Companies have to enter negotiations with disclosure, transparency, and accountability as their guiding principles. They must be prepared to answer a number of key questions: What kinds of sacrifices is management willing to make? Why is it important for the workers to sacrifice? How would these cutbacks and givebacks improve the company's profitability? When can workers expect to see a reversal of their declining pay and benefits?
It's not enough for management to issue ultimatums, or to say, "Look how much we're bleeding. We're cutting to the bone, so the unions have to do the same." Management needs to think more in terms of sacrifice. Before you ask someone else to take a cut, you have to take one yourself. Sacrifice must happen across the board, or you'll get nowhere.
A heavy-handed style of management can be dangerous. In the present Royal Mail dispute, management say they're fighting over a shrinking pie, but they would be smart to negotiate with the goal of a win-win agreement for both the company and the workers. Then both sides could start to work at finding ways to expand the pie.
