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D. G. Barnhouse Case Summary

Decent Essays

a. During our negotiation with D.G. Barnhouse (DGB), we intend to utilize an integrative bargaining strategy with management. Before coming to this conclusion, we weighed the advantages and disadvantages of a distributive approach, however, we eventually decided to take an integrative and predominantly interest based stance versus a position based stance in our negotiations after assessing internal and external environmental factors. In addition, we settled on this strategy because we ultimately believe that management and the union share at the very least, one fundamental common interest, which is the firm’s financial stability. That being said, even with our plans to use integrative bargaining, we still plan to negotiate assertively to achieve …show more content…

For one, the company is facing difficult market conditions, and the amount of total power that the two parties have to share has been diminished by the sluggish demand for machine tools. The company has experienced a decline in gross profit on sales which decreased from 12,165,918 two years ago, to 10,695,299 last year. It is in union’s best interest to increase the total power in this situation because doing so increases the resources that both parties can divide. In addition, expanding total power improves the firm’s ability to pay and increase the demands that the union can reasonably make to …show more content…

The union will need to engage in intra-organizational bargaining in order to reach a greater consensus as to what is essential to our workers. By going through this process away from the bargaining table, we can come to the table with a firm and unified stance. We indent to do this in a number of ways. First, we can educate workers about how in actuality, their interests are aligned because a victory for the union is a victory for all members. For example, an improved pension plan does not only benefit older workers, but also younger workers because of the precedent that this proposed pension plan will set for their future pension plans. The same is true for job security. We will ensure the workers that we as their union are their agents in their desire to improve their wages and working conditions. This emphasis on unity will increase our relative power and aid us when it comes time for zero-sum bargaining. Consistent with our bargaining strategy, we would also like to work on building a trusting relationship with management in order to get the most out of integrative bargaining. We can do this over the course of the next several months by holding meetings with them to gauge where their interests lay. Through attitudinal bargaining we can lay the ground work for open and transparent dialogue about our objectives. These bonds increase the likelihood that integrative bargaining will succeed and reduce the likelihood of an

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