Negotiation Case Studies April 27, 2009
Update: Chrysler Reaches AgreementLast Friday, we talked about whether a deadline would help Chrysler reach an agreement. Today, we have an answer.
It seems that on Sunday, Chrysler was able to resolve some issues with labor, reaching a concession agreement with the UAW. Here’s the story:
http://news.yahoo.com/s/ap/us_chrysler_labor.
Negotiations are still ongoing with Fiat and Chrysler’s debtors, but things are looking up for the automaker, which may be able to avoid bankruptcy after all.
As a Deadline to a negotiation approaches concessions and the magnitude of concessions often increase. If the Deadline is real -- as this one appears to be -- participants will often start making riskier decisions.
At a Deadline one negotiating option is to simply halt the talks and walk away. It appears that this option probably is not available to Chrysler or its unions.
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