Before any negotiations start, every party should be able to prepare a list of its objectives ranked according to their relevance. Those that can be compromised should also be indicated to ensure main agenda is not threatened. Some negotiations could result to a win-win or win-lose outcome. It is therefore very important that each party defends their point of view strongly not to get easily compromised. The management should show its interests in getting workers back at a minimum cost while employees should ensure their grievances are settled before resuming work.
1. Management Key Interests
In such a situation, the management has a responsibility to ensure that work continues. To have operations as normal, employees should be readily available such that the management is required to make a mutually beneficial deal. In tough economic times, it is hard to ensure an organizations profit levels, however, revenue that caters for all expenses must be generated. With this consideration, the management representative should remember that profit maximization is a key interest for the organization.
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Maintaining motivates workforce is yet another interest that management team should keep in mind during negotiations. Work cannot be accomplished if employees have no interest in their operations. Upholding a company’s reputation is yet another responsibility of management. Having unsatisfied employees could damage the organization's goodwill hence; the management team should ensure such situations are dealt with delicately (Snell et al., 2015). The management should also ensure that during negotiations, the organization offers the lowest settlement as possible due to the economic status. By so doing, production will be back as normal at minimum expenses.
2. Alternatives
The management team can make an argument that for each of them to have job security through such a volatile economy, workers must be willing to accept wages reduction. The export business is highly affected by changes in economic situations hence, ensuring workers have stable opportunities, as usual, is hard.
Increasing workers wages or working hours will lead to layoffs. Employees should understand that for some to have the claimed rise in wages, others employments have to be terminated. It will be important to show the employees that in such unstable economic times, having a job is quite rare especially in that industry. The management can, however, make a small offer to increase wages of every worker in a small scale to resolve the current situation. Small increments should not, however, lead to termination of employment although they are neither a guarantee of job security.
3. Advantages of Alternatives
Wages reduction will serve the company well since workers will be available to ensure continuous production. Nothing is as important as having operations run normally. Without production of items, every worker's opportunity is at risk. Sales revenue help keep people employed hence workers have to be present at any given wage. Most workers will, however, prefer a reduction of wages with job security rather than momentarily increase in payment and the risk of joblessness.
The slight increment in employee’s wages is important to both the organization and its workers. It helps get the workforce back to operations and ensures the company’s profitability. Wages increase even with the slightest percentage leads to motivation (Rahim, 2017). Workers who are motivated to work always record the highest levels of performance compared to those with low morale. By increasing the wages of workers, management help ensures employees feel catered for by the organization hence ending any boycotts they had organized.
4. Disadvantages of Alternatives
Some workforce could defect to competitors once they hear of reduction in wages. Tough economic times do not only affect the industry but also individuals living conditions. Workers could feel that their lifestyles are threatened due to reduced wages even though they are guaranteed with job security. There are those workers who prefer working under risky opportunities as long as their wages are as expected. Defecting to competitors by workers could lead to poor organizations reputation which could cause a reduction in sales and profits.
A promise to increase employee’s wages could lead a company into debts or even bankruptcy in case productivity does not improve. Such a phenomenon could also claim the employment of some laborers in the long run due to low income from the company. The organization should, therefore, calculate its risks and rewards before making any such bargaining alternatives.
5. Flexible and Non-Flexible Issues
As management representative, I will be flexible in discussing any alternatives in the working hours. Increasing working hours of employees is very possible since at long last it favors the organization due to long hours of productivity. However, this alternative issue does not favor all employees since to do so others will risk termination of their employment. Therefore, it is up to the employees to decide which alternative they will uphold since either way the organization's interests will be represented.
The organization's decision to either reduce wages with a corresponding job security is dependent on employee’s decision. Either alternative can be made depending on what the union decides best for workers. Some could go for deduction in wages and have job security while others would prefer a risky job with better pay.
The increment in wages is not flexible as only what I will offer as raise should stand. No debates or negotiations should be made by employees on the amount to be increased since in my opinion, having the job is a big favor considering economic conditions. Therefore, workers should be satisfied and feel favored by the organizations considered to make a small increase in wages.
6. Making Union’s best alternative Less Attractive
The union’s best alternative is of having stable opportunities for workers. According to the organizations, this cannot be guaranteed unless there are sacrifices in other workers privileges. Considering that most employees in the organization are manual laborers, for them to hold a job during harsh economic times should be considered a favor. Therefore, if I make such an argument, the workers union will be forced to reconsider arguing for job stability. I could also argue that job security will risk a reduction in wages. Not many employees will settle for such an alternative given the economic demand from their respective families.
7. Union’s Key Interest
The union’s key interest is to have better wages for workers. Due to the harsh economic times, living conditions of individuals are also affected. Hence, more financial support is required to cater to families needs. For workers to involve their unions in requesting a salary increase, economic conditions have to be quite unsatisfactory with their current wage rate. However, the union also wants to ensure that through bargaining for the best wage increase possible, workers don’t end up losing their jobs. Having no job will mean that even the little previously received is no longer available. Hence, individuals’ losing their employment is not an alternative. Maintaining an individual’s current employment is better than having momentarily increment in wage rates that could lead to termination in the future (Hagedorn et al., 2016). Hence, between advocating for better wages and job security, the better option for employees in the current economy is a salary increase.
8. Management Most Persuasive Argument
Considering two years of no increase in workers’ wages, the management will highly stress on increasing wages to a certain point and not bow down to assuring job security. In so doing, every point of view will be catered for. The organization will get its workers back and they will benefit in a minimal increase in their wages. Such will be considered a win-win outcome where compromise was made but either party left equally satisfied. There is no worker who will refuse an increase in salary when the alternative is a risk of termination or no changes at all. Although it might be not what they fully expected, during such volatility in the economy, the offer is acceptable (Bratton, 2017). Organizations operations will continue and workers will be financially motivated to generate higher performance. Most issues for both parties will be resolved and a peaceful coexistence between workers and the organization will be restored.
Conclusion
Every negotiation should be concluded at a point where both parties point of views have been heard and respected. However, in some situations, the settlement is not always a win-win outcome. One party may leave having not fully achieved their objectives. In this case, compromise was made from both parties to ensure everyone was satisfied. Employees would go back to work with slight wages increment from the organization.
References
Snell, S., Morris, S., & Bohlander, G. W. (2015). Managing human resources. Nelson Education.
Hagedorn, J., Paras, C. A., Greenwich, H., & Hagopian, A. (2016). The role of labor unions in creating working conditions that promote public health. American journal of public health, 106(6), 989-995.
Rahim, M. A. (2017). Managing conflict in organizations. Routledge.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
