This Week's Negotiation Lessons (Ed to Trade)

It's been a fascinating week for negotiation watchers. From marathon diplomatic sessions in London to local government disputes that turned "toxic," the past five days delivered a masterclass in both successful and failed negotiation dynamics.

At RED BEAR, we believe every headline holds a lesson for negotiators—whether you're closing enterprise deals, managing supplier relationships, or leading internal stakeholder conversations. This week's stories are particularly rich with insights that apply across industries and deal sizes.

Let's break down the key negotiations that shaped this week and extract the principles that matter most.

When Patience Pays Off: The Finnair Breakthrough

After nearly 10 months of challenging negotiations that included industrial action and operational restrictions, Finnair and its pilot union finally reached a tentative three-year agreement. The breakthrough came when the union suspended strike measures in May, creating space for productive discussions on contentious issues including pilot recruitment policies and wet-leased aircraft operations.

The RED BEAR Lesson: Extended timelines aren't always negative if you're using that time strategically to understand underlying interests and build sustainable solutions.

As RED BEAR founder Chad Mulligan often says: "The best negotiators understand that impasse isn't failure—it's information. It tells you exactly where the real value lies for both sides."

Compare this to Yale's police union, which voted unanimously (51-0) to authorize a strike after reaching an impasse with the university. The union has been working under a contract extension since February 2023, with negotiations stalling after Yale issued what it called a "final proposal" in November 2024. The difference? Finnair and its pilots kept the dialogue alive even during the most challenging moments.

When Tension Becomes Toxic: The Axon-Scottsdale Collapse

Perhaps the week's most instructive failure came from Arizona, where Axon withdrew from negotiations with the City of Scottsdale over its new global headquarters. President Josh Isner blamed city officials for creating a "toxic environment" during talks, despite the company putting "a great deal on the table."

This situation perfectly illustrates a critical principle from RED BEAR's methodology: "Negotiation isn't just about what you know—it's about creating the right conditions for productive dialogue. When tension becomes toxic instead of productive, even the best information and preparation can't save the deal."

The same principle played out differently in the Thailand-Cambodia border dispute, where both nations successfully de-escalated military tensions through strategic negotiation rather than force. Thai Defence Minister Phumtham Wechayachai emphasized: "The crucial question is how to end the situation without any casualties. Our main objective is to reduce confrontation."

The Key Difference: Thailand and Cambodia managed tension productively, while Axon and Scottsdale let it become destructive.

Organizational Power in Global Action: The US-China Framework

The week's biggest negotiation story emerged from London, where American and Chinese negotiators agreed to a preliminary framework to ease trade tensions after two days of marathon talks. President Trump announced the deal was "done, subject to final approval with president Xi and me," with China to supply rare earth magnets while the U.S. allows Chinese students in American universities.

This negotiation demonstrates organizational power at its highest level. Both sides brought:

• Clear internal alignment on objectives
• Structured delegation of authority
• Coordinated messaging strategies
• Backup plans for implementation

As our recent analysis on organizational power demonstrates: "Organizational power becomes most effective when it's used with purpose—when negotiators prepare not just their tactics, but the story of their company's value, structure, and alignment."

The same principle operated in Ohio's budget negotiations, where senators sent their version of the $60 billion biennial state budget back to the House, launching final conference committee negotiations. Both chambers leverage their institutional authority and internal alignment to influence the final outcome.

What Sports Negotiations Teach Us About Benchmarking

The San Francisco 49ers are studying the Baltimore Ravens' recent 3-year, $36.75 million extension for receiver Rashod Bateman as a potential template for their negotiations with Jauan Jennings. Both players have similar production numbers, potentially setting a $12.25 million annual value benchmark.

This exemplifies smart preparation—using comparable market data to establish realistic negotiation parameters. Meanwhile, Pittsburgh Steelers pass-rusher T.J. Watt missed mandatory minicamp while seeking a new contract, facing potential fines exceeding $100,000.

The Lesson: Having market data is powerful, but timing and leverage matter just as much as benchmarks.

When Information Doesn't Equal Action: The Biopharma ROFN Analysis

Jefferies analysis of 50 right-of-first-negotiation agreements over the past decade reveals that many Big Pharma companies don't follow through with acquisitions despite securing ROFNs in licensing deals. However, Sanofi stands out as consistently executing on these agreements, including its recent $470 million acquisition of Vigil Neuroscience.

This analysis highlights a critical gap between negotiation rights and negotiation execution. Having the right to negotiate first means nothing if you don't have the organizational discipline to act on it consistently.

Three Universal Lessons for Every Negotiator

Whether you're negotiating a multibillion-dollar trade framework or a local development project, this week's stories reveal three universal principles:

1. Strategic Patience Beats Reactive Urgency

The Finnair breakthrough demonstrates that extended negotiations aren't necessarily failed negotiations. When you're using time strategically to understand interests and build trust, patience becomes a competitive advantage.

2. Emotional Environment Management Is Non-Negotiable

The contrast between Thailand-Cambodia's successful de-escalation and Axon-Scottsdale's toxic breakdown shows that managing the emotional climate of negotiation is just as important as managing the substantive issues.

3. Organizational Power Requires Internal Alignment

From the US-China framework to Ohio's budget talks, the most effective negotiators combine external positioning with internal coordination. Your negotiation power is only as strong as your organization's ability to act on it.

Looking Forward: What's Next

As we head into next week, several high-stakes negotiations remain in play:

• Final Ohio budget negotiations (deadline June 30)
• US-China framework implementation awaiting Trump-Xi approval
• Ongoing US-Iran nuclear talks amid escalating tensions
• Multiple labor disputes across various sectors

Each of these situations will test the same fundamental principles we've seen this week: the power of strategic patience, the importance of emotional environment management, and the necessity of organizational alignment.

Your Turn

What negotiation challenges are you facing in your organization? Are you managing tension productively or letting it become toxic? Do you have the internal alignment needed to exercise your external power effectively?

The principles we've highlighted this week apply whether you're closing a $50,000 supplier agreement or a $50 billion trade deal. The scale changes, but the fundamentals remain the same.

Ready to strengthen your negotiation capabilities? Our 2025 State of Negotiation Trends Report provides deeper insights on power dynamics, stakeholder alignment, and strategic positioning that can help you navigate today's complex deal environments. Download your free copy here.

What negotiation lesson from this week resonates most with your current challenges? Share your thoughts in the comments below.