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Interest based bargaining: An alternative to traditional collective bargaining

Friday, February 16, 2007

by Linda Petrusi

More corporations are utilizing interest based bargaining because the outcome of this type of mediation, can oftentimes bring about better results.  In the right situation, it is an alternative to traditional positioning collective bargaining with a process of joint problem solving.

Linda Petrusi holds a BA in
International Studies, a Minor in
Black Studies, a certificate in
mediation and will shortly
complete her Masters in Conflict
Resolution. Feedback to:
linda@caribbeannetnews.com
Collective bargaining can be a difficult and exhausting process for all parties involved.  Most of the time, the issues involve wage increases, health benefits and worker safety.  If not resolved in a timely manner, workers typically will strike as a result of their belief that they are not being heard by managers and sometimes union leaders.   Workers believe that they are not respected by their company while the company believes the workers are ungrateful.  Some companies will use “cosmetic changes” when structural changes are called for.  Interest Based Bargaining (IBB) offers more flexibility as opposed to traditional bargaining where predetermined positions on issues is already established.

IBB begins with mediators creating an environment that allows for all parties to come together in good faith to understand what the issues are as well as the different perspectives from the parties involved.  Sometimes, a pre-mediation workshop is helpful.  This sets the tone and guidelines for engaging workers, managers and union leaders.  A typical example would be a room where a worker sits next to a manager, manager next to a union leader, union leader to a worker and so forth with all parties seeking to understand the issues.  This is not the time to begin any negotiations, but rather an opportunity for all to engage with each other on what their underlying needs and concerns are.  The mediator acts as a facilitator during this process; making sure that everyone has an opportunity to be heard without criticism from other members of the group.

It is not unusual for parties to discover that their concerns are mutual and that all parties are trying to achieve the same goal but just taking different approaches. Having identified interests and needs, the IBB process allows for creative solutions that might normally not be found with traditional bargaining.  Options are evaluated according to objective criteria.  Solutions are adopted by consensus.

IBB also allows for mediators to become joint problem solving partners in the process as opposed to mediator neutrality.  IBB assumes that mutual interests are possible to achieve and that solutions tend to be more creative and durable.  In addition, there is a high level of satisfaction among all who participate because all parties and their constituent’s concerns are validated which brings a sense of mutual respect for each others position.  IBB also assumes that decisions based upon objective criteria eliminate the need to rely only on power.

Interest based bargaining is not - nor should it be- a universal approach to other forms of negotiations.  If the parties do not adopt the principles of IBB from the start, then the process will fail and switch back to traditional collective bargaining where the probability of increased suspicion and distrust will occur.

Some of the necessary components to successful IBB include:  evidence of labor – management cooperation during the past contract term, willingness of the parties to share relevant bargaining information, willingness to forgo power as the sole method of “winning” and understanding and accepting the IBB process by all parties and their constituents.  If some or all of these conditions apply, then IBB might prove helpful.  However, it is important for mediators to prepare to transition to traditional bargaining if negotiations utilizing Interest Based Bargaining begins to break down.

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