INTEREST-BASEDNEGOTIATION

Federal Mediation and Conciliation Services

Human Resources and Skills Development Canada

Federal Mediation and Federal Mediation and Conciliation Service:Conciliation Service:

• Dispute Resolution Services:- Conciliation and Mediation- Grievance Mediation- Arbitration Appointments- Preventive Mediation Program- Labour-Management

Partnerships Program (LMPP)• Legislation, Research and Policy

Preventive Mediation Preventive Mediation ProgramProgram

- Relationship-by-Objectives (RBO) - Committee Effectiveness (CET)- Negotiation Skills and

Facilitation- Collaborative Problem-Solving- Mediation- Grievance Resolution Workshop

Workshop Workshop Objective:Objective:

An Understanding of:• what IBN is• IBN steps• IBN techniques/skills• behaviour elements

• Beer Pricing Exercise

Price Labson: $30 Labson: $25 Labson: $20

Molbatt: $30 M: Mkt share 50% Profit $25 M

L: Mkt Share 50% Profit $25 M

M: Mkt share 25% Profit $9 M

L: Mkt Share 75% Profit $49 M

M: Mkt share 15% Profit $4 M

L: Mkt Share 85% Profit $43 M

Molbatt: $25 M: Mkt share 75% Profit $49 M

L: Mkt Share 25% Profit $9 M

M: Mkt share 50% Profit $13 M

L: Mkt Share 50% Profit $13 M

M: Mkt share 25% Profit $3 M

L: Mkt Share 75% Profit $30 M

Molbatt: $20 M: Mkt share 85% Profit $43 M

L: Mkt Share 15% Profit $4 M

M: Mkt share 75% Profit $30 M

L: Mkt Share 25% Profit $3 M

M: Mkt share 50% Profit $0 M

L: Mkt Share 50% Profit $0 M

Note: Profits are rounded up to the nearest $-million.

• The IBN The IBN ApproachApproach

What is IBN?What is IBN?

• collective bargaining• an adaptable process• a way of focusing on the process• a negotiation style which

encourages creativity, information sharing, and participation

• a useful tool for some people at some times

What IBN is not ?What IBN is not ?

• a quick fix or the solution to all problems

• a way to get everything you want at the table

• a way to avoid conflict• about being nice and polite

and agreeing with everything• the flavour of the month• right for everyone

Interest-Based Interest-Based Approach PrinciplesApproach Principles

• process counts• focusing on issues, not on the

personalities• focuses on interests, not the

positions• creating options to satisfy

interests• jointly discuss to evaluate the

options• postponing a commitment

Negotiation Styles:Negotiation Styles:Traditional• separate training• send notice to

bargain• fixed mandate• exchange demands• push for position,

argue, stall• formal, face-to-face• little

discussion/many caucuses

• single spokesperson• confrontation• verbatim notes• sign-off each item• memorandum

signed on completion

Interest-Based• joint training• set joint ground rules

• flexible mandate• jointly identify issues• discuss interest,

generate options• informal, side-by-side• much discussion/few

caucuses• everyone talks• joint problem-solving• flip-charts• no sign-off• memorandum signed on

completion

• identify and share interests

• generate options• develop criteria• evaluate options• closure

Interest-Based ApproachSteps:

• opening statement• agree on ground rules• establish the issues

Preliminary

Substance

Step 1: Opening Statement:

• Purpose:- sets tone- expectations- constituents

• Contents:- commitment- process- common goals

Opening Statement:

The Union and the Company plan to make every effort to negotiate the collective agreement using the interest-based process. They will endeavour to share information openly and participate in discussions of a range options with the understanding that no final commitments will be made until the end.As the parties jointly face the challenge of the future, they share the following values:

– client focus– the overriding value of people as a resource– union-management partnership– quality and continuous improvement

Step 2: Ground Rules:

• establish process:- expectations- ownership

• logistics• rules• responsibilities• rights• behaviour

Step 3: List of Issues:

• identify and explain topic or subject of negotiations - broad, open-ended

• establish common understanding of all issues to be discussed

• prioritizing issues for the negotiation

• Focusing Focusing on on InterestsInterests

Identifying InterestsIdentifying InterestsFocusing on Focusing on

Interests:Interests:

• reflects concern about an issue• facilitates information sharing• promotes discussion of options• avoids starting the process

with a disagreement• adds legitimacy

Step 4: Identifying Interests:

Position• one party’s solution to an

issue• make demands• is the close-ended solution• purpose: to communicate the

single acceptable outcome• exaggerated statement• gives little information• contains “you” statements• directive language

Interest• one party’s concern, fear,

need or worry on an issue• forms the basis for a future

solution but is non-negotiable• purpose: to promote • discussion of various possible

options• no exaggerated statements• gives much information• contains “I” or

“we”statements• non-directive language

Identifying InterestsTypes of interests:

• mutual interests• non-conflicting interests• conflicting interests

Example Identification of Interests:

• Issue: A car pool member who is frequently late.

• Statements:a) “When I am late, my boss is on my case all day.”b) “ The next time you are even five minutes late, we are going to kick you out of the car pool.”

Identifying Interests:

• Position: Demand for higher overtime rate.

• Possible interests:- increase members’

compensation- job creation- prevent abuse of overtime

• Generating Generating OptionsOptions

Step 5: Generation of

Options:

Options - are one of a number of possible solutions to resolve an issue.

Purpose:• to increase flexibility in the search for

solutions• to develop a better solutions as a result of

joint efforts • to provide the participants with ownership of

the process• to increase commitment to the final outcome

Generation of OptionsThe Process:

Brainstorming• ensure full participation• create without evaluating, no

criticism• work towards quantity not quality• propose options without judicial

prejudice• guidelines:

- alternate the facilitator- lead with the next number- keep everything visible by posting

the completed sheets

Generation of Options

Blocks to Creativity:

• fear• premature judgement• assuming single solution• assuming limitations• negative attitudes• perception

Generating OptionsOvercoming Blocks:

• informal setting• challenge assumptions• suspend judgement• analyze the problem in parts• recognize point of exhaustion

• BrainstormiBrainstorming Exerciseng Exercise

• Evaluating Evaluating OptionsOptions

Step 6: Development

of Criteria:

• where possible, use objective standards• agreement on choice of criteria and options

is done by consensus decision-making• jointly developed standards can provide a

basis for deciding issues in a fair, acceptable and transparent mannerExamples of Standards:- industry practice- market rates- past performance

Step 7: Evaluation of

Options:

The Three-Cut Method:

• Does the option satisfy interests?

• Are the resources available?

• Can the option be sold to others?

• Achieving Achieving ClosureClosure

Step 8: Closure:

• all issues discussed• objective is still a

collective agreement• “No” is part of the

process• packaging of issues• broad perspective• consensus decision-

making

Closure:Closure:

Issue

Interests

Options

Evaluation

Closure

• Consensus Consensus Decision-Decision-MakingMaking

ConsensusDecision-Making:

• unanimous agreement on a single course of action reached through a cooperative, not a competitive process where each member can say:

• I understand what is being proposed...• I had the opportunity to express my

views and I understand the views of the others...

• It was arrived at openly and fairly…• It is the best solution for us at this time• I will support the implementation of the

solution

Consensus Decision-Making

Guidelines:

• listen and be open to persuasion

• encourage participation• share information• treat differences as strengths • avoid agreeing hastily,

bargaining or voting

• CommunicatioCommunication and Effective n and Effective ListeningListening

Communication:Communication:

• put yourself in their shoes• discuss perceptions• focus on issues, not personalities• focus on future, not past• legitimacy of emotions• allow venting but avoid reacting

• Exercise on Exercise on PerceptionsPerceptions

Effective Listening:Effective Listening:

• 75% words ignored, misunderstood, forgotten

• brain 8-10 times faster than speech

• active listening - 17 seconds

• not trained in listening

Effective ListeningEffective ListeningBad Listening Bad Listening

Habits:Habits:

• attention fakers• criticizers• bored listeners• difficult material

blockers• note takers• mental rehearsers

Summary: What it takes to

Succeed:

• genuine desire for change • commitment at all levels• long, broad view and is part of

overall approach• flexible mandate and timeline• empowered negotiators• open sharing of information• communication with constituents