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SCENARIO: The union and management bargaining teams for Speedy Express Airlines are preparing for upcoming negotiations. The last round of negotiations was disastrous; there was a strike and relationships were damaged. The leadership on both sides would like things to go better this time around and to work toward a more cooperative relationship. Trust between the two groups has eroded over the years, however, and any attempt by the leaders to employ a mutual gains approach likely will not be met with enthusiasm by their constituencies. The three issues on the table for this negotiation are wages, employment security, and medical benefits. This role simulation has three rounds: an intra-team preparation round, an opening negotiation round, and a final negotiation round. Participants may be given different roles in the different rounds. MAJOR LESSONS: * There are often legitimate differences within bargaining teams. These internal conflicts should be worked out before inter-team bargaining begins, as unresolved internal conflict can create problems when it comes time to ratify agreements. This exercise allows participants to practice techniques and strategies for managing internal team conflict. * In most collective bargaining situations, each side begins by staking out its positions -- usually before they hear what the other side's concerns are. This often leads to a concession-trading process, which is not conducive to value creation. Listening to the other side's interests before staking out opening positions can help achieve maximum joint gains. * Each representative has a mandate that aids or constrains his/her ability to negotiate. How do representation issues affect the negotiation? * How do threats or promises influence the behavior of other parties? * How do the issues of relationship, precedent, and reputation affect the negotiation? Conversely, how does the negotiation process affect issues of relationship, precedent, and reputation? TEACHER'S PACKAGE INCLUDES: Participant materials. No teaching note available for this case.
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