Issue of Impasse in Contract Negotiations

The relationship between labor and management is one of the most critical, and often one of the most acrimonious, in business. Labor, often represented by collective bargaining agreements, wants the best benefits and wages for its constituents; management wants to keep costs down, and, in most organizations, labor is one of the highest cost items. Yet these seeming adversaries are also mutually dependent upon one another. Labor requires the planning and coordination that management provides, and management requires the physical effort that labor provides. As a result, contract negotiations, in which both sides try to win the best possible outcome for their own interests, can be difficult. Many contracts are negotiated without job actions taking place, but occasionally, contract negotiations break down. This research examines what happens when such breakdowns occur, and looks at the concept of impasse and its ramifications as well as the job actions (strike and lockout) that may result.

An impasse arises when the parties involved in negotiations are no longer able to make progress toward resolving their conflict. Generally, such impasses are the result of intractable positions from which one side is unwilling to back down. Without the willingness and ability to negotiate in good faith, and without the willingness on both sides to make concessions, negotiations are likely to reach a point where further discussion between the two parties directly is futile. It is at th

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ter a given number of years. The last factor that should be considered when examining the labor impasse is that of the bargaining behavior of the parties. If the negotiators have unrealistic expectations, or if they are overly committed to a particular position, or there is a lack of desire to settle, an impasse is likely. Unrealistic expectations can sometimes be the result of inexperienced negotiators, or they may result from pressure from the groups being represented. Being overly committed to a particular position results from the nature of the issues (and moral principles, for example). A lack of desire to settle comes from bargaining outside of good faith, and may indicate that the negotiators are following a different agenda than that which is stated. Two job actions commonly arise from the impasse situation: lockouts and strikes. A lockout occurs when an employer refuses to let workers work until a collective bargaining agreement is reached. A strike occurs when the employees refuse to work until an agreement is reached. Lockouts are instigated by employers; strikes are instigated by employees (Mills 172). Many labor disputes receive little or no public attention outside the immediate geographic area in which th

Category: Business - I