Negotiation: Frequently Asked Questions About Contract Negotiation?

Answer 1

Contract negotiation can be entered into for several reasons. Sometimes the employee is unhappy with the terms. Sometimes the employer needs to change the terms. Since unexpected things can happen in life, contract negotiation is a necessary tool for people involved in business.

Who Initiates Contract Negotiation?

Contract negotiation can be initiated by the employer, the employee, or representatives of either side. If the employee is the member of a union, the union’s representative to the company may initiate contract negotiations on the employee’s behalf. Employers may also find that they need to approach employees about making changes to current contracts because of shifts in business. In general, the party that initiates negotiations is the party that feels that a change in the terms of the contract is necessary at any given point in time.

What Happens if Negotiations Reach a Stalemate?

Sometimes negotiations can drag on for so long that they are ultimately ineffective. If the reason for the negotiation is time sensitive, there can be a situation where the negotiations have to be called off until a new time frame is established. When neither side is willing to compromise during negotiations, the negotiations will be called a stalemate and come to an end while the sides try to come up with new bargaining tactics. In some cases, unionized employees may feel it is necessary to go on strike when they believe that the company is ignoring their requests through negotiation. If a negotiation reaches a stalemate, negotiations will be put on hold until both sides are ready to talk again.

When Will Agreements Go Into Effect?

One of the most important questions about contract negotiation is when the negotiated changes will go into effect. The time table for making contract changes can have a huge impact on the effectiveness of those changes. During negotiations, both sides need to be very clear about when they expect the changes to take place. Sometimes the time table of events can be the most hotly contested item during a contract negotiation. Both sides need to agree on when changes will become active so that they can change their behavior to suit the new contract agreement.