The Negotiation Process

Negotiation is a process used to resolve conflict by civilized societies. The process

involves:
- recognizing that there is conflict
- preparing to meet with one another
- communicating with the aim of persuading the other party to change its position
by using strategies and tactics as instruments of persuasive communication
- reaching agreements which if implemented successfully will eliminate the conflict

This process can be divided into:

 The pre-negotiation stage
 The negotiation stage
 The Agreement

The Pre-negotiation stage

In this stage, the preparations for actual bargaining by the union and the management
takes place.

The Employers side:

To prepare for effective negotiation, the employer can do the following;

 Studying of previous contracts between the union and other organization.

 Studying the personalities of the union negotiators.
 Finding more information on the union.
 Understanding the personalities of the union negotiators.
 Defining the target settlement.
 Agreeing on the maximum employer is prepared to concede.
 Agreeing on the opening offer to be made which should provide sufficient room
for manouvre.

Factors that determine employer’s target settlement

 The relative strength of the employer and union case
 Relative power of employer versus union
 Size of unions claim
 Likely target and minimum acceptable offer by union
 Amount of room for negotiation
 Employers ability to pay
 The going market rate
 The rate of inflation/cost of living

The Union side:

 The union representatives must define their target.
 Define the minimum they will accept.
 Decide on the opening claim to help them achieve the target.
NB: Bargaining and negotiation involves the use of tricky acts that are aimed at
misleading the other party.

The Negotiation stage

Teamwork approach in negotiation is usually favoured by both the union and the
employers. Employer may have a committee made up of departmental and divisional
heads and the company lawyer, while the union may consist of business agents,
shopstewards and branch officials of trade unions.

NB: Union bargainers are usually experts in the art of bargaining and negotiation as they
are full time involved in the same exercise with other organizations e.g. dockworkers
union, Kenya Airline pilots, union, Kenya union of domestic workers, hotels, educational
institutions, hospitals and allied workers – KUDHEIHA, Banking, insurance and finance
union.

Strategy for Bargaining

Union
Management
Claim 200%

Negotiating range is 10%

Maximum 100%

Minimum 50% ( will Maximum 40% ( will

go on strike if less) take strike if more)

Target 30%

Offer 10%

NB: The employer must know how far it can go without risking a strike.