Bargaining Power of Unions
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Which party (union or management) would likely be in a stronger position to bargain for its preferred wage outcome under the following conditions, and why?
1. high profits, an expanding market share, a healthy economy, and the cost of living rising less than two percent per year
2. low profits, stagnant sales growth, uncertain economic conditions, and a projected four percent annual rise in cost of living
Please apa in text cite and reference
Holley, W. H., Jr., Jennings, K. M., & Wolters, R. S. (2012). The labor relations process (10th ed.). Mason, OH: SouthWestern.
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This posting gives you a step-by-step explanation of bargaining power of management and unions during different conditions. The response also contains the sources used.
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The union will be in a stronger position to bargain for its preferred wage outcome under high profits, an expanding market share, a healthy economy, and the cost of living rising less than two percent per year. when the profits are high the businesses want to expand more and invest more. In such circumstances they want to hire more but the supply of labor is less, so the bargaining power of unions increases (a). Since the market share is expanding, the business needs to increase its production to satisfy the higher demand, it requires more workers and the union has a higher bargaining power. When the economy is healthy, it is growing under such circumstances, business activity surges, the GDP expands, and the businesses scramble to hire more workers. This gives the unions power ...
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