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Interest-Based Bargaining: A different way to negotiate
It is known by many names and practiced in many variations and settings: Win-Win Bargaining, Mutual Gains, Principled or Interest-Based Negotiation, Interest-Based Problem Solving, Best Practice or Integrative Bargaining. Some of the variations utilize different steps and techniques which can alter and affect outcomes. However, no matter which variation is used, the Interest-Based Bargaining (IBB) concept is constant. It is a different way to negotiate. In the right situation, it is an alternative, replacing traditional positional bargaining with a process of joint problem-solving. Traditional negotiating is often about relative power and the willingness to use it against each other, sometimes at the expense of a better agreement or even the relationship, in order to "win." "If you can't go along with us on these issues, there will be no agreement. We cannot accept anything less." In contrast, IBB negotiations may offer the parties more flexibility, not locking them into predetermined issues and bargaining positions. Instead, the process begins with understanding the problem and identifying the interests that underlie each side’s issues and positions. "Why did you take that particular position ?" "What concern is addressed by that issue ?" When everyone understands the interests and concerns that lead a person or group to take a position on an issue, they often find that some of those interests are mutual, that both sides at the table are trying to achieve the same goal, just taking different approaches. And they frequently discover that what at first appear to be competing interests are not really competing at all. Dealing with each other in this way makes it possible to generate and consider options to satisfy particular interests that may never have been considered before. Parties who participate in IBB have learned that agreements tend to address issues in more depth than those reached using traditional techniques because they are the result of a process aimed at satisfying mutual interests by consensus, not just one side’s interests at the expense of the other. And because negotiators are dealing with each other on a different level, the results usually go beyond immediate issues to address longer term interests and concerns. Interest-Based Bargaining is a process that enables traditional negotiators to become joint problem-solvers. It assumes that mutual gain is possible, that solutions which satisfy mutual interests are more durable, that the parties should help each other achieve a positive result. In the collective bargaining context, it assumes that negotiation, like other aspects of the collective bargaining process, can enhance the labor- management relationship, and that decisions based on objective criteria obviate the need to rely only on power. IBB captures some of the highest principles originating, but not always practiced, in traditional distributive bargaining, and makes those principles consistent parts of the process:
Interest-Based Bargaining is No Cure-AllInterest-Based Bargaining is not--nor should it be--a universal replacement for positional or distributive negotiating. In an appropriate setting it offers an alternative with certain advantages. Outside that setting, IBB will probably fail, the parties will switch back to traditional bargaining, but with increased suspicion and distrust, and their relationship may suffer additional damage. Some of the necessary components which increase the likelihood of successful IBB negotiations are: 1. In a collective bargaining environment, evidence of labor-management cooperation during the past contract term 2. Sufficient time remaining prior to contract expiration to complete the sequence of decision-making about IBB, training and application of the process 3. Willingness of the parties to fully share relevant bargaining information 4. Willingness to forgo power as the sole method of "winning" 5. Understanding and acceptance of the process by all participants and their constituents Interest-Based Collective BargainingInterest-Based Bargaining has been one of the most requested FMCS training programs for years. The IBB model is used with increasing frequency in collective bargaining contract negotiations, reflecting a growing acknowledgment by companies and unions representing their employees that they have a fundamental mutual interest in the survival and economic health of the company: productivity and profitability translate into jobs and employment security. Success with the IBB process can have much more significance than the negotiation of a single contract. Since IBB principles are founded on cooperation, or at least the willingness to take a chance on cooperation, success indicates a change in the way the parties relate to each other. Ideally, rather than a periodic interest-based attempt here and there, it suggests movement toward, or an opportunity to build, an interest-based relationship. The IBB model can also have application in negotiated grievance procedures, especially when the supervisor and grievant must continue working with each other after the grievance is resolved. Successful outcomes from an interest-based approach to grievance resolution can help improve a working relationship, heighten satisfaction with outcomes, and lower the cost of handling grievances by reducing the number. Establishment of this process in daily contract administration requires the creation of a joint problem-resolution team of labor and management facilitators to act as third-party neutrals. FMCS trains these facilitators in the IBB process and facilitation skills. One of the long-term benefits to such a joint problem-resolution team is that, as the parties continue to gain understanding and familiarity with the IBB process in handling grievances, they often begin to use it to resolve problems before they become grievances. Interest-Based problem-solving may also become one of the keys to a successful Labor-Management Committee, a joint panel organized on a shop floor, plant or area-wide basis. The committee provides a forum for continuous communication between management and union, a mechanism to discuss and act on issues of mutual concern and interest. IBB in Regulatory or Public Policy NegotiationsThe IBB process is also a foundation of FMCS assistance outside the collective bargaining environment. The Service is authorized by Congress to conduct Regulatory Negotiations and Public Policy Mediation for local, state and federal government agencies. These frequently involve complex, multi-party negotiations with numerous stakeholders representing diverse and strongly-held viewpoints who join government representatives at the bargaining table to work out mutually-acceptable draft rules and regulations, or to try to reach agreement in such controversies as public lands, water or mineral rights disputes. Because the goal is consensus on a draft regulation or public policy recommendation, agreement would be difficult, if not impossible, without the use of interest-based problem solving techniques. When the negotiators, with the assistance of an FMCS facilitator, focus on satisfying interests instead of holding fast to positions, agreement can be reached. Will IBB Work for Us ?Exploring the potential for effective IBB begins with a presentation by FMCS mediators outlining the operative principles, assumptions and necessary steps and techniques. If all the participants cannot accept the principles and assumptions that underlie the process, it is highly unlikely that they will be able to follow the steps and use the techniques during negotiations. If the parties and FMCS determine that IBB is appropriate and there is sufficient interest among the parties in using the process, the mediators will conduct necessary training for all participants, teaching them the steps and techniques of IBB--and just as important--how to handle behaviors that are instinctive to traditional negotiators, but fatal to the IBB process. The interactive training culminates in a series of exercises which test the participants’ ability to work through the process to completion. This training is a strong indicator of how well the parties will handle the process in actual negotiations, and, in some cases, could suggest that the parties would be best served by staying with a traditional bargaining approach. The FMCS mediators will guide each party through a separate caucus to critique and analyze the training experience, and jointly determine the feasibility of using IBB. If the decision is made to proceed with Interest-Based Bargaining, the mediators will facilitate a joint meeting of the participants to reach agreement on ground rules and protocols under which the bargaining will be conducted, an exchange of the issues to be negotiated, including the grouping and sequencing of issues, and steps for a smooth transition to traditional bargaining if the IBB process breaks down. During the training, the mediators familiarize the parties with the IBB Problem-Solving Process. They lay out a logical sequence of steps to help the parties keep on the IBB track and reduce the chances of reverting to traditional bargaining. 1. Select and focus the issue or issues 2. Identify interests behind positions 3. Generate options to satisfy interests 4. Establish objective criteria to evaluate options 5. Apply the criteria to the options 6. Reach consensus on overall solutions The mediators will also orient participants in the tools of Interest-Based Bargaining: techniques and approaches which allow the process to move logically toward solutions.
It is important to remember that the Interest-Based approach is not the next step in the evolution of collective bargaining. It will not and should not replace positional and distributive bargaining in every negotiation. But, under the proper conditions, and with the proper relationship between the parties, IBB offers a useful alternative. FMCS mediators are trained and experienced in assessing the issues and the labor-management relationship, making a determination about the potential effectiveness of IBB, and, if appropriate, assisting parties through the process. The benefits of the Interest-Based approach can extend far beyond a particular negotiation, and help pave the way to a more constructive relationship. For more information about Interest-Based Bargaining, contact the Federal Mediation and Conciliation Service Regional Office nearest you. FMCS ORGANIZATION FMCS mediators work out of more than 75 field offices around the United States, administered through five geographic regions. For more information, contact the FMCS Office nearest you. National Office:Federal
Mediation and Conciliation Service Northeastern RegionOne Newark
Center, 16th Floor William J.
Green Federal Building Southern Region401 West
Peachtree Street, NW, Suite 472 3452 Lake
Lynda Drive, Suite 122 12140
Woodcrest Executive Drive, Suite 215 Midwestern Region6161 Oak
Tree Boulevard, Suite 120 Upper Midwestern RegionBroadway
Place West Elm Plaza,
Suite 203 Western Region1100 Town
and Country Rd, Suite 410 Westin
Building, Suite 310 Federal Mediation and Conciliation ServiceMission
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