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