Transforming UAW Strike Negotiations for a Win-Win Outcome

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In this latest episode of the Automotive Leaders podcast, host Jan Griffiths engages in a compelling conversation with Kate Vitasek, a renowned expert in the realm of collaborative, win-win business agreements. The episode explores the pressing issue of labor strikes within the automotive industry, with a particular focus on the ongoing dispute between the UAW and OEMs. Jan and Kate challenge the conventional power-based negotiation strategies prevalent in the industry and advocate for a transformative shift towards collaborative negotiation methods.

Kate shares her well-established approach to crafting vested agreements that cultivate trust, transparency, and the alignment of interests between negotiating parties. Through real-world examples and success stories, the conversation highlights the immense potential for positive change within the automotive sector. It calls on industry leaders to break away from adversarial relationships, urging them to embrace a culture of collaboration. This shift not only holds the promise of driving innovation and cost savings but also ensures a win-win outcome for all stakeholders. This episode serves as a compelling call to action for the automotive industry, inspiring leaders to revamp their negotiation practices and forge healthier, long-term relationships.

Themes discussed in this episode:

• Labor strikes in the automotive industry
• Conventional power-based negotiation
• The need for a transformative approach
• Collaborative negotiation principles
• The potential for positive change
• Sustainability and Responsibility

Featured Guest: Kate Visatek

What she does: An accomplished author and educator, Kate is a leading authority in strategic partnerships. She also heads research at the University of Tennessee and specializes in the Vested® business model. With experience at major corporations like P&G and Microsoft, Kate provides executive training and coaching, empowering organizations to excel in strategic collaborations and foster innovation.

On leadership: “Don't treat your suppliers or union employees as "us versus them", you're competing against other companies. So, beat the market with your suppliers, beat the market with your employees.”

Mentioned in this episode:

• MEMA (Motor & Equipment Manufacturers Association)
• Graduate and Executive Education Program
• John Nash, Nash Equilibrium
• Vested: How P&G, McDonald's, and Microsoft are redefining winning in business relationships.
• Island Health
• Harvard Business Review

Episode Highlights

[00:01:34] The costly impact of the UAW strike. The ongoing UAW strike and its significant impact on the automotive industry is estimated at over $4 billion. 

[00:06:07] Moving beyond power-based negotiations. The prevalence of power-based negotiation tactics in the industry and the need for a better approach.

[00:09:26] Kate’s Vision for collaborative agreements. Kate’s expertise in collaborative, win-win business agreements and her mission to change negotiation mindsets.

[00:13:53] Embracing a win-win negotiation mindset. Explore the importance of shifting from a win-lose mentality to a collaborative negotiation mindset and discover Kate's step-by-step approach to transforming negotiation dynamics, which focuses on establishing trust and transparency."

[00:21:10] Success of Collaborative Negotiation. The success stories and positive outcomes of organizations that have adopted collaborative negotiation methods.

[00:25:27] A Call to Action: Kate’s words of wisdom. The call to action for the automotive industry to embrace a culture of collaboration, leading to innovation and cost savings for all stakeholders.

Top Quotes:

[00:03:17] Kate: "You've got to change the world one deal at a time. And it changes with changing your mindset.”

[00:05:41] Kate: "I actually don't want Shawn to stand up, I want both of them to stand down. I want them to change their dialogue.”

[00:06:41] Kate: "When we use our power back and forth, we tend to just get on a slippery slope, it gets ugly, and it's a lose-lose for everyone.”

[00:25:32] Kate: “Don't treat your suppliers or union employees as "us versus them", you're competing against other companies. So, beat the market with your suppliers, beat the market with your employees.”

[00:26:12] Kate: “Change the way things are. But don't go with power. That's ugly. That cost is $4 billion. It costs us not to have employees to have dinner on the table.”

[00:27:04] Kate: “I challenge you to redefine winning, and it's not winning at the expense of your supplier. It's not winning at the expense of the labor unions.”