Phil Veinotte joined HRA in 2006 with an impressive portfolio of experience in leadership positions as a strategic labour relations advisor and spokesperson in the challenging health sector. HRA asked Phil to share some thoughts with our readers on what it takes to be a negotiator…
In your experience, you’ve bargained with a variety of people with different backgrounds and experience. Would you say that everyone is a negotiator?
In fairness, the answer to that question is yes; everyone is a negotiator to one extent or another. We negotiate mortgages and make deals with family members about where we take vacations. But in the context of labour relations, good negotiators need to draw on skills and experience that are not always available to every person, manager or executive.
As we know, within every skill-based profession, from professional athletes and artists, to medical doctors or lawyers, they have skills that are honed and somewhat unique from others. Yet a professional runner may not be a good swimmer, a portrait artist may not succeed a sculpting, an oncologist may not do cosmetic surgery, and a skilled litigator may not be the person to write up a complex corporate merger. Such is the case in labour relations and in the services of the “negotiator” in my opinion.
So what’s the big deal with the labour negotiator role? It surely doesn’t take a lot of skill to state your position and argue with the union representative on the other side.
Labour negotiations – or at least well-conducted negotiations shouldn’t be about who argues the loudest and the longest. A good negotiator needs to really understand the positions on both sides of the table and find or create opportunities to achieve agreement.
There is a great deal more to the role of the negotiator than the face to face exchange between the parties. Now don’t get me wrong, the dynamics at the negotiating table are important. A good talker at the table can influence the outcome, but in terms of the overall impact, theatrics at the table is among the less critical skill areas.
So what are the critical skills of a negotiator?
Fundamentally, the negotiator needs to be a skilled communicator. Ironically, that means that rather than being just a good talker, the negotiator needs to be a superb listener.
I thought the most important thing was to get our client's message across.
It is. But to communicate the message effectively, you need to understand the intent of the message and find a way to ensure that the other side shares that understanding.
Being articulate, organized, clear and rational at the bargaining table in presentation and debate with the union is important to the success of the employers' positions and outcomes. But in addition to that, the negotiator needs to hear what others are saying. There are a variety of stakeholders and interests in the bargaining process all with a need for information that pertains to them. The skill to sort through these different messages and information needs is important to keeping control of the process. There will be messages needing to be provided to the negotiating committee, the employer management team, the senior employer decision makers including the CEO and perhaps the Board, the media and importantly to the union representatives, the union committee and the employees generally. The right message to the right group at the right time can be extremely helpful in achieving the employer’s outcomes.
The converse is true as well. The wrong message (or no message) raises questions and doubt in the minds of stakeholders and can be very damaging to the employer’s needed outcomes.
Okay, so can we just re-label negotiators as “communicators”?
Well, good negotiators are also able to think strategically. They need to be able to see the big picture and to project how changes today will affect trends and needs into the future. This takes me back to my earlier comment: A good employer negotiator needs to be able to understand the employers operations and related operational challenges and to understand to employer’s financial position, challenges and ability to pay. The skilled negotiator then takes this information and organizes the employer proposals to achieve needed outcomes in light of the bigger picture.
Issues are strategically introduced to the bargaining process and sequenced to manage the union reactions and positions. The negotiator needs to utilize the right style of bargaining so that it is effective in the circumstances. That style needs to be in keeping with the culture between the parties at the workplace. The negotiator needs to know how to not only represent the employer’s position, but also to be able to speak to the concerns of the union. The negotiator must be a relationship builder.
What do you mean?
The effective negotiator needs to have an effective working relationship with the union and their negotiator(s). Like any relationship, this is a dynamic one: no cookie cutter script is going to ensure that things go well at the bargaining table. To achieve a workable agreement, both sides need to have a certain amount of trust and respect for each other. That means you can’t go to the table looking for a fight – that’s the surest way of getting into one. You need to go to the table looking for solutions. This often requires a negotiator who can remain focused on the employer’s outcome objectives, is familiar with the process of collective bargaining and its relationship realities and is able to maintain objectivity and a respectful approach to the process throughout.
So what is the role of a negotiator?
Each round of bargaining is unique in terms of the role of the negotiator. It is a well known reality that good effective strategic planning and leadership is needed to be successful in any business process and this collective bargaining is simply another business process. And as with all business processes there is a designated person responsible and accountable for the outcomes. The negotiator needs to understand his or her role in the respective organization. That may vary from a role of a message carrier to the bargaining table up to the other extreme of being fully responsible and accountable for all aspects of the issues, conduct and outcome of the process.
How can an outside negotiator take on the responsibility for a table?
This kind of relationship requires a high level of communication and trust between the negotiator and the client. But more than this, the negotiator needs to be well-informed on a variety of fronts so that the negotiator is bringing added-value to the organization.
For example, the negotiator needs to be aware of the social and political climate. Unions certainly use hot social and political issues as leverage in their bargaining, and employers need to anticipate what these issues are and the possibility that public opinion, media interest, or even political interest might be brought to bear on issues. That potential for involvement/interference needs to be carefully managed.
Union politics are also a factor. The relationships within the union, both nationally and at the Local level needs to be considered. In many cases union affiliations and national labour bodies set policy or otherwise influence the Local union and can actually participate in the identification of issues for the Local and more importantly may get involved in the ratification process.
It will be important for the employer and the negotiator to be aware of not only these influences but to be aware of the decision makers in the Local union. Employers need to understand the decision making process of the Local. All such considerations will contribute to the Local’s autonomy and ratification process and therefore directly impact the employer’s strategy and the outcomes. It is important to recognize that these union relationships are dynamic, and require continuous monitoring to be reliable.
What do you have to say to employers who are reluctant to invest in a professional negotiator?
It’s really a question about value. The majority of operating costs of most organizations is tied up in payroll costs – in some cases it is up to 80% of the costs. This means that even small changes can have a big impact on an organization’s ability to succeed. Given this, I believe it is imperative that employers consider the collective bargaining process as the single most important opportunity to influence costs and efficiencies. The collective bargaining outcomes may well determine the success, viability and future of the organization.
So it really is a question of dollars and cents?
I wouldn’t go that far. The success in collective bargaining is not only measured in dollar terms -- in budget and profit terms. There are other measures of success such as the quality of work life for the employees, the influence on the retention of the current workforce, the experience in the actual recruitment costs and vacancy rates of the workforce to name a few, and maintaining a working relationship with the union.
So, you would say that not all negotiators are created equal?
The skills and abilities of the employer’s negotiator can be tied directly to the outcomes in collective bargaining. Determining who is to be the employer’s negotiator and defining the negotiator’s role are important strategic decisions at the beginning of the preparation for bargaining by the employer. If fully utilized, the negotiator can play an integral part in determining the employer’s strategy and approach to collective bargaining. Beyond understanding the issues and influences is the experience to then strategically and deliberately manage the process so as to achieve the employer’s outcome objectives. This requires distinct and specialized skills. The degree of success of the employer may well be tied directly to the degree of importance that is placed on selecting the negotiator for the job.
I just have one last question.
And what is that?
Do you also do windows?