissive subjects are everything else. For example, a permissive subject might be the distribution of the
family heirlooms or family pets.

Other areas we will want to establish are acceptable timelines and consequences for not meeting those
timelines as well as consequences for not reaching an agreement. Collectively, we need to decide on a
reasonable estimation for resolving our negotiation. Is it reasonable to reach an agreement in 4 weeks, 6
weeks, or even 8 weeks? Is it unreasonable to drag the process out for 6 to 8 months? What are our options if
one party violates our rules? What is the next step if we cannot reach an agreement? Are we willing to
consider mediation and arbitration?

The collective bargaining process and the National Labor Relations Board (NLRB) guidelines easily answer
some of these questions. For example, all parties are expected to bargain in good faith, which means
honestly—no bullying, no falsification of documents, and no hiding of assets when it comes time to discuss
ability to pay. It also means working toward a successful resolution and not stalling or dragging out the
process. Depending upon the former contact and the estimates changes, contract negotiations might take 2
weeks, or they may take 5 weeks. Depending upon how well we communicate and work together,
negotiations may take longer, but at some point, negotiations have to end in an agreement. Just as in a
divorce case, negotiation is costly for both parties. Swift resolution is in the best interest of both parties.
Management is losing time from other duties by attending the negotiation meetings, and union
representatives are taken from their other duties to participate in the negotiation process. Lengthy
negotiations can lead to increased tension and potential conflict.

Additionally, as a part of the collective bargaining process, if one party violates our agreed-upon rules, we
have the option to file an unfair labor practice complaint against that party. If an unfair labor practice is filed,
then the NLRB will review our negotiations; then, the NLRB has the option to modify and finalize the collective
bargaining agreement. Both parties will have to live with the modifications for the duration of the contract (3 to
5 years). Both management and the union can commit an unfair labor practice, so both parties are equally
able to violate the rules. Just as in a divorce process, both parties have the opportunity to play dirty. Making
accusations and tarnishing reputations are common among disputing divorce parties and would be
considered an unfair labor practice in the collective bargaining process.

As I mentioned previously, we need to agree that if we cannot come to a collective agreement and/or if we
reach an impasse, we will try mediation prior to going to arbitration and prior to staying at a state of impasse.
An impasse is when two parties cannot reach a mutually satisfying agreement. As you may recall from your
readings, mediation is a third party working toward resolution, but the resolution is not binding. A mediator
tries to find common ground between the two parties, and from that common ground, the mediator can work
toward an agreement that both parties can live with. Arbitration, on the other hand, is binding. An arbitrator
works with both parties and ultimately makes the final decision as to what the agreement will consist of. In our
divorce analysis, the arbitrator may be the judge who decides what the final divorce decree entails. If
collective bargaining goes to mediation or arbitration, both union and management agree who will preside
over the meetings, and both share in the costs. Today, many people go through mediation while working on

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE
Title

the final divorce settlement because it is significantly cheaper than working though divorce attorneys, and, in
some states, mediation is required prior to the final divorce decree—especially if children are involved. Unions
and management can save money as well by going through mediation if it comes to that point.

The collective bargaining process takes time. Each party wants to present their best case and negotiate the
best solution; therefore, effective communication is essential between the two parties and all those involved in
the process. There will be offers and counteroffers and more offers and more counteroffers until terms are
reached that both parties can live with for the next 3 to 5 years. Each party needs to be patient and ready to
counter the offers with counteroffers. The more prepared each party is, the less time the negotiations will
take. Less time means less money for both parties. The process will run more smoothly when both parties
establish rules of engagement, conditions of the process, and next steps when an agreement cannot be
reached.

In the next unit, we will look at some tactics used during negotiations (both effective and not-so-effective
tactics) and different ways to build trust.

Reference

Ibreakstock. (n.d.). Communication plan word cloud concept. (ID 178709706) [Illustration]. Dreamstime.

https://www.dreamstime.com/communication-plan-word-cloud-concept-white-background-
communication-plan-word-cloud-concept-image178709706

**## LaborRelationsandCollectiveBargainingHRM6304UnitIIIPowerPointPresentation.docx**

2

Labor Relations and Collective Bargaining HRM 6304 Unit III PowerPoint Presentation

Create a PowerPoint presentation that outlines the advantages and disadvantages of union representation, mandatory benefits in a bargaining package, how market factors may drive the bargaining process, and how these factors increase or decrease employee motivation or morale.

· Within your PowerPoint presentation, address how collective bargaining plays a role with employees.

· Identify mandatory benefits that should be included in a bargaining package.

· Discuss some possible market factors that impact the negotiation process.

· You must use the "Notes" feature in PowerPoint to add comments explaining each slide. Each speaker note should be at least one paragraph containing 5-10 sentences.

· Make certain to include 12–14 slides, not counting the title slide and references slide.

You must use two resources (one must come from the CSU Online Library, and blogs are not acceptable). Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used.

**## UnitIIStudyGuide.pdf**

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit II

Upon completion of this unit, students should be able to:

4. Discuss union avoidance strategies.
4.1 Define the goals and strategies of unions.
4.2 Discuss reasons and methods businesses use to avoid unionization.

8. Interpret the laws that affect unions.

8.1 Explain the various labor relations acts and laws that influence labor management and unions.

Required Unit Resources

Chapter 3: Legal Influences, pp. 91–121

Chapter 4: Unions and Management: Key Participants in the Labor Relations Process, pp. 135–187

Unit Lesson

Welcome to Unit II. As you will recall from Unit I, we are comparing a collective bargaining agreement to the
divorce process. As such, we have decided to change our current relationship because our contract has run
out (marriage has ended). At the same time, though, we want to remain on good terms. We have started the
pre-bargaining stage of the collective bargaining process by selecting our teams (i.e., those who will represent
our best interests). We have begun to collect data to present our case in an informed and professional
manner.

Just as partners in the marriage give notice of their intent to divorce by serving each other a written
notification, management and the union must also notify each other that they intend to negotiate a new
contract. Each must notify the other—as well as the Federal Mediation and Conciliation Service—in a
minimum of 60 days prior to the end of the contract that they intend to negotiate a new agreement/contract.
This notification is typically in writing as a matter of record.

When we are collecting data to present our best option(s), it is best to review all earlier documents such as
the former contract or, in the case of a divorce, any signed prenuptials. We want to review what is no longer
working for us and why we want to make changes. Like most business decisions, if we want to strengthen our
case, we also want to offer solutions. We want to gather the information we need that will support our

proposed solutions. In the divorce
analogy, let’s say that I am the ex-
wife. I have been raising our children
and will continue to do so. I will want
financial support from my ex-
husband, but I must make a case for
the amount I need and document it
with data. I would love to get $10,000
a month, but is that realistic? To get
what I want, I need to show it is
realistic and in line with similar cases.
Back to collective bargaining, if the
union wants a wage increase of

UNIT II STUDY GUIDE
The Law and Key Players in
the Negotiating Process

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE
Title

$2.00 an hour, the union must show that the company can realistically afford the $2.00 per hour increase and
that such an increase is in line with industry standards.

In the Harper Container Company (HCC) case in Appendix A, there are tools to make calculations and
predictions that will support the position of each party. For example, the decisions worksheet contains
information such as base wages for all employees; facilities upgrade options and associated costs; and the
accounting effects of altering annual leave of inventories, receivables, payables, and short- and long-term
debt into future years. It gives the management team a clear picture of the company’s current financial
position and the ability to see the effects on the bottom line when making adjustments for proposed changes
to the various areas. This allows the team to test options and see the effects financially.

For example, if the union wants a $2.00 an hour raise, the management team could plug in the increase and
see the financial impact over the next 3 to 5 years. The management team could also determine what the
production numbers would have to look like in order to make a profit. This tool is necessary if management
wants to make the best possible decision for the company. It takes considerable time to set up the worksheet
and coordinate with the financial and human resource experts—particularly in a large organization that
employs hundreds of union employees or more than one union—but it is well worth the time and effort. The
management team would start this worksheet by inserting figures and any associated conditions from the
current contract. Associated conditions might include subcontracts, seasonal variations, and legal
requirements. In the HCC case, for example, the law requires that the company make some federally
mandated environmental equipment upgrades.

In the case of a divorce, let’s go back
to the example of me as the ex-wife. I
have an attorney who also has similar
tools to determine the cost of living for
future years as I continue to raise our
children. After some thoughtful
calculations and review of income
statements, perhaps $10,000 a month
is not realistic, and perhaps $7,000 a
month is a better figure.

Now that we have gathered the data, it
is time to determine our main areas of
concern, and from there, we can
decide on our objectives and set
priorities. We want to determine what it
is we must get, what we would like to
get, and what would be nice to get
from the other party. Our must gets are
those things we will want to fight the

hardest for, so it is very important that those areas have current and accurate data to support our position.
The like to gets are those things that we would like to obtain as a result of the bargaining process, but they
are not necessary for us to move forward. The nice to gets are those things that we are interested in but
would concede if it moved us closer to getting our must gets.

Going back to the divorce example, assuming that I will have custody of our children, I must get financial
support and a guarantee that the financial support will be available until our children reach 21 years of age
(unless they are in college). This is a reasonable concern because I have been raising our three children for
10 years and have been out of the workforce. Even if I could return to work, it will take some time to become
trained. Regardless, it is doubtful I will reach the financial level needed to support our three children on my
own in the lifestyle to which they were accustomed. My like to get is a house with no mortgage, and my nice
to get would be continued gym membership and use of our time-share vacation membership.

In the HCC case, each side must determine must gets, like to gets, and nice to gets. It is reasonable that
management must get the facility upgrades in order to be federally compliant. Failure to do so could result in

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE
Title

costly legal fees and government fines, which will affect the company’s bottom line significantly as well as its
reputation with customer stakeholders.

It is also reasonable to determine that the union members must get a wage increase. As the case indicates,
the HCC managers have received an annual raise of 5% plus annual bonuses for the past 3 years, whereas
union members have received less and are earning less than their industry counterparts. Also, the union
members are losing money by being forced to take a vacation during maintenance downtime that includes
two holidays.

Must gets are issues that either party are willing to fight for. In the case study, the United Chemical and
Plastic Workers (UCPW) group is willing to go out on strike if they do not negotiate a wage increase in this
contract. Management has the lockout option at their disposal.

Both teams must support their must gets to the members and the stakeholders to the point that they are
willing to stop negotiations and go on strike or initiate a lockout if necessary. Production potentially stops or
becomes expensive to maintain in the case of replacement workers. Both teams need to have the data ready
to support their positions on must gets. The more prepared each team is, the easier it will be to negotiate a
settlement that both parties can live with. The old saying, “It is not fair!” is not good enough in collective
bargaining. Supporting data is critical to success.

Reference

Rawpixelimages. (n.d.). Negotiation cooperation discussion collaboration contract concept (ID 67826554)

[Illustration]. Dreamstime. https://www.dreamstime.com/stock-photo-negotiation-cooperation-
discussion-collaboration-contract-concep-concept-image67826554

Suggested Unit Resources

In order to access the following resource, click the link below.

The resource below provides a deeper look at contract negotiations. You will learn what it is and how labor
unions and employers use it to reach agreement about wages, benefits, and more.

Gregg Learning. (2017, October 13). Union contract negotiation [Video]. YouTube.

https://www.youtube.com/watch?v=d4G6GO7CzvQ

A transcript and closed captioning are available once you access the video.

**## UnitIIIStudyGuide.pdf**

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit III

Upon completion of this unit, students should be able to:

3. Critique the concept of collective bargaining.
3.1 Identify mandatory benefits included in a bargaining package.
3.2 Discuss possible market factors that impact the negotiation process.

Required Unit Resources

Chapter 5: Why and How Unions Are Organized, pp. 198–242

Unit Lesson

As you may have noticed, our objective for this unit’s lesson is to critique the concept of collective bargaining.
If we continue our line of thought, comparing collective bargaining to the divorce process, you will have a
better understanding of the process and, therefore, will be better prepared to make such a critique. We have
all heard horror stories related to negotiations (e.g., violence, vandalism, fraud) and bitter divorce battles.
Aggressive and bad behavior does happen in negotiations, but there are also consequences for such
behavior. We will discuss the process and possible consequences in this unit.

Let’s review. We have decided it is time to negotiate our relationship because it has changed in the past 3
years and is no longer working for us. Consequently, things are a little tense between us, so it is time to take
the next step. We want to maintain a good relationship, but, at the same time, we each have certain issues
that must be resolved to our satisfaction if we want to maintain any sort of relationship in the future. We have
researched our current position and have given each other notice.

As I mentioned, we want
to maintain a good
relationship, and, as you
know, that requires good
communication between
both parties as we work
through the negotiation
process. As part of this
good communication, it
is wise to establish rules
of engagement early on
so that both parties
clearly understand what
acceptable behavior is
and what unacceptable
behavior is. For
example, we both want
to be clear that honest
information is essential
to successful
negotiations. Lying or
falsifying documents is
not acceptable behavior.
Hiding assets is also not

UNIT III STUDY GUIDE
Organization of Unions

Communication word cloud
(Ibreakstock, n.d.)

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE
Title

acceptable behavior. In some divorce processes, a spouse will hide assets in order to reduce the final asset
valuation. If I hide the fact that I own an apartment in New York, I reduce my total assets, thereby reducing
the amount of alimony and child support I will have to pay. I create a picture misrepresenting my true value
and potential to pay. Some organizations also try to underplay their ability to pay in order to justify not
increasing wages or not providing increased benefits. However, if an organization states that they cannot pay
an increase in wages, they must turn over their financial reports to the union for review. We want to be clear
that threats or intimidation of any kind is not acceptable. In a divorce case, you will often see one spouse
insisting that the other will never see the children again if they do not get what they want. This is an
unacceptable practice in our negotiation process.

While we are establishing our rules, we also want to establish subjects of bargaining. For example, in the
collective bargaining process, there are mandatory, illegal, and permissive subjects of bargaining. Some
subjects, such as wages, hours, and conditions of work, are mandatory subjects for bargaining. Illegal
subjects would be things that are considered illegal, such as discrimination or pay below minimum wage.
Permissive subjects are everything else that is not mandatory or illegal. In the divorce process, our mandatory
subjects of bargaining would be subjects such as child custody and visitation, child support, and alimony. Of
course, if we have a prenuptial agreement, that would also be a mandatory subject to discuss. We could
establish illegal subjects for the divorce process as former sexual encounters or arrest records, and
permissive subjects are everything else. For example, a permissive subject might be the distribution of the
family heirlooms or family pets.

Other areas we will want to establish are acceptable timelines and consequences for not meeting those
timelines as well as consequences for not reaching an agreement. Collectively, we need to decide on a
reasonable estimation for resolving our negotiation. Is it reasonable to reach an agreement in 4 weeks, 6
weeks, or even 8 weeks? Is it unreasonable to drag the process out for 6 to 8 months? What are our options if
one party violates our rules? What is the next step if we cannot reach an agreement? Are we willing to
consider mediation and arbitration?

The collective bargaining process and the National Labor Relations Board (NLRB) guidelines easily answer
some of these questions. For example, all parties are expected to bargain in good faith, which means
honestly—no bullying, no falsification of documents, and no hiding of assets when it comes time to discuss
ability to pay. It also means working toward a successful resolution and not stalling or dragging out the
process. Depending upon the former contact and the estimates changes, contract negotiations might take 2
weeks, or they may take 5 weeks. Depending upon how well we communicate and work together,
negotiations may take longer, but at some point, negotiations have to end in an agreement. Just as in a
divorce case, negotiation is costly for both parties. Swift resolution is in the best interest of both parties.
Management is losing time from other duties by attending the negotiation meetings, and union
representatives are taken from their other duties to participate in the negotiation process. Lengthy
negotiations can lead to increased tension and potential conflict.

Additionally, as a part of the collective bargaining process, if one party violates our agreed-upon rules, we
have the option to file an unfair labor practice complaint against that party. If an unfair labor practice is filed,
then the NLRB will review our negotiations; then, the NLRB has the option to modify and finalize the collective
bargaining agreement. Both parties will have to live with the modifications for the duration of the contract (3 to
5 years). Both management and the union can commit an unfair labor practice, so both parties are equally
able to violate the rules. Just as in a divorce process, both parties have the opportunity to play dirty. Making
accusations and tarnishing reputations are common among disputing divorce parties and would be
considered an unfair labor practice in the collective bargaining process.

As I mentioned previously, we need to agree that if we cannot come to a collective agreement and/or if we
reach an impasse, we will try mediation prior to going to arbitration and prior to staying at a state of impasse.
An impasse is when two parties cannot reach a mutually satisfying agreement. As you may recall from your
readings, mediation is a third party working toward resolution, but the resolution is not binding. A mediator
tries to find common ground between the two parties, and from that common ground, the mediator can work
toward an agreement that both parties can live with. Arbitration, on the other hand, is binding. An arbitrator
works with both parties and ultimately makes the final decision as to what the agreement will consist of. In our
divorce analysis, the arbitrator may be the judge who decides what the final divorce decree entails. If
collective bargaining goes to mediation or arbitration, both union and management agree who will preside
over the meetings, and both share in the costs. Today, many people go through mediation while working on

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE
Title

the final divorce settlement because it is significantly cheaper than working though divorce attorneys, and, in
some states, mediation is required prior to the final divorce decree—especially if children are involved. Unions
and management can save money as well by going through mediation if it comes to that point.

The collective bargaining process takes time. Each party wants to present their best case and negotiate the
best solution; therefore, effective communication is essential between the two parties and all those involved in
the process. There will be offers and counteroffers and more offers and more counteroffers until terms are
reached that both parties can live with for the next 3 to 5 years. Each party needs to be patient and ready to
counter the offers with counteroffers. The more prepared each party is, the less time the negotiations will
take. Less time means less money for both parties. The process will run more smoothly when both parties
establish rules of engagement, conditions of the process, and next steps when an agreement cannot be
reached.

In the next unit, we will look at some tactics used during negotiations (both effective and not-so-effective
tactics) and different ways to build trust.

Reference

Ibreakstock. (n.d.). Communication plan word cloud concept. (ID 178709706) [Illustration]. Dreamstime.

https://www.dreamstime.com/communication-plan-word-cloud-concept-white-background-
communication-plan-word-cloud-concept-image178709706

**## LaborRelationsandCollectiveBargainingHRM6304UnitIIIPowerPointPresentation.docx**

2

Labor Relations and Collective Bargaining HRM 6304 Unit III PowerPoint Presentation

Create a PowerPoint presentation that outlines the advantages and disadvantages of union representation, mandatory benefits in a bargaining package, how market factors may drive the bargaining process, and how these factors increase or decrease employee motivation or morale.

· Within your PowerPoint presentation, address how collective bargaining plays a role with employees.

· Identify mandatory benefits that should be included in a bargaining package.

· Discuss some possible market factors that impact the negotiation process.

· You must use the "Notes" feature in PowerPoint to add comments explaining each slide. Each speaker note should be at least one paragraph containing 5-10 sentences.

· Make certain to include 12–14 slides, not counting the title slide and references slide.

You must use two resources (one must come from the CSU Online Library, and blogs are not acceptable). Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used.

**## UnitIIStudyGuide.pdf**

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit II

Upon completion of this unit, students should be able to:

4. Discuss union avoidance strategies.
4.1 Define the goals and strategies of unions.
4.2 Discuss reasons and methods businesses use to avoid unionization.

8. Interpret the laws that affect unions.

8.1 Explain the various labor relations acts and laws that influence labor management and unions.

Required Unit Resources

Chapter 3: Legal Influences, pp. 91–121

Chapter 4: Unions and Management: Key Participants in the Labor Relations Process, pp. 135–187

Unit Lesson

Welcome to Unit II. As you will recall from Unit I, we are comparing a collective bargaining agreement to the
divorce process. As such, we have decided to change our current relationship because our contract has run
out (marriage has ended). At the same time, though, we want to remain on good terms. We have started the
pre-bargaining stage of the collective bargaining process by selecting our teams (i.e., those who will represent
our best interests). We have begun to collect data to present our case in an informed and professional
manner.

Just as partners in the marriage give notice of their intent to divorce by serving each other a written
notification, management and the union must also notify each other that they intend to negotiate a new
contract. Each must notify the other—as well as the Federal Mediation and Conciliation Service—in a
minimum of 60 days prior to the end of the contract that they intend to negotiate a new agreement/contract.
This notification is typically in writing as a matter of record.

When we are collecting data to present our best option(s), it is best to review all earlier documents such as
the former contract or, in the case of a divorce, any signed prenuptials. We want to review what is no longer
working for us and why we want to make changes. Like most business decisions, if we want to strengthen our
case, we also want to offer solutions. We want to gather the information we need that will support our

proposed solutions. In the divorce
analogy, let’s say that I am the ex-
wife. I have been raising our children
and will continue to do so. I will want
financial support from my ex-
husband, but I must make a case for
the amount I need and document it
with data. I would love to get $10,000
a month, but is that realistic? To get
what I want, I need to show it is
realistic and in line with similar cases.
Back to collective bargaining, if the
union wants a wage increase of

UNIT II STUDY GUIDE
The Law and Key Players in
the Negotiating Process

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE
Title

$2.00 an hour, the union must show that the company can realistically afford the $2.00 per hour increase and
that such an increase is in line with industry standards.

In the Harper Container Company (HCC) case in Appendix A, there are tools to make calculations and
predictions that will support the position of each party. For example, the decisions worksheet contains
information such as base wages for all employees; facilities upgrade options and associated costs; and the
accounting effects of altering annual leave of inventories, receivables, payables, and short- and long-term
debt into future years. It gives the management team a clear picture of the company’s current financial
position and the ability to see the effects on the bottom line when making adjustments for proposed changes
to the various areas. This allows the team to test options and see the effects financially.

For example, if the union wants a $2.00 an hour raise, the management team could plug in the increase and
see the financial impact over the next 3 to 5 years. The management team could also determine what the
production numbers would have to look like in order to make a profit. This tool is necessary if management
wants to make the best possible decision for the company. It takes considerable time to set up the worksheet
and coordinate with the financial and human resource experts—particularly in a large organization that
employs hundreds of union employees or more than one union—but it is well worth the time and effort. The
management team would start this worksheet by inserting figures and any associated conditions from the
current contract. Associated conditions might include subcontracts, seasonal variations, and legal
requirements. In the HCC case, for example, the law requires that the company make some federally
mandated environmental equipment upgrades.

In the case of a divorce, let’s go back
to the example of me as the ex-wife. I
have an attorney who also has similar
tools to determine the cost of living for
future years as I continue to raise our
children. After some thoughtful
calculations and review of income
statements, perhaps $10,000 a month
is not realistic, and perhaps $7,000 a
month is a better figure.

Now that we have gathered the data, it
is time to determine our main areas of
concern, and from there, we can
decide on our objectives and set
priorities. We want to determine what it
is we must get, what we would like to
get, and what would be nice to get
from the other party. Our must gets are
those things we will want to fight the

hardest for, so it is very important that those areas have current and accurate data to support our position.
The like to gets are those things that we would like to obtain as a result of the bargaining process, but they
are not necessary for us to move forward. The nice to gets are those things that we are interested in but
would concede if it moved us closer to getting our must gets.

Going back to the divorce example, assuming that I will have custody of our children, I must get financial
support and a guarantee that the financial support will be available until our children reach 21 years of age
(unless they are in college). This is a reasonable concern because I have been raising our three children for
10 years and have been out of the workforce. Even if I could return to work, it will take some time to become
trained. Regardless, it is doubtful I will reach the financial level needed to support our three children on my
own in the lifestyle to which they were accustomed. My like to get is a house with no mortgage, and my nice
to get would be continued gym membership and use of our time-share vacation membership.

In the HCC case, each side must determine must gets, like to gets, and nice to gets. It is reasonable that
management must get the facility upgrades in order to be federally compliant. Failure to do so could result in

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE
Title

costly legal fees and government fines, which will affect the company’s bottom line significantly as well as its
reputation with customer stakeholders.

It is also reasonable to determine that the union members must get a wage increase. As the case indicates,
the HCC managers have received an annual raise of 5% plus annual bonuses for the past 3 years, whereas
union members have received less and are earning less than their industry counterparts. Also, the union
members are losing money by being forced to take a vacation during maintenance downtime that includes
two holidays.

Must gets are issues that either party are willing to fight for. In the case study, the United Chemical and
Plastic Workers (UCPW) group is willing to go out on strike if they do not negotiate a wage increase in this
contract. Management has the lockout option at their disposal.

Both teams must support their must gets to the members and the stakeholders to the point that they are
willing to stop negotiations and go on strike or initiate a lockout if necessary. Production potentially stops or
becomes expensive to maintain in the case of replacement workers. Both teams need to have the data ready
to support their positions on must gets. The more prepared each team is, the easier it will be to negotiate a
settlement that both parties can live with. The old saying, “It is not fair!” is not good enough in collective
bargaining. Supporting data is critical to success.

Reference

Rawpixelimages. (n.d.). Negotiation cooperation discussion collaboration contract concept (ID 67826554)

[Illustration]. Dreamstime. https://www.dreamstime.com/stock-photo-negotiation-cooperation-
discussion-collaboration-contract-concep-concept-image67826554

Suggested Unit Resources

In order to access the following resource, click the link below.

The resource below provides a deeper look at contract negotiations. You will learn what it is and how labor
unions and employers use it to reach agreement about wages, benefits, and more.

Gregg Learning. (2017, October 13). Union contract negotiation [Video]. YouTube.

https://www.youtube.com/watch?v=d4G6GO7CzvQ

A transcript and closed captioning are available once you access the video.

**## UnitIIIStudyGuide.pdf**

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit III

Upon completion of this unit, students should be able to:

3. Critique the concept of collective bargaining.
3.1 Identify mandatory benefits included in a bargaining package.
3.2 Discuss possible market factors that impact the negotiation process.

Required Unit Resources

Chapter 5: Why and How Unions Are Organized, pp. 198–242

Unit Lesson

As you may have noticed, our objective for this unit’s lesson is to critique the concept of collective bargaining.
If we continue our line of thought, comparing collective bargaining to the divorce process, you will have a
better understanding of the process and, therefore, will be better prepared to make such a critique. We have
all heard horror stories related to negotiations (e.g., violence, vandalism, fraud) and bitter divorce battles.
Aggressive and bad behavior does happen in negotiations, but there are also consequences for such
behavior. We will discuss the process and possible consequences in this unit.

Let’s review. We have decided it is time to negotiate our relationship because it has changed in the past 3
years and is no longer working for us. Consequently, things are a little tense between us, so it is time to take
the next step. We want to maintain a good relationship, but, at the same time, we each have certain issues
that must be resolved to our satisfaction if we want to maintain any sort of relationship in the future. We have
researched our current position and have given each other notice.

As I mentioned, we want
to maintain a good
relationship, and, as you
know, that requires good
communication between
both parties as we work
through the negotiation
process. As part of this
good communication, it
is wise to establish rules
of engagement early on
so that both parties
clearly understand what
acceptable behavior is
and what unacceptable
behavior is. For
example, we both want
to be clear that honest
information is essential
to successful
negotiations. Lying or
falsifying documents is
not acceptable behavior.
Hiding assets is also not

UNIT III STUDY GUIDE
Organization of Unions

Communication word cloud
(Ibreakstock, n.d.)

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE
Title

acceptable behavior. In some divorce processes, a spouse will hide assets in order to reduce the final asset
valuation. If I hide the fact that I own an apartment in New York, I reduce my total assets, thereby reducing
the amount of alimony and child support I will have to pay. I create a picture misrepresenting my true value
and potential to pay. Some organizations also try to underplay their ability to pay in order to justify not
increasing wages or not providing increased benefits. However, if an organization states that they cannot pay
an increase in wages, they must turn over their financial reports to the union for review. We want to be clear
that threats or intimidation of any kind is not acceptable. In a divorce case, you will often see one spouse
insisting that the other will never see the children again if they do not get what they want. This is an
unacceptable practice in our negotiation process.

While we are establishing our rules, we also want to establish subjects of bargaining. For example, in the
collective bargaining process, there are mandatory, illegal, and permissive subjects of bargaining. Some
subjects, such as wages, hours, and conditions of work, are mandatory subjects for bargaining. Illegal
subjects would be things that are considered illegal, such as discrimination or pay below minimum wage.
Permissive subjects are everything else that is not mandatory or illegal. In the divorce process, our mandatory
subjects of bargaining would be subjects such as child custody and visitation, child support, and alimony. Of
course, if we have a prenuptial agreement, that would also be a mandatory subject to discuss. We could
establish illegal subjects for the divorce process as former sexual encounters or arrest records, and
permissive subjects are everything else. For example, a permissive subject might be the distribution of the
family heirlooms or family pets.

Other areas we will want to establish are acceptable timelines and consequences for not meeting those
timelines as well as consequences for not reaching an agreement. Collectively, we need to decide on a
reasonable estimation for resolving our negotiation. Is it reasonable to reach an agreement in 4 weeks, 6
weeks, or even 8 weeks? Is it unreasonable to drag the process out for 6 to 8 months? What are our options if
one party violates our rules? What is the next step if we cannot reach an agreement? Are we willing to
consider mediation and arbitration?

The collective bargaining process and the National Labor Relations Board (NLRB) guidelines easily answer
some of these questions. For example, all parties are expected to bargain in good faith, which means
honestly—no bullying, no falsification of documents, and no hiding of assets when it comes time to discuss
ability to pay. It also means working toward a successful resolution and not stalling or dragging out the
process. Depending upon the former contact and the estimates changes, contract negotiations might take 2
weeks, or they may take 5 weeks. Depending upon how well we communicate and work together,
negotiations may take longer, but at some point, negotiations have to end in an agreement. Just as in a
divorce case, negotiation is costly for both parties. Swift resolution is in the best interest of both parties.
Management is losing time from other duties by attending the negotiation meetings, and union
representatives are taken from their other duties to participate in the negotiation process. Lengthy
negotiations can lead to increased tension and potential conflict.

Additionally, as a part of the collective bargaining process, if one party violates our agreed-upon rules, we
have the option to file an unfair labor practice complaint against that party. If an unfair labor practice is filed,
then the NLRB will review our negotiations; then, the NLRB has the option to modify and finalize the collective
bargaining agreement. Both parties will have to live with the modifications for the duration of the contract (3 to
5 years). Both management and the union can commit an unfair labor practice, so both parties are equally
able to violate the rules. Just as in a divorce process, both parties have the opportunity to play dirty. Making
accusations and tarnishing reputations are common among disputing divorce parties and would be
considered an unfair labor practice in the collective bargaining process.

As I mentioned previously, we need to agree that if we cannot come to a collective agreement and/or if we
reach an impasse, we will try mediation prior to going to arbitration and prior to staying at a state of impasse.
An impasse is when two parties cannot reach a mutually satisfying agreement. As you may recall from your
readings, mediation is a third party working toward resolution, but the resolution is not binding. A mediator
tries to find common ground between the two parties, and from that common ground, the mediator can work
toward an agreement that both parties can live with. Arbitration, on the other hand, is binding. An arbitrator
works with both parties and ultimately makes the final decision as to what the agreement will consist of. In our
divorce analysis, the arbitrator may be the judge who decides what the final divorce decree entails. If
collective bargaining goes to mediation or arbitration, both union and management agree who will preside
over the meetings, and both share in the costs. Today, many people go through mediation while working on

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE
Title

the final divorce settlement because it is significantly cheaper than working though divorce attorneys, and, in
some states, mediation is required prior to the final divorce decree—especially if children are involved. Unions
and management can save money as well by going through mediation if it comes to that point.

The collective bargaining process takes time. Each party wants to present their best case and negotiate the
best solution; therefore, effective communication is essential between the two parties and all those involved in
the process. There will be offers and counteroffers and more offers and more counteroffers until terms are
reached that both parties can live with for the next 3 to 5 years. Each party needs to be patient and ready to
counter the offers with counteroffers. The more prepared each party is, the less time the negotiations will
take. Less time means less money for both parties. The process will run more smoothly when both parties
establish rules of engagement, conditions of the process, and next steps when an agreement cannot be
reached.

In the next unit, we will look at some tactics used during negotiations (both effective and not-so-effective
tactics) and different ways to build trust.

Reference

Ibreakstock. (n.d.). Communication plan word cloud concept. (ID 178709706) [Illustration]. Dreamstime.

https://www.dreamstime.com/communication-plan-word-cloud-concept-white-background-
communication-plan-word-cloud-concept-image178709706