Business-union compromising

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Yesterday’s breakthrough (shock if you as some, long awaited if you as others) agreement between Swedish union IF Metall and their counterparts is currently the big issue in Swedish business press: the union agreed to 20 percent wage cuts (locally) in an action to save businesses.

Unionization is a hot topic; not just in the supply chain sphere where unions in some case are considered a supply chain risk. But what often forgotten; not just in this case but in many other cases (in business as well as in the homes and on the streets); is that in any situation all parties have obligations as well as rights.

Unfortunately; in the everlasting clash between unions and business representatives; this is most often illustrated by one party saying “I have the right to fire who I wish” while the other party counters with “I have the right to more pay”. While the union agreement in Sweden is still being debated it does put the finger on the issue of compromise and it’s place in any negotiation. Win win situations will never come about without some compromising.

Former Israeli Prime Minister Levi Eshkol has often been quoted saying: “When necessary I make a compromise, and if that is not enough I make another compromise, and yet another compromise until I have it my way”. In today’s shaky economy; skillful compromises may be a true success factor.

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One Response to “Business-union compromising”

  1. jens edgren Says:

    Good thoughts, unions as a risk and asa reward/support for the bad times. I think it so much better to educate people than send them home to play chess or walk thier dogs.
    jens

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