We have entered a challenging and difficult time for collective bargaining for both employers and unions. Here are four strategies that can help both sides navigate the new reality.
We have entered a challenging and difficult time for collective bargaining for both employers and unions. Shortly following the great recession in 2008, both management and unions reached deals relatively quickly, everyone recognizing the dramatic economic issues the parties faced at the time. From 2008 well into 2012, there was little change. Employers tried to deal with the reality of the recession, and unions waited for the anticipated rebound, assuming it would resemble almost all recessions of the past — a difficult period, a holding pattern for a short time, followed by a return to growth in the economy and a resumption of "normal" bargaining. This time, however, that hasn't happened. Certainly not in the way it has in the past.
The economy has, at best, rebounded to the level of "treading water", and bargaining has not returned to anything resembling the pre-2008 environment. This has created a new and difficult bargaining environment for both sides. Employers are still dealing with economic uncertainty, competitive pressures, and the ongoing need to manage costs. Unions are still dealing with the reality that the anticipated rebound didn't materialize, leaving many members wondering what the future holds.
Strategy 1: Reframe the Conversation
The first step is to stop pretending we're in a normal bargaining environment when we're not. Both sides need to acknowledge the reality of the situation and begin the conversation from that shared understanding. This means being honest about what is possible and what is not, and having the courage to say so at the table.
Strategy 2: Focus on Interests, Not Positions
In a difficult economic environment, positional bargaining is even less productive than usual. Both sides dig in, neither can move, and the result is either a strike or a bad deal. Interest-based approaches — understanding what each side really needs and why — open up creative solutions that positional bargaining forecloses.
Strategy 3: Build the Relationship Before You Need It
The best time to build a productive union-management relationship is not at the bargaining table. It is in the day-to-day working relationship that precedes bargaining. Organizations that invest in that relationship find bargaining easier, less adversarial, and more productive. Those that don't find the opposite.
Strategy 4: Take the Long View
Both management and union leaders who approach bargaining with a long-term perspective — what kind of relationship do we want to have in five years? — make better decisions at the table than those focused only on the current round. The deal you make today will shape the relationship for the life of the agreement and beyond.
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