Term Paper on "Managing Difficult Negotiations Third Party Approaches"

Term Paper 3 pages (1069 words) Sources: 1 Style: APA

[EXCERPT] . . . .

Negotiation

Difficult Negotiations: Arbitration in the Red Lobster-Olive Garden employment lawsuit

In Chapter 19 of Negotiation, authors Roy J. Lewicki and David M. Saunders provide an example of a Red Lobster waitress accused of stealing a customer complaint from a box of comment cards that were supposed confidential. However, this is only one example from the restaurant chain's much longer history of problematic labor negotiations. And unlike this singular example, which was dealt with internally as a part of a peer review board, some employee disputes have spiraled beyond the company's immediate framework of control, and necessitated third party and legal intervention.

In 2002 employees of California Red Lobster and Olive Garden restaurants alleged that the chains, both run by a subsidiary of Darden Restaurants, Inc., refused to allow breaks for its employees, charged workers for uniforms, and made employees maintain their own uniforms. Under California Labor law employees working at least 31/2 hours are entitled to one paid break, and earn a second paid break after six hours. Employees who work more than five hour shifts are entitled to a 30 minute break which need not be paid. Employees are entitled to a paid ten-minute break for every four hours of work. Also, employers are required to pay for the cost of purchasing and maintaining employee uniforms "and may not require employees to purchase anything of value, including uniforms, from the company "("Red Lobster and Olive Garden Employees Settle Meal and Rest Break Class Action for $9.5 Million," 2006, Wage Law: California Wage and Hour Law).

The California court denied the defendant's motions for summary judgment upon the alleged violations and compelled the restaurant workers and representatives of both chains to enter into a process of formal arbitration (Lewicki & Saunders 2005: 46-47). Presumably this marked a "failure of previous negotiation processes" (Lewicki & Saunders 2005: 43-44). This case was not responsive to internal review, as many of the plaintiffs no longer worked for the company, but still alleged that they deserved to be compensated for back pay and for the costs they had unfairly born in the upkeep of their uniforms. The arbitrated negotiations that transpired only brought a satisfactory conclusion to one of the largest rest period class actions ever in California after three long years.

Employees demanded payment of up to one hour of pay per day for each meal period violation, and one hour of pay per day for each rest period violation and restitution for employees who were required to purchase uniforms or equipment. In the eventual settlement that was reached, the company did not admit liability but did compensate the workers ("Red Lobster and Olive Garden Employees Settle Meal and Rest Break Class Action for $9.5 Million," 2006, Wage Law: California Wage and Hour Law). Although the negotiation that was eventually reached was successful, its long duration may be testimony to the third party technique's supposedly anesthetizing effect. Also, the tendency to "split the difference," or for arbitrators to put a dampener on what they see are extreme requests by plaintiffs in terms of dollar awards may have caused the parties involved to drag their feet, in hopes of gaining more money on the part of the… READ MORE

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