Question

You are an industrial relation expert for Standard Capital Bank since 2016.
You have observed that your management union negotiations are always characterized by prices resulting from misunderstanding and mistrust between the union and management.
Management is currently preparing to enter into negotiations with the union for a wage re-opener for the year 2019. The union is asking an astronomical increase of 80% in wages. The CEO will like the current negotiation to be done without prices. What would be your advice for a situation devoid of prices?

Answer 1

As an expert, first of all , i will take all the necessary details about previous negotiations. I will try to check all promises made by the union representatives and its current status.  

I will draft a best alternatives to a negotiated agreement ( BATNA) . The following will be some points:

1) The current demand from Union will be rejected with reasoning that such an increase will cause closure of business and no further employment opportunities to many along with union members.

2) Our financial department will prepare a genuine guide about the fact that why such an unexpected amount of increase will not be possible based on productivity and overall performance of employees.

3) We shall assure union members that a reasonable amount of increase will be given in near future if our current operating expenses and labor productivity will be increased significantly.

4) I will utilize the current labor laws provisions to make a strong arguments why current demand is unfair and creating a pressure on management and organizational environment.

In this way, union will be asked to reframe its negotiation terms until management's next decisions for the welfare of employees.