Many consider collective bargaining to be the foundation of the business relationship between employer and employee. During the contract negotiation process, representatives from companies and labor unions are required to bargain in good faith. Beyond this, there are many tactics and techniques that can be used by both sides to achieve their desired objectives. An analysis of a few of these methods can lead to a greater understanding of the negotiation process, and put you in a better position to bargain in the future.
What is distributive bargaining? In the book entitled Labor relations and collective bargaining: Cases, practice, and law, Carrell and Heavrin define it as “a type of labor negotiations viewed as a ‘win-lose’ situation.” In addition, “resources are viewed as fixed and limited, and each side wants to maximize its share.” When distributive bargaining is used, each side views an increase from the current contract as a gain or win for them, and a loss for the other group. Although other types of bargaining are used, distributive bargaining remains the most common method of negotiation. Since both management and union will be attempting to secure the better deal, it is important for the negotiators to be aware of a few positioning tactics that may be used by the other side.
Good guy/bad guy. This tactic is used by one side to apply pressure to the other group. This gambit begins with an individual making strong demands, accusations or threats, before leaving the room. After the bad guy is gone, another individual from the same side steps in to diffuse the situation. This person is the good guy, who “only wants what is best for everyone.” The good guy will suggest that the opposing side agree to a certain term before the bad guy returns. Good guy/bad guy is an effective way of applying pressure, without confrontation. To defend against this tactic, an easy move is to simply identify to the other side that you know they are using the technique. Since good guy/bad guy is such a well-known ploy, people are usually embarrassed when caught using it and will likely back away when confronted.
Vise. This is a simple tactic that has the ability to produce incredible results. During the negotiation process, the vise gambit is used following a proposal from the other side. After listening intently to the offer, the individual simply replies: “I’m sorry you’ll have to do better than that.” The power aspect of the vise tactic comes from the next move: remaining quiet – not saying a word. Letting the other side make the next response puts the pressure on them. If this tactic is used on you, a suitable response would be: “Exactly how much better than that do I have to do?” This response should pin the other side to specifying an exact amount required for a deal.
Bracketing. This technique involves setting your initial proposal an equal distance from the objective as the other side’s proposal. For example, if your main objective is to acquire 15 vacation days and the company offers 10 days, your initial proposal should be 20 days. The key to bracketing is to get the other side to state their offer first. If the other side gets you to state your offer first, they can then bracket your number. After both sides have announced their initial offers, each can give in slightly until finally coming to an agreement. Hopefully this figure is exactly halfway between the bracketed number – your objective.
Nibbling. Using this tactic allows you to get a little bit more at the end of the negotiations, even after both sides have agreed on everything. Nibbling works because people psychologically feel better after reaching an agreement. It is not uncommon for people to be anxious, uptight or unsure leading up to and during a negotiation. Once the agreements have all been made, everyone is free to relax and enjoy the accomplishments of their deals. This is the opportune time to nibble. To use the gambit, people will say something such as “By the way, you can give us… can’t you?” One method of countering the nibble is to gently make the other person feel cheap. Point out that you have just made a great deal and there is no way the other side could be asking for more, all while maintaining a big grin on your face so they do not take your comment too seriously.
There are also a few unethical negotiating gambits that may be used against you. A few of the more well-known are the decoy, red herring, and planted information. The decoy is used to take your attention away from the real issue in the negotiation, and involves arguing an unimportant point in an attempt to gain approval for your real objective. The red herring adds an additional twist to the decoy gambit. With the red herring, the other person makes a false demand that he will later remove, but only in exchange for a concession from your side. Using the planted information tactic involves leaving “confidential” information in the open for the other side to “accidentally” see. Once the other side views the information, the hope is that they will act based upon the false data. Once they have made their move, they must accept responsibility for their assumptions and should not cry foul later. If unethical gambits are used against you, there is no point in getting upset. To avoid unnecessary concessions because of unethical practices, simply recognize the gambits and smoothly counter them.
To this point, we have covered tactics and techniques that may be used to give one side the edge over the other in negotiating. It is also important, however, to discuss the attributes of both a successful negotiator and effective negotiating session. Let’s refer to Ed Brodow list of ten tips for successful negotiating:
- Develop “negotiating consciousness.”
- Become a good listener.
- Be prepared.
- Aim high.
- Be patient.
- Focus on satisfaction.
- Don’t make the first move.
- Don’t accept the first offer.
- Don’t make unilateral concessions.
- Always be willing to walk away.
Two of these tips stand out as key points for a successful negotiating process: “be prepared,” and “always be willing to walk away.”
Preparedness is the foundation of negotiating. Going into battle without a weapon is simply suicide, so why would you go into the negotiating room without being prepared? Being prepared can be an extremely complex issue, or as simple as gathering useful information. Analyzing the other side before negotiations will give you a head start in determining their likely bargaining methods and key points of issue.
To successfully gather information, you should first be willing to admit that you do not know everything. Although many people are reluctant to admit their own short-comings, admitting that you do not know, and also admitting that anything you do know may be wrong, is a sincere first step. The next step in gathering information is to not be afraid to ask questions. Some individuals do not ask questions for fear of sounding ignorant or even being worried that they may upset the other person. To gather information efficiently, you must get past these fears and ask the questions that need answering. When asking these questions, it is important to ask unbiased individuals, and to ask open-ended questions. These two tactics will give you the most information, in the most reliable manner.
Brodow’s second tip, being prepared to walk away from an unfair situation, is sometimes the single most important piece of advice given by professional negotiators. As Mr. Brodow notes, you lose your ability to say “no” when you depend too much on the positive outcome of the negotiation. It is important to establish a walk-away point before heading into the negotiations. Setting this limit with a clear mind allows you to remain focused during the meetings and keeps you from walking out solely based on emotion.
In addition to the ten points noted above, another key point for successful negotiating – act dumb, not smart. Acting dumb, but not so dumb that you lack credibility, helps take the edge off of the competitive environment of the negotiations. People typically do not want to hurt the weak and, more often than not, actually want to help them. It is this trait that gives acting dumb its power. Using this technique, you can actually convince the other side to help you achieve your own goals for you. After all, who wants to fight with someone who is asking for your help when negotiating? How can someone be competitive toward a person who asks “I’m not sure, what do you think?”
According to Roger Dawson, acting dumb allows an individual to retain a few options, including:
- Requesting time to think it over so that he or she can thoroughly think through the dangers of accepting or the opportunities that making additional demands might bring.
- Deferring a decision while he or she checks with a committee or board of directors.
- Asking for time to let legal or technical experts review the proposal.
- Pleading for additional concessions.
- Using good guy/bad guy to put pressure on the other side without confrontation.
- Taking time to think under the guise of reviewing notes about the negotiation.
Each of these six options gives a person additional opportunities to achieve the desired results for their side, without forcing them to concede an issue of their own.
Negotiations between an employee group and an employer can be a difficult task. Following a few simple rules and understanding some tactics and techniques for negotiating will help the process move along more smoothly. First and foremost, be prepared before going into any meeting. Gather useful information and use it to establish your walk-away point. When in the presence of members from the other side, act dumb. Do not let them know how intelligent you really are, essentially giving yourself a few more options if you need them later. During the actual negotiations, watch out for tactics that may be used against you. Be prepared for such gambits as good guy/bad guy, vise, bracketing, and the nibble. Counter them when they are used against you, or use them yourself. Also be prepared for more unethical tactics such as the decoy, red herring, and planted information. Once again, if you spot these techniques being used against you, speak up and make the other side know that you are aware of their shady tactics. Finally, in any negotiation, never let yourself be forced into a deal that you are not comfortable with – always be willing to walk away. Recalling and using these tips as needed can help anyone become a more confident and successful negotiator.
[tags]Negotiating, Bargaining, Business, Career, Unions, Lists, Tips[/tags]