Collective Bargaining
The process of collective bargaining is
one that is includes many strategies. The intent
of collective bargaining is to reach a unified
agreement that satisfies both parties. A perfect
example of the use of the principles defined in
the article “Behavioral Research in Negotiations:
An Application to Collective Bargaining” by John
Magenau is the negotiations that are occurring
between the UAW and Chrysler. There are many
issues that have halted the negotiations
between the UAW and Chrysler. But one of the
more prevalent issues surrounds wage
increases. Chrysler currently has employees that
are working at a lower wage rate called Tier 2
employees. The Tier 2 employees are presently
working for $14 per hour which is about half of
what the Tier 1 employees are paid. And as a
part of this contract negotiation, the UAW wants
to negotiate for wage increases for these
employees. Chrysler has taken the stance of no
fixed costs which includes wage increase.
In the article, Magenau makes reference
to demands, aspirations and limits to describe a
negotiators position on an issue. The demand of
the UAW is that the Chrysler Tier 2 employees
receive a set dollar amount raise at the signing
and ratification of this contract and continue to
receive a percentage increase over the life of the
contract until the Tier 2 employees cap out at
around $20 per hour. However, Chrysler is
looking to offer zero increases in wages for the
Tier 2 employees. Chrysler’s demand is to
instead offer buyouts to higher seniority
employees to make room to hire even more Tier
2 employees.
Although these demands may seem
etched in stone for both sides, both parties
certainly have some aspirations that can be
represent an acceptable outcome. Chrysler may
want to hold firm that there will be no wage
increases for the Tier 2 employees, but it is a
known fact that the 2-tier wage system
one that is includes many strategies. The intent
of collective bargaining is to reach a unified
agreement that satisfies both parties. A perfect
example of the use of the principles defined in
the article “Behavioral Research in Negotiations:
An Application to Collective Bargaining” by John
Magenau is the negotiations that are occurring
between the UAW and Chrysler. There are many
issues that have halted the negotiations
between the UAW and Chrysler. But one of the
more prevalent issues surrounds wage
increases. Chrysler currently has employees that
are working at a lower wage rate called Tier 2
employees. The Tier 2 employees are presently
working for $14 per hour which is about half of
what the Tier 1 employees are paid. And as a
part of this contract negotiation, the UAW wants
to negotiate for wage increases for these
employees. Chrysler has taken the stance of no
fixed costs which includes wage increase.
In the article, Magenau makes reference
to demands, aspirations and limits to describe a
negotiators position on an issue. The demand of
the UAW is that the Chrysler Tier 2 employees
receive a set dollar amount raise at the signing
and ratification of this contract and continue to
receive a percentage increase over the life of the
contract until the Tier 2 employees cap out at
around $20 per hour. However, Chrysler is
looking to offer zero increases in wages for the
Tier 2 employees. Chrysler’s demand is to
instead offer buyouts to higher seniority
employees to make room to hire even more Tier
2 employees.
Although these demands may seem
etched in stone for both sides, both parties
certainly have some aspirations that can be
represent an acceptable outcome. Chrysler may
want to hold firm that there will be no wage
increases for the Tier 2 employees, but it is a
known fact that the 2-tier wage system