What Is Interest-Based Bargaining?

Interest Based Bargaining processes are key to development of joint labor-management collaboration efforts. Through application of interest based bargaining (IBB) approaches to problem solving, planning, conflict resolution, grievance handling and contract negotiations, it is possible to create outcomes in which the needs of both union and management are met while maintaining or strengthening the relationship between the parties.

There are various approaches to interest based bargaining that can be applied. It is seldom the case that any particular approach is appropriate for every situation and organization. PIERS' approach trains union and management bargaining committees to make use of an IBB model that they can self-facilitate for all or part of the negotiation process. It also allows several possible engagement points for third party intervention if or when needed. The model is outlined below:

1. Train both union and management leadership in interest based approaches. This would include: communication techniques to build understanding of and confidence in the process; principles of consensus; and a basic problem solving method.
2. Generate a list of issues to be addressed in bargaining: This identify the problems and concerns of each party's constituents for inclusion in the bargaining process.
3. Pilot use of the IBB method on a "hot-button" issue (particularly if it has the potential to derail the process): Apply a systematic, data-driven problem solving method that incorporates an IBB approach to an issue where such a method may be helpful to its solution.
4. Bargain over how to bargain. The parties would agree on ground rules governing their negotiations or other joint activity, the scope of issues to which the IBB process is to be applied; and clarify the boundaries in which they will work. Further, the parties agree on a negotiations time line,
5. Negotiate the issues: take each issue, one at a time; identify interests of all key stakeholders; use root cause analysis and other tools to understand the issue; generate options; establish standards by which any option will be evaluated; reach a consensus and tentative agreement on the issue.
6. Conduct a process check midway through bargaining. The parties assess how well they are doing in terms of achieving high quality outcomes while maintaining or enhancing the strength of the relationship.
7. Evaluate the process and outcome when bargaining is complete and the contract is ratified. It is important to look for ways to achieve improvements.
8. Facilitate plans to implement the agreement. This may include training supervisors and stewards in the process so that they can implement the agreement in the same spirit with which the agreement was reached.
9. Apply the process to other workplace issues such as work redesign, school restructuring, joint future planning, and day-to-day relations. At this point, it is important to try to transform the interest based process from a technique for negotiation to a "habit of mind" and a daily toll of effective workplace life.

The above model offers several points at which third party intervention might be employed to help the parties to move forward, even though it was designed for the organizations who wish to manage the negotiations process on their own.

The model is roughly chronological and situational. That is, union and management leadership may choose to vary from the model by adding steps or revisiting previous steps if they find that they had not prepared sufficiently to move forward effectively.