Plug Ltd $($Pty$)$ is a microbrewery that mainly produces craft beer. The organisation acts as a wholesaler that sells its products to retailers around the city. It employs $28$ employees, each specialising in a specific part of the production process. The organisation works in two shift system. The first shift starts at $6$:$00$ and ends at $14$:$00.$ The second shift begins at $14$:$30$ to $22$:$30.$ Each shift has $14$ people working on it$.$ Last month, the employees of Plug requested a $16\%$ increase. The management refused, telling the employees they could not increase their salaries. The employees decided to initiate a go$-$slow, slowing the production process; however, management did not budge. Thus, they went on strike. The employees needed to follow the correct procedure to make the strike legal. Therefore, the strike was not recognised.

The strike compelled the organisation to negotiate with the employees' labour union. Mr Almeida is the HR director of Plug Ltd $($Pty$),$ and he will be responsible for holding the negotiations. Mr Almeida studied the information at his disposal and figured that the board of directors wanted him to offer a minimal increase and get the employees back at work. He knows that the Labour union is also gathering data and will see the reports in the local newspaper because they have halted production. He is not happy because that provides them with bargaining power. The labourunion are aware that they have negotiated similar cases and have been able to receive what they asked for.

Mr Ameida approached the representative of FAWU $($Food and allied workers union$)$ and suggested the offices of Plug hold the negotiations. The representatives were sceptical because they did not believe the location was neutral. They suggested a conference room, and both parties agreed on the garden court hotel. Mr Almeida appointed the Labour relations director and officer to assist him with the negotiation, while FAWU appointed Ms Zhang to lead the representatives. The negotiations took time because both parties had bargaining power; there was almost a bargaining impasse. Ms Zhang agreed to a salary increase of $12,5\%$ if the employees were allowed to learn the other aspects of the manufacturing process.

The parties went to consult with their respective constituencies. Plug Ltd $($Pty$)$ returned to the board of directors while the labour union decided to vote. The constituencies agreed to the terms and drafted and signed a contract. The management and labour force met to review the contract details, and a copy was shared with every member.

Questions:

$1.$ Identify the phases of negotiation showcased in the case study. $(1$ mark$)$

$2.$ Apply the negotiation phases using the case study examples. $(9$ marks$)$