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Strategies Used in the Negotiating Process and How They Are Used in the Work

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Negotiation in business is an effective tool if the situation requires it. The strategy that is used depends on the case or the situation. Negotiators must carefully assess the other party's stance and background prior to entering into negotiation. Needs and interests of negotiators differ and have different underlying motives. Whether it's a win-win approach or a battle over limited resources each negotiator usually has their own interests at heart. The paper that follows will in detail discuss the strategies used in two different negotiation processes by comparing them and then discuss how they can be used in my home/work setting.

Collective bargaining is described as a good-faith process that exist between the management of an organization and a trade union that represents the organization's employees. The union negotiates wages, working conditions, working hours and other work-related issues. Collective bargaining provides employees with great bargaining power, which is the base principle of trade unions (Business Dictionary, 2010). In the first case collective bargaining is done on behalf of Magic Carpet Airlines flight Attendants. Magic Carpet Airlines merged with River City Airlines then entered into a marketing agreement resulting in Magic Carpet becoming the feeder airline for that national carrier. After the merger of the two airlines, flight attendants got concerned about the way those personnel issues were taken care of. The flight attendants' concerns led them to join with the LFA (League of Flight Attendants), and negotiation began in November of 1989. The LFA bargaining committee members proceeded to examine wages, cost of living data and unemployment to match industry standards in order to stay within the financial bounds of MCA. After review of data, the LFA objectives were to increase wages through the duty rig provision and increased job security.

In light of the two broad objectives above, the union devised a strategy to achieve to this end. The strategies are as follows:

1. Keep union members informed of the negotiation process

2. Encourage the involvement of the union members

3. Convince Magic Carpet Airlines that the union's demands were serious

4. Settling issues only with the involvement of the negotiating committee giving a unanimous consent.

Negotiation Process at Magic Carpet Airline

The process of the negotiation began with the union representative mailing a letter of amendment of labor contract to Magic Carpet 60 days prior to the amendable date, since contracts for airlines do not expire but can be amended. The letter's purpose is to cause contract negotiations to begin. Initially the problems with the current contract was discussed then presented the company with a typed proposal having and indicating the changes. The changes included the increase of base wage and wage after five years of employment by over 25%, duty rig pay increased from zero to 1 hour pay for every 2 hours of duty, daily guarantee from 3.25 hours to 4.5 hours. Other areas of the negotiation of the contract sought to improve job security and working conditions

Midwestern Contemporary Art

Peter Smith joined the board at MCA (Midwestern Contemporary Art) Museum, one of the largest facilities for modern art in the nation. The MCA had Peter Smith as the chairman and Keith Schmidt as executive director. Peter became upset at Keith and both did not see eye to eye. Keith's huge vision for expansion was financially out of bound in Peter Smith's opinion. Peter eventually left when Keith had the majority of the board siding with his plans. Soon after the board at MCA voted to stick with Schmidt's plan Peter Smith disappeared from Chicago Art community but not from the thoughts of one time colleagues at MCA; Smith was yet to honor his pledge for $5 million to MCA. Construction funding depended on the pledge made by Smith and changes had to be made to the company's financial accounting rules as to how they would treat pledges. Peggy Fischer, sought advice from the board's



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