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Honest, open dialogue key to effective labor relations

Mon, Aug 16th 2010 12:00 am
By MATT CHANDLER
mchandler@bizjournals.com | 716-541-1654

Labor versus management.

As the middle word might indicate, it is a relationship that takes on an adversarial tone if both sides climb into their respective foxholes and adopt an "us versus them" mentality.

For a new manager coming up the ranks of an organization, facing off against the heads of a union can be a daunting task - be it across the negotiating table or as employee disputes arise.

Geri Grossman can help. As founder and president of My Executive Coach, she helps prepare new managers for the challenges of handling these types of situations. And despite the often-combative nature of labor and management relations, she said there are things managers can do to better position themselves for success.

At her Williamsville consulting business, much of the work with new managers focuses on people skills and training them to be better communicators.

"(Some managers) don't know how to listen," she said. "We work with them on assessing their social skills. How aware are you of your impact on other people, and how do you give the impression that you care about the other side?"

Companies often promote people because of their on-the-job performance but fail to take into account whether they have the leadership skills necessary to succeed at the next level.

"The organization makes the mistake of promoting a very smart person into a position of leadership where, all of a sudden, the leadership competencies that are required come up short," Grossman said. "When you are dealing with labor relations, you are walking a very thin line, and it is a delicate balance between advocating for employee rights and employer interests. You need to have credibility on both sides of the fence."

Erie County Executive Chris Collins has walked that thin line as a businessman in the private sector and, in recent years, in his leadership role in Erie County. Collins said his approach has been to openly communicate with everyone involved, regardless of potentially unpopular outcomes that may result.

"In my case, I don't pull any punches when it comes to good, bad or ugly," he said. "If we are talking about the issues, I am very forthright and direct. You may not like what I say, but you'll know where I stand."

Collins, who leads a workforce that is 98 percent unionized, said public-sector union negotiations were "very different" from what he experienced in the private sector. And he has adjusted to the differing style since taking over as county executive.

"If the unions have a vested interest in the survival of the company (private sector), they are very pragmatic to say if the company goes out of business and the workers all lose their jobs, what good is it to stand firm on wages and benefits?" he said. "That mind-set doesn't exist in government. The mind-set of the municipal workers is ‘Just raise taxes.' They know there isn't a possibility of Erie County going out of business."

Whether it's public-sector government negotiations or a heavily unionized industry such as health care, those on the management side of the table say it comes down to honest, good-faith communication, as well as the ability to separate emotion from the process as much as possible.

Mike Moley, senior vice president for human resources at Catholic Health, said and he sees similar challenges among managers when it comes to workforce issues.

"In our organization, new managers are going to go through leadership and management training," he said. "We discuss in a broader base the roles and responsibilities of the managers in these types of situations."

Moley said a proactive approach goes a long way in heading off potential problems between labor and management.

"The relationship that the manager needs to have with the union representative has to be one built on mutual respect and collaboration," he said. "Individuals should not get emotionally attached to the negotiations but really approach it from an objective viewpoint."

Keeping emotion out of the negotiation process may be easier said than done, however. But Moley said he sees it as critical to long-term success once both sides have walked away from the negotiating table.

"Regardless of what happens in a negotiation, they (the workforce) are our associates and, when this is over, you will still need to engage the associates and be able to lead them."

Tips from the top

There are key attributes new managers must master to be successful in negotiating with employees and unions, according to Geri Grossman of My Executive Coach, Williamsville:

  • Be an active listener. "People want to be heard," she says.
  • Show empathy. "You can be empathetic without having to agree with the other side."
  • Be transparent. "You've got to build that level of trust and credibility with the other side."
  • Live your organization's values. "Too many organizations invest all of this money to develop and promote the values of the company, then the leaders don't live by them. You'll lose that integrity with your employees."
  • Don't rush to judgment. "You've got to learn how to investigate and ask the right questions. You'll waste a lot of energy and time and end up playing the blame game," Grossman says.