Negotiation Strategy Article Analysis
Negotiation Strategy Article Analysis
Leisha Clark
MGT/445
October 13, 2010
Dr. Michael Taku
Negotiation Strategy Article Analysis
Using the Internet the author of this paper will find two articles that describe a negotiation situation that employs different negotiation strategies. The negotiation processes used in the selected articles will be described. The two strategies will be compared and contrasted and how they may apply in the work setting.
Negotiation Articles The first article is from is from eTurboNews (2010), which is a global travel industry news periodical. The title of the article is “American Airlines union pushes for strike.” The negotiation is between American Airlines and the Transport Workers Union that represents the mechanics and other ground workers at American Airlines. The union represents 28,000 workers at American and its regional arm, American Eagle. The strategy that the union is taking is to ask the federal mediators to declare a deadlock in their negotiations over a new contract. If the mediators grant the union’s desire, and if either side rejects binding arbitration, it could start a 30-day cooling off period after which the workers could strike. American hopes the mediators will instead order both sides into more bargaining sessions. Although the two sides have made significant progress in talks and agree on 87% of contract items the main item not settled on is compensation. American has offered workers lump-sum payments in the first six months after a deal and 2.5% raises 18 months later, plus increases in vacation, holiday, and sick days. The union is asking that maintenance technicians receive 13.5% over three years, retroactive to 2008. After four years of negotiations, most of the union workers are not convinced that they are being offered an adequate return for the hundreds of millions of dollars of sacrifices they agreed to in 2003 to keep American in business and out of
Leisha Clark
MGT/445
October 13, 2010
Dr. Michael Taku
Negotiation Strategy Article Analysis
Using the Internet the author of this paper will find two articles that describe a negotiation situation that employs different negotiation strategies. The negotiation processes used in the selected articles will be described. The two strategies will be compared and contrasted and how they may apply in the work setting.
Negotiation Articles The first article is from is from eTurboNews (2010), which is a global travel industry news periodical. The title of the article is “American Airlines union pushes for strike.” The negotiation is between American Airlines and the Transport Workers Union that represents the mechanics and other ground workers at American Airlines. The union represents 28,000 workers at American and its regional arm, American Eagle. The strategy that the union is taking is to ask the federal mediators to declare a deadlock in their negotiations over a new contract. If the mediators grant the union’s desire, and if either side rejects binding arbitration, it could start a 30-day cooling off period after which the workers could strike. American hopes the mediators will instead order both sides into more bargaining sessions. Although the two sides have made significant progress in talks and agree on 87% of contract items the main item not settled on is compensation. American has offered workers lump-sum payments in the first six months after a deal and 2.5% raises 18 months later, plus increases in vacation, holiday, and sick days. The union is asking that maintenance technicians receive 13.5% over three years, retroactive to 2008. After four years of negotiations, most of the union workers are not convinced that they are being offered an adequate return for the hundreds of millions of dollars of sacrifices they agreed to in 2003 to keep American in business and out of
References: Alexander, C., Krause-Jackson, F. (2008, November 19, 2008) Saudi Oil Tanker Owners in Negotiations With Pirates (Update1) Bloomberg. Retrieved from http://www.eagletribune.com/punewsnh/local_story_331020106.html eTurboNews (2010) Mechanics snub American Airlines contract proposal. Retrieved from http://www.eturbonews.com/18098/mechanics-snubs- american-airline-contract- proposal eTurboNews (2010) American Airlines union pushes for strike. Retrieved from http://www.eturbonews.com/14842/america-airlines-union-pushes-strike Spangler, B. (2003). What is Distributive Bargaining. Beyond Intractability. Retrieved from http://www.beyondintractability.org/essay/distributive_bargaining/ Spangler, B. (2003). What is Integrative or Interest Based Bargaining. Beyond Intractability. Retrieved from http://www.beyondintractability.org/essay/interest-based_bargaining/