Negotiating For More Than Pennies - Day 2

After a hearty breakfast, I checked out and met up with Cory at 10am for the ride back to the office. Meeting time was 11. We started the session with our own caucus, by finalizing our counter proposal from the union's proposal the day before. Once done, I calculated how much our proposal would cost, and compared that to the union's. We took our time to make sure we did it correctly. The union attempted to join in on numerous occasions, but we told them we just weren't ready. Our caucus ran through lunch, and promised to resume by 1pm. It didn't. We were done by 2:30pm, then called them in.

Hilton Pasadena on Los Robles Avenue

We discussed our counter proposal and they asked more questions. From the tone of their voices, it seemed like they wanted to strike a deal and get to some workable agreement. Their intent was to hasten the time for their members to settle into the right step rate in about 3-4 years, while management's proposal was 7-8 years. And the latter's position was primarily due to affordability. Their counter proposal would move them 4-5 years, while ours was shortened to 6-7 years. But the union felt it was still too long. Stale mate.

Another bone of contention was the interpretation of the terms of the Temporary Agreement (TA) signed by both parties last year, which talked about agreeing to a step rate plan. The TA says that if the members are not moved into a step rate plan by 9/1/2013, then the 3% ATB (across-the-board increase) kicks in on 10/1/2013. Management's interpretation is moving to the step rate is in lieu of the ATB, while the union's belief is that it is in addition to the ATB. From my understanding of the national agreement, the ATB is guaranteed and is never in lieu of, but in addition to. In other words, the union members get a double hit with an increase on 9/1 by moving to the step rate plan, and another increase due to ATB on 10/1. This is why the union was so persistent in having a 2-day meeting, and to get agreement before 9/1.

Management wage counter proposal & step rate plan

At 2:45pm, the union went into caucus to discuss their options based on our counter proposal. In the
meantime, I had to pack my stuff and head out by 3pm for my flight back to Oakland. I wasn't around to hear what the union decided on. However, we were already talking about possible dates to meet next week, in the event no agreement was made.

My cab was waiting outside, and I zipped through the dreaded SCAL freeway. I was at the Bob Hope airport at 3:50pm. By 4:45pm, I was on my plane for the 50-minute flight to the Bay Area.

The next day, based on the executive summary prepared by management's lead negotiator, I learned that the union rejected our proposal, and decided to postpone moving to the step rate plan. Instead, they opted to receive the ATB on October 1st.

Was I surprised? Certainly not. I knew this was coming. Because of the uncertainty on the interpretation of the TA, the union didn't want to risk not having both increases. If it came down to choosing which of the "increase" would they prefer, they would choose the ATB because it guaranteed every member receiving a 3% increase, versus moving to a step rate plan, where almost 100 members will not get even a penny.

For now, I guess the wages discussion will have take another back seat. So what's next ???

Note: Author wishes to acknowledge Hilton Pasadena for the photograph used on this post.