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Ethical Considerations In Labor-Management Negotiations

Running head: ETHICS IN NEGOTIATION

Ethical Considerations in Labor-Management Negotiations
Douglas C. Connor
Grand Canyon University
Organizational Theory/Behavior – MGT 602
January 24, 2009

Ethical Considerations in Labor-Management Negotiations
Ethical considerations in modern labor-management contract negotiations have been a topic of conversation in the United States for decades. The spectrum of options for addressing these critical talks have run the gamut from Carr’s 1968 poker analogy to Bowie’s 1985 family relationship model which goes so far as to propose that labor and management accept roles similar to husband and wife in a family and negotiate in the interests of the collective good of the entire organization. This paper will look at a hypothetical scenario described below and analyze two different management strategies for negotiating with a union that has suddenly turned hostile and deceptive.
Scenario Description
This scenario describes a small job shop machine tool company with 35 employees, most of whom are highly skilled machinists who belong to Local 999 of the International Brotherhood of Good Guys Union. The CEO has been an open manager with an abiding sense of fair play and ethics who has been able to attract workers who are skilled and committed to the company's long term success. In fact, labor relations are calm - even harmonious with contract violations usually handled between the CEO and shop stewards in a problem solving context with an almost complete absence of acrimony or contentiousness. Now, however, this CEO faces a serious and unprecedented issue. Due to an economic downturn, business activity has taken a sharp decline with the expectation that things will get much worse. The company accountant informed the CEO there is no other choice but to lay off people or reduce wages of the workers. The initial meeting with the union representatives was filled with divisiveness, arguing, name-calling, and even...