Acme Auto Parts: Planning Negotiations

Subject: Managerial Negotiation
Pages: 1
Words: 311
Reading time:
2 min
Study level: Bachelor

In negotiations, HR managers are expected to play a dual role. On the one hand, they should consider the interests of the organization; on the other hand, their responsibility is to improve employees’ positions. In case of Acme Auto Parts, the HR manager should explain to employees the benefits and disadvantages of joining the United Auto Workers (UAW). The process of planning should include gathering information about the wages, costs of production, job satisfaction, and general employee attitudes (Budd, 2021). Considering that contract negotiations already involve concessions, the unionization of the company is not likely to bring significant benefits. As for the performance of Acme Auto Parts, they produce and sell parts to the Big Three companies, which make it non-competitive on the market. Accordingly, the costs of unionization can be too high to engage in this activity, and it would make an adverse impact on the employer. In particular, with the growing costs, the Big Three would be likely to find another firm for outsourcing.

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As for bargaining powers and strategies, I would try to meet the needs of employees while preserving a healthy bottom line (Budd, 2021). One of the ways to learn more about the negotiation process and strategies is to contact with HR managers from the automotive industry and analyze their experience. The group discussion with the employees of Acme Auto Parts is another step in collecting relevant information and understanding their needs to better represent them.

If I were a representative of the union, I would learn about the advantages and drawbacks it provided regarding other small firms. To negotiate, I would prepare a benefit proposal to clearly explain it to the employees and also pay attention to potential concessions to stimulate successful negotiations (Chung et al., 2016). My preparation would change since my goal would be to encourage the employees to become the union members.

References

Budd, J. W. (2021). Labor relations: Striking a balance (6th ed.). McGraw-Hill.

Chung, R., Lee, B. B. H., Lee, W. J., & Sohn, B. C. (2016). Do managers withhold good news from labor unions? Management Science, 62(1), 46-68.