NEGOTIATING FOR SUCCESS IN TODAY S PORT & MARINE TERMINAL INDUSTRY
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1 NEGOTIATING FOR SUCCESS IN TODAY S PORT & MARINE TERMINAL INDUSTRY
2 Don t Give up! Our greatest weakness lies in giving up. The most certain way to succeed is to always try just one more time. Thomas Edison
3 What are Key Negotiating Strategies? Know the party you re negotiating with, do your homework. Know your bottom line. Keep your goal in mind. Have a strategy. Search for win-win opportunities Source: Entrepreneur, World Wide Web, Googled September 17, 2015
4 Key Negotiating Strategies (cont.) Listen. Don't be in a hurry. Garner support. Build trust. Don't take the issues or the other person's behavior personally. Don t be afraid to ask for what you want. Everything is negotiable. Source: Entrepreneur, World Wide Web, Googled September 17, 2015
5 Case Study 1: 1994 Base Ball Strike Background to Negotiation Players distrust of Owners. 8 th work stoppage in MLB history and 4 th inseason stoppage in 22 years. Owner s proposal to share local broadcasting revenues amongst all teams: team salary cap (fitting payrolls into a more evenly based structure) eliminating arbitration. Owners moved forward (without MLBPA) proposing revenue sharing and salary cap plan. Owners further amended proposal giving commissioner of MLB total power to negotiate (contracts terminated at end of season). MLBPA rejected owner s proposal mainly over salary cap & arbitration. Source: Bright Hub Project Management, World Wide Web, Googled on September 17, 2015
6 Case Study 1: 1994 Base Ball Strike Negotiation Failures No exact formula on how revenues would be shared under salary cap scheme, therefore, both parties came ready to disagree with whatever concessions would be offered. No fallback position offered MLBPA resulting in a take it or leave it stance by owners. Owners had been ready to continue season under old contract, however did not communicate this to the MLBPA. Players decided to strike. No World Series in 1994 The strike ended when U.S. District Court judge, Sonia Sotomayor issued a preliminary injunction disallowing owners to continue 1995 season with replacement players. New agreement finally drawn up with few modifications (graduated luxury tax on team payrolls exceeding $51M, went up to $58m in 199) Source: Bright Hub Project Management, World Wide Web, Googled on September 17, 2015
7 Case Study 1: 1994 Base Ball Strike Did it work or not? NO! Neither side came ready to negotiate. Refused to come up with workable solutions (no compromise) Failed to recognize their interdependent relationship (no trust) Both sides scarred (no win-win) This may have been the last & best opportunity for Major League Baseball to establish an NBA/NFL type salary cap Source: Bright Hub Project Management, World Wide Web, Googled on September 17, 2015
8 Case Study 2: UPS Strike of 1996 Background to Negotiation UPS founded in 1907 Part-time employees as major business strategy 1996 UPS workforce of 182,000 part-time workers averaging hours per week. UPS workforce represented by Teamsters Union Strategy Careful research of statutory rights of Part-time workers vs the current UPS Teamsters Union contract analyzing ratios and proportions related to part-time workers vs full-time employees including: Disparities in salaries Retirement fund benefits Limited opportunities for full-time hiring and advancement. 2-week strike, Prepared Employees for the hardship by giving lots of notice and communicating the reason clearly (garnered support of UPS workers and international labor union) Source: Bright Hub Project Management, World Wide Web, Googled on September 17, 2015
9 Case Study 2: UPS Strike of 1996 Did it work or not? YES, Teamsters did their homework and garnered support! Immediately 10,000 jobs converted to full time By close of 1996, only 40,000 of the 182,000 jobs were part time Closed the gap on salaries and benefits Job security Improved worker conditions Source: Bright Hub Project Management, World Wide Web, Googled on September 17, 2015
10 Port Negotiations: Labor With no direct role in labor negotiations Ports do help both parties with information and advocacy. Major port projects planned and status Customer base affecting labor demand Berth assignments and priorities Port leases with member companies Regulations now or in the pipeline that may result in jurisdictional issues Any contemplated privatization
11 Port s as Negotiators: MOUs Oxnard Union High School District - Global Trade & Logistics Oxnard & Port Hueneme Chamber of Commerce - Advocacy & Promotion Economic Development Collaborative VC California Lutheran University - World Trade Center
12 Port s as Negotiators: Union Staff Salary and Benefits Property Services Public Services Fiscal Responsibility Equity & Fairness
13 Port as Negotiators: Port Customers Competitive (competitive analysis know your competition) Balance competiveness with a viable revenue stream Service Flexibility Understand all Port user business needs to create win/win partnerships Build in incentives to encourage volume & velocity Discounts, revenue sharing Priority berthing Responsiveness to Market Conditions
14 Port as Negotiators: Services Pilots Tug Operators Fuel Maintenance
15 Port as Negotiators: Naval Base VC Shared Port Mutually Beneficial Projects Port Security & Training Coastal Trident Joint Use Agreement Wharf 3/Revenue Sharing Outlease Properties LTM Funds
16 Port as Negotiators: Infrastructure Shoreside Power ARB Guidelines The Need for Negotiation EMISSION REDUCTIONS (30 Years) 2.58 Tons PM (92% ) Tons NOx (98% ) 4,122,43 tons CO2 (55% )
17 A Successful Negotiation Reached compromise Created a Win-win, a mutual benefit Created a positive impact on relationship Built mutual trust Create a true partnership that promises to last Coming together is a beginning; keeping together is progress; working together is success Henry Ford
18 We re Open for Your Business
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