Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Bargaining Power
When speaking about unions and the leverage they do or do not have at any given time, a pertinent question can easily become whether the unions are in a better position to bargain when the company is doing well or when it is doing poor. Also relevant is how the wider economy is, how the cost of living is changing (or not changing) and so forth. While it may seem like an easy answer to give, there can be factors that lean one way or another even if the overall picture is gloomy. While unions will generally have a better position to bargain when the economy, in both its current and projected future states, are good, there is more than one factor that matters and which way they all fall can vary from factor to factor. The other hypothetical is that the company is achieving lower profits, sales growth is stagnant, economic conditions are uncertain and the cost of living is growing at about four percent. Generally speaking, the first of those two positions would lead to a better outcome. However, there are a few reasons that might not necessarily hold true over the course of the negotiations (Patton, 2016).
Analysis
There are two different scenarios posed for the author of this report and the author has been charged with picking which one will probably lead to a better bargaining position and outcome for the union. The first hypothetical is a situation where profits are high,
...
First of all, "uncertain" does not mean bad. Even if profits are low and sales are slow, this does not mean that the economy is going to tank. Indeed, "low" profits does not mean "no" profits. While a raise in wages and such would be far from a certainty, to suggest that the employees have no leverage is far from true. At the very least, the employee should be able to stave off any cuts that would hurt the pay and prospects of the employees. The ace in the hole, however, that the employees would have on their side in the "bad" scenario is that the cost of living is twice as much as it is in the "good" scenario. Indeed, if someone's cost of living per month is $1,000, this…
References
NBER. (1982). Cost-of-Living Adjustment Clauses in Union Contracts. NBER. Retrieved 9
September 2016, from http://www.nber.org/papers/w0998
Patton, C. (2016). Tug of war: How HR can prepare to negotiate with unions. University
Business Magazine. Retrieved 9 September 2016, from https://www.universitybusiness.com/article/tug-war-how-hr-can-prepare-negotiate-unions
Economic Conditions of Foreign Country Economic Conditions of a Country Moldova -- Youth Unemployment and Technological Development and Capacity within the Economy One of the most critical concerns of the current Work Bank is the high rate of youth unemployment in South Eastern Europe. This phenomenon of high youth unemployment, it is feared, will lead to a state of increasing instability across the region. More and more young people in this region are
The depression in the recent era can affect the productivity of workers along with their entire performance of work. The inability to concentrate on making informed decisions can lead to the accidents that can be unbearable. Moreover, the incident of Benghazi has caused the people of America being an employee to face chronic depression that may require them to take medication (Confer, Easton and Fleischman 112-115). Today, only 56% of
Employee Relations Financial Crisis Managing Employee Relations in the Event of a Financial Crisis A Look into Management can Effectively Navigate through Adverse Conditions Austerity Protests (Dowling, 2012) Employee relations can often be a difficult aspect of maintaining the overall health of an organization. In general, employee relations often refer to the act of fostering productivity, motivation, and employee morale in an organizations human resources pool. However, there are some circumstances in which it
Economic Challenges Canada Faces In recent years, the challenging economic condition in Canada has emerged as a concern for citizens, policy makers and the government alike. Canada faces challenges in terms of creating a more innovative society, as the country continues to experience a significant productivity gap compared to other advanced industrial economies. The Canadian industry appears to be slower in successfully developing, applying and marketing innovative products, processes and services
Participants are also protected by prohibiting employers from deducting costs from their tax liability of not complying with ERISA6. Both ERISA and the Prudent Investor Rule prohibit certain types of transactions. According to Laura Jordan6, the U.S. labor secretary has the power to grand exemptions from prohibitive rules under ERISA. When such exemption is not granted and fiduciaries engage in prohibitive activities regardless, the result could be liability to repay
Many businesses could no longer operate in this fashion and likely closed their doors leading to a rise in unemployment. This is an example of the rule that Hitler had on the Pre-World War II German economy. The people of the nation were completely subject to his policies and because the economy was in such a vulnerable position as a result of the First World War, that Hitler's policies