THAWING SALARY FREEZE1
1. Introduction
Negotiation is a crucial part of business and is often done when dealing
with an issue. It refers to the process by which people settle the differences by
means of reaching an agreement or compromise while avoiding dispute and
arguments. The case study scenario titled “Thawing Salary Freeze” depicts a
clear re-negotiation on labour demands and rights in between the management
and the labour force. The involved negotiators are an upper management
executive of JBL Publishing- Katherine Knudsen and Alisa Jackson, the union
organiser and representative. This report shall elaborate on stimulating a
discussion regarding negotiation skills from the point of view of Organisational
Behaviour and Business Management. The main purpose of this report is to
present an overview on the process of labour management negotiations.
2. Discussion
2.1. Description of the case
In the give case, Alisa Jackson, the union organiser and representative, is
re-negotiating the contractual terms for the unionised labour workforce at JBL
Publishing with Katherine Knudsen, the Vice President of Production at the
company. It is to mention that the company have a salary freeze across the
board. The renegotiation was concerning three key issues- 7percent increase in
labour wage, improved benefits packages and more flexibility. However, the
main objective of the negotiation is to finalise a 7percent hike in wage for the
labours with seniority.
Katherine assured Alisa that she is improving the health package but the
7percent wage increased has been rejected by the company as there is a salary
freeze. The conflict rise when Alisa addressed that prior to the meeting, she was
only aware about the bonuses that were given to executive board of the
company but still the company is not willing to increase the wages. She stood by
her opinion and wanted to increase the wages for the union employees at any
cost.
Katherine made it clear that the bonus amount was based on the
company’s performance but still Alisa was determined. Katherine even showed
her the pay stub to prove her point. However, Alisa claimed that the bonus
matter is quite relevant to the wage increase that she is asking for and she
suggested that they should relocate the bonus amount so that the labours can
receive of the amount that is currently allocated. Finally, Katherine took a
decision where she said that she can formulate a distribution of bonus and that
she can provide bonus to all the employees on the basis of the company’s yearly
revenue. The negotiation ended upon this agreement between the two.
2.2. What strategy should Katherine take?
Katherine should continuously clarify instead of changing the subject. She
should clarify why she is taking such decision. She should not change the subject
as the entire negotiation process is based on the very subject and if she changes

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Thawing Salary Freeze | Labor Management Negotiations

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