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Tag: contract negotiation

  • Cal State faculty just got a 5% raise. Here's why they're upset.

    Cal State faculty just got a 5% raise. Here's why they're upset.

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    California State University officials are unilaterally raising faculty pay by 5%, rejecting demands for much higher increases and ending contract negotiations with the faculty union, a move that has ramped up labor strife as a systemwide, weeklong walkout approaches.

    The pay hike effective Jan. 31 is far from the 12% increase for the 2023-24 academic year sought by the California Faculty Assn., which represents professors, lecturers, counselors, librarians and coaches. University officials said Tuesday the union’s salary demands were not financially viable and would have resulted in layoffs and other cuts.

    “With this action, we will ensure that well-deserved raises get to our faculty members as soon as possible,” Leora Freedman, vice chancellor for human resources, said in a statement. “We have been in the bargaining process for eight months and the CFA has shown no movement, leaving us no other option.”

    Charles Toombs, president of the California Faculty Assn., lambasted the university’s decision to end contract talks.

    “CSU management expressed nothing but disdain for faculty,” he said in a statement. “CSU management has never taken seriously our proposals for desperately needed equity transformation for CSU students, faculty, and staff.”

    The divide over pay had reached an apex in recent weeks, with faculty staging one-day strikes at four campuses in early December to voice dissatisfaction with the university system’s pay proposals. A weeklong strike is planned at all 23 of the system’s campuses starting Jan. 22, which marks the beginning of the spring semester for most students.

    The CSU and faculty union were engaged in so-called reopener bargaining, in which parts of the existing contract can be negotiated before it expires in June. Bargaining sessions were scheduled for this week, but university leaders imposed their final offer during a session Tuesday, according to the union.

    Toombs said the union, which represents 29,000 workers, had planned to “bargain in good faith” and explore a solution that could avert a strike. Instead, he said, they were met with “disrespect from management.”

    “Management’s imposition gives us no other option but to continue to move forward with our plan for a systemwide strike,” he said.

    Before Tuesday’s session, the sides had reached an impasse, meaning they could not reach an agreement on their own. That triggered a report from an independent fact -finder, who recommended the sides agree to a 7% increase.

    Having exhausted the negotiation process without an agreement, the system was permitted to impose a final offer during bargaining. Faculty members may strike to protest the system’s decision, though the union has not yet said if they will extend the walkout planned for this month beyond a week.

    Throughout negotiations, union leaders have called on the CSU to draw on money from its reserves to pay for increases, accusing the system of “hoarding billions of dollars in reserves instead of investing in faculty and staff.” An Eastern Michigan University professor commissioned by the union to conduct a financial analysis of the CSU found the system is “in very strong financial condition” with “a high level of reserves.”

    But university officials have disputed the union’s findings, contending that they need to maintain the reserves to pay for short-term or emergency expenses. They also said some of the money the union says is part of the university’s reserves cannot be used on salaries.

    “We are committed to paying fair, competitive salaries and benefits for our hard-working faculty members, who are delivering instruction to our students every day and are the cornerstone of our university system,” Freedman said. “But we must also operate within our means to protect the long-term success and stability of the university, our students and our faculty.”

    Freedman noted the 5% raise aligns with increases given to unions representing other CSU workers.

    In addition to across-the-board increases, the union had also sought to raise the salary floor for its lowest-paid workers to $64,360 from $54,360. During the one-day strikes last month, lecturers said they live in financial precarity, with many having to teach classes at multiple campuses or take on debt to pay for basic living expenses.

    The faculty association also sought other improvements, including caps on class sizes, an expansion of paid parental leave to a full semester, accessible lactation rooms, and gender-inclusive restrooms and changing rooms.

    The CSU’s move is unlikely to stem disagreements over pay. With the current contract set to expire in June, both sides will probably begin negotiations over the next contract in the coming weeks or months.

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    Debbie Truong

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  • How to Power Up Negotiations with Credible Data | Entrepreneur

    How to Power Up Negotiations with Credible Data | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Negotiation is an essential skill for entrepreneurs in creating business relationships that provide value for each party and position you for growth. At its core, negotiating is about reaching terms that create a balance that meets the needs of both parties.

    Achieving that balance is a natural struggle as both sides push to secure the best deal. Market and performance data and insight give you the leverage to ensure a fair and favorable outcome.

    In this article, we’ll examine why data is the foundation that supports a strong negotiating position, how to employ the data, and how to leverage tech and advisors to collect, analyze and present insights.

    Related: The Art of Negotiation is Misunderstood. Here Are Some Lesser-Known Tactics I Use to Win.

    Data is vital to supporting your position

    Negotiating is a challenging endeavor. It requires a specialized skill set and experience. And in a tough economy where inflation is high, liquidity is low and supply and demand are in flux, it’s more difficult to find terms all parties to a deal (of nearly any type) will accept. You have to work smart to get the terms that will position your business to succeed while satisfying the other party’s expectations.

    Some deals fail to produce optimal outcomes when one or both parties don’t have a clear picture of the economic and operating environment. Developing that sight (e.g. situational awareness) by collecting and presenting relevant data boosts each party’s confidence in the terms they can feasibly accept.

    Moreover, pursuing a data-backed negotiation strategy ensures you’re making the best decision going into the transaction or agreement and that you know your financial and operational situation — and the criteria for a deal that won’t sink your ship.

    What types of data should you collect? Some essential categories include:

    • Macro, regional and niche market demand and supply indicators.
    • Personal and organizational financials.
    • Pro forma financial statements (revenue and expense projections).
    • Asset, service and corporate performance benchmarks.

    Related: 5 Steps to Master the Art of Negotiation

    How to leverage data in negotiations

    In what types of negotiation is data valuable?

    For nearly all forms, but most commonly for entrepreneurs in the process of:

    • Swaying investors and partners — raising capital.
    • Leasing or buying operating space and equipment.
    • Selling and securing products or services.
    • Contracting with suppliers/vendors.
    • Hiring staff — presenting employment offers.

    How can we use this data in negotiations?

    Most importantly, leveraging data in the negotiating process helps demonstrate the upside for both parties to the agreement. Even when the agreed terms aren’t ideal or what they were expecting, if they feel the outcome will improve their position and they got the best deal for the circumstances, a contract is more likely.

    A crucial role of data in negotiations is supporting bidding and asking value/prices. Market data and performance metrics can demonstrate a sector’s demand and supply factors and relationships. Even if the numbers don’t work in your favor, they ensure all parties are comfortable with the terms. If the price or terms are contentious, comparable analyses based on market pricing and sales data can validate or encourage a reevaluation of pricing.

    Related: A Negotiation Expert Shares Tactics from Elon Musk’s Twitter Deal Every Entrepreneur Should Know

    Objective data provide evidence of feasibility for your proposal and the stated objective. The perceived viability of your venture is fundamental when raising capital and pitching investors. Providing data that supports your market assumptions and projections, including demand fundamentals and market growth, makes your pitch more credible and facilitates investors’ due diligence processes.

    Performance metrics pertaining to your assets, products, companies or units highlight your core competencies and illustrate your track record. Important data points include revenue, relative profit among offerings, expense ratios and numerous other KPIs.

    Presenting these data points and insights in a polished and upfront manner lets your potential stakeholders know you’re serious, organized and equipped.

    Related: 4 Things to Do When You’re in a Negotiation

    Leveraging tech and advisors to source, organize, interpret and report the data

    The data and analyses presented are only as credible as the sources, methods, tools and analysts contributing to their aggregation and preparation. Incomplete, inaccurate or irrelevant data will undermine a deal as fast as a sinking foundation.

    Therefore, a business or entrepreneur must have the systems, time and expertise to assemble and interpret the data.

    To accomplish this, build an integrative strategy comprising data management technology and an internal or external team of analysts and advisors.

    Data management and analysis systems, of which there are industry-specific solutions for most sectors, enable entrepreneurs to collect performance and market data continuously and automatically. The results are valid and timely insights available when they’re needed to formulate terms and evaluate counteroffers.

    When time is of the essence, the best opportunities go to those who are prepared and ready to act with assurance. If your core competencies( e.g. your strengths or personal value proposition) aren’t in data research and analysis, there’s an opportunity to build an in-house and outside team of experts to bridge the knowledge and experience gap.

    Additionally, respected team members enhance your organization’s credibility and capabilities.

    Related: Make Your Next Negotiation a ‘Win-Win.’ 3 Tips for How to Do That.

    Fair and fruitful

    Introducing quality data and analyses into negotiations gives credibility to assertions and projections and validates any offers, proposals and ventures.

    When offers and counteroffers are supported by objective data that illustrates why the proposed terms are fair and provide the most upside to both parties, reaching an agreement and forming a fruitful business relationship are simpler and more likely.

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    Robert Finlay

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