Negotiation Strategy Planning
PLANNING (Negotiation Strategy statement)
Negotiation: ABC Vs Local 190
Role: Member of Management Team
ISSUE
SUBISSUE
POINTS
(distributing 100 points across allissues)
YOUR INTEREST
OTHERS’ INTEREST
Worker autonomy and target production levels
1.Below avg production level
2.Easy daily production target
3.Loose management control
4.Production target of new facility cannot be fixed in advance
26
1. Increase plant utilization.
2. Increase sales and productivity
3. Keep employees motivated and efficient
4. Achieve more than break even on CAPEx for new facility
1.Motivates to work above targets.
2. Flexible working environment
3. Want to continue their autonomy
Group Incentives
1.Incentives too generous
2. Prevailing only at Deloitte but not at other ABC plants
26
1.Avoid loafing
2.Eliminate/drastically reduce incentives
Enjoy idle time
Escalator clause
1.Unique to ABC
2. CPI adjusted wages
3. High cost to company
16
1.Eliminate it from agreement to reduce cost.
2. Welfare of employees through deferred payment
1. Provides compensation for increasing inflation.
2. Welfare of people of Deloitte
Location of new plant
1.Outside because of lower capex
2. Corporate HQ still in Deloitte
3. ABC plant is bread and butter of people of Deloitte
20
1.Low capital expenditure
2.Threat to labor to take consent on other terms
3. Reputation at stake if plant relocated
4. Avoid public relation problem
1.Employment
2. Prosperity of town
Wages and benefits
1. Fixed annual wage.
2. Infrequent layoff , 52 week notice period (too long)
3. Much better than industry avg (2x salary)
4. Bonus generously paid
5. layoff notice to 325 employees
12
1.It’s a seasonal industry. Fix wage and low layoff increase cost of operation.
2. Bring cost down to at least industry avg
3. Reduce hourly wage
1.Enjoy greater salary and wages
2. Job security
What is your general position in the negotiation?
As management, we can
Negotiation: ABC Vs Local 190
Role: Member of Management Team
ISSUE
SUBISSUE
POINTS
(distributing 100 points across allissues)
YOUR INTEREST
OTHERS’ INTEREST
Worker autonomy and target production levels
1.Below avg production level
2.Easy daily production target
3.Loose management control
4.Production target of new facility cannot be fixed in advance
26
1. Increase plant utilization.
2. Increase sales and productivity
3. Keep employees motivated and efficient
4. Achieve more than break even on CAPEx for new facility
1.Motivates to work above targets.
2. Flexible working environment
3. Want to continue their autonomy
Group Incentives
1.Incentives too generous
2. Prevailing only at Deloitte but not at other ABC plants
26
1.Avoid loafing
2.Eliminate/drastically reduce incentives
Enjoy idle time
Escalator clause
1.Unique to ABC
2. CPI adjusted wages
3. High cost to company
16
1.Eliminate it from agreement to reduce cost.
2. Welfare of employees through deferred payment
1. Provides compensation for increasing inflation.
2. Welfare of people of Deloitte
Location of new plant
1.Outside because of lower capex
2. Corporate HQ still in Deloitte
3. ABC plant is bread and butter of people of Deloitte
20
1.Low capital expenditure
2.Threat to labor to take consent on other terms
3. Reputation at stake if plant relocated
4. Avoid public relation problem
1.Employment
2. Prosperity of town
Wages and benefits
1. Fixed annual wage.
2. Infrequent layoff , 52 week notice period (too long)
3. Much better than industry avg (2x salary)
4. Bonus generously paid
5. layoff notice to 325 employees
12
1.It’s a seasonal industry. Fix wage and low layoff increase cost of operation.
2. Bring cost down to at least industry avg
3. Reduce hourly wage
1.Enjoy greater salary and wages
2. Job security
What is your general position in the negotiation?
As management, we can