Topic : Alternative Dispute Resolution
Response to Topic A:
General Motors (Negotiation)
ADR is generally classified into at least four types: negotiation, mediation, collaborative law, and arbitration. In negotiation, participation is voluntary and there is no third party who facilitates the resolution process or imposes a resolution (Alternative Dispute Resolution, para.7). In 2007 General Motors (GM), pressed union leaders in a meeting in Detroit for a deal on financing what was the centerpiece of the 2007 U.A.W. contract — a perpetual, G.M.-financed trust to cover health care costs of hundreds of thousands of retired hourly workers and their surviving spouses (Freeman & Ahrens, 2007). The negotiations were between General Motors and the United Autoworkers Union (UAW). Like Coastal County Clerk employees GM’s employees were seeking employee benefits. Both GM and UAW were hopeful of reaching an agreement. The president of the union was trying to protect a contract that would essentially be health care for life for anyone who worked on the assembly line and his or her surviving spouses. This eventually led to a two-day nationwide strike (Freeman & Ahrens, 2007). An ongoing strike can be very costly. The UAW president felt like the nation-wide strike is what brought the negotiation to a head quickly. After reaching a deal the union received job-security assurances. Economist said that the deal struck by GM and UAW could be a template for other large United States industries (Freeman & Ahrens, 2007). Like General Motors employees, Coastal County Clerk of Court employee Dennis Munger was seeking employee benefits. Dennis and his employer could use negotiation to resolve their employment discrimination issues instead of litigation. National Football League (NFL) (Negotiation)
“Negotiation” refers to two very different processes: power-based negotiation (often called bargaining) and interest-based negotiation. The negotiation that goes on between organized labor and management is typically, and regrettably, bargaining (Dana, 2001, p. 40). The National Football League entered an uncapped year for the final year of the current collective bargaining agreement (CBA) under the terms entered in 2006, which provide for the NFL to enter an uncapped year if an extension is was not reached prior to March 5. The salary cap promotes financial stability, cost certainty and competitive balance among franchises. The current NFL’s labor agreement was first negotiated in 1993. In 2006 it was extended through the 2010 season. The negotiations are over a salary cap. The absence of a salary cap could lead to an erosion of individual club financial stability if owners make discretionary decisions to spend beyond the means of their club. This leaves a potential for a work stoppage in the 2011 season (Fitch Closely Monitoring National Football League Labor Negotiations, 2011). Work stoppages in professional sports have been always highlighted as a credit risk as they have the potential to alienate the fan base as witnessed by short-term attendance declines immediately after work stoppages in other United States professional sports leagues (Fitch Closely Monitoring National Football League Labor Negotiations, 2011). The collective bargaining process is currently ongoing. The NFL like GM tried collective bargaining negotiation. Collective bargaining is the method of determining terms and conditions of employment by negotiation between representatives of an employer and employees, usually a labor union (Collective Bargaining, 2004). The results of the bargaining are set forth in an agreement or contract. Unfortunately, the NFL’s negotiation is ongoing. It could last for a long time. Like the NFL, Coastal County Clerk of Court could end up in an ongoing negotiation...