The union and management bargaining teams for American Phone Company are preparing for upcoming negotiations. The last round of negotiations in 1986 was disastrous; there was a strike and relationships were damaged. The leadership on both sides would like things to go better this time around and has said that they want to work toward a more cooperative relationship. Trust between the two groups has eroded over the years, however, any attempts to employ a mutual gains approach here is not necessarily met with enthusiasm by their constituencies. The negotiations revolve around three issues likely to be on the table in 1989: wages, employment security and medical benefits.