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Factors That Influence Labor Negotiations

The union's major goal is to negotiate with the employer a written agreement covering both employment conditions and the union-member relationship itself on terms that are acceptable to the union. The terms must be acceptable to the employer, too, if negotiations are to be successful. Apart from conditions within the company, external factors have an influence on what the two sides want and so on the outcome of negotiations.

With that as the background, assume that a large, nationwide company is negotiating a contract at the present time. Respond to the following:

• Discuss one economic, one political, one legal, and one social factor that might exert some influence on these negotiations. Briefly identify each factor and explain how it impacts management and union positions, and therefore the negotiations.

Solution Preview

A downturn in the economy could impact the union position by making them more flexible in their demands, especially in relation to wages. This could affect management by making them more demanding, due to the fact that they understand that union members will more desperately hold onto their jobs ...

Solution Summary

This solution describes important factors that affect labor negotiations.