Collective Bargaining Simulation
Background
Labor unions are groups of workers banding together to deal with their employers more effectively than they could individually. If one worker complains about problems, he or she can be ignored or even fired, but forming a union gives workers more power. Workers in unions have better pay and benefits (sick leave, retirement savings, health care, etc.) than similar non-union workers. They also have fairer work rules, and the right to take complaints to a third party.
The vehicle for achieving these types of gains is collective bargaining. This involves two sides, the labor union (representing the workers at a certain company) and management (representing the owners and others who run the company). The two sides meet to try to agree on a written contract (also called a collective bargaining agreement), in which certain things about how the company will be run, and especially how the workers will be managed and paid, are spelled out.
The collective bargaining process takes many forms, but to be successful, a lot of compromise is usually required. Both parties start with proposals showing what they would like to see in the contract. For instance, the union might propose a $2 per hour wage raise, but the management might propose that wages stay the same. The union might argue that wages are so low that the company is having trouble hiring new staff. The company might say it can't afford higher wages.
The union could lower its wage proposal, realizing that $2 more per hour is unrealistic. The company could raise its proposal, realizing that without a raise, people might look for other jobs. The parties could end up agreeing, and putting in the contract, that there will be a $1 hourly raise.
The Situation
Today’s exercise involves bargaining at a fictional manufacturing plant, where the majority of the workers has just voted to join a union. The plant is somewhat profitable, in other words, it is a fairly successful business operation. The plant pays about 40 cents an hour less than similar unionized plants. There is no retirement plan, but the company pays for worker health insurance. We are going to divide into four character groups, two with the union and two from management.
Process
A. The two union side groups (1 and 2) meet on one side of the room, and the two management side groups (3 and 4) meet on another side of the room. In their separate sides (union and management), they come up with from 2 to 4 proposals for items they want to see in the contract. Each side selects a spokesperson (or several), who will describe their proposals to the other side.
Union Proposal # 1:
Union Proposal # 2:
Union Proposal # 3:
Union Proposal # 4:
Management Proposal # 1:
Management Proposal # 2:
Management Proposal # 3:
Management Proposal # 4:
B. The sides meet separately again. Each side rates every proposal on a scale of 1 to 3, with 1 meaning they like the proposal and it is a high priority, 2 meaning they would be willing to discuss the proposal or compromise, and 3 meaning they don't like the proposal and would not agree to it in the contract. (Note: at least one of your group's proposals should be rated below 1. In other words, for the purposes of this exercise, you cannot rate all of your own proposals as 1s.)
C. The groups compare how they rated the various proposals. If there are proposals that both sides list as 1, those proposals should end up in the contract. If there are proposals which both sides list as 2, or one lists as 1 and one lists as 2, those are areas where agreement is possible. If one side lists a proposal as 1 and the other as 3, that proposal will probably have to be changed or left out of the contract. (Hint: Proposals with dollar amounts are usually open to compromises. For example, the sides could be far apart on wage rates, but might be able to meet in the middle.)