A: Hi Katherine. K: Hi Alisa, how are you? A: Im good thanks. K: It was OK coming over here, no problem? A: Yeah, yeah, no problem. So I called this meeting, I know we are in the final stages of negotiating the contract. Just recently I found out the executives got incredibly large bonuses and I thought there was no more money. This is very frustrating. I didnt know anything about this. I didnt understand why I wasnt notified, basically on such an important point. Im ready to call the New York Times and scream bloody murder because this is unacceptable for me not to know this important point. And I dont understand why you wouldnt tell me the truth. K: Well I think we should take a step back. I absolutely told you the truth with regard to the wage increase. Across the board there are absolutely no increases to be offered. The money that youre mentioning is related to bonuses awarded to executives for last years performance and came from last years budget. A: I didnt know about this. K: Honestly, its not something that is part of this negotiation because I do not have the ability to go into last years budget to try to help the employees for this year. Im given a pool of money, which is this years money. The fact that certain people have been awarded at year end, a bonus and the fact that this payout may occur at some time during this year is completely unrelated. A: I should have known this information. If this is something that is a company thing, and I have negotiated in good faith thinking the money is not there, finding out about this, you can imagine how frustrated I am. So I want to know, really Im not calling you a fibber, but I dont believe that there is no money. Im having a hard time wrapping my brain around that. K: I want to mention two points. First, you are new to this industry, and I dont want to mention that many times because I want the fact that we are going to be working together or years, I have been doing this for 10 years, and there are things that you are not familiar with and this is one of them. A: Case in point is that this should have been explained. K: Absolutely not. Thats my exact point in the opposite. A: You dont think I should have known about this important information? Its money, its money. Its the budget. K: Absolutely not. And the budget relates to last years revenue. Again, we can keep going on this or we can work on the points that can actually help the employees. Case (1) - BUSI 3331 Business Negotiations Dr. Bassem Nasri PMU-Spring 2020-2021 Case1-Thawing Salary Freeze Page 6 A: I think that you are trying to avoid discussing this because you know that it would be an integral part of this discussion. K: Its last years numbers, based on revenues from two years ago, when those numbers come in, that bonuses are awarded. Its completely different. And I must say that I am personally offended that you are now saying that this is in some way, a fraudulent nondisclosure and our company prides itself on full disclosure of its financials and taking care of its employees. Youre going along a very thin line here saying that youre questioning my ethics. A: Im not personally attacking you. K: Well youre saying that I didnt disclose something that relates to another years budget and that somehow that is not full disclosure, I just dont agree. A: Well see thats where we keep butting heads, you keep saying the money is last years, but you see the money is still in this years budget. K: Its not. The payout is this year, out of last years budget. The cheques are being cut this year but its completely unrelated. A: I dont understand that. K: Weve had several meetings now; I do understand that the number one point is salary increases. Its not a matter on negotiating and finding the number, there is no money to be had on salary increases, neither in management or non management is awarded a single dollar. My pay stayed the same, Im more than happy to show you my pay stub, as well as disclose the fact that its just not on the table for negotiation. A: No thank you, I dont want to see you pay stub. K: Were spending a lot of time on an issue that I have no leeway to change at all. A: Well what about the bonus thats going to next year? Why dont you give that money to the people, as opposed to once again, giving it to the upper management? K: Well what happens at the end of the year is going to determine if theres a bonus. The fact that there was a bonus last year does not mandate that there is going to be a bonus this year. I dont have funds. A: But there is money waiting around obviously to be given to somebody as a bonus. K: At year end, if there is money available, depending on how revenues go from now until the end of the year, and depending on the managements performance at the end of the year, thats a determination that can happen. I cant say right now. A: Well the dollar amount youre saying, but its clear to me according to the way things have been working that someone is going to get a bonus. K: And I think that is the wrong assumption. There are years when the company does not do well that it does not award bonuses. We have had years where the company is running negative and bonuses are not awarded. So youre talking about money that possibly, could be, if revenue turns around, could be awarded at year end. And you and I are going to have a negotiation next year, and if the company does better, we are going to have more money to award the employees. A: Why cant it be allocated differently? How can you help me get that money to my workers? Thats the issue here. Case (1) - BUSI 3331 Business Negotiations Dr. Bassem Nasri PMU-Spring 2020-2021 Case1-Thawing Salary Freeze Page 7 K: I think what we need to do, and what we can address and work with, is that there is nothing that can be done on the salary increase. But I can formulate bonus distributions, providing bonuses to the employees based on this years revenue. A: I definitely dont understand why this wasnt presented before. K: Because we were discussing the salaries of the individuals, you came to me wanting a 7% salary increase; there is salary freeze across the board. But I am willing to come to the table and say, the employees, I am very well aware, contribute to the revenues of this company and if they cant receive it in salary increase, we can take a look at the revenues at year end and we can make an exception, we can work with them on formulating a new type of structure, that has a bonus component. A: OK, I would definitely like this in writing. K: What I suggest is that I draft this; I will get this to your desk so that you can review it and then we can meet on Tuesday and not lose much time. And I will get that to your desk by tomorrow morning. A: Ok that would be fabulous. I really appreciate that, and I hope that its a little more smooth sailing. K: And I do too. Its really important that the employees feel really good about their jobs and I think we are on the right track to get there. A: OK, Id like to think so. Alrighty Katherine. K: Ok then I will see you on Tuesday and if you dont get that document by morning, and then just contact my office.

just a short explain why she choice this answers: every question alone with short explain.

What strategy did Katherine take?

A Continue to clarify.

Katherine is accused of lying. She should:

C Refute accusation.

Why does Katherine offer to show pay stub?

C Proof of salary freeze and gain Alisa trust

What should Alisa argue?

A To split bonus money.

Why didnt Katherine offer this earlier?

C Was stonewalling.

In this negotiation..?

A-JBL gave too much