27 March 2010
The Knowledge Workers’ Strike Case Analysis
Any negotiation can be tricky, but especially ones in which differently positioned, opposing sides are trying to decide what is fair. These situations can grow from a single spark into a raging firestorm before either side knows what really happened. In the situation of Detonation and the Software Engineers Guild (SEG), both sides sit anxiously to determine what issue the other side is willing to give on in order to strike a labor deal. The ball is currently in Detonation’s court, and they must decide how they want to progress with the contract negotiations. Detonation has the option to attempt to work collaboratively with SEG and find a mutual agreement, or they can play hardball and stiff arm the union. This analysis will investigate the situation and issues of both parties, along with the best course of action for Detonation to take in the next phase of the contract negotiation. Situation
Detonation is a gaming company which produces console and PC games as well as internet games. Just under half of Detonation’s 10,000 employee workforce are members of the SEG. The SEG’s contract with Detonation expired at the first of the year; it is currently July and an agreement has yet to be reached. The members of the SEG have been working without a contract and therefore are being compensated at the default rate of the last contract’s terms.
The SEG has rejected any previous agreements because Detonation wants to transition from revenue sharing, and the SEG wants to expand its jurisdiction into the internet gaming division. The members of the SEG are in a position where they seek to maximize their compensation in order to generate as much money as they can during their productive lifespan. Under the previous contract, the SEG members were able to supplement their base compensation with revenue sharing. With the current state of the economy, revenue sharing is a much...