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    Generally labor unrest

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    You are in Management for IBX Steel Components. J. D. Brotsky is a top labor leader and has just announced that her union will go on strike against management unless you grant the workers a significant pay raise. Economically, you realize that a strike might cost the company more money than the pay raise, but this might also just be the beginning of a pattern. Should management concede to the wage increase of 25%? Why or why not.

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    Hi,

    Get the answer below.
    Regards,
    Jayant Kumar

    Answer:
    Generally labor unrest has big impact on the performance of a company because the production stops. Due to this, the company's commitments to its customers are compromised because company cannot deliver products ordered by its customers on-time. It reduces the goodwill of the company and hence its profitability sinks. It's important for the company to avoid labor unrest as much as possible.

    When ...

    Solution Summary

    This solution discusses a hypothetical labor dispute and the correct course of action for the management to take when dealing with the union.

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