Collective Bargaining Simulation Exercise: Steps and Preparation

Introduction and Purpose

The purpose of this bargaining simulation is to let students experience some of the dynamics of collective bargaining.  The exercise will help students develop an understanding of the importance of the interactions of a negotiating team, the issues they might encounter while working together, and the process of developing a negotiating strategy. Through the bargaining simulation itself, students will develop an understanding of the challenges often faced by negotiating teams as they strive to resolve their differences and come to an agreement that will satisfy both sides.  

For this exercise, the class will be divided into teams, each representing either the union or management.  Each team has access to the same information about the company, Fine Family Foods (FFF) as outlined in Appendix A.  Given time constraints, it is only possible to negotiate a limited number of contract issues, rather than the entire collective agreement.  

Step 1 - Review Case Information about Fine Family Foods
 
Nothing is achieved in labour relations without considerable preparation and this stage is essential for success in bargaining.  Collective bargaining demands attention to detail before, during and after actual negotiations.

Your team should review the company information and the negotiation issues for both union and management as outlined in Appendix A.  You should not add other issues to be negotiated. You will note that the bargaining simulation starts at the second round of negotiations.  Union and management have exchanged their opening positions on the issues that they want to negotiate and the bargaining simulation proceeds from this point. 

Step 2 – Pre-Bargaining Preparations:

Once your team has fully reviewed the background information and understands the bargaining issues, work can begin on developing the team’s bargaining strategy.  For this step, teams must:

Discuss the team’s overall bargaining strategy taking into account the background case information and course concepts related to negotiations, particularly material from Chapters 7 and 8.

Discuss the importance and reasoning behind your bargaining objectives for each issue.  
Clarify your objectives for each issue, and develop for each issue:

a) your team’s initial/opening position for the next round of bargaining in response to what the other team has proposed as well as any change you may want to propose to your own team’s position.  Note that you cannot now propose something that is less favourable to the other side than what has already been tabled.

b) your team’s target position for all the issues to be negotiated

Step 1 - Review Case Information about Fine Family Foods

c) your team’s resistance point for all the issues to be negotiated

Step 3 – Prepare Bargaining Strategy Paper (Appendix B) for Submission (12 Marks)

This paper must document:

a. the team’s initial, target and resistance points for each bargaining issue 
b. the explanation/rationale behind the position you have taken for each bargaining issue.  The rationale should provide a clear, well thought-out and detailed analysis of your team’s bargaining objectives that demonstrates an understanding of course concepts.  It should incorporate and address information from the case and demonstrate a logical progression of positions taken for each issue. 

Plan any other tactics or bargaining strategies your team will use in negotiations. 

Determine the roles to be taken by team members.  You can select one person to be the chief spokesperson for the group or you can decide to rotate the role for each issue. Other members can serve as note-takers or subject matter experts or play some other role in the strategy and tactics of the team.  Having clear roles and responsibilities avoids confusion and instills a measure of discipline on the bargaining team.  Given that the simulation will take place online, without visual cues, plan how you will communicate within your own team during the negotiations (i.e., text, asking for time to caucus so you can discuss privately with your team, etc.).  

Step 4 - Bargaining Simulation – (Attendance Mandatory)

At the start of negotiations, it is important to set the stage and tone for bargaining.  This includes: introducing your team and the roles each member will be taking; discussing and setting ground rules for bargaining; and the exchange of initial demands/proposals and your explanation for each issue as per Step 3.  

Teams will then proceed to negotiate and attempt to arrive at a settlement by the end of the time available.  Use your time wisely.  Remember that your team is allowed to call a caucus at any point.  

Step 5 – Preparation of Memorandum of Settlement Appendix C (3 Marks)

a)  By this deadline, you must submit the terms where agreement has been reached.  The Memorandum of Settlement articles are to be drafted jointly by union and management teams, using precise and complete language that reflects what was agreed to.  Given the online format, it will not be possible for each team member to sign the Memorandum of Settlement, but note that the entire agreement must be reviewed by both teams.  

b) The Memorandum of Settlement must indicate that it has been reviewed by both the union and management teams.  The copy must then be uploaded into Blackboard by each team.

Penalties:
A penalty will be applied for teams that arrive late for the bargaining session or who arrive unprepared or have not handed documents in on time.   

If there is any issue regarding attendance, the professor must be notified in advance to discuss any extenuating circumstances or documentation that may be required regarding the absence. If there is an issue with the participation and contribution of a team member, the professor must be advised before the date of the bargaining simulation so that efforts can be made to address the problem.  Students who fail to participate and contribute to the team effort should not expect to receive the group grade.