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There arouse a tussle between the management and the labor union of a local large size sugar manufacturing unit. The management intended to increase the per day working hours for all the employees working in the unit while the workers agreed to this demand on the condition to increase their salaries as well. The Management wanted only to increase the working hours without increasing the salary and ultimately the labor union started a strike.
When it got clear that there is tussle over salary increase and situation needs to solve. To solve the issue, the labor union appointed Mr Kamran (President of labor union) to negotiate with the management. He held meetings with both the management and also key union members to identify the main demands and also the least acceptable conditions to both the parties. It was also agreed that Mr Kamran would only negotiate on the possible increase in the salary between the parties. He carried out a thorough investigation of the reason of management demand for increase hours (increase demand from market) and also calculated the salary and working hours of other organizations in the same industry. Then these findings were presented to both the parties and after many consultations, the management agreed to a 20 % increase in salary for a 2 hours increase in each working day. The labor union also agreed to this. Finally, a written notification was issued in this regard with signatures of the key members from both the parties and issue got solved.
Question No 1:
Identify the type of negotiation adopted in the provided scenario and provide at least two arguments to support your answer.
Question No 2:
Identify all the five steps of negotiation process from the given scenario.
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