Thursday, March 8, 2012

UAW - GM Negotiations


I think that there were two key negotiation tactics that Bob White used brilliantly while negotiating on behalf of the Canadian division of the UAW. These tactics were when White sent Claude Ducharme to the Detroit meeting and when White make a villain out of John Clout.

White decided to send Ducharme in his place to the UAW meeting in Detroit. I think this action was strategic because I think White guessed that if he went, he would be pressured into an unsatisfactory agreement. By sending Ducharme, who has no power to make such decisions, White avoided these pressures. Also, Ducharme is a French-Canadian. His presence represents the division between the United States and Canada. This division is important to make because the Canadians want their own unique contract with GM. When Ducharme reported back to White, these speculations proved correct. Ducharme advised White that he has no allies among his fellow officers.

When White informed his board of what he considered to be GM’s final offer, none of the board members liked it. In order to sway for the majority vote, White needed to use a negotiation tactic with his own board. White tried to make friends with all of the board members, making kind remarks to their concerns. He reinforced that he understood their concerns but he thought that this was as good as it was going to get. He played nice with all of the board members except John Clout. Clout really went over and beyond with his disgust toward settling on the proposed agreement. In response, White was silent, listening to all of Clout’s complaints. When Clout was done speaking, White had pretended that Clout had attacked him personally. This was a great tactic because it made Clout look like a villain. Also, White was able to shout out responses and facts attacking one person, not the whole board. I think that this is when most other members on the board realized that accepting the proposal was the best decision. Bob White states, “We fought (GM) on principle, we were right, we found common ground, we got some money, let’s get back to work, let’s understand this makes sense economically and let’s talk about the future.” I think this quote displays that White is a great negotiator because he understands what it is about. He understands that it’s about finding common ground and making the negotiation integrative so that both parties are satisfied with the outcome.

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