Negotiation between USBU and the companys management Case Study

Negotiation between USBU and the companys forethought - good example Study ExampleAs an example of a successful negotiated compromise was the agreement reached on superannuation. The way squad had exercise a close of 3%. The Union had wanted 15%. While this gap seems highly wide and would appear to be irreconcilable, part of the reason was due to managements overly battleful goal. Management wished to leave the superannuation at the existing level of 3%. This was probably unrealistically depressive disorder when confronted by the Unions demand of a level 5 times that amount. However, management had had the foretaste to set a more realistic word sense level of 9%. This was the agreement that was eventually reached. religious set uping 4% and accepting no more than 8% may pay back better served management. The initial offer of 4% would aim been viewed as an increase instead of the maintenance of the old rate, and the Union might have been more willing to negotiate toward s that level rather than insisting on negotiating towards their 15%. The issue of takings was another source of contention as the Union asked for an unreasonable 15% plus increases linked to the consumer hurt index (CPI). This was later reduced, but it became generally accepted that it was a key Union demand. This excessive demand was not helpful when management was only offering 1%. The final agreement was for 1.5%, which was considerably high than managements offer. However, management had expressed no limit on bribe or bountyes. ... However, management had expressed no limit on wages or bonuses. This was further exemplified by the Unions demand of a 12% bonus as contrasted to managements offer of 5%. Management was coerced to reach an agreement of this point and had set no acceptance level. The negotiated bonus was 12%, exactly what the Union had demanded. This level may have been reduced if management had set a ceiling and negotiated some of the other soft points in the con tract that did not impact the buns line. The problem was that the priorities were all set with similar importance, which left this priority ill defined.In other areas management totally acceded to the Unions demands. The issue of hiring and staffing was agreed to on the Unions original terms. The goal of management to retain discretion in the hiring of new employees was given up. Management also gave up their ground on the issue of information. Managements original goal of utilizing an outside third party consultant to reach an agreement on how best to implement the training requirements and program was discarded and the Union was able to get nearly all of its original demands. These were issues that the management team up could have been more adamant about holding their ground and using the issue to get a more favourable agreement on the more important issues of wages and bonuses.In retrospect, the management team could have been better prepared by setting acceptance levels that could have been agreed upon on wages and bonuses. Failing to have a goal resulted in giving into the Unions demands. In addition, the management team could have made a more realistic offer in the areas of wages, superannuation, hiring, and training. By only offering the be policies the Union perceived the process as