NEGOTIATION REVIEW
Trade Union Negotiation:
Behavioural Choices
By Gordon Hall
[email protected]
thegappartnership.com
The news is once again filled with
stories of threatened industrial action.
Introduction
What is new?
Talk to most middle aged people about Trade Union negotiation
and it immediately conjures up negative images from the 1970’s
and 1980’s of disputes and conflict. Images of burning braziers
on picket lines, factories closed, mass workforces in conflict with
management, and ugly government intervention. These images
were caused by deadlock, when the negotiations broke down.
You can prove anything with statistics but here are some
interesting facts relating to the changed landscape of collective
Trade Union negotiation:
Deadlock of course can be a necessary part of a negotiation
process, but it leaves many with a very negative picture of Trade
Union negotiation. Strike action that results from deadlock is a
powerful but risky tactic. Ultimately the workforce want to work
and the employer wants to employ – we don’t want deadlock!
The negative images of mass conflict were only part of the
picture; the public face of the negotiations. There was
and is so much more to the back office planning to conduct an
effective negotiation.
Trade Union negotiation is back in the news after years of Union
membership decline. This review asks ‘are your behaviours
appropriate for 21st century Trade Union negotiations?’
and examines some of the preparation and techniques needed
to conduct an effective collective body negotiation in the
21st century.
Figure 1
- Trade Union membership was at a peak in 1979 with
13.2million members across the UK; dropping to 6.7million in
2009. The density of the UK workforce that was a member of
a Trade union dropped from 55.8% in 1979 to 27.4% in 2009.
HR Profession
- 2010 saw a small growth in membership; admittedly small
to just 27.5% by density but this is the first growth in Trade
Union membership since the late 1970’s.
- Members of Trade Unions on average earn £13.60 per hour
compared to non union employees who earn £11.80; a 15%
premium. Trade Unions argue this is owing to their influence;
you can prove anything with statistics but an interesting fact
none the less.
- Over the 30 year period from 1979 to 2009, the HR profession
has grown to represent 2.5% of the total UK workforce with
over 720,000 people employed within the HR profession in
the UK.
- Membership of the HR professional bodies has increased
approximately 6 times over the 30 year period. So we have
seen a halving of Trade Union membership and huge growth
in the HR profession.
- Individual grievance for unfair dismissal has increased in line
with the growth of the HR profession.
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13.2m
No. of
people
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6.7m
Trade union
members
1980
Time
2010
What can we glean from these facts? The growth of the HR
profession has come with a parallel decline in Trade Union
membership. The workforce is now protected from inappropriate
management practices through legislation, colleague advice and
listening forums and an underlying recognition of the little man
within society and the work place. Human Resource professionals
have become an integral part of the management of businesses,
offering advice, services and to a large extent regulation of
the management; thus the need for Trade Union or collective
negotiation has reduced.
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Where they have remained relationships between both parties
have in the main been respectful and trustworthy, with a
collaborative negotiation approach to moving both business and
terms and conditions forward. From the employers perspective
there have been increasing levels of productivity, and from the
employees’ perspective improvements in pay and other terms
and conditions of employment. So a collaborative win; win
environment has emerged with collective agreements, which is a
far cry from the 1970’s images.
However, we live in interesting times, and during the recent
recession, workers and management have once again felt exposed
to challenging conditions and seen the need to protect themselves
from changing circumstances. HR teams have had to implement
immediate and challenging change to keep the business profitable
and in some cases afloat; large scale redundancies, reduction in
terms and conditions that have taken so many years to build.
The recent rise in Trade Union membership is almost certainly
a result of the need to protect against a seemingly unmerciful
management approach.
Inevitably conflict and a lack of trust have increased, and a much
more competitive approach to negotiation is reappearing. The
news is once again filled with stories of threatened industrial
action. Despite the reduction in Trade Union membership over
the years, the power of the collective body still remains. Whilst
the mass protests within manufacturing are a thing of the past,
the threat to service is tangible; transport and airline chaos, fire
brigade walkouts, media breakdown are all in the news.
Whilst I have not as yet seen any burning braziers, the 1970’s
images of walk outs and demonstrations are still here – perhaps
nothing is new!
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Looking at both sides
The role of the management
Trade union negotiation – is it different?
The workforce want to work and the employer wants to employ;
so we need to get to a deal.
Quite simply it is about making profit – that is the capitalist world
that we live in. Of course to make profit, the human resource,
often the biggest cost for any organisation, need to be motivated
and cost effective. This is the role of the management and as the
HR profession has grown we have seen the tasks of motivation,
training and resource management being increasingly allocated
within most businesses to the HR team.
One of the most frequently asked questions we get asked is –
“surely negotiating with employees or employers is different
to other commercial negotiation – it must have a completely
different set of rules?”
Management argue about the need to change, and on the other
side the workforce argue about the need to make working
conditions better. This paper does not take sides; it recognises that
there will be differences of opinion and examines the appropriate
behaviour to help get to a negotiated agreement. Both sides want
a negotiated agreement; we have worked with many employers
and employees and on this one point they all agree – we want to
get to a deal, deadlock is not a position we want.
Firstly lets take a look at the role of the two parties and think
about it from their perspective; from inside their head.
The role of the trade union and the collective body
Going back to the foundations of the Trade Union movement
their driving force is all about fairness; using the power of a
collective group not to be exploited by the greedy capitalist
management. The increase in legislation within employment law
has decreased the exposure and exploitation of the workforce and
has therefore reduced the need for individuals to be a member of
a union, as they now feel more protected by law.
Modern Collective body negotiation has become about strong
communication principles, working together with management
for joint benefit. This collaborative approach with increasing levels
of openness and working towards high levels of trust has become
the objective of the modern collective body. However, as with any
collaborative negotiation something can happen that will lose trust
and result in competitive behaviours being demonstrated.
Trade Unions and collective groups continue to have a high density
in workforces where many of the workforces do similar roles, such
as manufacturing, media, transport and distribution. This works
for the workforce and the union as they have both powers as a
‘negotiation body’, and the skill to make things happen.
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Negotiation with Trade Unions and collective bodies is simply
about making the workforce, motivated and cost effective.
Collective body negotiations within an organisation happen
where one group ‘the collective body’ negotiate on behalf of a
large number. Where Trade Unions and collective bodies are
recognised, which is generally large scale workforces, the benefit
to the management of having a large group is that it reduces the
number of negotiations and therefore reduces the time involved.
Where is there a balance of power?
Each negotiation has its unique set of circumstances and issues
that will affect the balance of power between the management
and the employees; so in answer to the question ‘where is the
balance of power?’ it depends on the circumstances of each
individual negotiation.
We work with both employers and employees in collective body
negotiations and we usually find that both parties think the other
party has more power in the negotiation situation than it really
has. One thing is nearly always true and that is that both parties
are more equal than they realise and have more power than they
think. The management has a concern over the size and therefore
perceived power of the Trade Unions and collective bodies. They
believe they hold the balance of power as they can hold us to
ransom, ruin the business through negative PR and industrial
action. Often it is the Trade Union official who has created this
perception of power through the tactics they have employed.
We often hear comments such as:
- “ There can never be deadlock – ultimately
we have to get to a deal”
- “ We have a duty of care to our employees so it’s
not about screwing them to get the best deal”
- “ It is all about relationship building”
- “ This isn’t a crude trading situation, we are talking
about people not tins of beans”
- “ It is all about fairness” …and so on
Of course, Trade Union and employment relation negotiation
has its own particular differences as we get involved in deeper
levels of emotional behaviour, and these are often what create the
highest levels of frustration. Individuals are unable to separate
their feelings from their behaviours and become unable to
negotiate. However, in our experience the principles used in
employment negotiations are no different to those of negotiating
within a commercial environment for buying and selling goods
and services.
There are however a couple of key
idiosyncrasies to be aware of:
-F
irstly, we do have to get to a deal; deadlock cannot be
entertained for any sustained period. We can’t easily walk
away, although it can be used as a tactic, as ultimately the
management needs the workforce or they will go out of
business and the workforce needs to work. What is the
BATNA? (Best Alternative to a Negotiated Agreement)
– if there are no alternatives you have to get to a deal
- S econdly, we are dealing with people and emotions run high;
a wrong word in the wrong place at the wrong time can put
the negotiation process back many months. As some strategies
are played out in the public arena, individuals get influenced
by third parties such as the media and humility becomes even
more difficult for some to display
In answer to the question - is negotiating with Trade Unions
different? Very little is different. The strategies and tactics
employed can and are employed in a similar manner as they
are in commercial negotiation.
Whenever we talk to the workforce collective bodies, they have
respect and often fear for the management, as ultimately these people
pay their salaries. We can’t act irresponsibly, they know what they
are doing and we cannot afford to deadlock. Again this perception is
caused by conditioning and tactics of the management.
© The Gap Partnership, 2015. All rights reserved.
© The Gap Partnership, 2015. All rights reserved.
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Are your behaviours appropriate for
21st century trade union negotiation?
The 21st Century sees challenging times for businesses needing
to cut costs to protect their profit, with the top line of business
often in decline, the focus is on getting more for less from the
cost base – which of course includes employees. There is also
a continuing drive for better working environments; the TUC
(Trades Union Congress) is all about making Britain ‘a better
place to live and work’.
We have also seen a reduced membership over the last 30
years of the Trade Union movement and a parallel growth
in the HR profession.
So with a backdrop of challenging times, and increasing conflict,
let’s examine some key behaviour to consider when planning your
negotiations – ‘Are your behaviours appropriate for 21st Century
negotiation?’ This thought piece has been written for both the
employer and the employee, it does not take sides.
As stated most principles within commercial negotiation are
applicable for Trade Union negotiations. However, there are some
differences that both sides need to consider when planning and
implementing a successful negotiation.
Here are ten key things to consider
with your negotiation planning and behaviour:
1. The need to negotiate
efore you start the process of negotiation it is well worth
B
analysing the risks involved and considering whether you
need to implement a negotiation at all. Do you run the risk of
opening a can of worms that could be more detrimental to the
current status than the benefits from the potential gain?
hat are the outcomes of the negotiation that you are aiming
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for? We have had a number of experiences in Employment
Relations negotiation where a matter of principle has been the
driver for implementing a negotiation rather than a specific
commercial objective. Ultimately a risk analysis showed the
need to negotiate was not compelling, so the negotiation process
was not initiated. This is not normal, but it is certainly worth
asking the question before commencing negotiation.
hatever the need to negotiate is; change in business
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circumstance, legislative changes, disputes, performance issues,
annual review or a management initiative, it is vital that the
need to negotiate and objectives are clearly defined before the
process begins.
2. The balance of power
onsider if you have enough power to make the change
C
happen, if you don’t; what you can do to change the perception
or the actual power you have. Or do you need to wait for a
change in circumstance before you can implement your plan?
oth parties usually think the other party has more power in
B
the negotiation situation and therefore you have more power
than you realise. Of course what you need to do is consider
power from their perspective:
- What alternatives do the employer or employees have?
- How dependent are they on you? Are you the employer of
choice, are you offering a specialist service that would be
difficult to replace?
- What pressures are the other party facing? Do they have a
time deadline, are they facing personal challenges or have
their circumstances changed?
I t is so common for negotiators to be concerned with their own
pressures and not focus on the other party. So firstly do a power
assessment, thinking about it from their perspective. Secondly
in the unlikely event of not having enough power - change
something; find alternatives, obtain more information on the
other party, and find out about their pressures? – All of this
will increase your power.
Take the case
Consider the situation with pay award discussions during
2010 and 2011. Managers have been hit with the need
cut costs with falling sales and rising costs – but with
inflation at above 5% for the first time in years their
employees are demanding pay rises to keep pace with
the cost of living, pay increases that they have become
accustomed to.
So what have negotiators done to build power or the
perception of power:
- F
ind alternative workers, and alternative processes
that reduce their reliance on groups of workers.
During times of mass redundancies this has proved
much easier than normal.
- I ncrease people power and public influence through
mass demonstration. Notably the TUC organised rallies
to influence the workforce that cuts are short sighted
and not sustainable.
-R
educe people power by using the media to
precondition the public as to the dire situation
everyone is in. Inflationary pay increases during
recession is not only irresponsible but downright
wrong, when millions are losing their jobs.
- U
se the changing times to change negotiation
teams, as both managers and employees move on.
- Increased staff questioning and forums to form
a deeper understanding of the current workforce
concerns. This has revealed that pay is not of primary
concern, reducing the Union power in pay negotiation.
- Clear and constant conditioning communications
on the state of the company for months before pay
negotiations start; the perception is that any pay
increase at all will be a bonus.
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© The Gap Partnership, 2015. All rights reserved.
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3. H
aving a strategy:
a full behavioural plan
ave you thought your negotiation strategy through? Have you
H
thought about all the potential problems that could happen and
have you planned how you are going to reduce the risk of them
happening and what to do if they do? You need to have a plan
B, if your negotiation is not going as expected you need to try
something different – some people call this planning for failure,
but do this in a planned way so you are not surprised.
lan how you are going to behave – is this going to be a
P
competitive or collaborative negotiation. You need to be
prepared for all types of response.
he traditional perception of Trade Union negotiations is that
T
they are going to be competitive with high levels
of conflict. Looking at the clockface model of negotiation
behaviour (Figure 2) the traditional position of win;
lose hard bargaining would be associated with a 4 o’clock
position on the clock face. Here the behaviours are tough with
high levels of conflict; make sure you are prepared for this.
owever, if there are a number of issues, there is scope for
H
creativity and a high level of trust has been established, then the
negotiation is likely to be more collaborative, win; win, where
value can be created and both parties move forward.
ou are in charge! The key focus should be for you to set your
Y
appropriate behavioural strategy for the negotiation and be
prepared for theirs.
6. Preconditioning
4. S takeholder alignment:
setting agreed objectives
ake sure all your stakeholders in the negotiation have agreed
M
with the objectives of the negotiation and are aligned with your
plan for implementing it. For example you may have built in
some plans that could result in implementing industrial action,
and if you have not planned and agreed the appropriate action
up front, then stakeholders could stop the implementation
of your plan at this critical point, as they had not agreed it
up front.
e have seen it happen where senior management of an
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employer have lost their nerve at the first threat of industrial
action, thus setting dangerous precedents; we have also
experienced an unplanned threat of industrial action made by
Trade Union officials without collective back up, thus losing
credibility on any future threats.
I t is also vital that once you have built your strategy that you
lockdown your plans to a tight inner circle – no leakage must
be allowed.
I magine the damage that would be caused if it had leaked
out that the CEO had instructed your negotiation team to do
whatever it takes to ‘ensure no bad PR or any loss of production
during the current pay negotiations’.
In 2008 the Post Office was locked in negotiations with
The Communication workers Union over planned Post
Office closure and pay. Adam Crozier the then CEO of
The Post Office did not engage with the Trade Unions,
instead giving full delegation powers to his negotiation
team. This frustrated the Union and for them it became
an emotional battle of trying to engage with the CEO
rather that focussing on the key issues.
Figure 2
eep your decision makers away from the negotiation table.
K
You should try and reach the other parties decision makers
because they are empowered to make decisions and when
pressured can and often do say YES to your demands in
the negotiations. So for the same reason do not allow your
senior people into the negotiation, often they won’t like this
because they think they are the best negotiators but as they are
empowered to make decisions – they will.
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10
Relationship
building
9
2
3
Concession
trading
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I n annual pay negotiations for example management often tell
us that they are waiting for this years pay demand from the
union - why? If you wait for the other party to tell you their
demand they will anchor you on that figure. So why not tell
them where you are and take charge of the process.
f course there is always the possibility that the other parties’
O
demands will be lower than you were expecting as they may
have misread their balance of power; but how often does that
happen? – exactly!
Hard
bargaining
Win win
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I f you wait for the other party to come to you with their
demands, you will be focussed on that figure, their position
and you will be anchored to their demand. Ideally you should
go first with your negotiation demands. You have worked out
where you want to open the negotiation, so put your proposal
on the table first and they will be pulled to your position.
Haggling/
bidding
Partnership/
joint problem solving
S ystematically communicate on the areas of concern through
all possible mediums available to you. This can be done
internally through company announcements, staff magazines,
conferences, team briefings, and forums.
7. Who goes first?
1
Bartering
on’t wait for formal negotiation meetings before you start the
D
process of preconditioning the other party on what is coming.
For example this can happen months in advance of any planned
pay or terms and conditions negotiations.
o be careful to control relevant and timely messaging – for
D
example caution your CEO on their eulogising about company
performance two weeks before you announce a pay freeze! Also
do use external media to help you communicate the message.
In 2010 Willy Walsh the CEO of BA was publically
involved in negotiation with Unite over cost cutting
relating to BA cabin crew terms and conditions. The
negotiations broke down and resulted in a number of
strikes by cabin crew, Unite citing an unwillingness of
the management to negotiate; Walsh and BA had an
entrenched position. 2011 saw the restructuring of the
negotiation teams and progress in this long standing
dispute without the CEO involved.
5. P
rotecting the decision makers:
empowerment of the team
I nevitably issues may need to be escalated through a negotiation
and you can use time outs and breaks to do this, but ideally the
negotiation team should be empowered to make decisions. Use
the negotiation team to protect the decision makers, this will
not only buy you time but you can disempower yourself from
the decisions.
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Take the case
4
Dealing
6
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Figure 3
Spokesperson
Leader
Figures Person
Observer
8. Negotiating as a team
rade Union negotiations are usually carried out in a team
T
environment. As with any well run team you should think
about the team roles, the team discipline and of course having
the right person in the right position.
I n our experience, teams do lose their discipline within Trade
Union negotiation, and if you know what to look for you
can exploit this lack of discipline in the other team by strong
observation and listening skills.
well run team would be set out as per Figure 3. Ideally a
A
team leader in the middle with a spokesperson to one side and
the key financial record taker to the other side. There can be
numerous observers in a team and numerous financial record
takers but only ever one leader and one spokesperson.
eam leader. A leader needs to have a calm persona and
T
does not allow their emotions to influence their behaviour.
Ultimately responsible for the deal that is negotiated and needs
to have the gravitas to earn respect from the other party – they
do not necessarily need to be the boss.
The leader manages their team within the negotiation
and calls breaks and time outs when needed.
Spokesperson. This is the voice through which the negotiation
takes place. A successful spokesperson does not get pulled into
argument and debate but is able to clearly state and articulate
your position.
igures person. Keeps records of the actual negotiation
F
and is able to assist the leader with any calculations.
Observer. The observer is there to watch and listen to the other
party and help their team leader; what information is the other
party giving away during the course of the discussions that
others may have missed? Trade Union negotiation teams often
have several observers, but unless they know what to look and
listen for they can be more of a hindrance than a help, often
giving away information by being observed rather than aiding
the team by what they are observing. If an individual does
not have a specific role; don’t have them in the team. Being a
shop steward or remuneration manager is not a role within a
negotiation team!
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Observer
9. Tactics
rade Union negotiations are legendary for the type of tactics
T
used. We have heard people talk long into the night with
stories past and present of tactics used both by management
and Trade Unions. Most of the stories recited are around the
competitive side of negotiation, win; lose, the right hand side of
the clockface.
I t is important to remember that tactics are used to give
a perception of power, and your role as a negotiator is to
recognise tactics and not to be ‘a victim of’ them. Some are
appropriate to use as they can shift power in your favour.
ere are some commonly used tactics in
H
Trade Union negotiations:
T
ime outs and adjournments. If you want breaks for any
reason take a break. It could unsettle the other party,
or could give you the burst of energy you need.
T
he mock shock. A threat that catastrophic consequences
such as industrial action will result if the proposal is not
accepted. If you are going to use this you must be prepared to
carry it out, or you will lose credibility.
T
he professional flinch. Sending an outraged response to
the other parties’ proposal, even if it isn’t outrageous. Trade
Unions have an excellent reputation for their flinches; we
often get asked the question ‘which flinch school do the Trade
Unions go to?’
D
eliberate misunderstanding. Used to buy thinking time.
They fully understand but want to give the impression that
they don’t.
G
uilty party. Making the other party feel bad about the
proposal they are making. ‘Shame on you for proposing such
a thing. How can you sleep at night?’
S ocial smell. Tactic used to embarrass the other party into
movement. ‘Everyone else in the industry and the locality
is taking a pay freeze at the moment, so you should feel
ashamed to be even thinking about a pay rise’.
O
ff limits. ‘That is not what we are here to discuss today. We
do not have the authority to discuss that point’. This reduces
the number of issues and is used as a means of shifting power.
Often the proposed ‘off limit’ issue is perhaps most precious to
the other party.
At the beginning of this thought piece we discussed childhood
images surrounding Trade Union negotiations; the public face
of negotiation. Conflict is an inevitable part of negotiation and
whilst the mass protests of the 70’s and 80’s are not so memorable
today the conflict is still there.
The hidden agenda item. Brought onto the table to trade
away to help create more power. When traded away the other
feels as though they have made progress.
This paper has hopefully given you some insight into examining your
appropriate behaviours for modern day Trade Union negotiations.
O
ff the record. An informal meeting to test views. Be
careful to define the purpose of such a meeting - do not
reach a formal settlement informally.
The ten behavioural things to consider in this thought piece all
focus around preparation. So as with all negotiation; the team
who is the best negotiator is inevitably going to be the team who
is best prepared.
10. Rebuilding trust
ver the last 30 years there has been a growth in trust
O
and respect between management and Trade Unions with
an increasing collaborative negotiation approach to moving
both business and terms and conditions forward. One of the
concerns of entering into any kind of conflict is the loss of
trust between opposing sides; trust that has taken years to
build up can be lost in a matter of days.
loss of trust is an inevitable result of competitive
A
negotiations; and there is no doubt in the recent recession
that there has been a move to more competitive short term
negotiations; and with it a lack of trust.
any of our clients ask us to help rebuild trust after
M
negotiations have broken down or have been resolved in a low
trust environment. Firstly you have to ask yourself if a high
level of trust is necessary; if it is, then consider the following:
-D
on’t let your emotions or ego get in the way, what has
happened has happened – move on.
- There are many touch points across the Trade Union
and the management. Take a look at where the
relationships are not just damaged but broken, consider
changing the people.
- I nvest time on joint planning initiatives to rebuild a
collaborative framework.
-Y
ou’ll have to work at rebuilding trust, it won’t just happen!
© The Gap Partnership, 2015. All rights reserved.
© The Gap Partnership, 2015. All rights reserved.
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