Negotiation Negotiation Parties Involved This collective bargaining involves two parties. One of the parties is the Magic Carpet Airlines that manages several air couriers operating in various routes and destinations. The other party is a trade union that represents staffs working for the Magic carpet airlines. Role of the Parties According to the case study, the role of the Magic Carpet Airlines representatives is to ensure that the labor cost of operations is trimmed. In this case, they want to bargain for payment of reduced wages so that the total cost of operating the company decreases, this in turn would decrease the fee charged to travelers and hence improved competitiveness.
On the other hand, the responsibility of the trade union is to ensure that the welfare of its members is guaranteed. In this case, the union brings in the issues of pay cut, medical leave allowances and the minimum number of hours allocated to each member when the operations are scaled down. Therefore, their role is to facilitate the address of these issues. Needs and Concerns of the Parties The Magic Carpet Airlines is concerned that the deregulation has brought about unprecedented realignment in the industry.
This has necessitated the scaling down of the cost of operations with the intentions of providing cheaper services. According to their representatives, they are concerned that the sub-contracting model of services calls for a layoff of some staffs. Furthermore, they are worried that the staffs will be promoted to senior levels leading to huge perks in case the organization decides to call them back. The trade union is concerned that the starting salary for the flight attendant is $13 per hour and that of attendants with more than five years of experience is $20 per hour.
They are also worried that that their minimum flight is 65 hours per trip. In addition, they need to be recognized as safety professionals and should be allowed to attend the Safety Committee meeting twice a month. Finally, the union requires the issue of medical leave and vacations to be addressed. Interests and Positions The management of the Magic Carpet Airlines holds that the labor cost has to be scaled down at all cost. According to their representatives, their position is that the union must drop their demand of eight off days and that their job security cannot be guaranteed owing to the fact that the industry demands a cut in the total cost of operation. On the other hand, the trade union holds that the minimum starting salary for flight attendant should be increased.
In addition, improved working conditions should be provided. Emotions/personality in the Negotiations Emotions are very influential as far as accurate decision-making is concerned. They affect communication, relationships and negotiations. According to Hayter (2011), individuals with stable emotions can quickly reach comprise when making collective bargaining.
Effects In the case highlighted above, stable personality of the negotiating parties allowed them to make agreement without prompting acrimony. In other parts of the negotiations, some characters have posted emotional tantrum that almost threw the discussions to turmoil. In an incident, Orleans uttered, “………. ..What do you think we are flying—gold-plated aircraft? .... .’’ this emotional sentiment prompted a breakdown of the smooth negotiations. In addition, we saw one of the negotiators “ lit his tenth cigarette” and walked out of the discussion. Stress/Perception Perception is the human behavior of attaching meaning to events and messages.
In this case, individual on a given matter makes him or her to form an attitude of opinion on the matter. This sometimes makes people to view an innocent matter with suspicion. In the negotiation case above, perception would have adversely affected the comprise process should the two parties have handled each other with suspicion. If they inflicted bad motive on each other, they would have failed to reach a compromise. Effects of stress/perception in the case study In the study case of negotiations between MCA and the trade union, attitude (in this case perception), played a significant role in the course of negotiations.
The workers represented by the trade union became suspicious of the motive behind laying- off some workers. In addition, the MCA had scaled down the minimum number of hours that attendants were paid when few flights were available. In this case, the union was prejudiced when negotiating on this matter. A worker that is poorly remunerated will always be stress when organizations make major changes in their operations.
In this case, the union bargained for increased wages under the influence of stress. The incident made it quite difficult to reach a compromise. Moreover, poor working conditions coupled with job uncertainty escalated the stress and hence the union took a rigid position on improved working conditions and job security. To sum it up, the requirement of a five-day notice for attendants to exchange shifts made them suspicious of the motive. Conclusion on Human Factor During negotiations, individual may hold onto rigid positions due to the human nature of attitude, suspicion and psychological evaluation of an event.
In this case, it may become very difficult to reach a reasonable comprise for the negotiators. In this case, Hayter(2011) holds that the mediator should endeavor to critically analyze the case presented without taking into consideration statements emanating from a biased mind. Reference Hayter, S. (2011). The Role of Collective Bargaining in the Global Economy Negotiating for Social Justice. Cheltenham: Edward Elgar Pub.