Negotiating Lessons from The Past

It is an interesting time to be working as an Industrial relations specialist and negotiating expert. The pendulum is swinging back towards another period of unrest as relations between “Management” and “Union” become increasingly strained. There is a fear that we might be returning to the 70’s. This is most unlikely, as today’s economic situation is very different. However, what we are witnessing are reminders of past lessons.

Issues of the moment in the current round of disputes include:

• Forced changes in contractual pay and conditions

• Pay freezes and reductions in benfits and conditions of employment

• Reductions in pensions , closure of schemes, major deficits in funding of schemes

• Job security (insecurity)

• Bullying and competitive management behaviour

• A challenge to industrial democracy and a perceived attempt at union busting

Many of these disputes have declined into attacks between personalities. Some are taking on new issues as situations grow worse and objectives become blurred. This is leading to deadlock followed by blame being directed across the table.

So what is going on?



1. Leadership Issues

 If a company suffers a strike it is the Management’s responsibility. It is part of the negotiating landscape. Both sides are responsible for allowing issues to escalate to the point where one side or the other has to take this level of action. An unwanted strike will be a failure of planning, communications, management of expectations, realism, sensitivity, understanding and more importantly, leadership.

If any of the current levels of dispute have not been anticipated by the managements involved, then both the dispute and the management are “out of control”.

Too often we see objectives which are unclearly specified at the outset become further distorted as a dispute escalates. Managements who pursue single inflexible strategies fail, even if the objective is reasonable and fair. Macho, confrontational behaviour to be seen as a strong tough leader creates intransigence, deadlock and out of control confrontation. 70’s behaviour. When both sides indulge in this behaviour they cease to represent the interests of those on whose behalf they act.

2. Listen to The Language

A key role for the Manager as Leader is to look after the interests of those they manage. It is the Manager who should be communicating company positions, explaining the challenges ahead, clarifying offers on the table and ensuring their employees understand. If this key channel breaks down, or is not trusted, then management leadership is failing and the vacuum invites others in who will have different agendas.


Engage with employees as employees. When a company starts to talk about “Union Members” rather than “Our Staff” or “ Our Employees”, it signals a breakdown in relations. The conflict is  described by personality not issue.

When the dispute is over, relationships will need to be rebuilt and then strengthened.


Key Negotiating Lessons:

Objectives need to be absolutely clear.

You should always review the impact on relationships. For management, internal relationships are critical; for investors they may be irrelevant.

Beware – Improved staff relationships will most likely be both an objective in itself as well as a strategy for managing change. Ask yourself:

• What kind of staff relationships do you want to have following the outcome of the negotiation?

• How quickly do you want to implement change?

• What will be the impact on your own employees if you pursue the current strategy?

• What is the best way to achieve widespread support? For objectives and strategy? To rebuild?

• Do you want the Management to represent the best interests of your staff or do want this to be taken over by others? Who do you want them to trust most?

• Listen more talk less

Auditing Negotiating Trainers

Some of my assignments over the past years have included audits of Negotiating Skills Training Courses and Trainers for clients. These have been to check that the quality of a client’s courses meet a standard that allows clients to have confidence that a training event delivered in the UK will be as good as one delivered in the USA or China. Also I have assessed trainers and potential trainers as they work with the material to see if they are able to deliver at the right level and with genuine authority. The real lesson from carrying out these assignments has been that Trainers without real experience as negotiators do not make very effective negotiating trainers.

The problems I see regularly are:

Sterile Delivery

• They do not understand the material they try to deliver which can cause confusion and false messages.

• They are not engaged with the subject and as a result there is no enthusiasm

• There is a lack of authority because they are unable to work outside the straitjacket of the script. They do not have their own experiences from which to draw illustrations and anecdotes.

• When using scripted stories, they are often poorly delivered and many times told out of context.

No Authority:

• Their lack of real “hands on” experience limits the ability to give credible answers and explanations

• Working to the script (someone else’s experience and expertise) is too easily recognised by trainees – once this is seen, the credibility is lost

• Relying on the crutch of a Power Point Driven presentation may provide comfort, but it does not build confidence. Need I say more?

• A trainer giving signs of lack of confidence encourages challenge and argument from the floor which can destroy the event for the other trainees

• Case work loses its effectiveness if a trainer without credibility attempts to critique participants


The Key Lessons:

Know your subject!

Work with an experienced professional who can train / present – they will provide the quality and teach you a thing or two. Develop a professional partnership

Be honest – If you don’t know the answer, admit it – it gains respect. – But make sure you can answer it next time

Get out and acquire some real experience of your chosen subject. Remember many are convinced the trainer has chosen to train because of past failure elsewhere. As trainers we should be the best passing on best practice.

Get some serious Train the Trainer development and practise practise practise