The Art of Negotiation

BUS 526

Week 3 Assignment 1

The Art of Negotiation

1. Selected negotiation.

The UPS Strike of 1997 was one of the biggest strikes in the United States; this disrupted the delivery of thousands of packages every day for more than two weeks throughout the country. Renegotiation Contracts between Union and UPS workers were to be on grievances against UPS based on part time status, wages, and job security. During the strike over half of the UPS workforce was based on low income employment. UPS didn’t provide any chances and they didn’t provide any of the accommodation that a full time employment offered. UPS wanted to expand more part time employment instead of full time employment destroying any dreams that employees may have.

2. Issues versus interests

UPS strike was based on two main issues, the increasing use of UPS part time workers and control of their pension funds by the Teamsters Union. The management campaign contract had several main complex issues. First, UPS was making over a billion dollars a year in profits, but they had the nerve to want givebacks. UPS wanted to give more work to the lower income part time workers. They wanted the company to subcontract the jobs of the drivers to reduce promotion opportunities for UPS workers; this would have increased bigger issues for the company. UPS offered low income increases now than they did in the past. UPS knew that with no raises to help close the gap between the part time and full time workers their issues would continue to increase (Greenhouse, 1997). The concerns that the Teamsters faced were UPS didn’t want to employ full time jobs for part time workers. The Teamsters wanted better employment opportunities for workers by keeping UPS from giving out jobs during their operating peak hours. UPS had their sights set on using part time workers completing full time work with small room for benefits growth. The Teamsters relied on UPS to give job security and better employment opportunities they deserved.

3. Ethical behavior in negotiation.

UPS ethical behavior actions during negotiation were questionable. UPS believed they could use their employees however they wanted; they wouldn’t allow employees the chance to grow. UPS denied their employees to live comfortably, and the right to have a better way of living for them. The Teamsters encouraged employees to fight for justice to protect their rights, because UPS was going to exploit the employees for personal gain. UPS eventually give into the demands of the Teamsters, if not the Teamsters may have cost UPS many clients and maybe the loss of business. The Teamsters won the strike because UPS was threatened with motive to shut down the company entire operation.

4. Alternative to a Negotiated Agreement and Worst Alternative to a Negotiated Agreement.

The BATNA used for UPS is to offer a large number of part time employee’s full time positions after an employee resigned or retired. UPS said they would agree to create several new full time jobs. Their reason for outsourcing was included in their agreement for negotiation. The Worst Alternative to the agreement to be negotiated for the company was holding out and not giving into the commands of the Teamsters which had caused the UPS to lose business and money. The BATNA for the Teamsters was inventing full time employment for part time and reducing the hourly wage. The WATNA for the Teamsters was to be offered full time employment after all the current full time workers were no longer employed.

5. Develop a proposal for a distributive negotiation strategy for this negotiation.

The reason of distributive negotiation is to have a better distribution of outcomes by compromising of the parties involved (Allen, 2014). Distributive negotiations are sometimes bad in nature, because UPS offered the union a deal that they said there was no choice. This could make a distributive negotiation between the two parties. UPS did offer thousands of part time workers full time employment when the full time employees are no longer employed. UPS told the Teamsters that if the terms are not agreed upon, then UPS would proceed with their plans to outsource the work and the Teamsters could take a severance package and quit. This gave UPS what they expected, which they didn’t show any concerns for the feelings of the Teamsters.

6. Proposal for an integrative negotiation strategy for this negotiation

The Teamsters wanted to save the relationship among all the involved parties. The view is on each side as to the resource of distribution (Allen, 2014). Both UPS and the Teamsters need to proceed with an integrative; this would need to outline all the issues and concerns between both parties. UPS needs to make an attempt to create a better working employment environment, this would show that UPS really wanted to improve on their working conditions. The company could somehow show that they are willing to communicate with employees and agreeing to address union concerns. The Teamsters need to be willing to work with UPS instead against them, they need to express concerns before they attempt to cause a strike among employees.

The Teamsters and UPS agreed to a five year contract that put an end the union strike. The way the Teamsters structured the union, meant that from now on they would get better benefits no matter what company they really worked for. The benefits were to be handled by a pension fund for the Teamsters. UPS did want to back out of the terms, and offer their workers a pension plan in UPS favor that they would have total control. In the end UPS agreed to keep their employees in the Teamsters benefits plan. In the end UPS came to an understanding that they would be required to discuss any future weight limit increases for packages with Teamsters. The strike with UPS and the Teamsters shows what working low wage earners can accomplish when they all work as a team. UPS workers came together to show what you can get when you have the world behind you.

References:

UPS Strike Showed Need for Union” (1998). Letter to the editor from Rick Stahl. Convoy
Dispatch

Witt, M., and R. Wilson. “The Teamsters’ UPS Strike of 1997: Building a New Labor Movement.” Labor Studies Journal 24.1

Greenhouse, Steven. August 19, 1997, Teamsters and U.P.S. Agree on a 5-Year Contract. New York Times.

Allen, Joe Dec10, 2014. “When Big Brown shut down.” International Socialist Review. N.p., n.d