Our tips for negotiating with unions

In March 2023, a social conflict of unprecedented scale erupted among our Belgian neighbors. A large retail group announced its intention to franchise its 128 integrated stores. This conflict lasted for months and provides several lessons about negotiations.

How to Negotiate with Unions?

We all know the adage, “We don’t agree on anything until we agree on everything.” This saying applies particularly well to the negotiations that sometimes unfold between management and unions. But how do we negotiate effectively?

Here are some basic tips: 

1. Know your limits

Before starting a negotiation, it’s essential to know what you can say, accept, or concede. If necessary, there should be prior agreement from management regarding everything that can be discussed. There’s nothing worse than going back on commitments after a negotiation. Not only does this discredit your entire approach (and your words), but it also creates unnecessary mistrust.

2. Know your counterpart

You don’t go into battle without knowing who you’re up against. This applies to sports and to negotiations as well. It’s essential to understand the demands and requirements of the opposing party. This helps you know where you’re starting from and better gauge where you’re heading. Knowing the opposing side also involves understanding who will be around the table. Some personalities are more complicated or easier to deal with than others.

3. Listen and let them speak

In union negotiations, power dynamics often try to establish themselves. Above all, it’s important to let the other party speak to know exactly what they expect and to allow them to feel comfortable and acknowledged. There’s nothing worse than a dialogue of the deaf where each party tries to expose their point of view without considering that of the other.

4. Paraphrase

How many negotiations fail because “we didn’t understand each other, there was a misunderstanding”? To avoid phrases such as “That’s not what I said,” “We never talked about that,” or “That wasn’t a priority, just an example,” don’t hesitate to rephrase what the other person has said. “If I understand you correctly, you’re saying that…”. Paraphrasing ensures that everyone has understood what was said.

The Pros’ Strategy

There are many books, university courses, and conferences dedicated to learning how to “negotiate better,” regardless of which side of the table you’re on. The prestigious Harvard University published an intriguing reflection on “Negotiation Skills.” After various analyses and surveys, they compiled what they consider to be the best negotiation strategies.

Source: https://www.pon.harvard.edu/daily/negotiation-skills-daily/top-10-negotiation-skills/

Here are 5 practical tips they encourage applying: 

1. Know your BATNA.

BATNA, what’s that? It stands for “Best Alternative to a Negotiated Agreement.” In practical terms, it is recommended, before sitting down at a negotiation table, to identify the most advantageous alternative you can adopt if the negotiations fail and no direct agreement can be reached. This allows you to save face and, importantly, may help halt a workplace conflict while negotiations are temporarily paused.

2. Negotiate the process

Before sitting down at the negotiation table, it’s important to define with the other party how the negotiations will unfold: what will be discussed, where, with whom, and when. Clearly defining the procedure will allow for much more focused conversations.

3. Be aware of anchoring bias

Many studies indicate that the first number mentioned in a negotiation, no matter how arbitrary, exerts a powerful influence on the subsequent negotiation. You can avoid being the next victim of anchoring bias by making the first offer(s) and trying to anchor discussions in the direction you prefer. For instance, announcing a salary increase request of 6% or 20% will create a very different anchoring effect.

4. Seek compromises

Negotiation inevitably involves concessions. Otherwise, there would be no demands, conflicts, or tensions, and everyone would be happy in a perfect world. But one concession is not the same as another. By identifying the issues that deeply interest your counterpart, and which matter less to you, you can offer a concession on that issue in exchange for a concession from them on something that is more important to you. These are smart, reciprocal, and constructive compromises.

5. Present multiple offers simultaneously

Rather than making one offer at a time, consider presenting several offers together. This also creates a bias, giving your counterpart the impression of choice among the options you’ve provided. If your counterpart rejects all offers, ask them to explain which they prefer, and why. This strategy of presenting several offers simultaneously reduces the risk of impasse and can lead to more creative solutions.

What to do in a crisis? 

Sometimes, significant crises arise in the company, such as tensions, or strikes. So, what do we do?

Beyond everything that has been written regarding the negotiation phase, there are other factors to consider. For example, seeking external assistance to help those around the table find a solution. Generally, there are two possible options: mediation or conciliation. While the processes are quite similar in their approach, bringing the parties in dispute together to find a solution outside of the courts, there is a notable difference. Mediation involves a third party helping the conflicting parties find a solution themselves, whereas conciliation involves a third party proposing a solution to the parties after listening to their respective grievances, allowing them the choice to accept or reject it.

Both processes are important as they help de-escalate the conflict, which is the goal of any negotiation. A peaceable relationship between management and unions allows the company to move forward more quickly and confidently. This highlights the importance of successful negotiation where no one wins everything, but no one loses everything, either. The ideal situation is always to avoid a negotiation where one party feels they have lost. This leads to lingering bitterness that will pose problems later. In one way or another. And this is not in anyone’s interest.

A matter of strategy

The historic Ford plant has been the site of a strategic game between unions and management.

After six weeks of strikes at this plant, and with no progress in negotiations with the Big Three in the sector (Ford, General Motors, and Stellantis), the powerful UAW (United Auto Workers) union announced the strike would extend to new plants across the country. With a completely new tactic, the UAW targeted, week by week, the sites that would be on strike. This strategy totally disoriented the Big Three.

The media highlighted an anecdote: the management of General Motors moved equipment from the Spring Hill plant (Tennessee), thinking it would be the next target, to the Wentzville plant (Missouri). At the last moment, the union triggered the strike at Wentzville, reclaimed the equipment, and halted all production. Negotiations resumed, and the management of the three major companies bent to the demands. A first in the United States.