Negotiations Breakdowns

---

What if negotiations break down and/ or agreements cannot be reached? There are three commonly used strategies: mediation, fact-finding, and arbitration.

Mediation

Mediation entails identifying a neutral third party who works with labor and management in an attempt to settle differences between them to arrive at a contract. The mediator can advise, offer suggestions, make recommendations, and otherwise try to eliminate the roadblocks encountered in the bargaining process. The mediator can rationally discuss issues with each side, can encourage, and can offer solutions. He/she has no power to determine the decision nor require agreement of the parties.

Perhaps the greatest advantage of mediation is that the neutral third party is that. He or she has no preconceived notions as to who is right and who is wrong or what the employees or management "should" do. Nor is he/she caught up in organizational "history" or "culture" nor emotions which can be a source of the failure to reach an agreement.

Often, simply because mediators bring a fresh pair of eyes along with an open mind, they can effect reasonable compromises or resolutions to the problem areas.

Some believe mediation is the better option of the three.

Fact-Finding

Perhaps not quite as common as mediation and arbitration in the resolution of contract stalemates is a process called fact-finding.

In fact-finding, a neutral third party, often appointed by a federal or state collective bargaining agency, is brought in to suggest a reasonable settlement. His/her role is to listen to both sides as each presents their respective stances on issues, determine what might be a fair settlement, and release a report to both sides AND to the public as to what would be a reasonable decision on a given issue or the contract proper.

Once again, the fact-finding is only advisory in nature; the fact finder cannot issue binding decisions. Why the fact-finder is sometimes effective in helping parties to reach a decision is that typically neither the union nor management want potentially unfavorable publicity.

Arbitration

In arbitration, the dispute is handed to a third party who makes a final and binding decision. Known as "final offer" arbitration , the process may be one in which the arbitrator approaches the lack of agreement by looking at each issue separately and making a decision or by looking at the contract package as just that and making a decision.

Now, the arbitrator does not effect compromise or negotiation. The arbitrator will select either the management stance or the union stance. And, when the arbitrator makes his/her choice(s), the contract becomes final.

While some labor disputes go to arbitration and both sides are willing to accept the arbitrator's decision(s) as final, there are obvious reasons why mediation is the preferable alternative.

Sources and Selection of Mediators and Arbitrators

While not legally required, most parties involved in a dispute will request a mediator or an arbitrator from either the Federal Mediation and Conciliation Service or the American Arbitration Association. Only people's names who meet certain criteria, have requisite labor management experience, and who are accepted by both management and labor as neutral third parties are placed on these lists (Mondy & Noe, 2005).

Now, labor and management must agree on the person selected. Obviously each side will look at the background and decisions made by the potential arbitrator.

Reading Assignment: Please Chapter 11, pages 218 – 229 from the Fire Service Personnel Management textbook by Steven Edwards

In order to avoid labor management breakdowns in negotiations and the subsequent mediation and arbitration, progressive organizations are looking at and moving toward principle based negotiation or interest bargaining.

While this is true, according the AFSCME, its actual existence is rare. Why rare? Because it involves some rather fundamental changes in the way both labor and management approach the bargaining process (AFSCME, 1995).

References

AFSCME . "Interest Based Bargaining." Collective Bargaining Reporter. 1995. http://www.afscme.org/publications/9684.cfm

Mondy, W. & Noe, R. Human Resource Management. 9th Edition. Upper Saddle River: Pearson, 2005.

---