Thursday, June 23, 2011

The Art of Labor Negotiations

The current labor negotiations that has dominated the sports news are the National Football League and the National Basketball Asociation labor negotiations. The NFL and NBA negotiations are no different than any labor negotiations; it's always about the money. Just in the case of the NFL and the NBA they are arguing over billions of dollars. I believe that the NFL will settle their disputes and get a collective bargaining agreement (CBA), I am not confident that the NBA will get a CBA in the near future. I believe that there will be a lockout on July 1, 2011.

In labor negotiations when the CBA expires or there is an impass in the negotiations the employees can strike, i.e., withhold their services, the management can lock the employees out, i.e., not allow the employees to come to work.

When do you start to prepare for labor negotiations? You start to prepare for labor negotiations when your current CBA is signed and ratified. You evaluate the importance of the language that you proposed and did not get in the current CBA and determine if it is important enough to the efficiency of your operations to propose in the next negotiatons. Throughout the term of the current CBA you get input from all departments regarding the impact that any existing language in the CBA has on the efficient operations in their department; with this input you can determine what language to propose in the next CBA.

What is the process?
   * Meet with the managers and supervisors in all departments to evaluate, understand and finalize
      their proposed language for the CBA.
 
   * Meet with the labor relations staff to farther evaluate, understand and finalize the proposed
      language for the CBA.
 
   * Meet with the management negotiating team to farther evaluate, understand and finalize the
     proposed language for the CBA. The negotiating team will be composed of representative(s)
     from the labor relations staff, the legal staff, key operating departments and the Chief Labor
     Negotiator.

   * Meet with the costing team to cost out the proposed language for the CBA; the costing team
      is usually composed of repesentatives from the finance and budget departments. After proposals
      are exchanged with the other side, the costing team will cost out their proposals.

  * Meet with senior management to discuss and explain the proposed language and the negotiations
     strategy; it's very important to get senior management buy in at the start of negotiations in order
     to have their approval at the end of negotiations; if applicable, it may be necessary to also meet
     with senior management and the board of directors.

   * Meet with the negotiating team members from the legal and labor relations staffs to finalize the
      proposed language for the CBA.

   * Negotiate the CBA! After the CBA is signed and ratified by both parties, you proof read the
      language and give it to the printers.

   * Meet with the operating departments to explain the application, meaning and intent of the
      language in the CBA.

   * Start to prepare for your next negotiations.

Howard W.Lewis
Labor Relations Consultant 

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