CONTENDING WITH UNCERTAINTY IN COLLECTIVE NEGOTIATIONS

WILLIAM EARLE KLAY

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DOI: 10.2190/MLEE-7W14-8E7W-TGKX

Abstract

Collective negotiations must deal with a variety of uncertainties about the future. This is especially true in the public sector where negotiations have emerged in an era of economic uncertainty induced by inflation, within political systems which contain substantial inherent behavioral uncertainties, and in which the newness of negotiations makes it more difficult for participants to anticipate each other's behavior. Several strategies for dealing with these uncertainties have emerged, including cost of living contingencies and union sponsored revenue forecasts, but some of these are likely to be marginally effective or counterproductive. Two conjectures are offered regarding anti-inflationary compensation systems and negotiator strategies to illustrate the utility of a theoretical perspective that places greater emphasis on the role which uncertainty and the future play in collective negotiations.

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